McKinsey has in recent years, produced two reports evaluating the consumer market in China, one in 2010 considered luxury consumers in particular, and one in 2011 focused on the growth of the middle and affluent class. In our model, we use base data from both reports to estimate the number and split of households by income and to allocate potential spending patterns for these consumer groups.

The estimated split of the three household income groups over a 10-year period is therefore shown below by number of homes by income group and year. ….

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