Middle Class Families Purchasing Power to Push Economic Growth
The middle class in China is rapidly increasing and is now preparing itself and making its presence known based on economic growth. Based on a survey of the Discover China’s Emerging Middle Class that was done by ZenithOptimedia that the urban middle class have reached 125 million in 2012 and is said to reach 356 million in 2020.
Although the middle class is not the richest, it represents a large number of young people are in the category and promised more wealth was they have more purchasing power in the future. The country’s definition of the middle class is different among research institutions and firms as the chairman for Zenith Optimedia explains that western middle class families has 30 percent leftover income after all basic expenses are made and the biggest leftover will be used in healthcare and education for their children.
The survey also includes middle class families with an annual household income of around 72,000 yuan in tier one and tier two cities and 48,000 yuan in the three tier and four tier cities. 57 percent of these respondents has a average annual household income of 179,000 yuan and most of these respondents possess high academic degrees.
Also middle class families have their own cars or at least planning to buy one in the next couple of months. These families are also drawn to technology such as the internet, computers, tablets and smart phones. Internet use among the middle class is 34 percent higher than the overall public and time spent on digital media is also higher than watching television.