Urban "young shopping professionals" do not account for the majority in terms of number, but they have contributed a lot to the growth of
consumer spending-new power of consumption, a new engine of supply (Focus on young people's consumption view (Part 2))
"Post-95s" and "Post-00s" are on the cusp of consumption, which is not new.
It is worth noting that their consumption scale and volume are becoming stronger and stronger, and they have gradually become a force that cannot be ignored in the business world and even in the Chinese economy.
Its strong growth and new features also make people think: Has China ushered in its own "consumer generation"?
What does this mean for China, which is in a critical period of transformation and upgrading?
Will the needs of young people become an accelerator for supply change and industrial upgrading?
Great contribution to consumer spending
——Relevant surveys show that “young shoppers” in second-tier and lower cities, which account for only 25% of respondents, contributed nearly 60% to the growth of consumer spending in 2020
In August last year, due to the epidemic, Zhang Han dismissed the idea of traveling abroad and went to Sanya, Hainan. Not counting tax-free shopping, it cost tens of thousands of yuan.
“Daily spends more on eating, drinking and having fun, prefers enjoyable and experiential consumption, and buys more expensive necessities such as clothing, shoes and bags.” Zhang Han is a post-95 office worker with a good income. There is no family burden, just when she has the strength and the consumption is "free", she went abroad to play 3 times in 2019.
Speaking of consumerism, she laughed and said that she "jumped left and right between Grund’s desktop revenue and expenditure and timely fun."
Compared with the past, today's young people's consumer world is indeed much richer.
But when looking at young people, they often follow this question: How big a climate can it become?
In fact, today this young consumer power cannot be underestimated.
McKinsey’s “China Consumer Survey Report 2020” shows that “young shoppers” in second-tier and lower cities in the survey sample only accounted for 25% of the respondents, but contributed nearly 60% to the growth of consumer spending that year.
Bain Consulting reports that the global luxury goods market will shrink by 23% in 2020, but China's domestic luxury goods consumption will rise by 48% against the trend. One of the pillars is the rise of the new generation of consumers.
From January to October 2020, the consumption of "post-95s" in luxury co-branded and limited editions surged by 300% to 400%.
Another data shows that among the overall users of high-end luxury beauty brands, consumers aged 18 to 29 account for more than 57%; in the luxury automobile industry, "post-90s" have become the largest potential consumer group...
On the one hand, young consumers are rapidly marching into traditional fields; on the other hand, many emerging brands are also emerging from them.
Yuanqi Forest is an Internet innovative beverage brand that was only registered in 2016. In 2019 and 2020, it has won the first place in sales on the entire network for two consecutive years.
Zong Hao, vice president of Yuanqi Forest, told our reporter that everyone generally believes that the beverage industry is a fierce and fully competitive market.
Before Yuanqi Forest, most carbonated beverages on the market came from international brands.
However, the needs of Chinese young people have not been well met. "They want to be healthy, delicious, and value'appearance + quality', so they have our chance."
Carbonated drinks have always been a taste that young people prefer.
Although the users of Yuanqi Forest are all over the 20-40 year olds, the "post-95s" and "post-00s" still occupy an absolute dominant proportion.
"We consider ourselves to be a challenger, challenging a market that seems to have been locked in." Zong Hao said that behind this is precisely the needs of young people.
In today's Chinese market, there are many similar stories.
Becoming a market leader
—— The population of 20-29 years old is about 170 million. This part of the group will usher in a golden period of career development and rising income, and the characteristics of individualization, quality and upgrading of consumption are obvious
There is a generation's consumption trend. If you compare today's young people in the depth of history, what will you find?
Fu Yifu, director of the Consumer Finance Research Center of the Suning Financial Research Institute, told our reporter that we can see that since the reform and opening up, there will be a different consumption theme almost every 10 years.
In the 1980s, economic development and material wealth had just begun to prosper; in the 1990s, the "old three" of household appliances had to be replaced by the "new three"; around 2000, Western goods poured in and imported goods became popular; in 2010 Later, with the rise of the Internet in China, e-commerce brought unprecedented convenience and efficiency; today, the characteristics of personalization, quality and upgrading of consumption are unprecedented.
If you look around and look at the journeys of developed countries such as Europe, America, Japan and South Korea, a question will immediately emerge: Has China ushered in its own "consumer generation"?
Japan’s experience may be of reference.
The Japanese consumer society research expert Miura Exhibition portrayed the consumption of Japanese residents since 1912 as "four consumption eras."
In Fu Yifu's view, Chinese society is showing the characteristics of transition from the "third consumption era" to the "fourth consumption era".
The so-called "third consumption era" is the arrival of personalized consumption.
"The sustained economic and social development and the continuous increase of residents' income have awakened the awareness of the majority of the people to'consume for themselves'. Consumer units have also begun to shift from households to individuals, and personalized and branded consumption has grown rapidly."
"The main consumer in this period is called the'new human generation.' They have realized the popularization of home appliances in their childhood. They are born with a richer material foundation than their parents, and they also have a stronger desire to consume. Pursuing fashion, advocating individuality, focusing on experience and other characteristics, they have a natural enthusiasm for luxury goods." Fu Yifu said that in today's Chinese society, we can see many similar characteristics.
Li Yang, associate professor of marketing at Cheung Kong Graduate School of Business, believes that young people such as the “post-95s” and “post-00s” do show many new characteristics, including more self-confidence, advocating individuality, diversified interests, fondness for social interaction, and a greater sense of identity with domestic brands. They are significantly different from consumers of other age groups.
No matter how you look at it, young consumers are the focus of the present and the future.
If calculated based on the data of the sixth census in 2010, the population aged 10-19 at that time or 20-29 today is about 170 million.
"They are becoming the new leaders in the current consumer market, and they are about to usher in a golden period of career development and rising incomes. They will become the main force of society in a few years and their future development is worth looking forward to." Fu Yifu said.
New needs deserve serious consideration
——More and more companies and merchants are embracing young consumers. There are new brands that need insights "turned out", and there are also old brands that have the courage to change and "make a new look"
What does the growth of new consumer power mean to the Chinese market?
"It means that their quality consumption and personalized consumption are expected to lead industrial upgrading and bring huge opportunities for the high-quality development of industry and economy." Fu Yifu said.
Li Yang believes that in the future, we can look forward to the emergence of more emerging domestic brands. Driven by consumer demand, domestic products, the culture and values behind the brand will be brand new, "will bring a brand bonus period."
Of course, changes do not happen in a vacuum. It will depend on how companies and merchants take on this new consumer power.
Many active explorers can already be seen in the Chinese market today.
There is a demand for new brand insights "turned out".
From Genki Forest, Ramen Talk, Zhong Xuegao, and Hey Tea in the food and beverage field to Huaxizi and Perfect Diary in the cosmetics and skin care field, to Xiaomi and Xiaoxiong Electrical Appliances in the home appliance field, and Bubble Mart in the trendy play field. The direction of demand is quasi.
"Everyone remembers that the vitality forest will suddenly become popular on the Internet in 2020, but in fact, we established a research and development center five years ago to do demand research first." Zong Hao said that young people’s needs for beverages are simple and they should be delicious. To be happy but not "fat house" soda.
But in the past, this problem has not been solved well.
Starting with this demand, Yuanqi Forest finally "tear a crack" in the hot beverage market.
"We also have to thank the highly developed mobile Internet ecology." Zong Hao said that at the beginning of the product launch, they actively interacted with users on many social platforms and won the opportunity to "face-to-face" sharing and communication.
This is also the benefit of today's new brand.
There are old brands that have the courage to change and "make a new look."
The White Rabbit, Pechoin, Huili, Feiyue, Li Ning and Bosideng from their childhood memories are back again. This time, they have won younger consumers. Why?
Landed in the International Fashion Week, cooperated with internationally renowned designers such as Gaultier and Takada Kenzo, launched joint design models with "Marvel" and "Disney", and launched a professional thermal insulation series with the Chinese Antarctic Scientific Research Team... In the past two years, down jackets The brand Bosideng moves continuously.
"Before 2018, Bosideng may be more of the choice of the parents' generation, but through this series of measures, by 2019, our consumers will be 8 years younger." Gao Xiaohong, assistant to the president of Bosideng Holding Group Co., Ltd. told this The reporter said that what they did was to gain insight into the needs of users under consumption upgrades, and to continuously improve product quality through new design concepts, emerging technologies and innovative craftsmanship, and create a fashion with technology content.
"Try to focus on a brand and embrace young consumers in the field you are best at." This is also an attempt by many companies to transform and upgrade.
"Under the Internet, all industries are worth redoing"-this is a saying circulated in the industry.
Many interviewees said that it is not that the traditional industries will be completely replaced, but that the focus will gradually shift from production to sales. Behind this is a change in user-centric concepts and a strong supply chain is required.
Demand drives supply, and supply creates demand. In the smooth economic cycle, young and new demands deserve to be taken seriously.
Li Jie
Li Jie