A Cultural Snapshot of China

A cultural snapshot of China

Last updated January 2014 Overview

From its rapid economic growth to its emergence as the world’s next big Almost half of China’s population now lives in or near cities, and infrastructure consumer economy, China is changing. But how is this shift affecting the programmes are creating new apartments and offices that regularly rise up everyday lives of Chinese citizens? over older neighbourhoods. The country’s unique blend of old and new is ever-present, visible through both the shift in architecture and in Chinese From healthcare to entertainment, technology is at the heart of China’s society. But while China’s explosive growth has created a burgeoning middle changing culture. People are exploring new ways to shop, like QR code class, it has also left some people behind. supermarkets. And they’re finding alternative ways to communicate, taking a more pragmatic approach to social media as it becomes a more useful tool. Positioning himself as the most powerful Chinese leader since Deng Xiaoping, President Xi Jinping has shown a readiness to tackle the country’s most Safety is a growing concern, with changing attitudes towards many home- pressing problems. From loosening the one-child policy to addressing income grown products following a series of food scandals. Being responsible is disparities, Xi’s reforms, if successful, will guarantee China’s trajectory towards popular too, and people are embracing new, eco-friendly modes of transport. becoming the most powerful country in the world.

Economic Overview Cultural Character Sectors

• Cultural characteristics • Eating and drinking • Fact and fiction • Health and beauty • Country pride • Getting around • What’s pop? • Money • Where’s hot? • Home life • Communicating • Shopping • Leisure • Luxury • Media and entertainment • Technology

Economic Overview

Economic Overview Cultural Character Sectors

Economic Overview

Since implementing free market reforms and opening up to foreign trade and investment in 1979, China has been among the world’s fastest-growing economies, averaging nearly 10% GDP annual growth through 2012. While the global financial crisis of 2009 initially hit China hard, its economy was among the first in the world to return to growth.

The explosive boom of China’s emerging middle class has brought sweeping economic change and social transformation. By 2022, more than 75% of urban dwellers are predicted to earn $9,000 to $34,000 a year – which, in purchasing- power-parity terms, is between the average income of Brazil and Italy.

Although the country’s economy has slowed recently, with 2013’s growth set at 7.6%, China remains the world’s second largest economy – with analysts now predicting it will eclipse the US in 2028. But after 34 years of families being officially limited to only one child, China’s population is greying – and the country is forecast to become the world’s most aged society in 2030. Will China be able to sustain its growth?

A two-speed development While China may have developed into an upper middle-income country, it still has an income inequality problem. Often, inequality is blamed on the country’s high rural population, with 35% of China’s citizens working in agriculture in 2011. But China’s inequality is not just a case of urban versus rural – there are significant regional differences too.

Although it’s unsurprising that China’s coastal provinces are wealthier than inland areas, both urban and rural people on the coast have more disposable income than their inland counterparts. Whether they work in a skyscraper in the city, or on a farm in the countryside, people are better off living in Jiangsu than Sichuan.

Easing up on the one-child policy By relaxing the country’s one-child policy, China’s leaders hope to reverse the trend that has seen the country – known for being “the world’s factory floor” – run out of workers. For three decades, a seemingly endless supply of cheap labour helped lure foreign manufacturers to churn out millions of electronics, t-shirts and toys, fuelling China’s rapid growth. But with the number of people in the country’s working-age population declining for the first time in 2012, a baby boom would help compensate for the ageing population.

But it’s not just demographics that have shifted. Attitudes have changed too – and the younger generations no longer want to work in factories. Instead, they’re attracted by jobs in China’s growing service and technology sectors.

Cultural Character

Economic Overview Cultural Character Sectors

Cultural Character

As one of the world’s most ancient civilisations, Chinese culture stretches back nearly 4,000 years. From paper to gunpowder and credit banking to banknotes, many of the elements that have shaped the modern world originated in China. But this doesn’t mean it’s developed into a monolithic society, China’s various ethnicities, languages, religions and cuisines make it one of the most diverse countries in the world.

Revered for centuries, but reviled under Chairman Mao, Confucianism – the social and ethical philosophy developed by Confucius in 551–479 BC – has played a significant role in the formation of modern China. While the ruling Communist Party has long seen Confucius as a reactionary force, President Xi Jinping has recently used the philosopher to highlight the bonds with other Asian nations as part of a campaign to boost China’s “cultural soft power”.

