China 3C Electronics: Key Growth Trends in Q1 2024

Newer data: China's Online 3C Electronics Sales Topped CN¥1.1tn in 2025

Executive Summary#

China's 3C (consumer electronics) market generated CN¥ 171.05 billion in online revenue across 830 million units in Q1 2024, and while revenue came under pressure year on year, unit sales grew 8.6%. We believe this gap between revenue and volume is the main finding of the quarter: overall demand held up, but consumers moved toward mid-range price bands, which lowered average selling prices (ASP) even as they kept buying as often as before.

Two categories grew sharply within the softer total. Open-ear headphones grew 337.9% YoY to CN¥ 990 million in revenue and took 12.4% of the total headphone market, up from 2.8% a year earlier. Learning tablets (学习机) reached CN¥ 1.9 billion with growth of 203.3% YoY, and their March 2024 sales were close to the level of past Double 11 promotional peaks. In both categories, new hardware such as non-in-ear designs, AI tutoring and e-ink screens marketed for eye protection has opened up demand that conventional product formats could not reach.

We see four structural trends behind the opportunity in Q1 2024. Consumers remain willing to pay premium prices for the right products, AI is moving into consumer hardware at increasing speed, products are being designed around personalisation for several use scenarios, and comfort and wellness are becoming baseline specifications that consumers expect in every product.

Macro Context: A Selective Recovery in Consumer Demand#

China's economy recovered steadily but unevenly through early 2024. Per capita disposable income and consumer expenditure both trended upward. The Qingming holiday produced 119 million domestic tourist trips and CN¥ 53.95 billion in spending, 12.7% above the comparable 2019 period, which showed that spending on travel and experiences had returned. However, the People's Bank of China depositors' survey showed household sentiment about employment and income turning downward, consumer confidence remained below pre-pandemic levels, and real estate continued to weigh on total retail sales.

The breakdown of retail sales by category shows recovery in some categories and contraction in others. Telecom devices grew fastest of the discretionary categories at 13.2% YoY, supported by domestic smartphone launches and device replacement cycles, and tobacco and alcohol followed at 12.5%, supported by spending on weddings and banquets. Cosmetics grew a more modest 3.4%, while cultural and office supplies contracted 8.0%, as demand in that sector continues to move to digital alternatives.

Source: Moojing Market Intelligence

The pattern is consistent with selective upgrading, in which consumers delayed or traded down in categories without compelling new products and spent more in categories linked to new technology and to the way they want to live. We believe the 3C electronics market belongs to the second group, because the pressure on its revenue came from lower average prices while consumers continued to buy.

3C Market Overview: Volume Grows as Average Prices Fall#

China's 3C market generated CN¥ 171.05 billion across 830 million units in Q1 2024, at a blended ASP of CN¥ 206.9. Premium smartphones continued to sell well even as the category's average price fell, which suggests that demand at the top of the market remained resilient. The mid-range price tier, where brands such as Xiaomi (小米), Honor (荣耀) and vivo compete, saw intense competition for the volume that drove the quarter.

Foldable phones such as the vivo X Fold3 Pro suit livestream commerce, because the format is easy to demonstrate on camera. We believe content-led channels give brands a way to sell higher-priced models to consumers who discover them through video.

High-Growth Concepts: Where the Growth Was in Q1 2024#

The aggregate market figure understates how fast some parts of the category moved. Within 3C, Moojing Market Intelligence's MoAnalysis platform identified six high-growth concepts in Q1 2024, each growing at several times the rate of the overall market.

Source: Moojing Market Intelligence

These concepts share three broad drivers. The first is AI integration, as AI PCs reached CN¥ 1.63 billion with growth of 56.2% YoY on greater awareness of on-device AI after OpenAI launched Sora. The second is new form factors, as open-ear headphones (337.9%) and thumb action cameras (472.2%) served specific uses such as exercise and content creation that conventional products did not serve well. The third is lifestyle accessories, as phone sticker customisation (1867.2%) drew on the wish of Gen Z consumers to personalise their devices, a high-frequency, low-price category whose growth rate is inflated by a near-zero base in the prior year.

Open-Ear Headphones: A New Format Takes Share of the Headphone Market#

Open-ear headphones were the most significant new format in 3C in Q1 2024. Revenue reached CN¥ 990 million with growth of 337.9% YoY, and open-ear's share of the total headphone market rose from 2.8% in early 2023 to 12.4% by Q1 2024, as consumers who value comfort and awareness of their surroundings during exercise moved away from in-ear and over-ear formats.

Huawei (华为) launched the FreeClip in December 2023 with a C-shaped minimalist design, fashion colourways and HarmonyOS integration. It supported the launch with a celebrity endorsement by the actress Guan Xiaotong and KOC seeding on Xiaohongshu (小红书) through creators in technology, automotive and beauty, which built organic discovery and led to stock shortages within weeks of launch. Shokz (韶音) built its offer on bone conduction with the OpenRun Air model.

