Millennials Buying Behavior: Gen Y Trends & Insights

Chinese millennials—roughly those born in the 1980s and 1990s—now constitute a massive cohort (about 320 million people, or 22% of China’s population). Many came of age during China’s rapid economic boom and live predominantly in cities, making millennials buying behavior a defining force in today’s market. 

By 2024, China’s urbanization reached about 67%, meaning most millennials are urban dwellers. They span life stages from late 20s to late 30s: many are in mid-career, often balancing work, marriage, and young children, and supporting one or more parents (the so‑called “4-2-1” family structure). As a group, they hold significant spending power—Chinese millennials now account for roughly 28% of all consumer income.

These consumers are more educated and tech-savvy than previous generations. About 70% of Chinese millennials say social media is their main information source.

They tend to earn middle-class incomes (lifting their city lifestyles) but also feel cost pressures; in a recent Deloitte survey, 55% of millennials worldwide reported living paycheck-to-paycheck. Overall, Chinese millennials sit at a pivotal economic moment: urban, connected, and shouldering both family responsibilities and rising expectations.

Key Takeaways

• Definition of Chinese millennials: Born in the 1980s and 1990s, this group makes up 22% of the population and drives nearly 28% of consumer income.
• Financial pressures and challenges: Rising living costs, slow income growth, and job insecurity shape cautious spending and pragmatic consumption choices.
• Shifts in spending patterns: Millennials favor wellness, experiences, durable goods, and sustainable products over flashy, logo-heavy luxury items.
• Cultural and lifestyle drivers: National pride fuels interest in domestic brands, resale platforms, and eco-friendly goods, while travel and fitness remain priorities.
• Regional and generational contrasts: Tier-1 millennials spend on premium goods, while lower-tier city peers prioritize value; Gen Z shows more impulsive, trend-driven behavior.
• Strategic guidance for brands: Companies that align with cultural values, wellness trends, and social commerce platforms can connect meaningfully with millennial consumers.

Contact Ashley Dudarenok to translate these insights into strategies for engaging Chinese millennial buyers.

Spending Drivers & Psychological Themes

Financial Pressures and Slowing Growth

Money stress dominates millennial life. A 2024 Deloitte survey showed 55–56% of millennials live paycheck-to-paycheck, with cost of living as their top concern. In China, the squeeze is sharper:

• Household income growth is expected at just 1.4% in 2025.
• Consumption growth is projected at 2.3%, nearly flat compared to 2024.
• Housing and food prices remain stubbornly high in urban areas.

According to McKinsey, nearly 36% of consumers report job anxiety, and almost half of urban workers view the job market as “challenging or uncertain”. These realities push millennials toward cautious, need-based spending.

Cultural Shifts and Spending Mindset

Economic unease is shaping culture. In early 2025, young Chinese coined the phrase “rat people” (老鼠人) to capture a lifestyle of burnout, fatigue, and endless scrolling. It reflects how many feel stuck in demanding jobs with little reward.

Even wealthier millennials are more careful. McKinsey reports that 72% of affluent consumers are prioritizing essentials and lasting value over flashy, impulsive buys. This shift shows a wider cultural move away from showy consumption.

Key themes behind millennial spending today include:

• Careful budgeting and delayed big purchases
• Preference for discounts and practical goods
• Avoidance of flashy, logo-heavy items
• Strong focus on durability and long-term value

Together, these forces create a restrained, pragmatic consumer mindset. Millennials are willing to spend but only when purchases align with financial reality, cultural values, and a sense of future security.

What Millennials Buy: Shifting Patterns & Categories

Chinese millennials are directing more of their budgets toward experiences, wellness, and quality goods. Travel, dining, fitness, and outdoor recreation all recorded double-digit growth as China’s post-COVID recovery continued. Wellness spending is also surging. Sales of vitamins, supplements, and fitness services reflect a stronger focus on health and stress relief.

In practice, this means more nights out, frequent vacations, gym memberships, and cultural events. Millennials are not just purchasing products; they are buying experiences that enhance daily life.

Durable Goods Still Matter

Alongside experiences, durable goods remain a priority. About 45% of high-end electronics and vehicle buyers in China are millennials. Many invest in smartphones, laptops, and appliances, often upgrading to premium models as income allows.

