left margin right margin - tnsglobal.com · the sense of “self” is manifested by chinese...

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Despite gloomy economic outlook, evidence has shown that Chinese consumer

confidence remains resilent.

However, how consumers spend and why they are spending has undergone

significant changes in recent years.

Distilled from our extensive experience interacting with consumers from all over

China and clients with a variety of background, Kantar TNS presents you 10

prevailing consumer trends in urban China – for your reflection and inspiration

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The Chinese consumers are now more confident individuals – the sense of “self” is

awakening as a result of western influence, modern lifestyle and material abundance.

This shift in value and psychology has fueled several consumer trends:

1. Something for “me” 2. Small Contentment 3. Self Pampering 4. Show Time

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1. Something for “me” As the basic needs are met and market offers flourish, big/well

known/household brand is no longer enough. The new consumer is not

going to settle with something every “common people” use, but

something unique to set her/him apart from others. The first beneficiary

of this consumer needs are premium and luxury brands, as price

naturally gives these brands a sense of superiority. Recently, niche

brands are gaining momentum. These small brands often come with

innovative products addressing specific consumer needs to near

perfection. More importantly, its niche identity helps the one who

chooses it stand out.

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1. Something for “me”

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DIY, limited editions for big brands to

constantly reinvent itself

Increasingly imperative for brands to

have a point of view or personality to

engage consumers

How can brands leverage this trend?

Huge opportunities for emerging

brands in traditionally household

brands dominated markets, such as

personal care and home care

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2. Small Contentment “How I feel is more important than what other people want me to

be.” Self-defined happiness takes over the traditional definition of

success (i.e., wealth and status). As living standard reaches a

certain comfort level, many people choose a relaxed and more

balanced life over strenuous ladder climbing. This affects how

people choose their career, how and with whom they spend their

time. Some start to migrate back to lower tier cities. Freelancing,

Bed & Breakfast, internet based small businesses are new career

choices that allow people to have more control over their lives.

More time is spent with family and loved ones as happiness and

well-being gain more weight over pure financial success. Leisure

hobbies are developed as there are more out side of work free time.

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Brand communications speaking of a variety of happy lives, e.g., content at the present, self sustain vs. luxurious, life vs work

2. Small Contentment

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Leverage leisure occasions for consumer engagement, e.g., concert, art fair, weekend outing

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Modern lifestyle and western

value is affecting how Chinese

consumers see her/himself in

relation to her/his family and the

social world. The traditional

value of conformity and “small

me” is now challenged by the

increased sense of “self”.

“Although my family and social

obligations are important, my

own needs should also be taken

care of.” If only you are good to

yourself, you know how to

appreciate life.

3. Self Pampering

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Product innovations targeting “take a

break” occasions

Opportunities in products/services

focusing on improving self/quality of life

(e.g., spa, sports membership card, and

hiring of personal trainer)

Tapping into self-reward/pampering in

brand communications – the best

ingredient/quality should be used when it

comes to things for yourself and family

3. Self Pampering


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4. Show Time The sense of “self” is manifested by Chinese consumers’ strong desire to be visible on social media. It’s a show time for

everybody - not only 90s/95s are posting, so are grandpas and grandmas. Various social media provides just the platform

for Chinese consumers to show their good way of life, their taste, their point of view. However, behind the obvious motive to

show difference, also lies the desire for social approval: I post because everyone else is doing so. Thus “harmonized

difference” is uniquely important to Chinese consumers on social media

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Use design - brands with unique and stylish

design are more likely to be shared on social

media. It speaks about the taste of the one

who posts it

Humor and attitude travels

on social media

4. Show Time

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Popular public activities provides a good

platform for consumer engagement

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Consumer lifestyle evolves as living standard continues to improve and technologies

further enwoven into people’s lives

5. Health+ 6. Buy Time 7. Omnipresent Shoppers

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5. Health+ A new level of consciousness on health and well

being unfolds:

“Eat well” no longer means excessive intake of

meat/nutrition, it’s about healthy and scientific

diet

Higher standard on quality and variety of food -

organic food, imported food, fine dining

Health comes not only from food, it’s about

healthy lifestyle/habits - participation in sports,

hiring a personal trainer to provide more

professional guidance, using sports related APP

and wearables

From physical health to holistic view of body,

mind, and soul - higher awareness of depression

and various psychological/mental problems,

practice of meditation, yoga and pursuit of

religion

From food safety to general awareness of

overall living space - air, water and soil

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Upgrade accordingly to the new definition of health on

food/lifestyle in product innovation and communication

Brands/products shall facilitate and enable an easier pursuit

of health by consumers

5. Health+

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How can brands leverage these trends?

