August 29th, 2012

Groovy Kol

The new fave markets

"Asia’s middle class is currently one of the fastest growing population groups in the world. While today Asia contains less than 25 percent of the world’s middle class population, the OECD sees this figure doubling in the next 15 years." (source)

For the purposes of their research, DB postulates that the middle class, in the most general, global sense of the term, encompasses people with an annual income between $ 15-150K. And by that metric, nowadays an increasing number of households from Asia are getting into this category. Meanwhile, in its research about the developing economies for 2010, OCDE determines as "middle class" those who could afford daily expenses between $ 10 / 100 (depending on the particular country). The same document predicts that by 2020 the middle class in North America would shrink to 10% from the global middle class. A decrease is expected in the share of Europe and Latin America as well. In comparison, over half the middle class households would be already in Asia.

But of course identifying the middle class is not solely based on the income. According to the marketing definition, it consists of "young and active people with an average or high income". They're highly educated and socially active. Which is why the growing of the middle class tends to bring an economic growth and increased political activeness.

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