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China’s Generation Z becomes new pillar of domestic consumption

by Jo
December 18, 2020
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While binge watching videos or listening to music, some Chinese people are more willing to pay fees to become members of online platforms, improving their user experience. When their idols endorse products, some may not hesitate to buy the commodities out of the sole purpose of supporting the idols.

 

These groups have gradually become the new pillar of domestic consumption, as they have a distinct personality and strong willingness to consume for their own sake. They are the Generation Z, which refers to young people born between 1995-2009.

 

Born in the Internet age, they are often influenced by the Internet, smart phones, tablets and other technological products. Growing up in a tech environment, this group of people are exerting a greater influence on the consumer market.

 

“Young people born after 1995 have an extremely low loyalty to brands,” said Xu Lei, chief executive officer of JD Retail, an online retailer in China, adding that young consumers’ habit of quickly switching brands has created a large number of online brand sensations.

 

At the same time, Xu Lei said that “post-95” consumers have their own personality and a strong sense of loneliness, so they are more likely to fit into small circles and have special preferences, thus creating many market segments, bringing new opportunities for all kinds of developing brands.

“These young people have strong capabilities to pay for what they like,” said Ji Xiaochen, founder of Beijing Moviebook Technology, a digital media company, noting that the consumption habits of young people are completely different from those of the previous generations, as they live in the Internet era and have been accustomed to online payment and better living conditions.

 

According to a report of Suning Institute of Finance, Generation Z is willing to pay for interests and is fond of user-generated content on online platforms; meanwhile, they prefer to stay at home more often.

As the culture and values advocated by Generation Z are more and more accepted by the public, their influence continues to rise.

 

Chen Fei, co-founder of Linmon Pictures, an entertainment studio, is the producer of this year’s hit drama “Nothing but Thirty.” In the study of this kind of entertainment going viral, she found that Generation Z has become the pillar of entertainment consumption, accounting for about 60 percent of the total.

 

Furthermore, Qu Fang, founder of Xiaohongshu, a lifestyle sharing platform, discovered that young people love sharing their life. Data indicates that over 100 million users are active on Xiaohongshu every month; 72 percent of them are post-90s users, and 50 percent of them belong to Generation Z.

 

Young people enjoy social networking and their consumer decision-making is more professional and rational. At the same time, they look forward to being more involved in brand building; these are the opportunities that companies should seize, Qu pointed out.

Jo

Jo

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