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6. Buy Time Time scarceness has always been a pain

point for today’s consumers who are often

torn between family, work and many fun

activities in the modern life. Consumers

are now willing to buy time to free

themselves from the boring and repetitive

chores for hobbies/favorite activities. And

this is made possible by modern

technologies - trips to physical stores are

saved by home delivery service, private

chef comes to your home if you don’t want

the hassle of eating out, taxi ordered at

home and comes to your door steps,

smart phones take the role of personal

assistant to make your life more efficient.

Convenience has been taken for granted

as consumers are indulged by a variety of

innovative offers that deliver convenience

beyond expectation.

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How can brands leverage this new trend?

Convenience is a must-have in today’s

product/service offerings

6. Buy Time

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Innovation opportunities in further identifying areas that would

bring more convenience to consumers, e.g., integrating various

aspects of consumer lives into one single platform/product

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7. Omnipresent Shoppers Chinese consumers are now global shoppers – as income

rises, oversea travel becomes a popular and sometimes

must do annual event for an average Chinese urban

household. Strong RMB in the past a few years further drove

up the value of goods in foreign countries. Shopping, over

time becomes the main driver of overseas trips. On top of

luxury goods (which enjoy the most appreciable price gap), a

range of products from consumer electronics to household

goods are also among Chinese travellers’ shopping list.

Beside price advantage, foreign goods are believed to have

better quality (safer ingredient when it comes to food) and

more up-to-date selection. Global shopping is now no longer

limited to travel occasions – various cross border

ecommerce offers (e.g., global shopping sites by local and

international ecommerce giants, global shopping agents,

international shipping by foreign retailers) make sure that

Chinese consumers can shop anywhere whenever they want.

Ecommerce has undergone explosive growth in the past 5

years – lured by cheaper price, ease of shopping, and

limitless of offerings, consumers quickly changed their

shopping habits and shifted many of their purchase online

without much effort. The impact to offline retail is bigger in

China than other countries because of the cheap delivery

cost in China.

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For brands that operate in multiple markets, China is worthy

enough for early launch of latest offerings. Products specially

designed for Chinese consumers is a demonstration of the

brand’s respect of the uniqueness of Chinese consumers

Leverage O2O – the border between online and offline is

blurred. Brands need to think holistically to grab any

opportunities possible. Offline operation shall fully leverage its

advantage in delivering experience and service, in the

meantime to leverage online channel for maximum reach and

consumer engagement

7. Omnipresent Shoppers

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Lancome Genifique gift

pack by French

designer inspired by

Chinese element

Longchamp limited

edition for China

market – lamb skin

folding pouch

11/11 Uniqlo on sale

offline and online

simultaneously

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Moreover, the shift in demographical structure has pushed new generations

of consumers into the market place, with characteristics uniquely defined by

this age of time

8. A different kind of youth 9. Single Nobles 10. New definition of aging

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8. A different kind of youth The uniqueness of this generation of youth (90s/00s) is reflected by the

following characteristics:

First, diversified view of life and desire to pursuit bolder dream. As the

only child in the family, 90s/00s enjoyed material comfort and sole

parental and grandparental attention. Their parents are better equipped

financially than the previous generations to extend their financial

support to the children even after their time of self-establishment. This

gives them greater sense of security to explore different paths of life

and pursuit bolder dreams.

Second, there is no single authority. They grew up in a time where

different opinions are more tolerated. As self-absorbed as they are, they

don’t want to be told – authority is not won by claim or to be obeyed.

Choices must be given and they will explore and make their own

decisions.

