In Asia, rising incomes are creating an enormous new class of consumers. Asia’s working population is larger than those of the US and Europe combined. As more Asia consumers gain purchasing power, their needs, preferences and aspiration will have a powerful effect on the world. While Asian consumers witnessed enormous growth in recent years, we are only at the tip of the iceberg.
In China, only 11% of China’s population has reached the middle class. As China and the rest of Asia moves beyond the basics, these new consumers will be looking to their futures: health and wellness and their families’ education. Spending on recreational activities – including travel, dining out, sports and gaming – is much lower in China than it is in other countries. That gap means that as incomes rise, this category, especially travel, could see the biggest growth.