Affluent households in China are concentrated geographically

 28-Apr-17, Global Demographics 

As the overall level of affluence in China has increased so has an increasing proportion and number of households reached the income/spending level where they are commercially attractive to more than just local retailers and service providers and manufacturers. Typically, this is households with 2 persons (1.4 wage earners) and a combined income before tax of USD20,000 or above (RMB130k).

Image: Global Demographics

After 2021 the income segment USD20-50k will stabilise in absolute size and growth will move up to the next highest income level. In short, in urban China, the growth segments are households with an income more than USD50k pa.

These affluent households are relatively concentrated geographically. In 2016 there were 32 cities where households with income of more than USD50k exceeded 100,000. With the exceptions of Chongqing, Wuhan (Hubei), Chengdu (Sichuan), Changsha (Hunan) and Kunming (Yunnan), they are all located along the eastern seaboard of China.

 Read the full article  

 Insights