Third, without much hardship experience, delayed gratification is not

their belief. Everyday moments are equally meaningful as the grand

dream of tomorrow. Success doesn’t have to be hard fought but can

come from something you enjoy doing, and often time the

unconventional fields (e.g., e-sports, internet host).

Fourth, digital is native. Their views and knowledge are greatly shaped

by the internet world. They have developed a natural filtering scheme in

face of huge amount of fragmented digital information. Any information

that can’t get immediate cut-through will not make an impression on

them. Once they find something interesting, they want to be engaged

and never hesitate to share.

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Brand value claims need to

echo with the values that are

aspirational to youth

Brand communication

should take the tone of “a

friend who knows you”

instead of “authority who

comes to educate”

Engage as much as possible Brand needs creative

strategies to generate impact

in youth’s digital world

8. A different kind of youth

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Celebrate unconventional success

VANS, Encourage armature spirit

(really work on your hobby) Dove Men Show

understanding & sympathy

.

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9. Single Nobles Modern lifestyle, rising individual earning, and open social views

foster the growing number of single nobles in higher tier cities. The

average first marital age has risen from 23.6 to 26 y.o. in the past

20 years. It is estimated that 2 in 10 of 25-40 y.o. are currently

single. Happily ‘unmarried’, most single nobles enjoy their

newfound individuality. To them being "single" equals to "freedom to

choose for my own and choose as I want. “Disposable income” has

become more “disposable”, simply because they don’t face

financial burdens to raise a family. Thus, they are able to spend in a

more “reckless” way. Curbing one’s shopping desire to put aside

money for the family is not their thing. They will therefore be the

potential segment with strong spending powers for pricey clothes,

upscale meals, exciting vacations and premium services.

Meanwhile, their needs are clearly different from consumers with

families. First, personal usage occasions are prevalent thus

quantity/service form should be adjusted. Second, the single

nobles are time-luxury for leisure and can devote all time to

personal interest. Third, the extended time living with their parents

leaves them under-skilled for home chores. Free from family

obligations, they also don’t feel the needs to improve their home

making skills.

However, being a single noble never means being on a

disconnected island. Most still crave for finding their better halves

one day. Opportunities introducing more social interactions are

highly valued.

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Product/service innovations that

accommodate one person’s consumption,

e.g. smaller product designs appropriate for

single person usage; experiences (e.g.

entertainment, tourism, accommodations)

that are typically undertaken by a group or in

pairs shall now offer versions that can also

be played solo

Activities to kill time: self-improving

programs, e.g. cooking class (offered by

food/cooking brands), makeup class (offered

by cosmetic brands), etc. will excite them and

increase brand-consumer interactions

Services to help them better

manage daily life. The most

notable is the increasing

reliance on “to door” services

to make them survive from

unwanted daily chores and low

home chore skills

Brands acting as platforms for dating or socializing will boom to make them feel

always connected

9. Single Nobles


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10. New definition of “aging” In the future 10 years, the 60+ y.o. population will account

for more than 1/5 of total China (compared with 15% today).

People who were born in the 60s are about to enter their

retirement age. This cohort of consumers are different from

earlier generations in the sense that although they grew up

in a time of material scarcity, they are also the first

beneficiaries of China’s economic take off – jobs were

plenty, income rose fast, houses were cheap, and

prospects optimistic. By the time they retire, they tend to

have a greater level of confidence, financially, physically

and psychologically. The notion of getting old is

reinterpreted - as their children delay the time to start a

family, their role of grand parents are also delayed. Sound

physical condition enabled by better nutrition and modern

medical care further inspires their desire for a healthy and

enjoyable retirement age. With high spending power and

great willingness to spend, this new aging generation is too

promising for any brands to overlook. However, they are

also more sophisticated and more demanding than the

previous generations of older consumers. They are willing

to pay premium for products that truly answer their needs.

As their taste mature, quality and substance often weigh

more than fancy design.

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Brands need to look into their unique

needs and offer true value to win their

hearts, facilitating an active lifestyle in

an older age

Premium product opportunities

targeting the new aging consumers

Opportunities in antiaging and

rejuvenating products and services

10. New definition of “aging”

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