Unlike their counterparts in the rest of the world, China’s youngsters are fiercely saving their money, says business analyst Shaun Rein at CNBC. “Unlike youths in the 2010s who often spent more than they earned and borrowed money to buy fancy items like Gucci handbags and Apple iPhone, young Chinese have started saving more,” he told CNBC.
CNBC:
Rather than splurging on impulsive purchases, China’s young are saving ferociously as the world’s second-largest economy remains in the doldrums.
Revenge saving has become a trend on Chinese social media websites, with Chinese youth setting extreme monthly saving targets.
A 26-year-old with username ‘Little Zhai Zhai’ is detailing her attempt to cap her monthly spending at just 300 Chinese yuan ($41.28) a month, with a recent video showing how she curtailed her daily meal expenses to just 10 yuan ($1.38).
Others are finding “savings partners” on social media. These partners form a savings circle that ensures its members stick with their goals. Savings measures also include dining at community canteens usually for the elderly, where fresh meals are sold at relatively cheap prices.
“Chinese youth have a revenge savings mentality,” said China Market Research Group’s Managing Director Shaun Rein. “Unlike youths in the 2010s who often spent more than they earned and borrowed money to buy fancy items like Gucci handbags and Apple iPhone, young Chinese have started saving more,” he told CNBC. …
Unemployment rate among youths aged 16 to 24 came in at 14.2% in May, well above the national average of 5%. While there are no official statistics for monthly wages earned by undergraduates, a survey found that the average monthly salary of those with undergraduate degrees earned in 2023 was 6,050 yuan ($832), 1% higher from a year earlier, according to domestic reports compiled by MyCOS research and published on local media .
“Confidence and Animal Spirits have disappeared among the youth. It’ll take years if not longer of a boom market before [they] feel comfortable to revenge spend,” said Rein.
Shaun Rein is a speaker at the China Speakers Bureau. Do you need him at your meeting or conference? Do get in touch or fill in our speakers’ request form.
Are you looking for more consumer experts at the China Speakers Bureau? Do check out this list.
No comments:
Post a Comment