Targeting the rising middle class in emerging markets, some caution to consider

One of the most spectacular megatrend is undoubtedly the rising middle class in the emerging markets. In China and India for instance, each year the life standards of tens of millions of people are rising to levels where they can afford to spend money on other things than just vital products.

This constitutes a very clear and defined opportunity for plenty of (Western) companies. The market for certain products is growing considerably, simply because of this growth. However, as the case of Tata's Nano car shows (amongst other examples), things are not that simple.

Laurie Duthie from the University of Los Angeles has been studying the middle classes of China extensively. Here's some of her advise advise for those targeting the rising middle classes as a market:

• income is not the same as spending power, so consider closely which sub-segments you are covering;
• look at who these middle classes are benchmarking their spending patterns to (it's mostly not to the Western world's middle class);
• the (self-)perception of middle classes can vary hugely dependent on country, profession, etc.;
• Financial Services and Education should have the biggest opportunity.

Interesting stuff: