Revenge saving key trend among China’s youth – Shaun Rein

 

Shaun Rein

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.

More at CNBC.

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.

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Consumer confidence might be down, but not for the rich – Ashley Dudarenok

 

Ashley Dudarenok

Consumer confidence in China might be down, and massive youth unemployment hurts the economy, but not for all consumers gloom is the message. Marketing expert Ashley Dudarenok sees prospects for high-net-worth individuals (HNWIs) – compared to the middle class – within the luxury market, she tells in the Jing Daily.

The Jing Daily:

As China’s recovery proves to be less robust than initially anticipated, a notable contrast emerges in the spending patterns between high-net-worth individuals (HNWIs) and the middle class within the luxury market, says Ashley Dudarenok, China digital marketing expert and founder of China digital marketing agency Alarice.

“High-net-worth consumers in China demonstrate a stronger appetite for luxury goods and contribute significantly to the market’s consumption power,” Dudarenok says. “Their purchasing decisions are driven by the desire for status symbols, exclusivity, and a sense of identity. On the other hand, the middle class, facing greater economic pressures and more cautious sentiments, may exhibit more restrained spending behaviors.”…

However, analysts have raised concerns over high youth unemployment in China. A recent Goldman Sachs report revealed that the youth unemployment rate (16-24 year olds) surged to 20.4 percent in April, posing a significant challenge for the country’s economic recovery.

Dudarenok says: “Concerns over youth unemployment may impact the purchasing power and willingness of younger consumers to engage in luxury spending. However, factors such as improving consumer confidence, accumulated savings, and marginal improvements in employment and income can provide some support to the recovery.” …

“Despite the uneven recovery, the Chinese market remains active with the largest consumer base, presenting an opportunity for brands to achieve significant success. Brands should understand Chinese consumer preferences so that they can tailor better their marketing and attract more consumers,” Dudarenok says.

More in the Jing Daily.

Ashley Dudarenok is a speaker at the China Speakers Bureau. Do you need her at your meeting or conference? Do get in touch or fill in our speakers’ request form.

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Young consumers dominate China’s luxury markets – Ashley Dudarenok

 

Ashley Dudarenok

China’s luxury market is changing fast as young consumers born between 1990 and 2000 now dominate with 50% of the sales, and that percentage is bound to rise fast. Consumer marketeer Ashley Dudarenok gives four major tips to keep hold of this market in the Jing Daily.

Ashley Dudarenok:

Chinese consumer desire for luxury goods is expected to continue to grow in 2022 at an estimated rate of 13 percent, making them the highest spending global consumers. By 2025, Generation Y and Z will account for more than two-thirds of the market. Gen Z, China’s youngest spending generation, are digital natives that have grown up with material abundance. And they are willing to pay a premium for fresh and niche experiences.

As such, luxury brands will continue to leverage digital opportunities over the coming years to provide consumers with unparalleled shopping experiences, using innovative technology like NFTs and AR-powered digitalization. Yet, offline purchasing remains the most important sales channel, making up over 50 percent of all consumption.

Online channels provide consumers with multidimensional avenues for communicating and resonating with luxury brands. Meanwhile, offline channels give consumers physical product and service experiences that online services cannot replace. But integrated online and offline channels create an unmatched level of user stickiness, helping brands build loyalty among future consumers.

Read her four tips for online and offline marketing at the Jing Daily.

Ashley Dudarenok is a speaker at the China Speakers Bureau. Do you need her at your (online) meeting or conference? Do get in touch or fill in our speakers’ request list.

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How brands can relate to youth subcultures - Arnold Ma

Arnold Ma in Action

Brands need to dive into youth subcultures in stead of focusing on platforms, says branding expert Arnold Ma at a meeting in London. You have to focus on people, rather than technology, and he explains how three rebellious Chinese youth subcultures relate to different brands.

Arnold Ma 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 branding experts at the China Speakers Bureau? Do check out this list.

  Arnold Ma on Chinese Youth Subcultures + Tech at the BETA British Educational Travel Association from Qumin on Vimeo.   

How Douyin is undermining WeChat - Arnold Ma

Arnold Ma

Tencent's WeChat has been an unprecedented success story on the China internet. But new platforms are undermining the dominance of WeChat, says marketing expert Arnold Ma, CEO of London-based Qumin, at CBBC. Short-video medium Douyin is one of them.

