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China’s millennial consumers are more health-conscious, happier to spend on leisure and more loyal to domestic brands than ever before, according to a new report by Credit Suisse.
Labeled as a “more aggressive and confident consumer generation,” China’s post 80s and 90s generation are also traveling more and displaying better saving habits, according to the study.
Credit Suisse’s Emerging Consumer Survey 2018 looked at 14,000 spenders in the five BRICS countries, as well as Indonesia, Mexico and Turkey, with the world’s emerging economies rapidly catching up to developed nations thanks to demographic dividends and increasing globalization.
By 2022, China is expected to see its wealth expand by 9.8 trillion US dollars according to the survey, and more of that money will be in the hands of a new generation who are “more willing to trade money for quality time” than any previous generation.
Young Chinese (aged 18 to 29) are more likely to spend their money on travel than any other age group surveyed, with the average consumer spending an average 1,298 US dollars on holiday in 2017.
Meanwhile, Chinese millennials have grown increasingly health-conscious. Out of all the countries surveyed, more Chinese 18-29 year olds (almost 75 percent) said that they had cut down on unhealthy food.
Eighty-five percent of Chinese 18-29 year olds had recently bought fizzy, sugary drinks when surveyed in 2012, but that number is now down to around 75 percent.
China's young consumers are spending more on health and fitness.
Forty percent of Chinese 18-29 year olds told Credit Suisse they had increased their consumption of protein products, while almost 55 percent said they intended to get more exercise and do more sporting activities.
Credit Suisse found that greater spending among young consumers in emerging economies was down to increased urbanization and connectivity, with China’s e-commerce boom putting it head and shoulders above many developed economies.
The report describes e-commerce as a “facilitator, not a disruptor”, with more than 80 percent of Chinese consumers aged 18 to 29 buying goods online, far ahead of India, and more than double the same age group in Russia and Brazil.
The survey suggests China’s prowess in e-commerce is down to growing urbanization and the country’s smartphone penetration rate – more than 90 percent of those surveyed owned a smartphone.
While this has been a huge boost to companies at home and abroad, Credit Suisse found that young Chinese consumers now prefer domestic brands over overseas names in a victory for the “made in China” label.
When it comes to buying home appliances, 90.7 percent of Chinese aged 18 to 29 said they would prefer buying a domestic brand.
Haier products on sale in the US. Credit Suisse's report suggests growing international expansion of domestic brands is boosting their reputation back home.
The same age group is as likely to spend more on domestic sportswear as international brands, with the report saying “Chinese brands are gaining market share at the expense of foreign brands in certain end-markets such as food and beverages, personal care, electronics and home appliances.”
Speaking at a press conference on Wednesday to launch the report, Credit Suisse’s head of China consumer research Charlie Shen said, “Right now, Chinese consumers think China is good and ‘Made in China’ is not bad at all.”
When it comes to handling their growing incomes, Chinese millennials are increasingly sophisticated at saving as well as spending. While young Indians continue to invest in gold and jewelry or keep their money as cash, China’s young generation is putting more money into mutual funds and the stock market than any other country surveyed.
Forty-five percent of Chinese overall wealth is being parked in financial assets according to the survey, showing greater financial acumen as the country approaches the average of around 55 percent for the rest of the world.
(CGTN)
