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NETIZEN CULTUREBY SOCIAL BRAND WATCH ON DECEMBER 14, 2015

Climbing the Social Ladder: Consumer Pro�les of the ChineseUpper and Lower Classes

China’s 770.4 million working population is larger than the populations of the US and Europe combined.

According to Goldman Sachs, China has a working population of 770.4 million, a population larger

than the US and Europe combined. With rising incomes, this working population is contributing

signi�cantly to the formation of a new hierarchy of consumer classes in China. In Goldman Sachs’

latest macroeconomic insight report titled “The Rise of China’s New Consumer Class”, China’s social

classes have been divided into four tiers of classes based on income levels: Movers and Shakers,

Urban Middle, Urban Mass, and Rural Workers.

The report further broke down each class’s consumer desires into 7 main categories, including

looking more beautiful, eating better, improving one’s home, increased mobility and connectivity,

having more fun, well-being, and luxury.

Goldman Sachs broke down consumer desires into 7 main categories including looking more beautiful, eating better,

improving one’s home, increased mobility and connectivity, having more fun, well-being, and luxury.

To �nd out a more personal side of the story, Social Brand Watch sent writer Yun Qiao to interview

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5/4/2016 Climbing the Social Ladder: Consumer Profiles of the Chinese Upper and Lower Classes - SocialBrandWatch

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individuals of each consumer class, asking them what they spent on and what they cared about

when spending, as an indication of what they might care about in years to come. Turns out, each

individual regardless of social class, had his or her own personal ambition to pursue. Every person

had their own ladder to climb. Read on to �nd out more about each of China’s new consumer

classes and where their hopes and ambitions lie.

Tier 1: The Movers & Shakers

The Movers and Shakers are the wealthiest demographic in China, with an average household annual income of USD

$500,000 per capita.

Making up 1.4 million people of the total population,the Movers and Shakers boast an average

household annual income of 500,000 USD per capita. As the wealthiest consumer demographic, the

movers and shakers make up a sizable share of the global luxury market and frequently travel to

exotic destinations around the world. Many of them have multiple passports and have lived abroad

for several years. Many of them fall into the category of overseas returnee Chinese, or 海龟 “hai gui”,

which translates to “sea turtle.”

Julia Wang

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5/4/2016 Climbing the Social Ladder: Consumer Profiles of the Chinese Upper and Lower Classes - SocialBrandWatch

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A member of the Movers and Shakers demographic, Julia enjoys leisure time by the pool with her macbook.

Name: Julia Wang

Age: 30

Hometown: Shanghai

Perceived Social Class: Middle Upper (Movers and Shakers)

Profession: Media Sales

Monthly Expendable Income: Prefers not to say

Having lived long term in both Germany and France over a period of 3 and a half years, this

Shanghai native ranks travel, food, and fashion as her top priority expenditures. A cultured woman

of many hobbies and interests, Julia has traveled to over 35 countries including London, Australia,

California, and Greece and is a collector of niche perfumes such as Penhaligon, Dyptique, and Serge

Lutin.

“I travel when I can and I love doing sports, especially dancing (Salsa bachata). I often

splurge on shoes, but I don’t really see it as luxury per say. I really like Christian Louboutins

but so far, it’s still too expensive for me. When I have extra money and time I really love to

travel to new places around the world. So far, my favorite countries are Thailand and

Greece.”

Julia describes her fashion style as “sexy and sporty” naming Lululemon and Victoria’s Secret as

some of her favorite brands. You might �nd Julia at posh places in downtown Shanghai like the Nest,

Unico, Mercato, and Flask.

5/4/2016 Climbing the Social Ladder: Consumer Profiles of the Chinese Upper and Lower Classes - SocialBrandWatch

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China’s Movers and Shakers can be found at posh bars and upscale restaurants like the Nest in Shanghai

Julia tells Social Brand Watch that although luxury goods are nice, she ranks having positive

experiences as her number one priority.

“Luxury goods don’t matter as much as the unique experiences we have in life”.

Tier 2: Urban Middle

With an annual income per capita of USD $11,733, this growing demographic consists of 146 million people with

comfortable white collar o�ce jobs or government jobs.

The next tier is the Urban Middle class, de�ned by Goldman Sachs as having an annual income of

11,733 USD per a capita. This growing demographic of 146 million people consists of �nancially

comfortable o�ce workers and those with government jobs on public payroll. This will be the main

focus of marketers down the line, as the middle class consumer tastes are still developing and their

salaries are on the rise.

Jia Jia

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Jia Jia is 35 year old senior accountant from Shanghai who buys the majority of her food and household

necessities online.

Name: Jia Jia

Age: 35

Hometown: Shanghai

Perceived Social Class: Upper Middle

Profession: Senior Accountant

Monthly Expendable Income: 9,000 RMB

A Shanghainese senior accountant and a mother to a four year old daughter, Jia Jia, 35, spends the

majority of her 9000 RMB monthly expendable income on saving for her child’s education, clothing,

eating out, traveling, electronics, and a few luxury good items.

“Saving for my daughter’s education and dining out are what I care about the most” says Jia

Jia.

A working mom with a demanding job, Jia Jia �nds new and dynamic ways to shop for the family

online.