CBBC:

 Anyone doing business with China in recent years has been aware of the importance of WeChat, a one-stop-shop of social media allowing chats, promotions, shopping and payments to all be done on this single platform. And its importance can’t be understated for most businesses in China. However, its popularity and prevalence has led some companies to forget everything else and replace a broad marketing plan with a simple WeChat plan. 

According to Arnold Ma of Qumin, WeChat should be regarded as more of an operating platform than a social media channel. And when it comes to social, there’s a new kid on the block. That kid is Douyin – a short video app, that was initially popularised by people lip-synching along to famous songs. Users then started showing off other talents, performing comedy sketches, and entertaining more generally; Douyin was soon mostly made up of user-generated entertainment content. 

Over a billion videos are viewed every day by the 350 million Daily Active Users on Douyin in China – not bad for a company that was developed by a team of 8 over 200 days. Today more than half of its users are under 25 years old, making it predominantly Millennials and Gen Z users who are active on the site. 

Many of the Western early social media platforms were desktop-based sites that have been adapted to mobile. But China – without a long history of desktop internet - leapt straight to mobile. It has hence been able to develop apps that are more suited to mobile, bypassing that desktop legacy that so many western sites have stuck with. Douyin’s format of videos being presented in full portrait mode (as opposed to the horizontal mode that is more suitable for desktop viewing) has really captured a youth audience who are used to swiping, scrolling and short-form content. 

Today, only 15 percent of teens now post to their WeChat moments feed says Ma. “When social media go mainstream, they lose the youth,” he explains. “We can see how Facebook lost the youth when they went from niche to mainstream and we now are seeing the same with WeChat.”

More at CBBC.

Arnold Ma 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.

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China's cashless revolution - Arnold Ma

Arnold Ma

Arnold Ma, CEO of London-based Qumin dives into China's cashless revolution and then dives further into the country's subcultures among its youth.

Arnold Ma is a speaker at the China Speakers Bureau. Do you need him at your meeting or conference?  Send us an email or fill in our speakers' request form. 

Are you looking for more experts on cultural change at the China Speakers Bureau? Do check out this list.  Arnold Ma: Deviant Youth - Chinese Subcultures (YMS 2019) from Qumin on Vimeo.  

How can brands reach China's slash generation - Tom Doctoroff

Tom Doctoroff

Social engagement has changed the Post-'95 generation in China beyond recognition. China veteran Tom Doctoroff dives into the ways brands can reach this complicated "slash generation" for Mumbrella Asia. How a new generation walks away from traditional conventions.

Tom Doctoroff:

Several forces have expanded the Post-95 generation’s world view in China. The country now boasts a generation that embraces multidimensional identities and paths for the future. 

The youth refuse to be confined to a narrow set of interests. They refer to themselves as the “slash generation.” According to a survey conducted by Ctrip, the online travel portal, 85% of Post-90s believe a “modern person should have a multitude of interests.” Their role models are people who have achieved just that: Ji Lingchen is a Taobao brand creator/reality TV star/hip hop song writer. 

The explosion of possible passions combined with the ease of forging online communities has transformed social engagement. Small “tribes” of individuals who share similar niche interests — street culture, bodybuilding, hardcore gaming, gay choristers, cosplayers — have blossomed. 

Acceptance of non-conformist pursuits has shaped the Post-95s’ view of the future. So, too, has the burgeoning of careers that did not exist a few years ago — for example, UX designers, data scientists, short film directors and cloud service analysts. For now at least, the new generation eschews “conventional” definitions of success and dulled-out corporate hierarchies. 

But then looks are deceiving. 

In China, everything is a means to an end, and requires a payoff, now or in the future. Experiences aren’t simply enjoyed. 

Passions need to be converted into social currency that lubricates forward advancement. Broad societal endorsement from parents, teachers and classmates is becoming less important than acknowledgement from “the people that matter”: members of the same sub-tribes. 

For instance, Xu, an independent traveller, says: “My friends and I learn from each other’s experiences so we can plan for an even better trip next time.” Multidimensional passions and a broad worldview are spoken of as “tools” in “the toolbox of life,” skills or “weaponry” that can be deployed to overcome unexpected hurdles.

More in Mumbrella Asia.

Tom Doctoroff 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 branding experts at the China Speakers Bureau? Do check out this list.  

How to deal with information paternalism in China - Tricia Wang

+Tricia Wang 

The outside world calls it censorship, but sociologist Tricia Wang prefers the term "information paternalism". Chinese teens are finding new ways to express themselves. 88-bar summarizes a speech of Tricia on online identity.

