China's young shoppers become biggest spenders

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Young Chinese shoppers, including those who have not yet graduated from college, are fast becoming the biggest spenders in the country.

They, however, are not loyal to just one shopping channel. They could either go online or offline for a particular product, depending on their mood.

Jing Wang (L) is studying at a university in Beijing and Jane Wang (R) is studying in Australia for her master’s degree. /CGTN Photo

Jing Wang and Jane Wang are in their early twenties. Jing is a university junior in Beijing and Jane is studying for her master’s degree in Australia. Both are spending some 5,000 to 6,000 yuan on a monthly basis – even more than the average monthly disposable income per capita of less than 5,000 yuan ( 800 US dollars ) in China’s first-tier cities.

“I think our generation is the most IT generation, and we want to follow the trends in social media. I think most of my clothes and cosmetics are bought online. I also spend money in actual stores for fresh food and some expensive products,” said Jing.

“But I also spend some of my money offline, including books and clothes," said Jane, adding that buying clothes offline gives her opportunity to try them to see if they fit or not.

Most of today’s Chinese college girls may be just like Jing and Jane – they prefer the convenience of online shopping but will go offline if they want to try the products out before making a decision.

Men shop the same way. But the product range is entirely different. Jing and Jane’s male classmates said that besides sneakers, they spend the most on electronics and games.

Visha Bali (R), managing director of Nielsen China, speaks to CGTN in Beijing. /CGTN Photo

Vishal Bali, managing director of Nielsen China, advised the companies should connect with roughly 78 million post-95 young consumers in China.

It may, however, requires brands to re-think their strategies, he added.

“They have very unique characteristics – They are generally optimistic but very experimental. They want to try new things, they want to look for high quality... They want instant gratification. They want to play around before making up their minds. Loyalty is not so big for them now. So, brands really have to embrace those characteristics to really connect with this segment,” said Bali.