Big-ticket purchases also carry weight. McKinsey reports that millennials continue to allocate spending to homes, renovations, and cars. When they do spend, they aim for life-upgrading items.

Cooling on Status, Rising Value Mindset

Trendy, fast-fashion items are losing appeal. Instead, millennials choose brands with durability and resale value. Classic bags, quality shoes, and clean beauty products are preferred over disposable fashion or cheap cosmetics.

Preferred Categories & Lifestyles

Chinese Gen Y shows distinct product and lifestyle preferences:

Tech & Electronics

Millennials grew up in the digital boom. They spend heavily on smartphones, laptops, smart-home gadgets, and new-energy vehicles. In fact, they account for nearly half of buyers in many premium electronics and automotive segments. They expect cutting-edge features (AI-enabled appliances, EVs) and are quick adopters of new tech.

Health & Wellness

Health is a top priority post-pandemic. Many Millennials allocate budgets to fitness memberships, health foods, supplements, and higher-quality healthcare services. Wellness routines (yoga, personal care) and health-monitoring devices are popular.

Travel & Experiences

Experiences outrank goods. Millennials favor spending on travel, dining out, and cultural activities. Now that restrictions are lifted, many have prioritized holiday and family trips. Cultural or experiential purchases (concerts, education courses, leisure) also attract them more than gadgets alone.

Beauty & Personal Care

Skincare and personal grooming remain big spend areas. China’s beauty market ($67B) thrives on younger consumers seeking premium skincare and cosmetics. Chinese Millennials, including the so-called “spicy moms,” buy high-quality cosmetics and even luxury baby products for their children.

Food & Gourmet

Millennials enjoy premium food experiences—organic foods, foreign snacks, fine dining, and food delivery. Many order higher-end meal kits or imported ingredients. The “Singles Economy” means there’s more discretionary spending on gourmet meals (shared socially via apps like Xiaohongshu). At the same time, budget-food trends (e.g., home cooking challenges) coexist alongside it.

Pet Care

Pet ownership is a defining lifestyle trend. With marriage rates down, many Millennials become pet parents. Over 200 million pets were recorded in China by 2025. Notably, 88% of Chinese pet owners are women, and half of those are Millennials. This “pet economy” means soaring demand for premium pet food, healthcare, and accessories among Gen Y.

Green Consumption

Eco-consciousness is rising. Young Chinese increasingly favor sustainable brands and energy-efficient products. For example, trade-in subsidies on appliances spiked sales of energy-saving models by 100–200%. 

Electric vehicles (NEVs) are especially popular—accounting for 40.9% of new car sales in 2024. Many Millennials buy second-hand goods: over half of young consumers use resale platforms. Overall, “green” values (recycling, low-waste diets, NEVs) influence Millennial choices.

In sum, millennial spending in China has pivoted to long-term value and wellness. They buy experiences that improve life quality and goods that last. Younger brands or categories built around health and sustainable lifestyles (e.g., reusable products, eco-friendly foods) have an edge, since they fit millennials’ desire to spend on well-being rather than ostentation.

Luxury Consumption & Value Expectations

Chinese millennials are moving away from conspicuous luxury. The concept of “luxury shame” reflects their discomfort with flashy logos or impulsive purchases. Instead, they favor products that hold long-term value, such as iconic bags, timeless watches, or items with strong resale potential.

Even among the affluent, the mindset is changing. Surveys show that 72% of wealthy consumers in China are prioritizing essentials and enduring quality over impulse-driven luxury. Prestige now lies in subtlety and durability rather than ostentation.

Rise of Domestic Luxury and Alternatives

Millennials are also fueling the growth of domestic luxury brands. Recent surveys highlight:

• 56% of Chinese luxury spenders plan to increase purchases from homegrown brands
• 73% of luxury-watch buyers say they are likely to buy Chinese-made watches.

This is part of the “China Chic” (国潮) movement, where pride in national heritage drives demand for niche local fashion houses, jewelry labels, and culturally inspired designs.