88-Bar:

Tricia’s research discusses how Chinese youth are experiencing their coming of age in a culture of information paternalism. That she does not call it censorship is an important distinction, because in China today, the dominant narrative around control is “father knows what’s best for you.” Here, “father” can refer to an actual teen’s parents, relatives, teachers or the Chinese government.

This dense sphere of paternalistic control (on top of the historical-cultural forces at work) drives Chinese teens to seek alternate channels of expression and socialization online.

To effectively escape, Chinese teens experiment with their identity and grow up online by cloaking themselves under pseudonyms and login handles. This type of experimentation, the polar opposite of on and offline real-name social networks, allows youth to develop what Tricia calls an “elastic self.” One great finding was that Chinese youth had developed an entire chain of rituals to convert an anonymous social interaction into a real life close connection. Interactions begin by finding people on social networks with similar interests or horoscopes. This then turns into casual conversation and e-cards for birthdays. That in turn leads to people sending little physical gifts to each other to verify a physical address. And then people will share their phone number, followed by a photo and then, lastly, a 30-second video conference to ensure the veracity of the photo. In the same way Chinese youth are finding each other online, they are also discovering more parts of themselves. Tricia structures the phases of the elastic self as 1) exploratory, 2) trusting, and 3) participatory. Only in the last phase do teens become politically active, and not everyone makes it to third phase.

More at 88-Bar.

Tricia Wang is a speaker at the China Speakers Bureau. Do you need her at your meeting or conference? Do get in touch or fill in our speakers´request form.

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A new generation of 'little emperors' - Paul French

Paul French

'Precious snowflakes' are they called, the second generation of overly spoiled Chinese children, tells Paul French in The Telegraph. And even more than their predecessors, the little emperors, they have a hard time in dealing with reality.

The Telegraph:

"They are 'Precious Snowflakes', wrapped in cotton wool from day one," said Paul French, the founder of Access Asia, a China-based research company.

"Nothing is ever quite right for them. It is always either too hot or too cold and they are all hypochondriacs. They get immediately stressed out if they ever have to lift a finger," he said.

In a world of smog, toxic food and unsure medical care, middle-class Chinese parents are spending ever-larger sums of money to insulate their children from harm.

"The first generation, the Little Emperors, were quite tough: fat little thugs always stuffing themselves full of McDonald's," said Mr French. "The new generation is very concerned with things like air quality, which the Little Emperors never bothered about.

"They only drink Evian and are scared of food unless it is imported. Their parents tread quietly around them so they can do 'natural waking', where they do not use alarm clocks but are in tune with their biorhythms."

More in The Telegraph, with live examples


Paul French 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.

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Fat Childrens' health problems - Paul French

Paul French

Bad teeth and type 2 diabetes are just two of the problems China's fat children develop, tells Paul French in an interview with The Daily Telegraph. Paul French is the co-author of the bestseller Fat China: How Expanding Waistlines are Changing a Nation.

"The kids have a bad diet, a sedentary lifestyle and very little knowledge about sports," said Paul French, the author of Fat China, a book about China's changing diet.

"Type 2 diabetes is a huge problem, and dentists are complaining that they are pulling second teeth in children as young as 12," he added...

The number of obese people has risen from 18?million in 2005 to 100?million last year, or nearly eight per cent of the population, while 500?million, or 39 per cent, are overweight.

China remains far behind the U.S., where 74 per cent of adults are overweight, and the U.K., where the figure was 61 per cent in 2009.

"The Chinese are now blase about food. They over-order at restaurants and sometimes just walk away, to show they can," said Mr French.

He said the hot dog competition was "a celebration of gluttony", a sign that the country no longer had to worry about whether there would be enough food. China was still in the grip of mass starvation less than half a century ago under Chairman Mao, which led to the death of 30 million people.

More on obesity of children in China in The Daily Telegraph.

Paul French is a speaker at the China Speakers Bureau. Do you need him at your meeting or conference? Do get in touch.

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Two, three decades of solid growth - Shaun Rein

Shaun Rein by Fantake via Flickr

Shaun Rein talked at the Asia Society in New York on how China's youth is going to be the economic fuel for two, three decades of solid growth. Youngsters might have less money per capita compared to consumers in the US, but since they do not save their money - unlike their parents - consumers are going to dictate the future. The analysis was recorded two years ago, but is still standing.

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Shaun Rein is a speaker at the China Speakers Bureau. Do you need his insights at your meeting or conference? Do get in touch.

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