As Chinese 3G mobile communications are promoted and phones are becoming increasingly smarter, the main business is developed from content to user demands. Business types are extending from communication to amusement, social contact, commerce and life aspects, allowing “ethnic group” feature of 3G phone user market. On the basis of China-VALS model, the paper explores the potential groups in Chinese 3G mobile phones market from lifestyle and value as well as demands and applications. Relying on questionnaire survey, through factor analysis and K-means clustering method, this paper identifies six “ethnic groups”: commercial communication, simple mobile, fashion, rational consumer, self manifestation and technological elite. The different demands of the ethnic groups are presented by providing available information and decision support for tailor made phones and marketing techniques of Chinese telecommunication enterprises.