By:
The Next Silicon Valley
Posted on:
August 20, 2010 3:45pm
World's middle class reshapes economy, technology
Emerging regions around the world, most notably in China, India, Asia, Europe and South America, are being increasingly touted as present and future economic drivers. It's part of a broader shift in Asia and the world driven by a growing generation of 'emerging affluent' consumers.Read more
China's become "the world's second largest economy" we learned this week, ahead of Japan, behind the U.S. McKinsey & Co. lends some insight into this transition in a new report titled "The Coming of Age: China's new class of wealthy consumers," available
here.
Long the largest and most predominant consumer market in the world, the U.S. is no longer the main engine driving economic growth in the consumer space. This new global reality shocks and surprises some in the post-war baby boomer generation in America and Europe - especially in light of the protracted economic stagnation in the West.
So as U.S. powerhouses like General Motors claw their way back into the global market from the brink of extinction, it's not too surprising to learn that growing future business -and technologies - will come from marketing and producing goods and services designed for Asian and eastern markets - not just repackaging American goods. See "Levis unveils new brand for Chinese market."
For China it's all in the numbers, which add up to 1.3 billion consumers.
Of these, an estimated 420 million are middle class - or at least affluent enough to be serious Internet users and thus a demographic for many consumer - and technology - oriented products.
In the U.S., Google's eyes widen at the mention of such a vast audience - but alas, it's Baidu, not google in the cat bird seat in China now. In the wake of this change there has been a flurry of news about labor strife in China's high tech sector. Looked at differently, these are just growing pains for any middle class population - and nation. When wages go up, spending follows.
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