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In his book, China’s Millennials: The Want Generation, Kansas City native Eric Fish draws on his years spent working as a teacher and journalist in China to examine the country’s complicated younger generation. Through extensive interviews with young workers and recent graduates, Fish introduces us to the generation that was born during the 1980s and ‘90s. This is a generation born into a China that is very different from their parents’ experiences and who have come of age at a time when China is newly ascendant on the world stage. Nevertheless, there are still many things – from finding a fulfilling career to starting a family, to buying a flat and choosing where to go on holiday – that can seem impossibly difficult.

PF: Could you give us a brief description of who falls into the category of being a Chinese millennial?

EF: In my book I define them as those born roughly between the early 1980s and late 1990s, regardless of other demographics. Depending on where you put the cutoffs, that’s anywhere from around 250 to 400 million millennials. Within that cohort you obviously have massive disparities in life experiences. There are rural farmers who still live simple rustic lives, migrant workers who’ve undertaken the transformational move from countryside to city, and urban natives who sip Starbucks and live very comfortably.

Because of regional and socioeconomic disparities, it’s very difficult to answer questions about “what Chinese millennials think.” Through the hundreds of interviews I did, one of the most notable things was just how diverse opinions were on just about anything – from thinking on other countries to the most sensitive domestic political issues. It was also interesting to see how radically different attitudes could range between people just a few years apart. Some in China define a generation in terms of a five-year span (i.e. post-80s, post-85s, post-90s) because of how quickly things have changed since reforms began, and my interviews certainly bore that out.

PF: In what major ways do these Chinese millennials differ from their counterparts in the US or UK? What’s their view of us compared to their parents?

EF: The most interesting difference I found was that young Americans and Brits are fleeing from religion in large numbers, while young Chinese are flocking to it. I think that speaks to how, since the de facto death of socialism as a belief system in China, many young people are looking for meaning and moral guidance in a chaotic hyper-capitalist society.

In many ways, Chinese millennials are very similar to their Western counterparts. There’s been an explosion of individualism, and many of the sub-cultures and counter-cultures that you’d recognise in the West have begun to flourish.

As for their view of us, a Pew survey found that 60 percent of Chinese people aged 18-29 have a favorable view of the US. For those over 50, it was only 35 percent. Chinese millennials tend to have more complicated views of the US and UK compared to the more black-and-white impressions that are prevalent amongst the older generation. Western culture, fashion and entertainment are still very appealing, but the adoration of anything foreign that was common ten years ago is subsiding. Many young Chinese still admire the West, but they also want to be proud of China, and they increasingly feel they have reason to be.

Are Chinese millennials, as the stereotype often goes, significantly more nationalistic and materialistic?

EF: That’s the stereotype, but I think there’s often a bias toward the loudest and most extreme – the screaming nationalist counter-protestors at Hong Kong rallies, or the materialists who “would rather cry in a BMW than smile on a bicycle.” Those certainly aren’t representative.

The surveys I’ve seen suggest younger Chinese are getting gradually less materialistic – caring less about money and more about experiences and personal fulfillment, which makes sense. For their parents’ generation coming out of poverty, materialism and gaining status through wealth was a big thing, but for millennials, it tends to be less impressive.

‘Nationalism’ is trickier to pin down. Millennials grew up with the ‘Patriotic Education’, which gives a very nationalistic worldview. But they also grew up with exponentially more sources of information, entertainment and ideas than their parents. Government narratives are one influence, but only one of many, and usually not the most compelling. Surveys trying to gauge nationalism suggest Chinese youth are getting less nationalistic in many ways, but maybe not so much on foreign policy issues.

Nationalistic rhetoric has been ramped up lately though. Those voices are being amplified while skeptical voices are being repressed, either directly or through social pressure. It’s very hard to accurately judge public opinion overall.

PF: We see millennials here in the UK as being very concerned and involved in environmental issues, ethical consumption, food sourcing and so on. What issues most concern Chinese millennials?