A nation of nationalities China’s citizens are typically depicted as a vast homogeneous Han majority with just a few ethnic minorities living on the country’s borders. This understates China’s vast cultural, geographic and linguistic diversity – not to mention the differences within the Han population. There are 56 recognised nationalities, making national integration a difficult task, particularly after the resurgence of pride in local nationality and culture in recent years.

“Food is what matters to the people” A popular proverb in China is “food is what matters to the people” – summing up the relationship the Chinese have with food. While people in the West might greet each other by saying “How are you?”, in China, people will often ask “Have you eaten already?” The staples are rice, noodles, vegetables, eggs and fish – but how they are prepared and seasoned, and what they taste like, varies enormously according to the main eight regional cuisines. Ranging from Shandong to Sichuan to Jiangsu, each is a source of pride for locals.

Speaking without words From eye contact to hand gestures and emotion, nonverbal communication is a significant element of Chinese culture, which greatly impacts the way people interact – not just with each other, but with foreigners too. It plays an important role in daily life, and can often be more powerful than verbal communication. The Confucian influence on Chinese culture teaches that self-control is a virtue – and as a result, displays of emotion are carefully managed.

Fiction: Chinese people don’t have siblings Fiction: All Chinese people love to play table tennis

Fact: China’s one-child policy, imposed in 1979 to control the growing Fact: While table tennis has been China’s unofficial national sport since the population, has given rise to the myth that no-one in China has any siblings. 1950s when Mao Zedong began cultivating national players for his ‘ping In reality, the limit rarely applied to people living in rural areas, and couples pong’ diplomacy, today China’s globally minded citizens are shifting their living in cities could have a second child if both of them were only children attention to other sports. The once-strong link between table tennis and themselves. Meanwhile, people with enough money just ignored the rules China’s national prestige seems to be weakening, as people’s tolerance for completely, and paid the hefty fine up-front. These fines are reported to have heavy-handed state management of athletics begins to wane. Today, an raised $2.12 billion for the state in 2012 alone – a telling sign that plenty of estimated 300 million Chinese play basketball, meaning young people are couples are choosing to have more than one child, more likely to shoot hoops than grab a ping pong paddle.

A proud youth China’s youth are proud of their country. From its space exploration programme to its success at the Olympics, the nation’s achievements have resonated with younger generations, inspiring them to follow President Xi Jingping’s “China Dream”. Using Weibo, they’ve been posting on #My Chinese Dream# – anything from flying in a Chinese-made jet, to living in a fair society.

An ethnic nationalism? As a country with 56 official ethnicities, nationalism in China often falls along different ethnic lines. Not only do some of these minorities refuse to identify themselves as Chinese, but several of these groups also aspire to full autonomy or independence. While the government paints an image of China as one big family that includes all the ethnic groups, the markers of ‘Chineseness’ are mostly derived from the dominant ethnic group, the Han – excluding the characteristics of ethnic minorities. It’s not surprising that these minorities don’t identify with state-defined nationalism.

Love for China means love for the CCP With over 82 million members, the Chinese Communist Party is still a key driver of nationalism. People are keen to join despite its complex application process, but it doesn’t mean they genuinely subscribe to communist tenets. It’s often about CCP benefits – like a greater chance of being promoted, particularly in state-owned businesses. The Youth League, open to all Chinese aged between 14 and 28, is incredibly popular – and almost all high school graduates are members. And while the Party may fail to instil true belief, it does create loyalty. Its language subtly links love for country with love for the ruling party, making opposition to the CCP’s leadership seem like treason.

From TV to apps, ‘What’s pop?’ looks at China’s current cultural phenomena

Where are we going, Dad? G.E.M. Journey to the West WeChat Igniting a popular debate not only on Tang Zhi-kei, better known as G.E.M. As China’s movie industry begins to With a rapidly expanding base that’s parenting but also on gender equality, (Get Everybody Moving), is one of challenge the hegemony of reached 270 million monthly active China’s most popular reality TV show China’s most popular stars. Proving Hollywood, Stephen Chow’s Journey to users, mobile messaging platform features five famous fathers from that C-pop generates an enormous the West showcased the excitement of WeChat is posing a serious challenge urban areas accompanying their amount of online activity, G.E.M. has China’s mass-market movie-making. to Sina Weibo – China’s most popular young kids on 72-hour trips to the 2.1 million fans on Sina Weibo and As the most popular Chinese film of micro-blogging service, with over 500 countryside. The show topped TV has received more than 75 million 2013, it grossed 1.25 billion Yuan, million users. People use WeChat to ratings and generated more than 10 views on her YouTube channel. outperforming Iron Man 3. share articles, pictures and videos million comments on Sina Weibo. through their ‘friend circle’.

