Understanding China’s Young Consumers in 2025: Duality, Drive, and Digital Behaviour

In February 2025, China’s "pan-young generation"—comprising post-90s and post-00s users—reached a pivotal milestone: 443 million active mobile internet users, representing 35.2% of the national online population. But beyond the scale lies a deeper transformation. These digitally native, highly engaged, and paradoxically driven consumers are reshaping the digital economy— not just by what they consume, but through how they express identity, assign value, and redefine modern lifestyles.

Rational Devices, Emotional Spending

More than 60% of young users use devices priced below ¥2,999, indicating a clear tendency toward rational, value-driven tech adoption. Yet, 45.2% of this same group spends over ¥2,000 per month online, highlighting a sharp contrast between their hardware choices and actual consumption behaviour. They are frugal when it comes to functional tools, but are more than willing to spend on experiences, emotional satisfaction, and self-expression. This paradox reflects their nuanced view of value: control the basics but spend freely when it comes to personal fulfilment.

High Digital Immersion and Fragmented Content Touchpoints

With 33.4 apps used per month and 185.6 hours of monthly screen time—well above the national average—this generation’s digital life is rich, hyper-fragmented, yet highly purposeful.

Information flows through micro-KOLS, private social groups, and niche communities. Self-development categories—beauty, finance, fashion, wellness, and celebrity culture—form their core content ecosystems. Former subcultures like anime and ACG are now mainstream, illustrating an appetite for emotional depth, imagination, and personal relevance in brand storytelling.

Migration Toward Major Cities: A Structural Market Shift

Over half (54.3%) of young users now live in high-tier cities, marking a 6.6% YoY growth. This geographic rebalancing is more than statistical—it’s transformative. These young migrants are no longer passive recipients of content and products. They are proactive builders of lifestyle, status, and opportunity, fuelling a demand evolution that is redefining market hierarchies.

Tier 1 Gen Z: The Rule-Breaking Digital Natives

Post-00s in top-tier cities are the rule breakers and cultural accelerators. Their consumption logic is anchored in identity signalling. While they shop second-hand on platforms like Xianyu, they also enthusiastically “tip” their idols with digital gifts. For them, spending is a form of social currency, used to build recognition and belong to a like-minded community.

Fashion becomes a language, favouring relaxed yet functional streetwear that bridges global trends and domestic innovation. At the same time, these consumers engage emotionally with AIGC platforms such as CatBox and Xingye, not for efficiency, but for companionship. Some spend 800+ minutes monthly on AI-generated emotional support apps, pointing to the rising cultural phenomenon of “AI intimacy.”

Lower-Tier Gen Z: Pragmatic Dreamers with a Soft Spot for Tech

In lower-tier cities, post-00s present a coexisting blend of pragmatism and emotional aspiration. Still early in their careers and income journeys, they are masters of budget-smart consumption and emotional fulfilment.

Apps like Xiaohongshu (23.2 hours/month), Zhihu, and Douban are less about transactions and more about self-expression and cultural resonance. In beauty, they champion domestic brands that offer both function and identity alignment, fuelling trends like “light makeup meets skincare.”

Tier 1 Millennials: The Rational Romantics

The post-90s living in high-tier cities represent a well-balanced profile of reason and sentiment. While they prioritise saving and financial planning, they’re also willing to spend generously on emotional experiences, cultural enrichment, and technological novelty.

They spend wisely, but not conservatively. They splurge when value aligns with personal meaning—whether it’s boutique fitness, immersive concerts, or transformative travel. Socially, they prefer interest-based communities and closed-circle networking over open social graphs. In tech, they are early adopters who expect functionality with flair.

In automotive purchasing, aesthetics dominate decision-making. For this group, “looks matter, but performance confirms the choice”. Brands like Tesla and BYD resonate not just for engineering, but for cultural capital. The auto industry is shifting from product-led storytelling to emotion-led brand building to meet its expectations.

Brand Strategy Takeaways: The Consumer Is the Medium

1. From short videos to podcasts, private communities to livestreaming, touchpoints are diverse and overlapping. Brands must tailor stories to fit the format and context.

2. Elevate Influencer Strategy

Beyond reach, seek resonance. Partner with influencers who can authentically inhabit and reflect specific youth subcultures.

3. Identity-Driven Creative Wins

Gen Z in top-tier cities responds to symbolic storytelling. Lower-tier Gen Z prefers emotional clarity. Millennials look for content that bridges functionality with inspiration.

4. Explore Emerging Emotional Economies

From tipping idols to bonding with AI, emotional engagement is a frontier, not a fad. Brands that learn to navigate these spaces will build deeper, stickier loyalty.

Final Thoughts: Understanding the Young Is No Longer Optional—It’s Foundational

China’s young consumers in 2025 defy categorisation. They are diverse, layered, contradictory, and yet sharply defined in their values. From a Gen Zer saving in gold in Shanghai, to a student in a lower-tier city listening to podcasts, to a budget-conscious millennial at a gym in Guangzhou, they are all pushing the boundaries of what consumption means.

Now is the time to dive deep. Let’s explore how your brand can connect with China’s evolving youth market—reach out to start the conversation.