1. The Growing Middle Class in Emerging Markets
Erin Lowdon
INTB – 3000
August 28, 2013

2. What are we going to cover?
What is the “middle class”?
Middle Class Consumption
Trends within the middle class
What are we going to cover?

3. What is the “Middle Class”? (US)
“the typical home is worth about $231,000, accounting for $17,600 in mortgage payments and other costs per year”
“For the 50 percent of families in the middle of the scale, household income ranges from $51,000 to $123,000 for a typical four- person, two-parent family. The median is about $81,000. Those numbers are from 2008…”
What is the “Middle Class”? (US)

4. the number of households in Mexico with annual disposable incomes over US$50,000 is expected to reach 7.1 million by 2020, and 9.4 million in Brazil. For both countries this is an increase of over 50%.

5. India’s middle class is about 5% of its population.

9. South Africa

10. China’s Middle Class Video Clip
/watch?v=72QsNSJk-Qc
3:00 to 5:11
China’s Middle Class Video Clip

11. Causes of change in the middle class
Income
Personality
Increase in spending
Causes of change in the middle class

12. What encourages these changes
Increase in income
Opportunity of improvement of living situation
Influence of others
Peer Pressure
Relatability
What encourages these changes

13. The Middle Class and their consumption
How does consumption change?
Increase in food consumption
Eating different foods
Using more energy
Using more water
The Middle Class and their consumption

14. The Middle Class and their consumption
Where does most of the middle class live?
How many cars does the average middle class household own?
Two medium sedans or an equivalent
The Middle Class and their consumption

15. Latin American Middle Class
“In the past decade, the middle class in Latin America grew 50%, and now represents 30% of the population.”
“This is welcome news for the millions of Latin Americans who fall into the middle class income bracket of US$10-US$50 per capita per day. ”
Latin American Middle Class

16. Sources South Africa China and Brazil Car Stat Income Stat
PERS/Visagie,%20J.pdf
China and Brazil
growth/Middle-class-growth-in-emerging-markets--- China-and-India-tomorrow-s-middle-classes
Car Stat
economy/slideshows/how-to-gauge-your-middle-class- status/6
Income Stat
economy/slideshows/how-to-gauge-your-middle-class- status/2
Home Stat
economy/slideshows/how-to-gauge-your-middle-class-status/3
Latin American Stats
crecimiento-clase-media-america-latina
Sources