China's Middle Class (Essay Sample)

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Impact of Global Marketing to China’s Middle Class
Introduction
Global marketing is the process that involves conveying an end product or service, with an aim of reaching the larger international marketing community. On the other hand, china’s middle class consists of households earning annual incomes of about $6,000 to $25,000. This can be translated to an average daily earning of as little as US$10 to US$100. The population of middle class citizens is currently huge in absolute numbers and accounts for approximately 157 million people in China (Kotabe, Masaaki, & Kristiaan 31).
Owing to this large number of individuals forming part of the middle class citizens, a greater percentage of retailers and even businesses across the world are keen on penetrating into the Chinese market. Currently, the world is experiencing an expeditious increase in global marketing. Consequently, a significant change has been noticed on china’s middle class citizens’ way of life. Therefore, based upon the above realities, this writing seeks to establish the impact of global marketing to china’s middle class individuals.
Body
Global marketing has increased individualism among the middle class citizens. There is a growing dilemma on how the government will deal with the objective of individualism, and the certainty of social conformity that has been actualized by the rising magnitude of global marketing. It is crystal clear that; the more global marketing is finding its way into the Chinese market economy, the more China’s middle class is becoming western like, modern, and internationalized. Over the past decades, the structure of the Chinese culture has always advocated for communism. However, with global marketing the social aspect of China’s middle class is being eroded spontaneously. Of late, individuals are no longer working together for a common goal rather they are working independently in order to meet their diverse economic demands of current times (Kurtz 234).
It is important to note that; every aspect of Chinese philosophy emphasizes the supremacy of both stability and order. Moreover, China stands as a unique nation for its prevalent conflict involving ambition along with conformity with regard to gaining hierarchical power. Basically, this conflict describes the topography of China’s middle class heart and it is broadly entailed in the Confucian footprint. However, global marketing has been identified as contradictory to the Confucian theories and as a result a larger percentage of Chinese middle class is slowly moving away from the Confucian philosophy. They are however adopting western philosophies instead.
Global marketing has been identified as the most effective tool for increasing the purchasing power of citizens. It is plainly evident that; global marketing has significantly increased the purchasing power of China’s middle class citizens. By definition, purchasing power is defined as disposable income less savings. For instance in the year 2006, China had about 39% of urban disposable income. However, as a result of the increase in global marketing, the nation has experienced a substantial increase in its economy and in the long run the urban disposable income has also increased notably. Currently, 27% of China’s total disposable income comes from the middle class. This is majorly due to the growing capacity of global marketing around the globe. If the global marketing trends keep penetrating into china’s middle class, then by the year 2015 the total percentage of urban disposable income will rise to over 40%. Bearing in mind the economic magnitude of the global market, the middle class is expected to have a positive change in its purchasing power.
The explosive penetration of global marketing in China has resulted to a sudden growth of the current emerging middle class, and most importantly it has led to a comprehensive economic change and even social transformation. It has led to an expansion of the middle class’s labor-market and the establishment of policy initiatives that are meant to push wages up, enact financial reforms that fuel employment as well as income growth, and rise the role of private ventures. In the long run, this has encouraged productivity in middle class citizens and in a larger picture; it has helped more income to accrue to households.
With wages of china’s middle class citizens on the rise as a result of global marketing, it is evident that the middle class has become great consumers of commodities and services. Prior to the introduction of global marketing in China, most middle class citizens were less consumers of locally made and even internationally made goods (Vasudeva16). However, this has since changed as currently the Chinese middle class is largest consumer of locally and even overseas made products. This has in fact made the country to rely more on revenues obtained from local demand for products than exports. Ultimately, this has lead to an overall growth of the nations GDP.
During the 1980s, over 80% of Chinese citizens occupied the countryside as their place of residence. Of this, the majority were individuals from the middle class. However, at the present only 47% of middle class citizens live in rural areas. A majority of them have migrated to urban cities in order to take part in international business. In the processes the middle class has greatly stepped up the course of action for urbanization in China to a greater extent.
Over the last 20 years when states had not actualized global marketing, more than 80% of the whole Chinese population consisted of individuals in dire absolute poverty. However, with increased global marketing in the country, about 26% of the entire population earns about $5 to $10 a day. Only 41% of the total population currently lives at $2 to $5 a day. Based upon the above explanation, it is rational to assert that, global marketing has significantly increased the population of ...