The Services Story

- A big opportunity — "The number of middle income consumers will increase by over 800 million by 2030, according to World Bank projections. Half of these new consumers will be located in China and India."
- Changing consumer behavior — "As income levels increase, spending patterns will also shift. In China and India, consumers are increasingly shifting consumption from basic food and clothing to other goods and services."
- The services story — "The share of services consumption in GDP is relatively low in China and India, and should rise significantly. This growth has implications for financial services companies, healthcare providers, and education companies."
- Investment implications — "We highlight 29 emerging and developed market companies that are well-positioned to benefit from the services story in China and India. These companies are forecast to grow EPS by 47% in 2010 and 27% in 2011. They are trading on a 2011 P/E multiple of 19x."

Citigroup Emerging Market Consumerism 20100804

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