Articles by 王家琦

Goldman Sachs Report: Chinese Consumers' Purchasing Power Overestimated by the Outside World! Mainstream Daily Spending at $7, Only One-Fourteenth of the US

Rising incomes across Asia have spawned a huge new generation of consumers, with the largest growth coming from China: China's employed population exceeds the combined employed populations of Europe and the US. This employed population refers to 'China's mainstream consumers.' As their numbers and quality grow, their consumption demands and preferences will have a significant impact on the global economy. A profile of China's mainstream consumer groups: The purchasing power of China's mainstream consumers is not as strong as perceived by the outside world: of China's 770 million employed people, only 2% have incomes reaching the level for individual income tax, and only about 11% of China's population can be defined as 'middle class.' Meanwhile, their daily consumption averages only $7, compared to $97 for the average US consumer. This 'strength' is more about external confidence in China's macroeconomic development and expectations of consumption pattern shifts.