Vibrant Chinese Market: Post-1990s generation drives consumption growth
Updated 13:58, 13-Nov-2018
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03:02
After decades of investment-led, export-driven growth, China's economy is now shifting towards a growth driven by domestic consumption. And contributing to that new pattern is the increased buying powers of China's post-90s generation, the segment of population born between 1990 and 1999. CGTN reporter Meng Qingsheng caught up with one of the post-90s generation in southwest China's Chengdu, and filed this report.
At one of the most popular commercial centers in downtown Chengdu, Guo Xia is shopping. Born in 1991, she is no mindless shopper, having a savvy taste in choosing what to consume.
GUO XIA FASHION DESIGNER "I like buying clothes. I majored in fashion design at school, and I have a special interest in clothes and shoes. I prefer branded items with special designs and good quality. They take up a big chunk of my salary."
Guo earns about 15 hundred U.S. dollars a month. She spends sixty percent of the salary buying clothes and shoes, with the rest for cosmetic products and traveling.
GUO XIA FASHION DESIGNER "Only those having extra money would choose to save. For me, saving money means downgrading my current quality of life. I won't do it for that purpose."
Guo Xia's spending habit has inspired her mum to consume more. Born in the 1950s, the mother went through a period of time in China with dire shortages of food and daily necessities.
WANG JIANGUO'S MOTHER "Her spending habit is way too expensive to me. But it's understandable as time has changed a lot. In fact, most of the items she bought are not necessary. If she is desperate for money someday in the future, I still need to offer my help."
MENG QINGSHENG CHENGDU "The post-90s generation comprises about 16 percent of China's population today. Experts predict this consumer cohort will make up more than 20 percent of China's total consumption growth between now and 2030. The number is higher than any other demographic segment."
A survey by McKinsey consulting firm shows five different priorities for the post-90s consumers in China. A large percentage of them believe success means pursuing a happy life.
This is true for Guo Xia. After spending six years in Japan learning fashion design, she landed a job preparing students to go overseas. The teaching work suits her interests, and provides her with a stable source of income.
GUO XIA FASHION DESIGNER "I think it's important to live the moment. Except for insurances, I will not bother to manage money matters, as they are complicated to me. My ideal life is being able to buy everything I like, with no worries for money. It should be a free and easy one."
Consumption made up about 60 percent of China's GDP growth in 2017, up from 45 percent in 2010. The post-90s generation, as the most active group of consumers in China, contributed to that boom. Now, they are expected to play a bigger role, and make growth a dynamic and vibrant one. Meng Qingsheng, CGTN, Chengdu, Sichuan Province.