Emerging market consumers—they're becoming just like us!
They're earning more. They're spending more. And they're spending more on the same things we do. The same gear, the same gadgets, and, particularly in China, the same luxury goods.
It's the best news our beleaguered global economy has gotten in a while. For too long, the world has relied on Americans to be the consumers of last resort, to keep buying no matter how much debt it took. That worked until it didn't in 2008. But a world where hundreds of millions of Chinese, Indian, and Brazilian families are entering the global middle class—and spending like it—is one where growth could theoretically be more stable. A new report from Credit Suisse shows us just how this world is emerging, and what it means for all of us. Here are the big takeaways.
1. It's easy to be seduced by an acronym. Especially when a Goldman Sachs economist comes up with one that seems to explain the world. But the term BRICs—short for Brazil, Russia, India, and China—doesn't tell us too much about the rise of emerging market consumers. Sure, rich Brazilians are buying up Miami real estate, Russian oligarchs are doing the same in London, and Indian billionaires have turned Mumbai into their personal playground. But when it comes to broader-based prosperity, there's China, and then there's every other emerging market.