EF: Housing and job prospects are among the top concerns. House prices in most major Chinese cities make even London look reasonable by comparison. And the job market is very bleak for many young Chinese – especially college degree holders, who’ve seen their wages depressed year after year as universities continue to pump out underprepared graduates that the economy isn’t ready for.

These things are made worse by the legacy of the One-Child Policy. Most Chinese millennials are only children tasked with caring for elders – something putting enormous stress on their generation. And because of sex selective abortion exacerbated by the One-Child Policy, there’s a surplus of men numbering in the tens of millions, which puts intense pressure to accumulate assets on those young men who are looking to get married.

Before Xi Jinping came to power, there were bourgeoning activist movements on issues like feminism, environmentalism, social justice and workers’ rights, but those have been greatly suppressed under Xi. It’s not that young people don’t care about those issues – many do – but the space for them to speak up has shrunk dramatically. And for most, the overwhelming concerns of daily life preclude much time for more idealistic activist pursuits.

PF: There are still large number of Chinese millennials coming to study in the UK. What can UK universities do to keep on attracting Chinese students and what, if anything, puts them off us?

EF: That number is actually growing much slower than in the past, and it will likely peak soon. Universities that once had a seemingly bottomless pool of Chinese applicants are now having to compete aggressively for them.

Two reasons for this are visa policies and work prospects. Though more are opting to eventually go home rather than immigrate, many would still prefer a few years of work experience before returning. Recent visa delays and arbitrary rejections in the US, along with tightening restrictions on post-graduation work authorisation, have sent many flocking to the UK. As long as visa policy stays welcoming – or better yet, opens even more – the UK will be attractive.

Students (or more accurately, their parents) are also very concerned about safety. Perceptions of gun violence and crime in the US is an oft-cited reason why students opt for destinations like the UK. They’re also paying more attention to which schools do better at integrating international students into a very different educational and social atmosphere (most have dropped the ball on this front). Schools that appear safe and show they care about Chinese students’ success, rather than view them as cash cows, will do much better at attracting them.

PF: As China’s millennials marry, have kids, settle into careers and become more middle aged and middle class how do you think they’ll form as a group?

EF: Chinese millennials overall are certainly more socially liberal than their elders, and probably more politically liberal. But it’s hard to say how that will actually manifest politically. No matter how liberal and idealistic they are collectively, it’s those who play the game and perpetuate the system that rise to actual positions of power.

However, as countries grow a sizeable middle-class, people tend to start demanding more from leaders, and that’s indeed what appears to be happening from around ten years ago. There was a series of (mostly millennial-led) environmental street protests, labour movements, social movements, social media activism and so on. That was probably one of the things that prompted the ongoing crackdown which begun around 2013. Those movements have been mostly subdued for now, but I’m sceptical that can last indefinitely.

The big wild card is the economy. The tacit bargain for the last 30 years has been acquiescence to one-party rule in exchange for rapid economic growth. That bargain is less compelling for a young generation that takes growth for granted, and in any case, the government will have a harder time holding up its side of the bargain. It’s already leaning more heavily on nationalism to compensate, but how much heavy lifting can that do? What if the economy takes a sharp dive? I know better than to make any predictions.

China’s Millennials: The Want Generation is out now

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There’s been no shortage of coverage of China’s slowing GDP growth, the most recent being Q2’s 6.2 percent growth, the slowest pace since 1992. While no one should downplay the slowdown, it’s important to remember that China’s GDP is seven times larger than it was in 1989, and in absolute terms is expected to be over 60 percent higher than the last time growth was over 10 percent in 2010.

China remains an enormous market with opportunities aplenty, particularly in consumption, which accounts for around three-quarters of growth. Overall, retail sales grew 9.8 percent in June. The growth of fast-moving consumer goods (FMCGs) last year accelerated to 5.2 percent from 4.7 percent in 2017. There are industries such as auto which are contracting, and geopolitical tensions are shifting spending and preferences, such as student registrations to the UK which grew 35 percent last year, largely at the expense of the US. But, as a whole, many foreign brands continue to see strong growth across everything from sports attire to healthy food.

