Income-Based User Segmentation for UX Research in China

Effective UX research in China hinges on understanding your target users’ needs, behaviors, and preferences. Income, a key driver of lifestyle and consumption patterns, is a powerful lens for segmenting participants in user research. 

By classifying users based on income, UX researchers can uncover actionable insights into purchasing power, brand perceptions, and service expectations. At UX Spot, we specialize in user research recruitment in China, leveraging income-based segmentation to deliver precise, data-driven results for businesses. 

This article explores how to apply income-based user segmentation in China, with practical steps and insights to enhance your research process.

Income-based segmentation starts with categorizing Chinese households into distinct income tiers. These tiers reflect economic capabilities and shape user behavior, making them critical for UX research in China. 

Based on 2024 data from the National Bureau of Statistics, households can be divided roughly into five income tiers:

Key Insights for UX Researchers:

• Purchasing Power: High-income households (top 20%) in urban areas, with annual incomes above 250,000 RMB, prioritize premium products and services.
• Price Sensitivity: Low-income groups are more price-conscious, influencing their app or product preferences.
• Brand Perception: Middle-income users, the emerging mainstream, value quality but seek value-driven solutions.

By aligning participant recruitment with these tiers, researchers can ensure diverse representation in user research recruitment in China, tailoring studies to specific user profiles.

China’s diverse geography and urban-rural divide significantly impact income and user behavior. Understanding these differences is essential for nuanced UX research methods in China.

Eastern coastal regions significantly outperform central and western regions:

• Shanghai and Beijing: Urban per capita disposable income exceeds 85,000 RMB in 2024, with most households earning over 250,000 RMB annually.
• Zhejiang and Jiangsu: Per capita disposable income surpasses 67,000 RMB, and the urban-rural income ratio is narrowing (e.g., Zhejiang's is 1.83:1).
• Guizhou, Yunnan, Gansu: Fewer than 25% of residents earn over 5,000 RMB monthly, compared to over 60% in Beijing, Shanghai, and Guangdong.

• Median household income: ~200,000 RMB in urban areas vs. ~70,000 RMB in rural areas (based on a 3-person household).
• Though rural living costs are lower, gaps in public services such as healthcare and education are significant.
• Only 18.3% of rural residents earn more than 5,000 RMB monthly, far below 52.6% in urban areas.

Trend: Urban-to-rural income ratio decreased from 3.23:1 in 2010 to 2.27:1 in 2024, yet absolute income disparity continues to widen.

1. Industry: High-paying industries (e.g., internet, finance) employ less than 8% of the workforce but account for over 25% of total wage income.
2. Age: Peak income is among 30~45-year-olds (7,250 RMB/month); under-25s average just 4,320 RMB.
3. Gender: Women earn 87.0% of what men earn; even with similar education and experience, female income is 15.3% lower on average.
4. Enterprise Type: In 2024, SOE(State-Owned Enterprise) employees earned 46.8% more than those in private firms. Among those earning over 10,000 RMB/month, 65% work for SOEs or foreign firms, only ~35% for private companies.

• Income ≥10,000 RMB/month: Food accounts for 21.5% of spending; education and entertainment 18.7%.
• Income ≤3,000 RMB/month: Food takes up 39.6%, while education and entertainment is only 7.2%.

When recruiting participants, regional and urban-rural contexts should be considered. For example, a fintech app targeting Shanghai’s high-income users may prioritize premium features, while a rural-focused e-commerce platform should emphasize affordability.

How to Implement Income-Based Segmentation in UX Research

To make income-based user segmentation actionable, these steps should be followed:

• Define Income Tiers: Use the income tiers above to categorize your target audience. Align these with your product’s user base (e.g., low-income for budget apps, high-income for luxury services).
• Recruit Diverse Participants: Partner with a UX research agency in China, like UX Spot, to source participants across income levels, ensuring representation from urban and rural areas.
• Analyze Behavioral Patterns: Use surveys or usability tests to map income to user behaviors (e.g., spending habits, app usage).
• Tailor Product Positioning: Use insights to refine features, pricing, or marketing strategies. For example, middle-income users may prefer value-driven subscriptions.

