2020 nearly 70% middle class from small cities

WASHINGTON (Reuters)-The number of middle-class and affluent consumers in China will grow from 150 million to more than 400 million over the next 10 years, with nearly 70% of them coming from small cities, according to a new study released yesterday by Somaly Mam, a Boston consulting firm.　　If multinationals want to cover 80% of China's middle class and wealthy consumers, they have to enter 340 cities, but if they want to maintain the same coverage within 10 years, they need to enter nearly 550 cities, the Boston Advisory advises. The middle-class and affluent consumers defined in the Boston consultancy report are consumers who earn more than 5000 yuan a month. Urbanization has accelerated the modernisation of many of China's emerging cities, the report said. By 2015, China will likely become the world's second-largest consumer market, overtaking Japan, after the US. By 2020, China's middle class and wealthy consumers will grow from 150 million to more than 400 million, of which Two-thirds will reside in smaller cities.　　The per capita disposable income of nearly 800 urban areas, including urban and township parts of towns, exceeds the current level in Shanghai, and these sectors will show the strongest consumer confidence and willingness to spend. Boston Consulting believes that by 2020, Chinese consumers will lead the world, and will continue to maintain a global leading position. It is therefore recommended that multinationals succeed in seizing the opportunities offered by the middle class and affluent consumers of small cities.