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
Arts and Entertainment
tv

First full-length look is finally here

Life and Style
life
Voices
A mother and her child
voices
Arts and Entertainment
Film director Martin Scorsese
film
News
news

The party's potential nominations read like a high school race for student body president

Voices
The veterans Mark Hayward, Hugh Thompson and Sean Staines (back) with Grayson Perry (front left) and Evgeny Lebedev
charity appealMaverick artist Grayson Perry backs our campaign
Arts and Entertainment
Cold case: Aaron McCusker and Christopher Eccleston in ‘Fortitude’
tvReview: Sky Atlantic's ambitious new series Fortitude has begun with a feature-length special
Voices
Three people wearing masks depicting Ed Miliband, David Cameron and Nick Clegg
voicesPolitics is in the gutter – but there is an alternative, says Nigel Farage
News
i100
News
people
Sport
Chelsea manager Jose Mourinho
footballI have never seen the point of lambasting the fourth official, writes Paul Scholes
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: .Net / SQL Developer

    £25000 - £35000 per annum: Recruitment Genius: A skilled .NET developer with e...

    Recruitment Genius: IT Technical Support Engineer - PC/Mac

    £25000 - £30000 per annum: Recruitment Genius: This IT support company are cur...

    Ashdown Group: Product Manager - (Product Marketing, Financial Services)

    £30000 - £35000 per annum + Benefits: Ashdown Group: Marketing Manager - Marke...

    Recruitment Genius: External Relations Executive

    £33000 per annum: Recruitment Genius: An External Relations Executive is requi...

    Day In a Page

    Isis hostage crisis: The prisoner swap has only one purpose for the militants - recognition its Islamic State exists and that foreign nations acknowledge its power

    Isis hostage crisis

    The prisoner swap has only one purpose for the militants - recognition its Islamic State exists and that foreign nations acknowledge its power, says Robert Fisk
    Missing salvage expert who found $50m of sunken treasure before disappearing, tracked down at last

    The runaway buccaneers and the ship full of gold

    Salvage expert Tommy Thompson found sunken treasure worth millions. Then he vanished... until now
    Homeless Veterans appeal: ‘If you’re hard on the world you are hard on yourself’

    Homeless Veterans appeal: ‘If you’re hard on the world you are hard on yourself’

    Maverick artist Grayson Perry backs our campaign
    Assisted Dying Bill: I want to be able to decide about my own death - I want to have control of my life

    Assisted Dying Bill: 'I want control of my life'

    This week the Assisted Dying Bill is debated in the Lords. Virginia Ironside, who has already made plans for her own self-deliverance, argues that it's time we allowed people a humane, compassionate death
    Move over, kale - cabbage is the new rising star

    Cabbage is king again

    Sophie Morris banishes thoughts of soggy school dinners and turns over a new leaf
    11 best winter skin treats

    Give your moisturiser a helping hand: 11 best winter skin treats

    Get an extra boost of nourishment from one of these hard-working products
    Paul Scholes column: The more Jose Mourinho attempts to influence match officials, the more they are likely to ignore him

    Paul Scholes column

    The more Jose Mourinho attempts to influence match officials, the more they are likely to ignore him
    Frank Warren column: No cigar, but pots of money: here come the Cubans

    Frank Warren's Ringside

    No cigar, but pots of money: here come the Cubans
    Isis hostage crisis: Militant group stands strong as its numerous enemies fail to find a common plan to defeat it

    Isis stands strong as its numerous enemies fail to find a common plan to defeat it

    The jihadis are being squeezed militarily and economically, but there is no sign of an implosion, says Patrick Cockburn
    Virtual reality thrusts viewers into the frontline of global events - and puts film-goers at the heart of the action

    Virtual reality: Seeing is believing

    Virtual reality thrusts viewers into the frontline of global events - and puts film-goers at the heart of the action
    Homeless Veterans appeal: MP says Coalition ‘not doing enough’

    Homeless Veterans appeal

    MP says Coalition ‘not doing enough’ to help
    Larry David, Steve Coogan and other comedians share stories of depression in new documentary

    Comedians share stories of depression

    The director of the new documentary, Kevin Pollak, tells Jessica Barrett how he got them to talk
    Has The Archers lost the plot with it's spicy storylines?

    Has The Archers lost the plot?

    A growing number of listeners are voicing their discontent over the rural soap's spicy storylines; so loudly that even the BBC's director-general seems worried, says Simon Kelner
    English Heritage adds 14 post-war office buildings to its protected lists

    14 office buildings added to protected lists

    Christopher Beanland explores the underrated appeal of these palaces of pen-pushing
    Human skull discovery in Israel proves humans lived side-by-side with Neanderthals

    Human skull discovery in Israel proves humans lived side-by-side with Neanderthals

    Scientists unearthed the cranial fragments from Manot Cave in West Galilee