Quick news flash.
Average gross income is < $5500 per year. (2010)
All this "new money"? Let's talk smaller.
Average gross income is < $5500 per year. (2010)
All this "new money"? Let's talk smaller.
70% of Chinese are not even really part of the economy, but they count for the average. Those who read Xinhua are part of the economy.
But yeah, you're right. We're not talking about 100K per year.
But there is $ in numbers. If every single person in China invested $1 in BTC
What I was trying to bring across is that 30% of Chinese, that's 300 million, are not so much different from us in their actual income and daily lives.
That's a vast over-estimation. I'd say 30 million would be more accurate. There are about 30 million Chinese with income comparable to US/EU.
The vast majority are much lower. New college grads make about $500/month salary in China, and that's considered very good start salary for a college grad.
Regarding Chinese purchasing power:
Quote from: Wikipedia
The market for luxury goods in the People's Republic of China composes a significant proportion of all luxury goods sales worldwide.
As of 2010, China is the world's second largest consumer market for luxury goods,[1] next only to Japan,[2] and having surpassed the United States in 2009.[3]
The World Luxury Association estimated the total amount of consumption for luxury goods in China was US$8.6 billion in 2008.
This accounted for 25% of the world's luxury goods sales. According to Ouyang Kun, the Chief Representative of the World Luxury Association in China,
"The disposable income of Chinese people has been constantly rising in recent years. Global luxury brands now see China as the next Japan."[3]
http://en.wikipedia.org/wiki/Luxury_goods_in_the_People%27s_Republic_of_China
Quote from: The Economist
By some forecasts China will be the second-largest consumer market in the world by 2015, not far behind America. Chinese people already buy more cars than people in any other country: 13.5m last year to Americans' 11.6m. China is on its way to becoming the biggest luxury-goods market. The central government made an increase in domestic consumption one of the priorities of its latest five-year plan.
http://www.economist.com/node/18928514
http://www.economist.com/node/18928514
Quote from: The Economist
The feelgood factor
A survey by McKinsey of Chinese consumers found that after an initial burst of “if you’ve got it, flaunt it”, motives for buying foreign luxury brands were becoming more subtle. Some respondents saw having the right car as a visiting card with which to impress potential business partners. Many considered a fancy car a delightful self-indulgence rather than something to show off to others. Mr Müller-Ötvös sees the same trend among Rolls-Royce buyers: they are less interested in exterior bling, more in interior comforts, “like having the fur inside your coat”.
In China the market for luxury cars in the past decade has grown by an average of 36% a year, far outstripping the 26% annual rise in its overall car market. Even as growth slows down in the next few years, McKinsey expects the premium-car market to maintain a lead, expanding by an average of 12% a year to 2020, compared with around 8% for the car market as a whole. By then China will be the biggest market for luxury cars.
http://www.economist.com/news/special-report/21576225-why-everyone-wants-be-top-end-market-dreams-wheels
A survey by McKinsey of Chinese consumers found that after an initial burst of “if you’ve got it, flaunt it”, motives for buying foreign luxury brands were becoming more subtle. Some respondents saw having the right car as a visiting card with which to impress potential business partners. Many considered a fancy car a delightful self-indulgence rather than something to show off to others. Mr Müller-Ötvös sees the same trend among Rolls-Royce buyers: they are less interested in exterior bling, more in interior comforts, “like having the fur inside your coat”.
In China the market for luxury cars in the past decade has grown by an average of 36% a year, far outstripping the 26% annual rise in its overall car market. Even as growth slows down in the next few years, McKinsey expects the premium-car market to maintain a lead, expanding by an average of 12% a year to 2020, compared with around 8% for the car market as a whole. By then China will be the biggest market for luxury cars.
http://www.economist.com/news/special-report/21576225-why-everyone-wants-be-top-end-market-dreams-wheels
Don't forget the biggest point -- there are more millionaires in China that anywhere else in the world. The average income per capita may be low; but the population of affluent potential investors is extremely high -- there are plenty of people with silly money here.
