China’s growing middle class spurs demand for more than just apparel, footwear, and iPhones
There are numerous aspects to our Rise & Fall of the Middle Class investing theme. In the developed markets we tend to take for granted the access to food, water, education, healthcare, and other services. As disposable income in the emerging markets rises, we will see growing demand for those products and services above and beyond clothing, footwear, and Apple’s latest device.
A recent survey of 2,000 middle to upper-income Chinese by Ernst & Young revealed that 80 percent view China’s serious pollution problem as a major health worry. People in China are also anxious about the costs of getting sick – 93 percent of respondents with insurance coverage said their coverage was less than satisfactory. They viewed the Chinese government’s basic health insurance plan as minimal at best. The fear of financial disaster from a devastating illness haunts the daily lives of many people in China.
China’s middle class is predicted to hit 550 million people within the next five years. And the biggest growth will be in the “upper middle class,” which earns substantially more than the “mass middle class,” according to consultants McKinsey & Company.
Source: China’s growing middle class needs insurance – Business Insider
