China's middle-class group is expected to expand further to reach a population of 550 million within the next three years, a recent report from consumer leader McKinsey predicted.
According to CNBC, McKinsey Senior Partner, Daniel Zipser, noted that consumption in Chinese middle-class markets "is robust," especially as new consumers join this particular group.
Among the international companies that see an excellent opportunity in the Chinese middle-class market is Walmart. The American retail giant is reportedly planning to invest further in the country.
Walmart's plans include the establishment of 14 more Sam's Club membership stores within the next three years. If plans push through, the stores will reach a total of up to 45 locations across the country.
Chief of Corporate Affairs for Walmart's China unit, Daniel Shih, confirmed that the company has spent well over 400 million yuan over the past year to improve its stores in the world's second-largest economy.
While global brands continue to build up their momentum to cater to the growing middle-class Chinese consumer group, domestic brands continue to grow. China is known for its nationalism and consumers are great supporters of their homegrown products.
Among the local brands that compete with the likes of Adidas and Nike is Huili. The sneaker brand, according to purchasing site Fenqile, is overtaking the two sneaker giants in terms of sales growth.
iQiyi is also experiencing the same growth as it said in its June report that it has attracted over 100 million subscribers in China. The video streaming site is the first online video network to have achieved the said paid subscribers.
Meanwhile, the upper-class group in China also continues to flourish and is expected to gradually see growth in the coming years. PBS NewsHour released a report over the weekend, indicating that the country is giving birth to billionaires faster than any other nation.
The report noted that while China used to be poor country decades back, things changed when then-leader Deng Xiaoping allowed for private business reforms that were necessary to build a stronger economy and welcome more millionaires into the fold.
At the moment, Chinese consumers account for around a third of the world's massive $1.3 trillion luxury market. Spending on luxury goods in the country is expected to increase further by up to 10 percent this year.
The news of China's growth in the middle class and upper-class groups comes as negotiators are set to meet with their American counterparts in Washington on October 10. The country is celebrating 70 years of becoming the People's Republic of China.
During his speech for the celebrations, Chinese President Xi Jinping said, "No force can ever shake the status of China, or stop the Chinese people and nation from marching forward."
