(Source: https://pltfrm.com.cn)
Introduction
China’s middle class has ballooned to over 400 million people in 2025, but the real story is the shift from basic aspirational buying to sophisticated, value-driven consumption. This demographic now drives 70 % of retail spending, making it the golden opportunity for overseas brands to localize and capture long-term loyalty.
1. Demographic Expansion into Lower-Tier Cities 1.1 150 Million New Middle-Income Households in Tier-3+ Cities
- Urbanization and wage growth added 25 million families annually since 2022.
- These consumers prioritize health, education, and travel over traditional status symbols.
1.2 Aging Middle Class Shifts Spending Priorities
- By 2025, 40 % of the middle class is aged 40+, boosting demand for family wellness and retirement planning.
2. Income Polarization Within the Middle Segment 2.1 Upper-Middle (¥200k–¥500k Annual) Grows 15 % YoY
- This group now accounts for 55 % of luxury and imported goods purchases. 2.2 Lower-Middle Focuses on “Smart Upgrades”
- Affordable premium products like ¥100+ skincare or ¥300 appliances see 30 % growth.
3. Digital Natives Redefine Lifestyle Choices 3.1 80 % of Middle-Class Youth Use Xiaohongshu for Discovery
- Social proof and UGC influence 65 % of their buying decisions. 3.2 Subscription Models for Convenience
- Meal kits, beauty boxes, and fitness apps now claim 20 % of monthly budgets.
4. Sustainability and Health as Non-Negotiables 4.1 75 % Prefer Eco-Certified Overseas Brands
- Green claims must be verifiable to avoid backlash in private WeChat groups.
Case Study: British Organic Tea Brand A heritage British tea company collaborated with PLTFRM in 2024 to target China’s expanding middle class. We crafted a Xiaohongshu wellness narrative + WeChat subscription model + Tmall premium store. In 2025, they hit ¥450 million GMV with 68 % from upper-middle repeat subscribers.
PLTFRM is an international brand consulting agency that works with companies such as Red, TikTok, Tmall, Baidu, and other well-known Chinese internet e-commerce platforms. We have been working with Chile Cherries for many years, reaching Chinese consumers in depth through different platforms and realizing that Chile Cherries’ exports in China account for 97% of the total exports in Asia. Contact us, and we will help you find the best China e-commerce platform for you. Search PLTFRM for a free consultation!
