Chinese consumer Income distribution and evolution across cities Present(2010) major Existence of Advanced cities Developing cities 13 cries 27% of urban GDP. 15% of urban population 80 cities. 35% of urban GDP; 20% of urban population Mainstream Consumers in Advanced Cities 88 88 7 Future(2020) 22 EMerging Mainstream 220E Consumers across China Lagging cities 309 cities: 33% of urban GDP: 45% f urban population 188 cities: 5% of urban GDP: 14% of urban population 如 53 75 1 56 25 220E Source: McKinsey Insight China-Macroeconomic Model Update March2011)
Chinese Consumer Source: McKinsey Insight China-Macroeconomic Model Update(March2011) Present(2010) •Major Existence of Mainstream Consumers in Advanced Cities Future(2020) •Emerging Mainstream Consumers across China
Chinese consumer Behavior Household annual consumption by category Increasing spending on trit ions percent CAGR 2010-2020E Personal items 100%=064 Aspiration-Driven Trading Up → Judge people by 20 /hat they buy Apparel 10 Health care Rise in Expectation 10 Household products > Sought Comfort and quality 9 In appare 12 ersonal items → Use We| known brand as Recreation equipment indicator of quality and safety 12 Recreation and cu ture services Education 7 Transportation Communications Source: McKinsey Insight China-Macroeconomic Model Update March2011)
Chinese Consumer Behavior Source: McKinsey Insight China-Macroeconomic Model Update(March2011) Increasing Spending on Personal Items Aspiration-Driven Trading Up →Judge people by what they buy Rise in Expectation →Sought Comfort and quality in apparel →Use Well-known brand as indicator of quality and safety 改進