“I buy clothing from online fashion retailers which provide a variety of foreign brands for a

discount. I also spend money on gourmet food from online grocery sites, most of which also

have mobile APPs. The delivery is fast and the quality is very good ”

Technologically savvy online shoppers like Jia Jia are one reason the online B to C business model is

thriving in China’s larger cities.

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Tier 3: Urban Mass

The Urban Mass consists of blue collared workers and migrant workers who have moved to the cities to make money.

Their income has the biggest potential to rise in the next few years.

The Urban Mass is made up of 236 million blue-collared workers and migrant workers with

an annual income per capita of 5,858 USD. Their income has the biggest potential to rise in the next

few years, which will enable them to spend on more than basic survival goods.

Jin Hui Tao

Jin Hui Tao is a 20 year old baker from Henan province who sells his cakes on Wechat moments.

Name: Jin Hui Tao

Age: 20

Hometown: Henan Province

Perceived Social Class: Lower Middle (Urban Mass)

Profession: Baker

Monthly Expendable Income: 3,000 RMB

Jin Hui Tao is a 20-year-old baker is from Henan province, who now as a commis chef in a �ve-star

5/4/2016 Climbing the Social Ladder: Consumer Profiles of the Chinese Upper and Lower Classes - SocialBrandWatch

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hotel in Pudong. He is also a part time worker for a bakery that sells cakes through WeChat

moments. With both jobs he earns around 3000 RMB expendable income each month. Jin does not

need to pay rent since the hotel provides dorms for the workers to sleep in. This is a very attractive

condition for young, urban mass migrant workers since rent in Shanghai can be extremely

expensive.

“My money goes into savings, friends’ birthday parties, food–mostly snacks because I eat at

the hotel kitchen, clothing, and traveling within China. What I care about is whatever I spend

on.”

A graduate from a well-established charity baking school, his work starts at 4 AM and ends at 1PM

each workday, but he �les no complaints.

“I’m used to it now. I get up at 3 AM and take a nap after work.” Said Jin Hui Tao with an air

of ease,” I hope I can learn new things and progress my career in the future.”

It’s amazing how people of the lower classes still manage to have smartphones and use mobile

technologies like Wechat moments. Marketers should keep this in mind over the next few years, as

even people with lower expendable income will �nd their way onto Wechat, as it is China’s primary

platform for communication.

Tier 4: Rural Workers

The rural class is made up of 387 million low-income workers whose annual income per capita is USD $2000 or less.

Approximately half of China’s workers still live in rural areas. This demographic of 387 million low-

income workers make less than 2000 USD per year, with spending concentrated on survival needs

like food and housing. Many rural workers travel to the bigger cities to �nd jobs, joining the urban

mass, or to sell their rural produce on the streets.

Bai Da Shun

5/4/2016 Climbing the Social Ladder: Consumer Profiles of the Chinese Upper and Lower Classes - SocialBrandWatch

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Name: Bai Da Shun

Age: 28

Hometown: Fuyang, Anhui Province

Perceived Social Class: Rural class

Profession: Fruit Vendor

Monthly Expendable Income: 1,000 RMB

Bai Da Shun, a young fruit vendor from Fuyang, Anhui province, is the main bread winner for a

family of three. He sits by the road side most days with a truck full of tangerines, heading to the city

to sell.

“I pick and buy fruits directly from the �elds and sell them at the markets,” What if there’s no

fruit in the season? “I would go for vegetables instead then. But in fact, there are only a few

months when there are no fruits to pick, from about late November to the Chinese New

Year. In spring there are strawberries.”

Father to a one-year-old baby, he said after paying rent, fuel, and maintenance of the vehicle, most

of the expendable income goes to baby diapers, clothing, food, and household supplies, which

totals approximately 1000 RMB per month.

“Things I care about most? Well, they are the same things I spend on. Saving? Yes, I wish I

could save, but it’s hard with my current income and family expenses. I have a baby, you

know.”

Although Bai is a blue-collared laborer, he appeared to be relatively tech-savvy as he was playing

video games on his mobile phone.

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ABOUT AUTHOR

SOCIAL BRAND WATCH

Social Brand Watch (SBW) is a collection of experts in digital, mobile and social media in

China. SBW was created to complement Resonance's China Social Branding Report, a bi-

weekly report focusing on modern marketing methods of the world's top brands in China.

Interviews conducted by writer Yun Qiao.

It goes to show that even the lowest classes still �nd time for entertainment and �nd ways to be

connected via mobile phones in China.

Chinese of all social strata are climbing the ladder towards

their dreams

Everyone, no matter what social strata or occupation seems to be climbing a ladder to the next step.

Whether it be luxury goods, international plane �ights, e-shopping, or mobile video games,

Chinese people of all social strata are �nding ways to entertain themselves and improve

their quality of life.

For more information on how brands are marketing to these emerging social classes, download

Resonance China’s China Social Branding Reports.

Article edited by Cristina McComic.

Yun Qiao is a freelance writer based in Shanghai. She

received her BA in Economics from the Institute of

International Relations in Beijing and her Masters in

International Relations from University of Aberdeen in

Scotland. Aside from working as a freelance writer and

translator, Yun Qiao is actively involved in charities and

non-pro�ts, particularly with Shanghai Young

Bakers. Contact Yun Qiao at yqiao0214 [at]gmail.com.

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