China’s 280 million Gen Zers are the future of luxury consumption, but who are they, where do they live, and what sets them apart from their older counterparts?
A new study by China Trading Desk involving 1,900 individuals across three generations sheds light on this crucial cohort – made up of those born between 1996 and 2010 – and illustrates a group that is at once ambitious and lethargic, educated and lonely, liberated yet facing the constraints of contemporary societal norms.
Urban and educated
According to the study, more than half (56%) of mainland Chinese Gen Zers reside in Tier 1 and Tier 2 cities, underscoring a clear preference for urban living over the smaller, Tier 3 cities preferred by 54% of Gen X. This urban migration is not merely a search for better job prospects and a modern lifestyle; it's a deliberate choice that reflects the aspirations of a generation keen to engage with the opportunities that China's sprawling metropolises offer.
Remarkably, about half of Gen Z have earned bachelor’s degrees, with a notable 22% holding master's degrees or higher, outpacing the educational achievements of millennials. The study found that 60% of millennials and Zoomers have achieved undergraduate or graduate degrees, nearly double the ratio of Gen Xers (34%) who reached the same level of education.
Liberated, yet isolated
Gen Z's relative openness about their sexuality marks a significant departure from the more conservative views of older generations. Eight percent identify as homosexual or bisexual, nearly triple the rate of Gen X and Y. However, this liberation comes with a caveat; Gen Z reports a higher degree of loneliness, living alone, and having fewer close friends, a paradox of the digital age where social connections are often mediated by screens.
This finding tracks with a pair of 2023 surveys by the Chinese social app Soul, which found that one-third of young users reported they “almost always felt lonely,” and that the average user has only 2.5 close friends. Whether due to an intensive work schedule, geographical distance, or social isolation, China’s Gen Zers are experiencing a so-called “friendship recession.”
Attitudes toward marriage and parenthood among Gen Z reveal a marked shift from previous generations. With 44% expressing disinterest in marriage – double the rate of millennials – and an overwhelming concern for the financial and career impact of parenthood, particularly among women, Gen Z's priorities reflect deeper societal and economic pressures.
This calls into question the feasibility of traditional family structures in modern China and extends to interest in parenthood. The report found that Gen Z women are much more career-oriented than their older counterparts, with a proportion 18 times greater than their millennial counterparts expressing a preference for career advancement over having children.
In terms of physical activity, despite high levels of ambition and educational attainment, Gen Z is more sedentary than Gen X, with more than 70% of Gen Zers engaging in less than two hours of exercise per week. This raises questions as to the long-term health implications of an sedentary urban lifestyle, overshadowed by the demands of work and study.
Environmental consciousness meets cosmopolitan tastes
Nearly 90% of Gen Z advocates for reduced carbon emissions, showcasing a strong environmental consciousness. Yet, paradoxically, there's a pronounced desire for large SUVs, highlighting a contradiction between eco-friendly attitudes and aspirational consumer choices. This dichotomy reflects the broader challenge of aligning environmental sustainability with personal and economic development goals.
Gen Z's preferences for cars, travel, and alcohol suggest a cosmopolitan outlook, with a notable decrease in interest in Chinese-made cars and traditional liquors in favor of foreign brands and experiences. This global orientation is seen in changing travel patterns, with South Korea becoming a favored destination over traditional hot spots like Thailand.
A generation at the crossroads
China's Gen Z embodies the contradictions of a generation straddling tradition and modernity, whose preferences signal changes in societal norms and consumption patterns. This young generation is redefining traditional practices and consumer behavior, blending a deep reverence for cultural traditions with a strong inclination towards modernity and individual expression.
These changes are driving a shift in consumption patterns, as seen in the Spring Festival practices where Gen Z consumers prefer personalized and meaningful gifts over conventional ones, and in their travel habits, which encompass exploration and international travel over traditional family gatherings.
Financial prudence is also evident among this cohort, particularly when giving red envelopes.
Additionally, this group's embrace of fashion trends like the "indie sleaze" and lifestyle movements such as "city walks" illustrates a fusion of global influences and local culture, reflecting a desire for self-expression and community connections.
Overall, China's Gen Z is navigating a unique path that harmonizes respect for tradition with an appetite for innovation.