The QuestMobile 2024 New Middle-Class Insights Report sheds light on China's burgeoning new middle-class demographic's evolving preferences, behaviours, and consumption patterns. With a population of 257 million as of July 2024, this group represents a growing force driving economic and digital trends. From cautious spending to embracing digital tools and platforms, the new middle class is reshaping China’s consumer landscape with a balance of pragmatism and individuality.
Expanding Demographics with Youthful Energy
The report highlights significant growth within the new middle class, with a year-on-year increase of 4.8%. Notably, younger generations are becoming more prominent within this demographic. Younger members of the new middle class demonstrate a cautious yet proactive approach to consumption. They prioritize value and innovation while carefully considering their choices, particularly in technology, lifestyle, and travel.
Age Breakdown: Nearly 40% of new middle-class users are aged 25-30, and 35.9% fall within the 31-35 age range.
Location: The majority reside in first-tier cities and surrounding areas, with Beijing (5.6%), Shanghai (5.1%), and Guangzhou (3.4%) leading the way. This geographic concentration reflects their access to opportunities and inclination toward modern, urban lifestyles.
Shifting Consumption Patterns: Pragmatism Meets Personalization
The new middle class values practicality and individuality in equal measure, driving trends across various industries:
Travel and Leisure
This demographic is propelling growth in both domestic and international travel. Destinations like Disney and Universal Studios are top choices, while cultural experiences such as “museum tourism” continue to gain popularity. Outbound travel is also on the rise, supported by increased app usage and international flight bookings. Major events like the Olympics and UEFA European Championship attract substantial interest, with platforms such as Migu Video and CCTV Sports seeing significant spikes in traffic.
Fitness: The new middle class is highly engaged in fitness, from tracking workouts with smart devices to participating in niche activities like cycling and skateboarding.
Fashion and Beauty: Domestic brands like Anta and Erke dominate the sportswear category, while local beauty brands are becoming the go-to for skincare and cosmetics.
Entertainment: ARPGs, simulation games, and strategy titles are particularly popular. New releases like Black Myth: Wukong and DNF: Origins have captured the imagination of this audience, driving significant engagement.
The Role of Digital Platforms in Shaping Behaviors
Social Media: Apps like WeChat, Douyin, and Xiaohongshu remain central to daily activities, with users favouring content related to finance, travel, and fashion.
E-commerce: Platforms such as Taobao, JD.com, and Pinduoduo continue to see growing activity, with new middle-class consumers valuing convenience and competitive pricing.
Finance: High engagement levels on mobile banking, investment, and insurance apps reflect the demographic’s emphasis on financial security and planning.
Marketing Trends: Engaging the New Middle Class
Brands are tailoring their strategies to appeal to the discerning preferences of the new middle class. Key approaches include:
Localized Content: Domestic brands incorporate cultural narratives, such as Guochao (Chinese retro trends), to foster deeper emotional connections with consumers.
Event-Based Marketing: Partnerships with global events like the Olympics and integrating short dramas into campaigns are proving highly effective in boosting brand visibility and resonance.
Digital Innovation: Combining short dramas, influencer collaborations, and live-streaming has enabled brands like Hanhoo to break sales records and expand their reach.
Key Takeaways for 2024
Pragmatic Yet Individualistic: Balance value-driven offerings with personalized experiences to capture this demographic’s attention.
Invest in Digital Platforms: Leverage high-traffic apps and cutting-edge technologies to create immersive, relatable content.
Cultural Alignment: Embrace local culture and traditions to strengthen brand loyalty.
Expand Offerings: Stay innovative in emerging sectors such as smart technology, fitness, and niche tourism.
As the new middle class grows and evolves, brands that can align with their aspirations while offering meaningful, practical solutions will emerge as market leaders.
From expert analysis to actionable insights, this resource is your guide to staying competitive in a rapidly changing market. Connect with us today to access the full report and refine your strategy for success in the coming 2025!
Comentários