A new generation of consumers - born in the 1990s and early 2000s - have appeared in China. Their consumer behaviors will determine the pathways for growth and business opportunities for the next decade in China, said Tao Dong, senior consultant for private banking business of Credit Swisse Asia-Pacific.
The Chinese economy changes its theme every 15 years, and the theme for the next fifteen years is consumption, claimed Tao in an article published by the official public Wechat account of the China Chief Economist Forum.
A clear understanding of the consumption habits of the twenty-somethings is the key to discerning future trends, he argued, because the generation born after 1990 make up a sixth of the Chinese population and with those born in the 2000s joining, the young generation are bound to play a major role in consumption.
The majority of them live at the present, with limited or even no bank deposits, said Tao. About 38 percent of them have no bank savings, 36 percent consume more than they earn, and a mere 26 percent have significant savings, he cited an industry report by OMD - a communications agency delivering media and marketing solutions.
Compared with the previous generations, they pay more attention to experiences instead of material objects. Those aged between 15 and 30, for example, constitute the absolute majority in terms of purchasing power while consuming animation, cartoon and games, the senior consultant wrote.
The young generation takes a different attitude toward work; many tend to pursue what their heart desires and try to realize personal values, while giving weight to wages and status but not as great a value as their parents did, he said. They are willing to try new things and new experience.
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