Trends Trends Trends Trends Byegender, Modern parenting C-pop New World Order Mobile Living, Visual Democracy

From speakeasies to the best food streets, Time Out Beijing’s Food and Drink Editor Sean Silbert reveals Beijing’s coolest hangouts

Janes and Hooch Kro’s Nest 乌巢 Ghost Street Dada Fueling the trend for 1930s Located in the trendy Sanlitun Nicknamed “Ghost Street” by locals, Appealing to those who enjoy speakeasies, Janes and Hooch is one neighbourhood, Kro’s Nest is a quirky Guije street has more than 100 experimental music, Dada is a club of the most popular in Beijing. Serving pizza place that has been voted one of restaurants serving local food from that distinguishes itself from Beijing’s high-end bespoke cocktails, it’s a Beijing’s best non-Chinese different provinces including Sichuan, karaoke scene with an eclectic mix of modern twist on a vintage dive bar. restaurants. The enormous pizzas, Canton and Shangdong. Lit up by red genres. While many performers used It’s popular with young professionals, video games and Wi-Fi attract hordes lanterns and busy all night, it’s to head straight for Shanghai, Dada’s who are eager to bring along their of young customers. popular with locals, expats, tourists credibility has given them a reason to uninitiated friends. and businessmen. play to a new crowd in Beijing.

Trends Trends Trends Trends The Great Escape, Nostalgia The Great Escape Tradition, Local Experimental, Electronic dance music

From craft beer bars to roast duck restaurants, TimeOut lists Shanghai’s coolest hangouts

Project Wine Da Dong Jackie’s Beer Nest Light & Salt Owned by local jazz-pop trio Fat Lips, Already popular in Beijing, roast duck While Shanghai’s micro-brew and Set in Shanghai’s regenerated Project Wine is an upbeat wine bar restaurant Da Dong has now opened craft beer scene has been dominated Rockbund area, Light & Salt is a with a selection of Italian, French and a branch in Shanghai. Celebrity chef by expats and foreign brews, Jackie’s restaurant, book shop and speakeasy Spanish wines. Both locals and expats and owner Dong Zhenxiang’s roasting Beer Nest is the only bar in town to bar hidden behind a secret sliding come here to enjoy the smooth technique has created a widespread offer Chinese ale from Master Gao’s door. Fusing books, drinks and ambience and gather with friends to following of fans who swarm into his Brewery. It attracts mostly locals, and design, it’s a quirky concept, enjoy a glass of wine as a starting restaurants, eager to try his famous with wooden-clad walls, it feels more attracting trendy locals who are point for a night out. golden-brown duck. like beach hut than a city bar. looking for something new.

Trends Trends Trends Trends Nostalgia, Retro Local Craft beer, Local The Great Escape

Sectors

Economic Overview Cultural Character Sectors

Eating and drinking

Eating plays an important part in Chinese culture, serving as a mediator of social cohesion. China’s many social events in usually take place in restaurants, where a strong tradition of collective eating is commonplace. Sitting around a round table, with food to share in the middle, creates an inviting atmosphere for everyone present. While many stick to traditional local cuisine when going out, there’s a growing interest in what other Asian countries are cooking, with Thai, Indian and Korean restaurants popping up all over the country.

While home-cooking remains popular, it’s not necessarily a daily occurrence, with many families preferring to rely on snacks to keep them going – a growing trend across China. Traditional snacks like watermelon seeds, peanuts and skewered fruit are popular choices, but there’s also a growing appetite for ‘Western snacks’, including popcorn, crisps and chocolate bars.

Following China’s emergence as a consumer economy, there’s a growing interest in novelty items. Low-alcohol, fruit-flavoured beer is becoming the next big thing, with brands targeting the growing appetites of young women. Hello Kitty, for example, has launched its own beer, which comes in six tropical flavours.

