By LIU JIE
2006-10-23
Chinese youth born in the 1980s have grown up with foreign companies such as Coca Cola, McDonald's, Nike and Microsoft. At the same time, many prefer to buy from Neiliansheng, an old cotton shoe brand based in Beijing, and Wanglaoji, a traditional Guangdong herbal tea well known for its medical properties.
In the past, any choice consumers had was limited to tight budgets and a small list of domestic makers and foreign companies. Now, domestic sportswear brand Anta's slogan "I choose because I like!" has become a consumption motto for China's post-1980s generation.
As this generation of buyers grows up, analysts, experts, and even the buyers themselves agree they are an emotional, adventurous and indefinable consuming group.
Consumption concepts
Chen Linyan has been working for three years as an administrative employee in a foreign-funded telecommunications company with a monthly salary of 5,000 yuan (US$625).
"My income is somewhat higher than the average level of people at the same age with me, but I still feel uptight," says the 25-year-old woman, adding that this seems to be a common problem for the post-1980s generation.
In addition to buying food and daily necessities, Chen's money is spent on clothes, beauty products, hairdressing appointments, fitness, entertainment and occasional travels. Furthermore, her housing costs are 1,300 yuan (US$163) every month, though the down payment of 100,000 yuan (US$12,500) for her 50-square-metre-plus apartment came from her parents.
"I really don't know where my money goes," she says, lying on her IKEA sofa with the latest Sony Ericsson mobile phone in hand and a Body Shop face mask on her face.
Chen acknowledges that she shops at both modern shopping malls, such as Beijing's China World Trade Centre, and small stores along the streets. She also enjoys buying from taobao.com, an on-line auction-styled shopping website.
Different from Chen, Wang Minliang, 24, pools all he has in terms of funds and time into being a tourist. After graduating from university two years ago, he took temporary jobs to earn money and has been travelling as a backpacker since.
"I must enjoy my life and the world at a time when I am young and capable," Wang says. "I don't want to accumulate money for the future, when I may become old and not have enough energy and strength to have fun."
Without a house or car, Wang's treasures, besides his on-line travel blog with pictures and articles, are a high-end camera and professional backpacking equipment.
After a nearly three-month tour of Southwest China, Wang has to find a job and make financial preparations for another trip he's planning around Northwest China.
Though the post-1980s generation has different ways of enjoying themselves, they have a common trait: spending money on the "right" things, no matter whether they are expensive or cheap, have big names or not, or are practical or gaudy. "The only criteria for these youth is 'I like it or not,'" says Shi Shaohua, a researcher with the Psychological Research Institute attached-to the Chinese Academy of Social Sciences (CASS).
According to a survey conducted by the Beijing-based market research company Sino-monitor, the key element influencing purchasing decisions of Chinese youth aged between 17 to 25 is the unique characteristics of the products. The survey, released last year, is based on 1,040 effective questionnaires from 10 Chinese cities, and shows that 57.5 per cent of respondents focus on the product before the name.
"That implies that the brand loyalty of the post-1980s generation consumers is, to some extent, fragile compared to those people born in the 1970s and 1960s," says Shi, adding that young consumers want products that reflect their individuality.
Different mediums of evaluating brands have also contributed to these changes. Lin Jingxin, marketing manager of China Info, an advertising consultant institute, says young consumers rely less on advertisements and prefer on-line information exchanges.
"Blogs, MSN and Google have become the most efficient tools for them to make decisions," says Lin, illustrating that the post-1980s generation's consuming attitude, though self-interested, is rational and sensitive.
Both Chen and Wang acknowledge that they often discuss products with other netizens. "Before buying my mobile phone and cosmetics, I visited related websites and BBS for appraisals and suggestions," says Chen. "I, of course, also provide my own using experiences for others on the Internet."
Wang believes that intercommunication among ordinary consumers is objective and honest compared to market advertising.
Corporate strategies
According to official statistics, the population of the 1980s generation is around 90 million in China, the majority of whom are from one-child families.
"If their average monthly consumption stands at 3,000 yuan (US$375), the annual market scale is expected to reach 3.24 trillion yuan (US$405 billion)," says China Info's Lin.
The consumption capacity of this group has huge potential, given their ever-increasing income. Furthermore, they may greatly influence or even determine what their parents and future children buy, which is the reason businesses are striving to lure young consumers.
Lin says companies must adjust their designs, marketing and promotion strategies to meet the specific requirements of this generation.
Sino-monitor's survey indicates that Nike, Anta, M-zone and McDonald's are the most popular brands for the post-1980s generation.
McDonald's has promoted the "I'm loving it" advertising slogan and logo from last year. The campaign seemed to work as it highlighted the energy and coolness of modern youth.
For Nike, the key to success has been a multi-pronged approach. The company has utilized athlete endorsements, contests, in-store experience, on-line self-design of products and sports video games.
Domestic brands such as Anta, Lenovo and Aigo grabbed young buyers by using their knowledge of Chinese tastes, as well as getting support from the youths' sense of national pride.
"It's not only because of their corporate creativity and tailored marketing strategies, but also because the young consumers are susceptible to the idea that Chinese should support Chinese brands," says CASS's Shi, elaborating that the campaign was initiated and stirred up by young netizens.
Some businesses have found the Internet to be the key to reaching young buyers.
Bao Gang, a restaurant boss, makes use of the Eat in Beijing BBS channel of sina.com.cn to help his business.
He invited some BBS participants to taste food in his restaurants and asked them to write down their opinions online.
The boss admits that the goal of the activity was to advertise his restaurant, which is located in a small hutong, or alley.
But, "they are very objective and tell both the good points and the weaknesses, and we've improved in line with their suggestions," Bao says.
"It's a new kind of advertisement for small businesses," points out China Info's Liu.
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Director: Liu Chi