With each GDP growth announcement, it is important to note that Chinese consumers are becoming more discerning and sophisticated. Brands need to work harder than ever to break into the fiercely competitive marketplace and connect with consumers. Here are six trends to keep in mind to ensure your brand, product and service resonate with Chinese consumers.

1. Play to my tribe

The effeminate male is part of a large and lucrative consumer sector

The fastest-growing male fashion category online in China is lacy, transparent garb. This is mirrored by many male cosmetics categories growing well into triple digits. The effeminate male is part of a large and lucrative consumer sector who are shaking off traditional conformity and unashamedly buying products and services that reflect their personalities, their interests and their tribes. This is far from the homogenous segmentation of China that many brands employ. The best performing brands have segmented strategies by consumer and geographic profiles, ensuring that they connect through relevant and meaningful positioning, messaging, products, packaging, formats, promotions, partnerships and pricing.

 The best performing brands have segmented strategies by consumer and geographic profiles

 

2. Do it for me

One of the biggest complaints we observed around Singles’ Day last year was how unmanageable the deluge of promotions had become. Consumers are simply overwhelmed. Businesses are accommodating this by providing everything from shopping list curation to tech giants helping consumers make decisions through AI-powered recommendations. British brands can tap into this by offering food, fashion or travel itinerary recommendations for specific occasions, particularly for those less-familiar foreign categories which require an element of education.

3. Make it convenient

Luckin Coffee delivers a single cup of coffee to a home or office

There are countless Chinese businesses who have built their success on convenience. For example, Luckin Coffee delivers a single cup of coffee to a home or office. Just 17 months after opening its first coffee shop it IPOed on Nasdaq – the shortest duration in history from launching to listing. It now has 3,000 stores and aims to surpass Starbucks by the end of the year. Convenience has become an everyday part of Chinese lives, incorporating everything from seamless mobile payments, to the 10 billion+ meals delivered last year. Groceries and a host of other products can be delivered within 30 minutes. Brand’s customer journeys should be as convenient as possible and products should factor in convenient formats and packaging wherever possible.

4. Give me an experience

To stand out, brands need to do more than just sell something. They need to make the whole experience memorable and unique. In many cases, this involves combining products, services and marketing with interactive tech and creating meaningful experiences. The popularity of New Retail personifies this with consumers able to interact with their smartphones to try on lipstick, clothes and other gear on magic mirrors. In the tourism category, shopping used to account for the lion’s share of the budget, now most spending is on experiences. Marketing, product and channel strategies should always consider Chinese consumers expectations for an interesting, energising experience that could encompass anything from gamification to the physical retail experience.

5. Sell me better things

Super-premium products are the fastest growing – and often the largest segment – for almost every FMCG category. This is representative of the general trend of trading up. 26 percent of Chinese consumers traded up their purchases in 2018, versus 17 percent in the other top 10 other economies according to McKinsey. British brands will never compete with domestic brands on price, so should be targeting opportunities at the top end. Nevertheless, while Chinese consumers are demanding premium products, just being British isn’t enough, and brands need to justify the claims with relevant positioning, benefits and connections.

6. Help me improve

Chinese consumers’ desire for richer and more fulfilling lives is ever increasing

With more experience and discretionary income, Chinese consumers’ desire for richer and more fulfilling lives is ever increasing. This is alongside China’s hyper-competitive environment which is driving consumers to improve their skills to stand out from the masses professionally, physically and socially. Adult classes are one of the fastest-growing categories online. Between 2014 to 2017, running events increased 20-fold to 1,102. Any products and marketing that give consumers the impression that they will learn, get healthier, or become more attractive are likely to resonate well.

Ensuring that these trends are incorporated into your marketing plan will mean that you are well on the way to genuinely connecting with Chinese consumers and will maximise your chance of success in the lucrative Chinese market.

China Skinny is a marketing strategy, research and innovation agency based in Shanghai who has worked with almost 200 international brands to help them grow and prosper in the China market. More at chinaskinny.com

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