By Kenny Lam and Laxman Narasimhan
Everyone knows that Chinese consumers are cramming shopping malls, tour buses and car dealerships. But the rising middle class is also going in for less conspicuous consumption, in the form of financial products.
That is one of the conclusions of McKinsey’s most recent Personal Financial Services Survey, based on one-on-one 60-minute interviews of almost 20,000 financial service consumers across Asia, including China. McKinsey has conducted the survey five times since 1998.
China, of course has changed enormously over these 13 years; last year, it overtook Japan as the world’s second-largest economy. Now that more Chinese have discretionary income—and know they cannot depend on the government-provided “iron rice bowl” for their financial security—they are taking their money much more seriously.
Consider the following three trends:
1. Consumers are more sophisticated.
2. Consumers are more discerning.
3. Consumers are more willing to experiment.
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