Demanding greater food transparency Despite China’s strong tradition of local produce, following a series of food safety incidents – most notably 2008’s milk powder scandal – many people are wary of domestic products. As a result, they’re turning to foreign foods, of which imports have risen by 15% since 2012.

To persuade people that China can deliver safe food, organic farms like Shanghai’s Yi Mu Tian are streaming their vegetable production online – from initial planting to harvesting – via real-time video feeds. Meanwhile, tapping into South Korea’s reputation for quality food production, several Chinese food companies are striking deals that will let them put a ‘Made in Korea’ label onto their products in the hopes of improving sales.

Seesaw Café: growing interest in coffee is giving rise to a new café culture

Socialising over a cup of coffee Late night drinks with live music In a country where tea has been the hot drink of choice for millennia, China Traditionally, karaoke was considered a good night out, but its popularity is has a new found love for coffee. Drinking this new trendy beverage is seen as fading – especially among young professionals, who are now more interested a great way to socialise, following the example set by Western popular culture, in going to a late night bar or club instead. Clubs like Vics and Gt Banana in and the number of people catching up in cafés is rising. Big name brands like Beijing are becoming the go-to destinations for evening drinks with friends. Starbucks and McCafé are enjoying huge growth, partly because they’re seen Weekend drinking is especially popular, largely due to five-day working weeks. as important status symbols. While going to a karaoke bar means having fun behind closed doors, bars and Experts say drinkers prefer the experience of cafés, rather than the coffee clubs let people make a statement to others. And while elsewhere in the world itself. Shanghai-based Seesaw Café is taking this a step further, offering a late night clubs are places to dance, in China people prefer a more relaxed crash course in coffee for its customers. The bar is designed to look like a evening, socialising at tables – with the alcohol they drink a reflection of their stage, with curious customers able to watch baristas show off their coffee- social status. making skills.

Health and beauty

Beauty remains an obsession for many people in China. Following Western pop culture’s rise in popularity, there’s a strong desire to emulate Western looks. Many believe it’s the key to their future success, with a recent trend of young students resorting to drastic measures – such as plastic surgery – to improve their employment opportunities.

The growing disposable income of China’s middle class has led to many being able to afford premium beauty products, which has contributed to China becoming the second largest global market for luxury cosmetics. Following on from the food scandals, organic and all-natural products are high in demand. Foreign brands like Shiseido and L'Oréal are the most sought-after, especially among the country’s trendsetting younger demographic – though some domestic brands are building on Chinese heritage with great success. When it comes to beauty procedures, while professional salons remain a popular option, DIY beauty devices are enjoying increased demand.

China’s continued reliance on fossil fuels, combined with growing demand for energy in urban areas, has resulted in its ranking as the world’s number one polluter. For many, smog and poor air quality is a part of everyday life, but with a growing concern among parents about the impact this has on their children’s health, some have chosen to relocate to other countries, including Australia and Canada.

Mobile digital doctor With smartphones becoming the centre point of people’s lives, healthcare in China is undergoing a mobile revolution. Rather than visiting their doctor, people now prefer to connect with them through one of over 2,000 available apps. And the value of the healthcare app market is exploding, now valued at almost 2 billion Yuan. Growth is not expected to slow down, either – experts predict the market to increase seven-fold by 2018.

Zhang Shang Chun Yu, or DoctorInPocket, is an app that lets people connect and establish individual relationships with their chosen doctor. People can submit health-related questions by text, image and voice messages, and can call their doctor directly during business hours.

Girl band 7Sense represents the beauty standard among China’s youth

Cosmetic surgery continues to rise Shift towards responsible beauty Changing beauty ideals and a growing preference for ‘Western looks’ are Until recently, the main concern when buying facial creams or moisturisers boosting demand for cosmetic surgery treatments. With more than 2 million was whether it’s effective. But now, people are more interested in tracing operations annually – and doubling every year – China has become the products back to their source, to ensure they buy from responsible brands. world’s third-largest cosmetic surgery market. Some even venture to Nearly nine in ten Chinese people care whether the products they buy are neighbouring South Korea, which has a strong reputation for plastic surgery sustainable, reflecting a shift in attitudes now geared toward eco-friendliness procedures – and travel agencies even offer plastic surgery trips. – for which they are prepared to pay a premium.

