Moonlight clan

Moonlight Clan

Moonlight Clan, or Yue Guang Zu (Chinese: 月光族) is used to describe a large group of people who use up their entire salary before the end of each month, especially young adults.[1] The term is derived from a lunar cycle.[2] While yue guang translates directly to "moonlight", it is also a pun derived from the combination of its individual words, yue (月; month) and guang (光; empty, used up). Zu (clan, race) refers to a group of people who shares (this) common characteristic.

Categories

Type 1: People who have a relatively high income

This group of people can not only meet the basic needs but also pursue higher standard of living.[3] Examples of this group are white collar workers and the middle class.

Behavior and Lifestyle

Members of Moonlight Clan who earn relatively high income tend to pursue materialism. Most of them lack financial discipline (i.e. overspending) and future planning.

People earning relatively high income are usually brand-loyal consumers who pursue pleasure-seeking and luxurious lifestyles. They tend to have strong consumption confidence.

Type 2: People who can barely make ends meet and possibly rely on welfare

This group of people struggle to meet basic needs, thus having lower standard of living in comparison to Type 1. This group is mainly constituted by low socio-economic groups including the grassroots, people who are paid minimum wage, and the blue-collar workers.

Behavior and lifestyle

Lower-income consumers spend mostly on necessities and rent as they are burdened by the rising cost of living. They do not have extra money for expensive pleasure-seeking activities and luxurious goods.

Causes (Situation in Hong Kong)

Low income and high cost of living

With reference to the 2011 Population Census in Thematic Report: Youth, the median income monthly of teenagers aged from fifteen to twenty-four maintained at HKD$8,000 unchanged for 10 years since 2001. The median monthly income of the whole population has been increased to HKD$9,000 over the past ten years.[4] The Consumer Price Index of Hong Kong has increased by thirteen percent, from 96 to 109 index point, during 2001 and 2011. The lower income group could hardly afford the progression of standard of living of the society. As a result, the high cost of living leads to an increase in the number of Moonlight Clan members.

Poor money management

Lacking knowledge in money management, personal budget and saving, people seldom track their spending habits and savings to review their expenses. According to a survey conducted by the University of Hong Kong, less than one third of the respondents would save their income before spending, or even spend more than what they are earning in a month.[5] Poor money management factors into the causes of increase in the number of Moonlight Clan.

Consumerism Culture

Being bombarded by commercial advertisements, people with relatively high income feel compelled to pursue personal wellbeing and happiness through material possessions. An easy access to a variety of entertainment and activities may be the reason for the increase in consumerism for Moonlight Clan as they tend to spend and enjoy the present instead of saving for the future.[6]

Advanced technology and convenience

By using credit cards, people can spend money they have not earned. In recent years, the credit card industry has been burgeoning, making credit cards available for almost everyone with insufficient screening. In Hong Kong, the credit card rates are rising and the debt they are carrying is 30% or above for annualized interest.[7]

Furthermore, online buying is becoming more and more popular. People can frequent online shopping and auction sites like Amazon.com, Taobao.com, eBay.com, and make online payments via acquirers like Paypal. This may affect their financial discipline and foster overspending behavior, becoming one of the underlying causes of compulsive or obsessive consumerism.

The population of Moonlight Clan

Hong Kong

In 2012, MassMutual Asia Ltd commissioned the Public Opinion Programme of the University of Hong Kong to conduct a telephone survey about post-80s and post-90s. The survey findings revealed that one out of seven respondents represented the Moonlight Clan, as they spent as much as they earned monthly, or even spent more than they earned.[8]

China

A survey in 2011 on Guangzhou youth aged fifteen to thirty-five revealed that thirty-five percent of interviewees were part of the Moonlight Clan. Their average expenditure is two-third of the average income.[9] Moreover, there are approximately three hundred million people earning less than $2 a day.[10] These people constitute the main part of the moonlight clan of the low income group.

References

  1. ↑ Reuters (9 Dec 2010). "Special Report: The Chinese consumer awakens". Retrieved 28 Mar 2014.
  2. ↑ New York Times (12 Jan 2011). "Moonlight Clan". Retrieved 28 Mar 2014.
  3. ↑ Investopedia. "Standard of Living Definition". Retrieved 28 Mar 2014.
  4. ↑ Census and Statistics Department, Hong Kong Special Administrative Region (Jan 2013). "Population Census Thematic Report: Youths" (PDF). Retrieved 28 Mar 2014.
  5. ↑ Mass Mutual Asia (9 July 2013). "MassMutual Asia Announces "Study on the post-80s/90s" Survey Findings Average Rating of Confidence Level in Realizing Dreams is only 5.9. One out of Seven Young People is "Moonlight Clan"". Retrieved 28 Mar 2014.
  6. ↑ Rajkobal, Praveena. "Globalization, Consumerism and Unsustainable Consumption" (PDF). Retrieved 28 March 2014.
  7. ↑ HONG KONG BUSINESS (17 Aug 2001). "Hong Kong's Credit Card Rates Rising". Retrieved 28 Mar 2014.
  8. ↑ Mass Mutual Asia (9 July 2013). "MassMutual Asia Announces "Study on the post-80s/90s" Survey Findings Average Rating of Confidence Level in Realizing Dreams is only 5.9. One out of Seven Young People is "Moonlight Clan"". Retrieved 28 Mar 2014.
  9. ↑ China.org.cn (26 May 2005). "China's 'Moonlight Clan' Indulges in Shopping Spree". Retrieved 28 Mar 2014.
  10. ↑ Reuters (9 Dec 2010). "Special Report: The Chinese consumer awakens". Retrieved 28 Mar 2014.
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