China new-gen consumer behavior patterns and preferences

PRIMER

China's new-generation consumers, especially Millennials and Gen Z, are redefining the landscape of consumer behavior with their unique preferences and spending patterns. Here are some of the key trends:

1. Digital-First Mindset and E-commerce Dominance

• Social Commerce and Livestreaming: Chinese consumers are increasingly shopping through social media platforms like Douyin (TikTok), WeChat, and Xiaohongshu (Little Red Book). Livestreaming with influencers or "KOLs" (Key Opinion Leaders) is particularly popular, creating interactive and engaging shopping experiences.
• Integrated Mobile Ecosystems: Super apps, such as WeChat, combine social media, payments, e-commerce, and more, making transactions seamless. This ecosystem allows consumers to shop, pay, review, and share all within a single platform, blending convenience with social engagement.

2. Focus on Wellness and Health

• Rising Demand for Health Products: Health, fitness, and wellness are high priorities, with a growing interest in organic foods, nutritional supplements, fitness gear, and mental wellness services.
• Fitness and Outdoor Activities: With fitness and outdoor activities on the rise, products related to sportswear, fitness tech, and outdoor equipment are booming, supported by popular trends in hiking, cycling, and gym workouts.

3. Green and Sustainable Consumption

• Preference for Eco-Friendly Products: Sustainability resonates strongly with younger Chinese consumers who prioritize products with recyclable packaging, eco-friendly ingredients, or ethical sourcing.
• Secondhand and Sharing Economy: Platforms like Idle Fish and Dewu allow consumers to buy and sell secondhand items or rent products, reflecting their commitment to sustainable consumption.

4. "Guochao" (国潮) and Pride in Domestic Brands

• Rise of Chinese Heritage and Local Brands: The "Guochao" trend reflects a growing appreciation for Chinese culture and heritage in fashion, cosmetics, and consumer goods, driving a boom in local brands and products that incorporate traditional Chinese elements.
• Localization in Global Brands: Even foreign brands are integrating Chinese culture into product lines or collaborating with local designers to align with "Guochao" aesthetics, enhancing their appeal to patriotic young consumers.

5. Personalization and Unique Experiences

• Customized Products and Experiences: Chinese consumers, particularly Gen Z, value individuality and seek products tailored to their tastes. Brands are responding by offering personalized packaging, customizable products, and interactive shopping experiences.
• High-Value Experiences over Material Goods: Young consumers are spending more on experiences, such as travel, dining, and entertainment, focusing on memorable and sharable moments.

6. Emphasis on Social Responsibility

• Preference for Socially Responsible Brands: Chinese consumers expect brands to engage in meaningful social causes, such as poverty alleviation, education, and rural development.
• Transparency and Ethical Sourcing: Ethical practices around labor, sourcing, and community support are becoming essential, as consumers scrutinize brand values and actions.

7. New Technology Adoption and Digital-Only Products

• Virtual Goods and Digital Collectibles: The popularity of NFTs and virtual products, especially within the context of gaming and metaverse platforms, is growing.
• Smart and Connected Devices: Products like smart home appliances, wearables, and IoT-enabled gadgets are in demand among tech-savvy consumers, offering convenience and integration into a fully connected lifestyle.