Up-and-coming girl band 7Sense embodies the new Chinese ideal of beauty – China has a long history of using natural ingredients in traditional medicine. a Caucasian look with prominent, almond shaped eyes and pale skin. There’s It’s partly fuelling this trend, as people want to get back to basics with their such a pressure to adhere to this standard that some young women undergo products. Cosmetics brand Herborist offers natural, chemical-free beauty plastic surgery to improve their chances of landing a job, with ‘double eyelid’ products like its T’ai Chi line, which features two types of creams together surgery and ‘Eiffel Tower’ nose reconstruction the most popular procedures. working in harmony, fitting into the ancient ‘Yin and Yang’ philosophy.

Getting around

As sales of personal cars continue to grow, major Chinese cities are struggling with congestion. Following the government’s response to free up the roads, including carpooling schemes and restricting the number of vehicle registrations given out, there is a growing interest in alternative and eco- friendly modes of transport. While electric cars are yet to be fully embraced, experts say this is about to change.

When it comes to public transport, there are two sides to consider. On one hand, world-class transport facilities are being built across the country, connected to China’s growing railway network. But on the other hand is China’s outdated bus service, badly in need of redevelopment. And despite the railway being built to meet demand, cost and insufficient capacities have led to a continued reliance on buses. The government is working hard to strengthen the public infrastructure, with spending on public transport increasing significantly over the past decade, now accounting for 80% of the total transport budget in 2012.

Following the success of the hit single Gangnam Style, South Korea is becoming a sought-after destination among Chinese residents. Many are traveling to Gangnam to have their wedding ceremonies filmed, believing it will get them a more glamorous product. Travel agencies now offer bespoke wedding travel packages that include transportation, a personal assistant and a hotel room.

Choosing e-bikes over bicycles While elsewhere in the world people are embracing cycling, China’s poor air quality means bicycles are becoming a niche product, used primarily by those wishing to keep fit. But electric bicycles have made a huge impact, with nine in ten (92%) e-bikes produced globally sold in China. Sales exploded in 2011- 2012, rising by 730% – and contributing to a total of 260 million bikes on the roads today. Combining the tradition of two-wheeled vehicles in China and the desire for eco-friendly transport, many use their e-bike for commuting.

While e-bikes are hugely popular, many of those sold are affordable, low-end products. Geoby, one of China’s largest e-bike brands, designs e-bikes for the masses – but is also experimenting with premium product ranges that are dominating in Europe, such as the Geoby Easy Bike MTD. Kandi Technologies launched an e-car vending machine, giving people an affordable way to travel

Air travel growing in popularity Electric cars about to make a breakthrough Following travel restrictions being lifted for many, and growing disposable While electric cars have yet to make a significant impact on the Chinese car incomes among the rising middle class, there’s an increasing Chinese industry, experts say alternative-fuel cars have reached a tipping point, and demand for air travel. Wenzhou’s 2011 high-speed rail crash still lingers in will experience rapid development in the next few years. The government is people’s memory, contributing to a preference for planes over trains. China’s encouraging adoption through subsidies and infrastructure development, and number of air passengers is rising faster than any other country, with a 9.5% mindsets are changing as more people become aware of the effect traditional growth in 2012, compared to a global average of just 4%. fuels have on the environment.

Air travel is closely associated with social status, and is seen as the ultimate in Lack of charging points and high costs have dampened the popularity of long-haul transport. Many airlines, like Southern China and China Air, offer electric cars, but things are changing. Kandi Technologies launched an electric two categories of first class – with ‘luxury first class’ providing the best seats car vending machine in Hangzhou, letting people rent cars on an hourly basis, on the plane, a nine course in-flight feast and wine from a dedicated cellar. as and when they need them. In Beijing, car manufacturer BYD has launched the Qin, a plug-in hybrid that can be charged with home electric sockets.

Money

In China, cash remains the preferred payment method. It’s not uncommon for people to pay for a house or a car with cash, and with the value of the largest note in circulation equal to approximately $17, this adds up to large stack of Chinese renminbi. Yet, the country is slowly warming to payment cards, which are becoming important status symbols for the Chinese elite – especially foreign bank cards and VIP membership cards offered by domestic banks.

