GDP in China in the first quarter of 2021 increased by + 18.3%, and in 2020, China was the only country in the world to maintain economic growth, achieving + 2.3%.
Not only that, in 2021, with 1,058 billionaires (+ 259 compared to 2020), China has overtaken the United States (which has “only” 696) in this special ranking.
But for Italian companies, it is not just a question of reaching billionaires, but also the millionaires there are many in China!
A recent report by the Hurun Research Institute tells us that in China there are over 2 million families with assets of over 1.5 million dollars (in Italy they are 400,000 and unlike the Chinese, they do not seem to be growing according to the latest study by BCG).
The report indicates that these households will be a pillar of China’s GDP growth and consumption in the coming years, with trillions of yuan (millions of dollars) poised to move on to the next generation.
China’s large group of wealthy families are already contributing steadily to China’s economic growth. The Hurun report showed that households with more than $ 1 million spent 3 trillion yuan in total last year, which means that 0.3% of the total Chinese population created 3% of China’s GDP last year.
These families also represent a kind of security: the Chinese consumer market will continue to flourish in the future despite the pandemic or any other external fluctuations. “In about three to five years, it will be evident how the trend in consumption will be guided by them”, notes the report, adding that “about 78 trillion yuan will be passed on to the next generation in the next 30 years”.
These numbers can only tell us something obvious: China is and will remain a key market for the high quality products made in Italy if Italian companies are able to enhance their brands and products with adequate communication.