The new middle class in China is undergoing a significant transformation, with the post-90s generation taking the lead. This article delves into the 2023 Insight Report by QuestMobile, highlighting the key trends and behaviours of this influential demographic.
The Demographics: Who Makes Up the New Middle Class?
As of July 2023, the new middle class, aged between 25-40 and residing in tier-3 cities or above, has reached a staggering 245 million. This marks a 6.4% YoY growth, accounting for 20% of the total internet users. Cities like Beijing, Shanghai, Chengdu, Chongqing, and Guangzhou are the top five hubs for this demographic, indicating the concentration of opportunities and resources.
Digital Behaviour: More Than Just Users
The new middle class is not just digitally savvy; they are digital natives. QuestMobile data reveals that their average monthly screen time exceeds the national average by 30 hours. This group uses an average of 8 more apps than the general population, indicating a deeper engagement with digital platforms for work, entertainment, and shopping.
Late-Night Warriors: The Always-On Consumer
Interestingly, over 50% of this demographic is active online even past midnight, suggesting a lifestyle that blends work and leisure seamlessly.
Lifestyle Preferences: Quality Over Quantity
The new middle class is not just about earning and spending; they are about living a quality life. Nearly 30% use high-end smartphones priced above 5,000 RMB, and they are a significant consumer base for Huawei. They prioritize experience over price and are more health-conscious compared to the average consumer.
Work-Life Balance: The New Mantra
The new middle class believes in a balanced approach to life, juggling work commitments with a love for entertainment. QuestMobile data shows that collaborative work apps like DingTalk, WeChat Work, and Feishu have seen a YoY increase in usage among this group.
Consumption Patterns: A Blend of Practicality and Luxury
The new middle class spends nearly 50% of their time on online entertainment, primarily on platforms like TikTok, iQiyi, and Tencent Video. They are also keen on fresh food e-commerce platforms that offer same-day or next-day delivery. The report indicates a growing interest in price comparison apps and second-hand exchange platforms, suggesting a savvy approach to spending.
The Luxury Angle: More Than Just Brands
Luxury fashion, high-end jewellery, and watches are not just purchases; they are investments and status symbols for the new middle class.
Marketing Strategies: The Blend of Soft and Hard Approaches
Advertisers are increasingly using a combination of media advertising and content marketing to transition from public domain traffic to private domain engagement. Brands are opting for both large-scale platforms and niche platforms to maximize reach and conversion.
The New Middle Class is Shaping the Future
The new middle class in China is not just a demographic; it's a force shaping the future of consumption, digital engagement, and lifestyle choices. Understanding this group is crucial for brands aiming to make a significant impact in the Chinese market.
For a more in-depth consultation on how to tap into this lucrative demographic, contact us to find out more.