Consumer demand centres on how the headphones feel to wear: "secure/stable fit" was the largest high-growth selling point at CN¥ 160 million (13,009.6% YoY growth). "Air/bone conduction" reached CN¥ 88.92 million (161,972.2% YoY growth) as consumers discovered the technology. Social media volume grew nearly 14x YoY, and the audience is also broadening, with the share of men rising and buyers spreading from Tier 1 cities to New Tier 1 and Tier 2 cities, which we read as a sign that the category is entering the mass market.

Learning Tablets: AI and Eye Protection Drive a Premium Upgrade Cycle#

The learning tablet (学习机) market reached CN¥ 1.9 billion in revenue in Q1 2024 with growth of 203.3% YoY, and unit sales grew 56.7% YoY. The category's average selling price of CN¥ 2,112.7, with flagship products priced at CN¥ 3,699 to 6,599, shows that consumers will pay premium prices when innovation in hardware and software justifies them. March 2024 sales matched or exceeded past Double 11 promotional peaks, which shows that the category has moved from a purchase driven by promotions to one with strong demand throughout the year.

The upgrade cycle has two sources of innovation. In software, products have added AI tutoring systems, embedded large language models such as Baidu's ERNIE and personalised learning modes that adapt to each student's performance. In hardware, eye protection technology has become central to the category. E-ink screens in particular reached CN¥ 390 million in revenue in Q1 2024 with growth of 2,550.4% YoY, as they answer parents' concern about the effect of blue light on their children's eyes.

Xueersi (TAL) (学而思) launched its second-generation flagship in December 2023 and marketed it through livestream commerce, mother-and-baby KOLs and KOC seeding that generated over 100 million video views, building a layered influencer programme that supported sales at premium prices. Technology brands such as Xiaodu (小度) and Xiaoyuan (小猿) have entered the category alongside the established education content brands, and Xiaoyuan built its product around an e-ink screen and AI error correction at CN¥ 3,899.

One consumer insight stands out: "eye protection" was rarely mentioned in e-commerce reviews, yet 41.4% of survey respondents cited it as a key purchase factor and it was the most discussed attribute on social media. We believe eye protection works as a threshold attribute, which consumers select for without mentioning it but which generates complaints when it is missing. Brands should therefore lead with eye protection in advertising and seeding content, and use e-commerce listings for performance and content quality, which are the attributes consumers talk about in reviews.

Four Structural Trends Shaping China's 3C Market#

Moojing's analysis of Q1 2024 identifies four structural trends that we expect to shape competition in 3C beyond the quarter:

• Consumers remain willing to pay at selective price points. Revenue fell 3.8% YoY while unit sales grew 8.6%, and consumers paid CN¥ 1,299 for a new open-ear headphone and CN¥ 3,699 to 6,599 for learning tablets. Demand is selective and aspirational and has not been broadly suppressed, so credible innovation can still support premium prices in a soft overall market.

• AI is driving hardware categories. AI PCs grew 56.2% YoY to CN¥ 1.63 billion, and learning tablets with Baidu ERNIE integration carry price premiums that consumers accept. We expect AI to reach more 3C subcategories as hardware, at an increasing pace.

• Personalisation across scenarios is shaping product design. Products that serve several contexts, such as headphones used for commuting, exercise and office work, or learning tablets that cover several subjects and learning styles, sell better than single-use alternatives. We expect products designed for one use to face weaker demand.

• Comfort and wellness are becoming design requirements. Physical comfort, through open-ear designs and lighter products, and wellness hardware, such as e-ink screens marketed for eye protection, are moving from premium features to what consumers expect as standard. Brands without a credible comfort or wellness attribute are likely to find it harder to compete.

Key Takeaways#

• China's 3C market generated CN¥ 171.05 billion in online revenue in Q1 2024, and revenue fell 3.8% YoY while unit sales grew 8.6%, which reflects lower average prices while demand held up.
• Premium smartphones continued to sell well, while the mid-range tier saw intense competition for volume.
• Open-ear headphones grew 337.9% YoY to CN¥ 990 million, and their share of the headphone market rose from 2.8% to 12.4%.
• Learning tablets (学习机) reached CN¥ 1.9 billion with growth of 203.3% YoY, and e-ink screen technology grew 2,550.4% YoY.
• We see four structural trends behind the Q1 2024 opportunity: selective willingness to pay, AI in hardware, personalisation across scenarios and comfort-first design.

About the Data#

This analysis draws on Moojing Market Intelligence (魔镜洞察) data on China's 3C consumer electronics market in Q1 2024, covering online channels over a 15-month period (January 2023 to March 2024). Sources include MoAnalysis cross-platform e-commerce intelligence, MoListening social media analytics, consumer survey data, and government statistics from China's National Bureau of Statistics.