And banks are pushing for people to use cards. ATMs are becoming more than a stop for withdrawing cash, with banks offering customers a place to deposit their money and pay utility bills or even speeding fines. While China is open to explore alternative payment channels, like mobile technology or social networking platforms, it remains suspicious of unregulated currencies like Bitcoin, which are restricted from exchanging into Chinese Yuan.

While the Chinese tradition of saving remains strong, the country is shifting from an export-driven economy to a consumer-based one. Rising disposable incomes among the country’s middle class, combined with brands discovering new ways to connect people with their products, is driving an appetite for consumer goods. Experts believe China will become the fastest growing consumer economy in the world in the near future.

Saving on the rise Saving money is a Chinese tradition that’s now on the rise, with people placing over half of their disposable income into savings, compared to the global average of just one fifth, placing it among the world’s biggest savers.

But what motivates people to save? Lack of social welfare, saving for big ticket purchases and poor access to credit are only some of the reasons behind this – alongside a greater uncertainty about the future, as many save with retirement plans firmly in their minds. And Chinese citizens are also responding to an ineffective healthcare policy, which means a trip to the doctor can prove costly. Among younger families, the aspiration of owning their own homes drives their saving patterns.

Credit cards usage is rising: almost 300 million are in circulation

Paying extra for a sense of safety Alternative payment channels Chinese cars have a reputation for not being up to standard in build quality Despite the growing popularity of credit cards, Chinese brands are and safety. With people willing to pay a premium to feel safe, many are experimenting with alternative payment channels. China’s smartphone turning to foreign imports, with global industry leaders like Volkswagen and penetration is high, and many brands are keen to make use of this, GM enjoying huge success. There’s a sense of frustration with China’s car introducing mobile payment options. Jetco, one of China’s largest ATM makers for not being able to keep up with Western brands – and in response, operators, has teamed up with 30 banks to introduce a NFC mobile payment many are launching premium cars ready to compete with the world’s best. service.

Chinese car manufacturer Qoros hopes its new model will set the standard for The popularity of social networking platform WeChat has led to its operators the next generation of Chinese automobiles. While it may be a little expensive, experimenting with its value as a retail channel. In a November 2013 flash the new Qoros 3 sedan emphasises reliability – and it was the safest car tested sale, Chinese smartphone manufacturer Xiaomi sold 200,000 devices in less by Euro NCAP in 2013, becoming the first Chinese car ever to achieve a than three minutes. It taps into China’s word-of-mouth culture, where hotly five-star safety rating. discussed products on social networks enjoy huge commercial success.

Home life

Home life in China is defined by its well-known one child policy, which has been in effect since 1979. It has had a significant effect on China’s gender distribution, caused by the traditional importance of male lineage – meaning only 80 baby girls are born for every 100 baby boys. As this generation of babies reaches adulthood, the growing number of ‘leftover’ men find themselves single, leading to a rise in one-person households. Targeting this demographic, brands offer products and services tailored to their needs.

While many dream of owning a home, China’s rapidly changing housing market, especially in first-tier cities, means it’s out of reach for most. People are forced to rent, or find creative ways to obtain affordable housing.

Children remain a top priority for parents. Many see them as a reflection of themselves, and by equipping them with designer clothing, smartphones and laptops, parents attempt maintain their social status. When it comes to education, Chinese parents are unprepared to compromise, sending their children abroad for education at an increasingly young age to give them the best possible future opportunities.

Tiger Moms: parenting styles in focus Coined by Yale law professor Amy Chua in her book about Chinese parenting, the ‘Tiger Mom’ phenomenon has inspired a generation of parents on how to raise their child. Highlighting the benefits of a academic-driven approach, alongside strict schedules of extra-curricular activities, educated middle-class parents are adopting these principles to ensure their child has the best possible chance of achieving success.