New Channels for Smart Shopping

To maximize value, millennials are turning to alternative channels:

• Secondhand platforms: China’s resale luxury market is projected to surpass $30 billion by 2025. Platforms like Xianyu and Dewu thrive on authenticated pre-owned goods. Hashtags tied to secondhand luxury on Xiaohongshu have attracted billions of views, signaling mass adoption.
• Duty-free and overseas shopping: Travel reopening has renewed demand for buying abroad, where prices can be lower even after tax refunds.

A More Conscious Luxury Market

In sum, Chinese millennials still desire premium products but approach them with restraint and pragmatism. They look for:

• Enduring quality and craftsmanship
• Cultural relevance through domestic brands
• Value via resale or overseas purchases

Luxury consumption is no longer about being seen. For millennials, it is about making smart, meaningful choices that align with financial caution and cultural pride.

Regional Differences: Tier-1 vs. Tier-3+ Cities

Millennial behavior in China shifts sharply by city tier.

Tier-3 and Tier-4 Millennials (smaller cities) are more optimistic than their Tier-1 and Tier-2 peers. Surveys show that about 75% of lower-tier Millennials feel confident about China’s economy, compared with only 65% in top-tier cities. This optimism comes from lower living costs, lighter debts, and cheaper housing. Many also work in stable government or corporate jobs, which boosts disposable income.

Tier-1 and Tier-2 Millennials (Shanghai, Beijing, etc.) are the country’s consumer “power centers.” They account for roughly 25% of China’s current consumer spending. While their incomes are higher, they face steep costs for mortgages, childcare, and daily living. Marketers treat them as trendsetters, since their preferences often spread nationwide.

The contrast is clear:

• Tier-1 Millennials trade up within categories, buying premium imports, luxury skincare, and niche lifestyle services.
• Tier-3 Millennials aspire upward but spend more selectively. They are price-sensitive but represent a fast-growing middle class.

Looking ahead, 70% of China’s new affluent consumers will come from Tier-3 and below. This makes smaller cities a critical growth market. Global brands often tailor products and marketing differently for each tier, balancing prestige in big cities with value-driven offers in emerging markets.

Digital Engagement & Shopping Channels

Chinese millennials are deeply embedded in digital ecosystems. Platforms like WeChat, Douyin, and RedNote shape the entire shopping journey, from discovery to final purchase. Livestreaming in particular has exploded, blending entertainment with instant buying opportunities. 

In 2023, livestream commerce in China reached about ¥4.92 trillion (~US$737 billion), and surveys show that 81% of Chinese consumers have purchased through livestream shopping.

These livestreams are more than sales events. Hosts demonstrate products, answer questions, and create urgency through limited-time offers. By 2024, over 727 million people were regular livestream viewers, highlighting just how mainstream this format has become.

Influence and Platform Roles

Trust and peer influence define millennial decision-making. KOLs (Key Opinion Leaders) and micro-influencers are often more persuasive than traditional advertising. In fact, influencer marketing spend in China was expected to reach $16.7 billion in 2024. 

A casual recommendation on Douyin or Xiaohongshu can outweigh a polished TV campaign. WeChat also anchors daily commerce with mini-programs, group-buying, and integrated payments.

How platforms shape millennial shopping:

• WeChat: used by 87% of Chinese internet users, driving purchases through mini-programs, payments, and social groups
• Douyin: short videos and livestreams spark product discovery and impulse buys
• Xiaohongshu (RED): peer reviews and lifestyle inspiration guide aspirational purchases

The millennial path to purchase often crosses these platforms. A gadget might first appear in a Douyin video, be researched through Xiaohongshu reviews, and ultimately be bought on WeChat. This seamless flow shows how social trust and digital ecosystems converge to shape their consumption.

For brands, the lesson is clear: integrate authentically into these channels. Those that invest in credible KOL partnerships, host engaging livestreams, and foster peer-driven conversations stand the best chance of converting millennial shoppers.

Gen Y vs Gen Z: Key Consumption Contrasts

Chinese millennials (Gen Y) and Gen Z are often discussed together, but their consumption styles reveal sharp differences. Millennials, mostly between 26 and 35 years old, favor purchases that balance stability, wellness, and emotional restraint. Gen Z, now in their early 20s, tends to be more impulsive, experimental, and eager to express identity through consumption.

Millennials came of age during rapid growth but face today’s financial pressures. They look for long-term value, wellness products, and heritage brands that feel reliable. A skincare investment, a classic fashion item, or a family-focused purchase fits their mindset. 

