Boost In Chinese Household Income Spurs “Trading Up” Trend

Growing buying power is giving Chinese consumers the desire – and the ability –  to buy goods and services that are a notch or two above the ordinary in terms of price and quality, Nielsen research finds. The average annual household income in China increased from $1,022 to $3,999 between 2000 and 2012 – a fourfold increase. At first this trading-up-to-premium trend was reflected in smaller purchases, like more expensive yogurt drinks. But it has grown to include all categories of FMCG (fast-moving consumer goods), “ from infant baby formula to liquid milk, from a bottle of skin moisturizer to a tube of toothpaste.” And sales of luxury cars have tripled since 2007.