But this trend has a flipside. As organised parenting practices are adopted by many, some have begun to question the effect it has on their child’s creativity and social skills. In fact, studies have shown that the ‘Tiger’ approach doesn’t work, with progressive parents abandoning the concepts in favour of a less structured regime, allowing children to express themselves more. A growing number of single households is giving rise to micro-living

Housing out of reach for many Single homes on the rise China’s rapid urbanisation is taking its toll, with the cost of owning a new The rising number of single people means China has one of the fastest growth home rising rapidly – by 10% in 2013, compared to 2012. Major cities are rates of one-person households. It’s a more compact home than couple or experiencing even greater growth, with Shenzhen’s prices rising twice as fast. family homes, and to cater to them, brands have had to rethink their products Experts say this is because properties are seen as safer investments than the – developing space-saving and multi-functional furniture. Living on your own stock market, creating huge demand. The government has announced plans means a lower rent and less expenses, resulting in a greater disposable to restrict the purchase of second and third homes, but prices are still rising. income for spending, which is increasingly devoted to lifestyle purchases.

In some areas, prices are so high that some cannot afford to rent either, November 11th is China’s anti-Valentine’s Day, a day to celebrate being single. instead being forced to consider alternative housing options. In Beijing, an Beginning as a day to hang out with other single friends, it’s now become one estimated two million people – 10% of the city’s total population – are living of China’s busiest shopping days. A record $5.7 was spent In 2013, more than underground, in thousands of tiny rooms below street level. Unsurprisingly, twice the amount the US spends on Cyber Monday, on a range of single- house prices rank as the number one source of anxiety among Chinese adults. inspired products from board games for one to a single-meal rice cooker.

Communicating

In China, people have embraced technology as a means of communicating, with social media standing at the heart of this shift. Platforms like Sina Weibo, WeChat and Renren have taken China by storm. From chatting up a potential suitor to hunting down your next job, connecting with others through smartphones is the norm.

Challenging the notion that only the young generation find love online, the over-fifties are embracing online dating, which is gaining popularity following the internet revolution.

China’s growing café culture has been attributed to playing a key part in people’s social lives, with a catch-up over a cup of coffee now being the trendy thing to do. But it’s not only about physically meeting someone, as a growing number visit their local café a connect with their friend through their mobile device. It’s more about the experience of visiting a café – an example set by Western films and TV shows.

Connecting with others is an everyday activity Despite the absence of Facebook and Twitter, microblogging is an everyday activity in China. Whether it’s arranging a catch-up, sharing a product experience or discussing the next big event, social networks have become primary ways to communicate. And in a nation where word of mouth is more powerful than advertising, a quick, convenient way to ask friends is essential.

Sina Weibo remains the most popular microblogging service, combining the functionality of its Western equivalents Facebook and Twitter. Over 50 million people now use it every day, with a total number of registered users exceeding 500 million. But time spent on Weibo is decreasing, with WeChat, a messaging service based on WhatsApp, fast growing in popularity.

40% of time spent online is devoted to social networks

Social media for than just leisure The great firewall of China Sina Weibo and other platforms are not just great ways to communicate The censorship of China’s internet remains a controversial issue. More than between friends; they’re taking on a wider role as people adopt a pragmatic two million people are employed by the government to monitor web activity, approach to time spent online. Young Chinese people increasingly use them according to state media. In China, news spreads like the wind, meaning any to identify career opportunities, evaluate potential suitors for marriage and politically sensitive content is quickly deleted, usually within 24 hours. Social connect with desirable brands. networks, discussion forums and search engines are the main targets.

WeChat, one of the hottest social apps in Asia, is currently used by 90% of But contrary to many Western reports, not all sensitive content is removed. China’s smartphone owners. Brands are tapping into this user base, offering The government uses censorship primary for preventative action, by placing a discounts and special offers for loyal followers. The most successful of these greater focus on the organisation of protests and rallies, rather than criticism was Starbucks, which asked people to share their mood using emoticons to its of the political landscape – which they are more likely to accept. Many WeChat account. In return, Starbucks sent them a song. Following the companies are now self-regulating their content to stay within the law, while campaign, 130,000 members joined, sharing their emotions 238,000 times. most people prefer to avoid a situation where their content is deleted.

Shopping

Chinese people are embracing technology, but has this impacted their shopping habits? It has, and enormously so – online shopping is being described as ‘an unstoppable tide’ in China. While payment security has been its stumbling block, following banks and retailers updating their services to ease these concerns, people are embracing this shopping platform. In China, an estimated 240 million people shop online, with clothing the number one purchased item, followed by home accessories and electronic devices.

Such is its popularity that China is expected to overtake the US as the world’s biggest e-commerce market in 2014. Brands are responding by refocusing their brick-and-mortar store strategies, reflecting a greater desire to search for bargains online.

