American Students are Interested in Learning about China
While most Lotus Chinese Learning students are children, I still teach adult students who are interested in learning Mandarin Chinese. Many of these adult students have plans to travel in China for business or China is a big part of their company’s future.
Anyone who reads the news knows that China is a growing consumer market with a large middle class. In my previous life, I was a marketing manager for a consulting company that assisted foreign companies in China. We had a steady stream of clients who were interested in selling everything from Belgian waffles to North American yoga pants in China.
Is China’s Middle Class What you Think it Is?
Almost invariably, I could tell that the products would be less successful than their makers dreamed that they would be. Often, a cheaper, local option was already available. Or the product had very little appeal to the local market. If you wouldn’t try selling marinated chicken feet in America, pitching artisan Greek cookies in China is just as foolish. I know the size of the Chinese middle class inspired big ambitions in these clients, but the truth about the Chinese middle class is not what you think.
Most of my adult students think either one of two things: Chinese people are still running around in Mao jackets living the lives of subsistence farmers or Chinese people drive their Lamborghinis to the Louis Vuitton store to buy a new handbag for every day of the week. Many businesses with interests in China are hoping that the second scenario is the one that is closer to the truth. Well… China’s population is still 43% rural.
There are people cruising around Shanghai in their Lambos, but those folks are the elite of the elite. If you are interested in learning about China’s ultra rich, check out the Hurun report.
The Gap Between Rural and Urban
Anyway, back to the rest of the country. Not only is China’s population still 43% rural, but there is a big difference between the lives of rural and urban people. In America, people in rural areas average about 4% poorer than urban people. In China, rural people are on average 63% poorer than urban people. There is a huge gap between the lifestyle of professionals in Beijing and famers in Anhui.
What counts as “middle class” in China, is also a bit different that what we think of the middle class in America. The raw numbers are promising: by certain measures, China has a middle class population of about 330 million. The entire population of the US is about 327 million!
Seems like a lot of middle class people, right? Not so fast, that figure includes people with household incomes of $8,000 a year. They are not subsistence farmers, but they don’t buy a lot of iPhones either.
Still Interested in Doing Business in China?
If, after reading these sobering facts the Chinese middle class, you are still convinced that China is in your business’s future, get in touch. You can also read about class options for adult learners here.
**Big thanks to Mario Gonzalez Fuentes, phD (aka Mr. Lotus Chinese Learning) for the statistics in this post**