In the past few years, we’ve continuously heard people proclaiming each year as a “historic year,” as if every year is destined to be engraved in the annals of history and marked as a moment of unique importance. As time moves forward, these proclamations grow louder, suggesting that each new year heralds significant changes and is a turning point of epochal significance.
In 2019, Wang Xing made a prescient judgment, predicting that it could be the best year of the coming decade. Nowadays, such voices have multiplied, with various assertions and opinions pervading our daily lives. Even though people are tired of this, each year indeed comes with its unique challenges, in a continuous and cumulative process.
Constant change means we must adapt to new situations, just as the saying goes: “He who takes advantage, must also bear the disadvantage.” In truth, many feel aggrieved, believing they haven’t reaped sufficient benefits when resources were abundant, but have to bear the brunt of unfairness when difficulties arise.
Reality is cruel, and it won’t stop for our inability to adjust. If we don’t take action, we’ll be swept into passivity; if we’re oblivious to the coming changes, by the time the dust settles, we may be facing a massive impact.
At every level of society, people are discussing the transitions of the era. For example, JD.com’s former CEO, Xu Lei, hinted in his social circle about the end of one era and the beginning of another. Era and cycle are two completely different concepts; in such times of transformation, everyone has their own understanding and strategies.
Ordinary middle-class families are increasingly feeling the pressure of crises, which do not always manifest in direct ways. Global events, such as the ongoing Russia-Ukraine issue, which was thought would end swiftly, has now entered its third year.
For the average person, compared to international affairs, they are more concerned with immediate life issues: whether salaries will increase, job stability, how to deal with market unpredictability, children’s education, how to save for future challenges, attitudes toward marriage and childbirth, and fluctuations in the real estate market, among others.
The discussion of these topics is reflected in the comment sections on major media platforms. Self-deprecation has become a common form of self-protection among people, who, although appearing carefree, reveal a deep understanding of reality and their true feelings through their words.
After much reflection, we realize that while the concepts may be simple, very few can truly put them into practice. This isn’t due to a lack of motivation, but rather a deficiency in information and cognition, and the scarcity of resources needed to carry out tasks. Therefore, under the same discussion post, you might find someone seeking advice on how to find value-for-money household products, or where to sell second-hand luxury goods at reasonable prices.
Nowadays, the topics that can be openly discussed have become quite limited. Not only are traditional print media and long-form articles becoming obsolete, but the barriers to conveying truthful information are also increasing. As a result, we are holding more live events this year than in years past, aimed at transmitting the truth without silence. The expected live sessions will reveal the five major embarrassments faced by middle-class families currently and prepare a few possible solutions for you. Whatever path you choose, you should remain optimistic but also clearly recognize the negative factors present in the broader environment.
In modern society, the middle-class families have gradually started to change their attitudes towards consumption of international schools and luxury goods. Take international schools as an example; they are facing more and more problems and may have lost their former glory. In the current educational context, parents need to deeply consider what benefits an international high school can really bring to their children. This is especially pertinent when considering that many will eventually return to the traditional path of the national college entrance examination, and it is worth evaluating whether the investment in international education really pays off.
After all, not even multi-million-dollar school district houses can guarantee that a child can avoid the pressures of middle school entrance exams. Parents need to plan reasonably for their children’s education, not let their family’s asset allocation go wrong, and not put all their assets into traditional exam-focused education, treating the college entrance examination as a risky gamble, which would lead to excessive pressure on the child. With the number of students taking the college entrance examination increasing every year, it is expected that the competition will become even fiercer in 2024.
Meanwhile, many families need not worry because their children have already participated in other forms of examinations, such as the overseas Chinese student joint examination. With their study background abroad and advantages such as green cards, these students can directly participate in the joint examination and enter top universities with relatively lower scores. The joint examination content is relatively simple, but the diploma is no different from that of the regular college entrance examination candidates, which serves as a warning to families who are still struggling with the college entrance examination.
In terms of consumption, the piano once symbolized middle-class families, but now they are difficult to sell even at low prices, indicating the plight of the middle class. For example, the decline in sales of Zhujiang Piano, a top domestic piano brand, also reflects this issue.
Publicly listed company Zhujiang Piano recently faced immense performance pressure, with its main business revenue sharply reducing by 31.47% in the first three quarters of last year, and net profit plummeting by 93.54%, down to just 6.4751 million yuan. For a publicly traded company, this almost signifies a complete collapse of profitability. In a shocking industry revelation, within a year, about 30% of piano stores in China have shut their doors.
According to the “Daily Economic News” report, the turning point for the noticeable decline in piano sales occurred in 2018, which coincided with the time when the policy allowing art students to receive extra points in middle school examinations was canceled. Currently, the piano industry has a huge amount of product inventory, and it is expected that it will take 3 to 5 years to digest the production accumulated over the past decade.
Once, we could unequivocally say that no country in the world was more passionate about pianos than China. The annual global production and sales volume of pianos remained between 400,000 and 500,000 units, while China’s production and sales accounted for more than 300,000 units. However, today, the Chinese middle class is facing three major psychological challenges:
- The real pressure of consumption downgrade.
- The gradually aging piano enthusiasm is unable to meet children’s expectations for a materialized future (the gradual disappearance of conceptual passion and the arrival of an era of interests).
- The abolishment of the policy for extra points for artistic talent, which seems to be the last straw that breaks the camel’s back.
In another field, the sales volume and prices of wristwatches, cherished by the middle-class gentlemen, have also experienced a significant drop. Data from the market monitoring platform Watch Charts show that in the year 2023, the global second-hand wristwatch market continued to be sluggish, with the overall price index declining by 13.8%. Several watch brands, including Rolex and Patek Philippe, were affected. Besides, luxury goods like branded bags that do not reach collector’s level and aluminum alloy jewelry also face a cooling market phenomenon.
In stark contrast, reports indicate that a certain Pinduoduo saw a 75% year-over-year revenue increase in the first three quarters of 2023, and profits also rose by 66% year-over-year. These figures show that two listed companies in the A-share market have displayed drastically different business results.
Against such backdrop, middle-class families are beginning to realize the necessity of increasing income and decreasing expenditure. They’re gradually becoming immune to so-called “luxury goods” churned out on production lines; they’ll purchase if they really like them but won’t consider them as investment or wealth preservation options anymore due to the far lower production costs than expected. The funds of ordinary people are now more often used for buying freedom and personal space.
The middle class is prudently considering the reallocation of assets, adjusting proportions and diversified investment. The competition of today’s era lies in resources, connections, and channels, and mere hard work is no longer enough. In the pursuit of progress, people have started to invest in themselves, in their families, in the broadening of their horizons, and are making efforts to build networks.