Gen Z, raised in a fully digital-first era, thrives on personalization, novelty, and mobility. They embrace limited editions, viral product trends, and services that emphasize independence and self-expression.

Different Priorities, Different Patterns

These contrasts shape how brands must approach each group. Millennials respond to heritage storytelling, proven quality, and emotional depth. Gen Z gravitates to fast-moving content, brand collaborations, and hyper-personalized experiences. Their expectations are not only different, but sometimes opposite.

Key contrasts include:

• Millennials (26–35): wellness-driven, cautious with spending, loyal to heritage or authentic brands
• Gen Z (21–25): impulsive, novelty-seeking, quick to switch brands for personalization
• Millennials: allocate budgets to health, home, travel, and stability-enhancing purchases
• Gen Z: channel money into gadgets, trend-driven fashion, limited collaborations, and mobility services

In short, millennials look for security and balance, while Gen Z embraces individual expression and experimentation. Brands that adjust their strategies to these distinct mindsets can connect meaningfully with both generations without blending them into a single audience.

Marketing Implications: Strategy Roadmap for Brands

Reaching Chinese millennials requires more than standard marketing playbooks. This generation shops cautiously, values wellness, and blends digital interaction with real-world experiences. They balance cultural pride with practical financial choices. Brands that understand these drivers can design campaigns that feel both relevant and authentic.

Chinese consumers are also redefining value. Many prefer domestic luxury brands under the “China Chic” (国潮) movement, while the secondhand luxury market is projected to exceed $30 billion by 2025. Add to this the dominance of livestream commerce, with 81% of Chinese shoppers buying via livestreams, and the importance of aligning strategy to millennial realities becomes clear.

Shaping Strategies That Resonate

To succeed, brands need to deliver more than products. They must offer experiences, trust, and cultural alignment. This requires careful choices in how they present themselves across digital platforms and in-store channels.

Strategic priorities include:

• Local storytelling and China Chic alignment: leverage national pride and cultural references to build emotional connections
• Sustainable value propositions: highlight longevity, resale programs, and eco-friendly practices to appeal to value-conscious buyers
• Social commerce integration: build credible KOL partnerships, livestream campaigns, and peer-led communities to meet shoppers where they engage
• Wellness-driven experiences: connect with millennials through health, mindfulness, and lifestyle benefits rather than product features alone

Each of these areas reflects deeper generational values. Millennials expect authenticity, cultural respect, and practical benefits in every purchase. A brand that combines these factors not only drives sales but builds loyalty in a market where consumers increasingly demand proof of value.

Turn Millennial Insights into Your Strategy with Ashley Dudarenok

Chinese Millennials are reshaping markets—cutting back on status buys, fueling wellness and experience spending, driving the rise of domestic luxury, and dominating livestream commerce. These shifts aren’t just consumer trivia—they determine which global brands thrive in China’s next decade.

Ashley Dudarenok helps executives and investors act on exactly these changes. Through her keynotes, executive workshops, and China learning expeditions, she unpacks:

• Engaging Keynotes: Dive deep into the drivers behind modern Chinese consumers—customer centricity, livestream commerce, social‑plus models. Ashley has delivered these themes globally for brands like Coca‑Cola, Disney, Shiseido, and BMW.
• Masterclasses & Workshops: She leads immersive 2-day sessions on China’s new retail ecosystems, social commerce, AI, and OMO strategies—equipping your team with playbooks tailored for Gen Y realities.
• Consulting, Tech Tours & Learning Expeditions: Through ChoZan and Alarice, Ashley guides Fortune 500 brands to “learn from China” and localize strategies for digital transformation in the world’s most competitive market.
• Credibility & Authority: Named one of the World’s Top 100 Retail Influencers and a “Guru on fast‑evolving trends in China” by Thinkers50, she’s also part of Alibaba, JD, and Pinduoduo’s elite advisor groups.

Take the next step:
Explore Ashley’s speaking topics, workshops, and consulting offerings and discover how she can help you decode Chinese Millennials’ spending motivations and turn them into strategic wins.

FAQs: Chinese Millennials Buying Behavior (Gen Y) — 2025