Case study: A comparison of BRIC consumers
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The average consumer in the BRIC countries exhibits notable differences in demographics and spending patterns, with Russian consumers being older and earning more than their counterparts. In 2008, the disposable income and discretionary spending varied significantly, with Russia having a higher average than the other BRIC nations. Additionally, the distribution of high-income earners in Russia is more age-diverse compared to other BRIC countries, with a significant number of affluent individuals aged 60 and above.
Case study: A comparison of BRIC consumers
- 1. The average consumer in each of the BRIC countries is quite different… Note: Discretionary spending refers to consumer expenditure excluding food & housing The Russian consumer is far older than the BRIC average but also earns and spends significantly more. The average BRIC consumer: 2008 Brazil Russia India China BRIC average Age 28 38 25 37 32 Disposable income: US$ 5,050 6,532 634 1,641 3,464 Discretionary spending: US$ 2,985 3,552 298 610 1,861 Life expectancy 73 66 65 72 69
- 2. The spending preferences of middle-income households also vary across the BRICs… 1-in-10 of all US$ spent by middle-income households in Russia is spent on leisure, recreation, hotels and catering. The average middle-income Russian household spent US$806 on transport, compared to US$462 in the BRICs on average. Russian middle-income households spend far less than their counterparts in China, India and Brazil on Education – US$49 per household compared to the BRIC average of US$200. Note: Data refer to spending of a decile 5 household
- 3. … As does the age distribution of high-earners There are more than 8 million individuals with gross incomes higher than US$50,000 in 2008 in the BRICs. The Russian wealthy are much more evenly spread across age groups than the wealthy in the other BRIC countries. In Brazil and Russia those in their 30s are the most likely to earn more than US$50,000 annually; in China and India the highest earners tend to be 40-somethings. There are a considerable number of people aged 60+ in Russia with high incomes – almost 250,000 in 2008. Distribution by age of those earning US$50,000+ in 2008 Note: Data refer to gross income