Wealth is accumulating rapidly with investable assets projected to increase from RMB 21TN in 2015 to RMB 45TN in 2020. Personal consumption is expected to experience double digit growth, eventually accounting for over three-quarters of China’s total consumption by 2020. The Chinese mass affluent class is achieving a new state of mind and will be the driving force in shaping the Chinese consumer’s ‘New Normal’.
The mass affluent population is experiencing a major shift in behaviours towards wealth and lifestyle, signaled by increased allocation to investments and consumptions, with more emphasis on balanced and diversified investment as well as meaningful experiences to elevate lifestyles. At the same time, they are still grappling with basic needs, with shaky economic and social security, discontent over cost of living and lagging development of wealth management and basic welfare.
Supported by the insights from a survey with 1,000 Chinese mass affluent consumers, this Oliver Wyman reports aim to reveal the evolving aspirations of the Chinese mass affluent class, and to contrast that with the limitations and dilemmas they faced. Several new themes for consumer businesses and wealth managers to succeed in a new era of consuming and investing are highlighted for actions.