Emerging middle classes drive sales of electronic goods

The emerging middle classes of developing nations are driving the sales of products such as electronic goods and beer, while increasing prosperity among a small percentage of Chinese consumers is expected to lead to an increase in luxury sales.

Emerging middle classes drive consumer spending of goods such as mobile phones, beer and high-end electronics, according to a July report published in the McKinsey Quarterly by business analyst group McKinsey & Company.

The two billion members of the middle classes in emerging markets, defined as having an annual household income between $22,500 -$56,499, currently spend $6.9 trillion per year, and that figure is expected to increase to $20 trillion during the next decade.

The number of middle class consumers with growing disposable incomes is increasing throughout emerging nations including Brazil, Russia, India and China (BRIC countries). The report found that the emerging middle classes of these countries aspire to own both products by multinational brands and more localized goods, however these consumers are only middle class in regional terms and do not have as much spending power as consumers of the same social bracket in countries such as the United States.

The report found that consumers in emerging markets and particularly in the BRIC countries are not constrained by the affordability of products such as consumer electronics, mobile phones and beverages such as beer. 

Despite this, these same consumers are a lot more limited when it comes to buying products such as luxury cars, high-end designer fashions or western cosmetics which are widely available in the developed world.

Though the increase in the percentage of households predicted to be able to afford these luxury products is low, the increasing prosperity of those households that already can means that high-end or premium western manufacturers are targeting this category.

China, predicted to be the world's largest economy by 2020, is one such market where the rising prosperity of the existing middle class has led to a drive in the luxury goods market, particularly in the area of high-end fashion design.

Statistics from business monitoring site Euromonitor and reports published in the China Daily newspaper indicate that China currently accounts for 25 percent of the world's luxury goods market.

 

PROMOTED VIDEO
Have you tried new the Independent Digital Edition apps?
Life and Style
ebookNow available in paperback
ebooks
ebookPart of The Independent’s new eBook series The Great Composers
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

ES Rentals

    iJobs Job Widget
    iJobs General

    Recruitment Genius: Web Development Manager

    £20000 - £25000 per annum: Recruitment Genius: A fantastic opportunity has ari...

    Recruitment Genius: Service and Installation Engineer

    £22000 - £28000 per annum: Recruitment Genius: A fantastic opportunity has ari...

    Recruitment Genius: SEO / Outreach Executive

    £20000 - £23000 per annum: Recruitment Genius: Our client is a global marketin...

    Recruitment Genius: Junior Estimator

    £17000 - £18000 per annum: Recruitment Genius: A fantastic opportunity has ari...

    Day In a Page

    A timely reminder of the bloody anniversary we all forgot

    A timely reminder of the bloody anniversary we all forgot

    Who remembers that this week we enter the 150th anniversary year of the end of the American Civil War, asks Robert Fisk
    Homeless Veterans appeal: Former soldiers pay their respects to a friend who also served

    Homeless Veterans appeal

    Former soldiers pay their respects to a friend who also served
    Downfall of Dustin 'Screech' Diamond, the 'Saved By The Bell' star charged with bar stabbing

    Scarred by the bell

    The downfall of the TV star charged with bar stabbing
    Why 2014 was a year of technological let-downs

    Why 2014 was a year of technological let-downs

    Security breaches and overhyped start-ups dominated a year in which very little changed (save the size of your phone)
    Cuba's golf revolution: But will the revolutionary nation take 'bourgeois' game to its heart?

    Will revolutionary Cuba take 'bourgeois' golf to its heart?

    Fidel Castro ridiculed the game – but now investment in leisure resort projects is welcome
    The Locked Room Mysteries: As a new collection of the genre’s best is published, its editor Otto Penzler explains the rules of engagement

    The Locked Room Mysteries

    As a new collection of the genre’s best is published, its editor explains the rules of engagement
    Amy Adams on playing painter Margaret Keane in Tim Burton's Big Eyes

    How I made myself Keane

    Amy Adams hadn’t wanted to take the role of artist Margaret Keane, because she’d had enough of playing victims. But then she had a daughter, and saw the painter in a new light
    Ed Richards: Parting view of Ofcom chief. . . we hate jokes on the disabled

    Parting view of Ofcom chief... we hate jokes on the disabled

    Bad language once got TV viewers irate, inciting calls to broadcasting switchboards. But now there is a worse offender, says retiring head of the media watchdog, Ed Richards
    A look back at fashion in 2014: Wear in review

    Wear in review

    A look back at fashion in 2014
    Ian Herbert: My 10 hopes for sport in 2015. Might just one of them happen?

    Ian Herbert: My 10 hopes for sport in 2015

    Might just one of them happen?
    War with Isis: The West needs more than a White Knight

    The West needs more than a White Knight

    Despite billions spent on weapons, the US has not been able to counter Isis's gruesome tactics, says Patrick Cockburn
    Return to Helmand: Private Davey Graham recalls the day he was shot by the Taliban

    'The day I was shot by the Taliban'

    Private Davey Graham was shot five times during an ambush in 2007 - it was the first, controversial photograph to show the dangers our soldiers faced in Helmand province
    Revealed: the best and worst airlines for delays

    Revealed: the best and worst airlines for delays

    Many flyers are failing to claim compensation to which they are entitled, a new survey has found
    The stories that defined 2014: From the Scottish independence referendum to the Ice Bucket Challenge, our writers voice their opinions

    The stories that defined 2014

    From the Scottish independence referendum to the Ice Bucket Challenge, our writers voice their opinions
    Stoke-on-Trent becomes first British city to be classified as 'disaster resilient' by the United Nations

    Disaster looming? Now you know where to head...

    Which British city has become the first to be awarded special 'resilience' status by the UN?