The Untapped Potential Of Chinese Millennial Consumers
If you’re a savvy business owner, you’ve probably realized that marketing in China could play a huge role in your company’s future growth. Economists expect that China will be the world’s largest economy by 2030 and thanks to rapid industrialization, Chinese consumers are spending more than ever before. It’s clear that there is huge potential in selling to the Chinese market, but you should really be focusing your attention on a smaller but even more promising demographic: Chinese millennials.
Millennials are all over the news at the moment. This generation, made up of people born approximately between the early 1980s and the mid-1990s, is the source of endless hot debates. Are millennials buying houses? Are they too technology focused? Why are they so obsessed with avocados? However, one thing is clear: many businesses simply aren’t targeting them.
In China, in particular, millennials are living in a vastly different world from their parents and grandparents. With booming wealth, an increased reliance on technology, and increasing education, Chinese people in their early twenties to mid-thirties are a highly specific consumer group.
Why Market Your Product To Chinese Millennials?
1 – Chinese millennials are a huge group
There are 415 million Chinese millennials. They make up more than 30% of the total population of China and are far more likely to travel, go to college, and shop online than their elder counterparts. As a group, millennials also make up 92% of internet users in China, which is particularly significant given that Chinese consumers spend more of their income online than consumers anywhere else in the world (19.3% vs 7.6% in the US).
2 – Chinese millennials have more disposable income
As well as being a significant consumer group, millennials in China also have more disposable income than ever. China’s per-household disposable income is set to double from 2010 to 2020, and this comes alongside government initiatives aiming to increase consumption. Chinese millennials grew up during times of economic reform and many have college education and homes paid for by their parents and grandparents, so they have more free attitudes towards spending.
3 – Chinese millennials have embraced online shopping
In a recent KPMG survey, 77% of Chinese respondents said that eCommerce was their favorite leisure activity. Yes, you read that right – three quarters said that online shopping was their favorite hobby. In fact, 88% of the millennials surveyed said they purchased a product online more than once a week. Thanks to the integration of direct payment options like WePay and Alipay, it is easier than ever for Chinese millennials to shop online, which means it’s also easier than ever for you to capture this market using eCommerce.
4 – Chinese millennials are willing to spend more
The same KPMG survey also found that millennials in China are embracing products at higher price points, with a big interest in luxury shopping. In fact, 70% of the Chinese millennials they surveyed indicated that they expected their consumption of luxury products and services to increase or increase significantly within the next year. Around 40% said that the major benefit of luxury and affordable luxury products was the higher quality. If you can demonstrate that you’re selling a high-quality product or service, Chinese millennials will be happy to pay the price for it.
5 – Chinese millennials love emerging technologies
The millennial market in China shows an openness and appreciation for emerging technologies like virtual reality and wearable tech. Technology which can make life more efficient and convenient is particularly valued among this group. According to the 2018 Deloitte Millennial Survey, millennials in China are also more confident about the impact of these new technologies. Of course, this is a positive sign for businesses which are selling emerging tech. However, it also plays into a general preference for shopping online which is positive for eCommerce businesses looking to enter the Chinese market.
6 – Chinese millennials enjoy foreign brands
International brands are highly popular in China, particularly among millennial consumers. Forbes reports that foreign brands take six spots out of Chinese millennials’ top ten most popular brands and perform particularly well in the fashion, automotive, and food and drink industries. Millennials are traveling outside China more than other generations and leaning in to foreign brands. This means that Chinese millennials are an important target demographic for foreign eCommerce brands.
How To Market Your Product To Chinese Millennials
1 – Get Online
If you’re already working in eCommerce, you’ve got a good shot at succeeding with the Chinese millennial market. Online shopping is huge in China and millennials make up the vast majority of online shoppers. Paired with their specific interest in foreign brands, this makes Chinese millennials a strong potential audience for eCommerce brands from outside China. By putting together an appealing website and marketing on Chinese social media, you can make a successful case for your product with this large, shop-happy demographic. Main Social Media channels to think of are Wechat Sina Weibo and more.
2 – Emphasize Branding
Branding is particularly important for millennial consumers in China. They enjoy strongly branded products which impart a sense of status and quality, so make sure that your branding is impactful. On top of that, Chinese consumers as a whole tend to take word-of-mouth recommendations more seriously, so it’s a good idea to make your branding strong so that consumers can easily find you when they search based on a friend or family member’s recommendation.
3 – Make It Easy
Chinese consumers readily give feedback on their online shopping experiences, with 67% posting comments on an online store after making a purchase and 55% sharing product feedback with friends. This means that you need to provide an easy, effective, and enjoyable eCommerce experience. It’s a good idea to work with a fulfillment business like Floship so you can guarantee fast, problem-free shipping to your Chinese customers. This will help you net positive feedback from Chinese millennial customers, which will be invaluable for your success in China.
Start Shipping to Chinese Consumers
Chinese millennials make up a huge and increasingly wealthy target market who enjoy shopping online and with foreign brands. If you’re thinking about entering the Chinese market, now is the time to do it. Here at Floship, we can help you get it right. We can assist you with best practices and customs clearance and offer efficient pick & pack, storage, and shipping to your new Chinese customers. Contact us today to find out more.