China’s middle-income group is rapidly expanding, making it a key focus for UX research in China.
By 2025, China is expected to have 178 million middle-income households, accounting for 45% of all households. New first-tier and second-tier cities (e.g., Hangzhou, Chengdu) are driving over 60% of this growth.

Demographics and Preferences

• Education: 70% hold a bachelor's degree or above.
• Average household annual income: 330,000 RMB; median: 254,000 RMB.
• Net assets: Average 4.96 million RMB; median: 3.71 million RMB.
• Employment sectors:
  • Information industry: 15.3% (Internet: 7.7%, IT & communications: 7.6%)
  • Manufacturing: 13.5%
  • Finance: 12.2%
  • Construction/real estate: 10.7%
  • Government/public institutions: 9.9%
• Children:
  • No children: 32.6%
  • One child: 49.1%
  • Two children: 17.4%
  • Three or more: 0.9%

Why It Matters: Middle-income users are tech-savvy and value-driven, making them a prime target for digital products. Tailoring UX research methods in China to their preferences can unlock significant market opportunities.

China's Income vs. Global Benchmarks

By 2025, China's per capita GDP is projected to reach $12,700, nearing the World Bank's high-income threshold of $13,200 (2024).

Differing Definitions of Middle Income

• Domestic Standard: Annual income of 100,000~250,000 RMB per household.
• International Benchmark: Institutions like Credit Suisse define middle class by assets: 200,000~2,040,000 RMB (28,000~280,000 USD) per household, highlighting statistical variations.

Looking Ahead

As China’s middle-income group grows, UX research in China must evolve. 

With ongoing economic growth, structural adjustments, and policy incentives, the middle-income group will continue to expand. Consequently, China's mainstream user profiles will evolve, requiring research methods to be more nuanced and multidimensional.

Income is a critical lens for understanding user behavior in UX research in China, shaping not only purchasing power but also values, preferences, and digital interactions. According to 2024 data from the National Bureau of Statistics, China’s household income tiers—ranging from low-income (¥9,215 per capita) to high-income (¥95,055 per capita)—reveal distinct patterns in consumption and lifestyle.

Segmenting users by income enables researchers to tailor user research recruitment in China, ensuring diverse participant pools that reflect real-world demographics. For example, high-income urban users in Shanghai may prioritize premium app features, while middle-income households in second-tier cities like Chengdu value affordability and functionality.

Beyond income, intersectional profiling—integrating factors like geography, industry, gender, and generation—is essential for nuanced insights. For instance, the New Middle Class White Paper notes that 70% of middle-income households, projected to reach 178 million by 2025, hold bachelor’s degrees and work in sectors like tech and finance.

Combining income with demographic data (e.g., 49.1% of middle-income households have one child) allows researchers to map user needs more precisely. Gender disparities, such as women earning 87% of men’s income, further highlight the need for inclusive profiling to avoid biased product designs. 

These multidimensional approaches enhance behavioral analysis, participant recruitment, and product positioning, ensuring solutions resonate with China’s diverse user base.

Looking ahead, UX research in China must adapt to evolving economic and social trends. As China’s per capita GDP nears $12,700 by 2025, approaching the World Bank’s high-income threshold, user expectations will shift, demanding more sophisticated research methods.

Researchers can deliver actionable insights that drive innovation and market success by leveraging income-based segmentation and intersectional profiling.

UX Spot is a leading UX research agency in China, trusted by global brands to deliver data-driven insights tailored to the Chinese market. Our expertise in user research recruitment in China ensures diverse, representative participant pools, while our advanced segmentation techniques uncover deep user needs. With a proven track record in cities like Shanghai, Beijing, Chengdu, and Hong Kong, we help clients transform user experiences and achieve business goals. 

Ready to elevate your UX research? Contact UX SPOT Today for expert solutions.