China’s ‘Moonlight clan’ generation lives pay cheque to pay cheque, but not because they are poor
- A recent CCTV report estimated that 40 per cent of single people in tier-one Chinese cities could be considered the Moonlight clan
- Economists say the trend could put pressure on China’s macroeconomy because young people will not have enough savings to invest
The phrase “treat yo’ self” has become something of a global slang term for millennials to justify spending a bit too much on a meal, a retail purchase that stretches the budget or even taking a day off work.
In China this generation is known as the Moonlight clan, referring to young, usually single professionals who choose to spend their entire pay cheque, or even take on debt to finance their lifestyles.
A survey from Kantar, a data analytics and brand consulting firm, called China MONITOR 2020 found 56 per cent of single Chinese young people between the ages of 18 and 34 feel confident enough in their own personal financial situation to take on short term debt to fund spending.
Ye Han, consulting partner of Kantar China, told the South China Morning Post that 70 per cent of this demographic believe shopping can improve their well being and 72 per cent will dole out cash for an item with strong brand positioning.
“At the same time, born and growing in digital era, they demand convenience and do not mind paying a premium for relevant services that can make their life easier,” she said.
Pronounced Yuèguāng Zú (月光族) in Chinese, Moonlight clan is a play on the characters “month”, “out of money” and “clan”. The phrase describes being broke at the end of each month.