Meng Yi： Consumption Trend in the New Consumption Era
Beijing Daily Client | Author Meng Yi
The epidemic has brought unprecedented impact to the global economy, and has also brought great influence to people’s daily life and consumption habits.
The prevalence of online shopping and cloud services, strengthening brand awareness, paying attention to health, and reducing offline gathering and tourism are all common changes brought about by the epidemic. With the control of epidemic situation, the rapid development of digital technology and information technology, the world has entered a new era of consumption.
With the change of population structure, different consumer groups appear. 80% of China’s total population is made up of four generations. The four generations of China consumers experienced different growth periods, thus forming different group memories, value orientations and consumption preferences.
Generation Z, with a strong sense of circle, relies on digital products and pays more attention to cost performance.
Generation Z, with independent personality and cultural self-confidence, was born in the period of rapid development of globalization, with the highest education level, and is basically used to receiving massive information through mobile phones. Therefore, their consumption concept tends to consider cost performance, especially in personal image, lifestyle and aesthetic preference of commodity design, which can be said to be more pioneering than other generations.
It can be seen that the group of Generation Z really pursues individuality, innovation and quality, and they are also more sensitive to price and usually care more about value for money. Consumption pays more attention to the concept of sustainability and environmental protection, pays attention to corporate social responsibility and environmental protection, and is willing to spend extra money for this. Most people of Generation Z are very keen on online shopping because they often use digital tools such as the Internet and e-commerce platforms in their growing experience. Compared with other generations, Generation Z with brand acumen has a higher awareness of the brand, and they pay more attention to brand image and brand value, so brand marketing can quickly attract their attention. In particular, the emerging meta-cosmic space, which has exploded in the past two years, is a new position for Z generation interaction. Socialization, games and collection shopping bring brand-new virtual space experience to Z generation.
It can be seen that the consumption concept of generation Z pays more attention to personalization, quality, sustainability and digital experience.
Generation y, driven by goals, takes care of both career and family, and is willing to pay for majors.
Generation Y, known as the "millennial generation", is relatively rational due to the influence of the growing environment, and has higher requirements for the brand and quality of goods, and is willing to pay corresponding value for higher-quality goods. It is not difficult to find that Generation Y is a group with a strong sense of health, and they pay attention to healthy diet, entertainment and exercise and a healthy lifestyle.
Taking sports as an example, unlike the inseparable characteristics of Z-generation sports and play, Y-generation develops exercise habits and usually has clear fitness goals. Generation Z is keen on social fun sports such as frisbee, skateboarding and flag football, while Generation Y prefers physical training sports such as running, swimming and yoga. According to statistics, Generation Y, which accounts for 22% of the population, has contributed 80% of the paid members of the gym, which shows that their goal-driven is very clear.
Indeed, the group of Generation Y pays more attention to the quality of life and consumption experience, and is more willing to pay for brand value and social responsibility. At the same time, Generation Y likes to shop online, especially through mobile devices to buy goods and services, and they also pay more attention to the integration and balance between the virtual world and the real world.
Generally speaking, Generation Y is a more rational and personality-oriented generation.
Pragmatic and cautious Generation X advocates frugality and benefits, aiming at improving the quality of family life.
Growing up in the era of rapid economic development and information explosion, the consumption characteristics of Generation X are more practical. This generation of people has entered the middle-aged stage or is about to enter the middle-aged stage. They pay more attention to the practicality and functionality of products instead of fashion and brand. They prefer to wear comfortable and functional clothes, such as sports shoes, hoodies and tight shirts. Many of Generation X are housewives, working-class people or middle-level managers in enterprises. They are no longer concerned about personal fashion and brands, but more about the needs of families and children, such as education, safety and health.
After three years of epidemic, Generation X began to be more cautious and rational in consumption, paying attention to product cost performance and practical use value, and they were more accustomed to making reasonable consumption decisions. But sometimes, Generation X also wants to show its identity in offline social interaction, seek the match with the group, and promote the maintenance of social relations. You will find that Generation X is the main customer group of high-end tea rooms and afternoon tea. For them, buying brand products and choosing a quality living environment is not only a reward for their own consumption, but also a necessity for a decent life.
Generation X pays more attention to practicality and functionality, pays attention to the needs of families and children, and advocates frugality and benefits. In the final analysis, it stems from the higher pursuit of family life quality.
The "baby boomers" who pay attention to health care will regain themselves and enjoy their old age.
The background of aging population in China has also become the main driving force of the silver-haired economy. Different from the traditional old people’s consumption concept of frugality, more and more silver-haired old people began to regain themselves, and by embracing the Internet, they developed different hobbies and actively contacted various new media to follow current events. Because they have more leisure time and less family burden, these silver-haired consumer groups have gradually derived consumer demand with the characteristics of silver-haired groups. More and more fashionable silver-haired people, they start a "slash life" with multiple identities, and realize a happy old age.
For the silver-haired group, health care is a top priority and occupies an important position in their daily life. In the field of health consumption, their demand for goods is increasingly prominent, and their net price willingness is higher than that of the other three generations. Silver-haired people prefer the traditional concept of health preservation, and most people choose food instead of medicine. Some research shows that the "baby boomers" have the highest penetration rate in Chinese traditional nourishing health care, and nearly half of the silver-haired old people will choose to adjust their diet for health care, and they are most interested in the content of health care. Because of this, the penetration rate of health care products has been improved, including vitamins, minerals, coenzyme Q10, probiotics and other products are being accepted by a wider range of consumers. As the main population of the silver-haired economy, the "baby boomers" not only have strong purchasing power, but also have very stable consumption behavior of health care.
In addition to basic food and clothing, the silver-haired group has become the second largest tourist group in China after the X era. Not only that, the consumption requirements of silver-haired groups for domestic service and medical health have reached the highest among all consumer groups. At present, the silver-haired consumer industry is not yet mature, and its development mainly focuses on nutrition and health care products, but there is still much room for development in terms of elderly services and convenient living services.
Future development still needs to understand the growth background and ideas of silver-haired groups, abandon stereotypes, learn from the silver-haired economy of other developed countries, and fully study the core needs of silver-haired groups in China.
Digital transformation and innovative services, personalized experience and customized services, new retail and online and offline integration, and green environmental protection and social responsibility are all business trends in the new consumption era. However, consumers in China are still willing to pay a premium for higher quality. In the future, it is foreseeable that the momentum of quality consumption will continue to be fierce. Generation X and Y are ahead of the other two generations in most categories last year and will be the main consumers in the future.
(The author is the director of dtz North District Commercial Department)
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