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Economy

China's Consumption Engine: 280 Million Chinese To Be "Affluent" By 2020

CAIXIN MEDIA, CHINA DAILY (China), BOSTON CONSULTING GROUP (USA)

Worldcrunch

BEIJING- China’s middle class will triple in the next 10 years, according to a new report by the Boston Consulting Group (BCG). By 2020, it should have 280 million affluent consumers, representing 35% of the country’s consumption and 5% of the world’s total consumption.

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Photo Jonathan Kos-Read

The report, titled The Age of the Affluent: The Dynamics of China’s Next Consumption Engine, says “China is projected to overtake Japan and become the world’s second-largest consumer market” in the next three years.

Today, writes Caixin media, China’s affluent population is estimated at around 120 million people, with a combined annual buying power of around $590 billion.

According to the BCG report, China’s affluent class is defined as having an annual household disposable income between $20,000 and $1 million. The upper affluent class – those earning between $40,000 and $1 million -- will account for 20% of the 280 million affluent. Their spending is expected to be multiplied by five in the next ten years, representing $3.1 trillion.

"Much attention has been paid to China's middle class and high-net-worth individuals," said Vincent Lui, a BCG partner and an author of the report, according to China Daily. "But the affluent - richer than members of the middle class but not as wealthy as the super-rich - have spending habits and attitudes that are distinct."

The report said affluent consumers replaced their old belongings quickly as a way to pursue emotional gratification, status and recognition. It also described them as being relatively sophisticated, a trait they exhibit in their willingness to travel abroad and try out new brands, according to the China Daily.

"A lot of affluent consumers buy luxury brands in response to social necessity and peer pressure," said Angela Wang, managing director of BCG.

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Society

Talking To My Four-Year-Old About Death

As he is faced by questions about death from his 4-year-old son during a family visit to Argentina, Recalculating author Ignacio Pereyra replies honestly. "I can only tell him the truth, at least the little truth that I know..."

Image of six colorful candies, on which a mini statue of death is standing, looking at a man running away.

A miniature representation of death standing on candies.

Ignacio Pereyra

BUENOS AIRES — An exchange with my four year old.

— Nacho…

— Yes?

— Am I going to die in Argentina or in Greece ?

— I don’t know… why?

— I want to die in Argentina. Can I?

— Well, I don’t know, it could happen in any country. I just hope it won’t happen for a very long time!

— I want to die in Argentina.

— Why?

— Because I like Argentina.

The talk I had with Lorenzo last week was in gentle tones. It’s something I am not used to with my oldest son, who at four, is usually loud, effusive and extremely expressive when we talk.

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