Brands also see huge opportunities in connecting with people online, with social networks becoming the dominant communication channels. They’re seen as an affordable way to tap into a vast audience, promoting products and offering add-on brand experiences. For brands, online reputation is critical to success, with word-of-mouth extremely powerful in China.

Seniors finding comfort online While China’s young, tech-savvy generations have embraced online shopping, the elderly are determined not to lose out on this new shopping platform. Growing numbers now find comfort in shopping online, which allows them to pick and choose at their own pace, while not having to worry about opening hours. Nearly two million Chinese over-fifties shop online, a trend that’s especially evident in China’s first-tier cities.

The growing disposable income of this demographic has led brands to tailor products and services to their specific needs. Specially-designed nail clippers feature a magnifying glass, while Baidu, China’s largest search engine, has a dedicated ‘senior’ version of its site. It features larger text, as well as links to other websites of interest to this demographic, like classical poetry forums. Shoppers prefer to thoroughly try out a product before buying

Research before shopping Seeking value for money Broadly speaking, impulse buying is not very popular in China, with most Quality and value for money are still the most important considerations when people preferring to research a product before purchase, and friends and people shop. The focus on savings is so strong that it often overrides brand family recommendations influencing choice. With the rise of social media as a loyalty, enabling new brands to make an impact in a crowded market space. primarily communication channel, people have a vast database of opinions at But younger consumers are increasingly placing a greater emphasis on style – their disposal. Consulting them, reading online reviews and trying out and brands that combine value, quality and good looks are the most likely to products in-store have become essential activities before committing to buy. be a success with this demographic.

The traditional brick-and-mortar store is changing. Faced with high rent and Beijing-based Xiaomi only launched its first smartphone in 2012, but has an increasingly expensive workforce, brands are re-evaluating their retail enjoyed huge success since then. It combines quality craftsmanship, good strategy, with many placing a stronger emphasis on customer experiences. looks and high performance in an affordable package which is up to two Rather than pushing for sales, shops offer customers the opportunity to try thirds cheaper than an iPhone. In early 2014, it sold 150,000 phones within 10 out their products, who ultimately go online in search of the best deal. minutes through the increasingly popular WeChat messaging service.

Leisure

China remains a country in economic boom, with people working increasingly long hours to keep up. As a result, the amount of time dedicated to non-work activities is shrinking, affecting the way people treat their leisure time, as they focus on making the most out of it. But with leisure facilities significantly underdeveloped in China, many choose to travel abroad – or simply spend their downtime at home, making use of the vast variety of digital platforms available to them.

Among the country’s elderly citizens, early morning and evening t’ai chi remains incredibly popular. Taking place in parks and urban squares across the country, it is considered the quintessential symbol of China. And the young generations are warming to it, too, with growing numbers attending classes in the ancient martial art.

When it comes to sports, the top activities are basketball, table tennis, badminton and football. As families become more affluent, sports associated with Western wealth, like golf and tennis, are growing in popularity.

Enthusiasm for snooker continues to rise, with professional players Ding Junhui and Marco Fu inspiring a generation of young players. There are now an estimated 100,000 snooker clubs in China, with at least ten million people playing regularly.

Shopping: the number one leisure activity Whether it’s window shopping, impulse buying, researching purchases or simply doing the weekly shop, a family trip to the local shopping centre has become an important leisure activity in China. In order to escape the noise and pollution of the city, many find comfort in browsing their local air- conditioned mall. Multi-purpose malls are especially popular, as people have the opportunity to socialise, dine and watch a film all in the same place.

While IKEA’s stores are designed to draw people in, nobody expected them to become a popular destination to spend leisure time. Some like to try products first-hand, while others simply go to relax and have meaningful conversations. Even on weekday mornings, the showrooms are packed – attracting on average more than double the visitors of some of IKEA’s European branches. Many people spend their leisure time in IKEA, taking a break from their busy lifestyles

Highbrow culture high in demand Making the most of leisure time China is undergoing a cultural revolution. More and more people are have an Despite government initiatives to prolong leisure time, people are working appetite for culture in their leisure and entertainment activities. The theatre, longer than ever – and many are seeking quality experiences when out of the art galleries, and adventure travelling are growing in popularity as a result. An office. Adventure travelling is a popular option. After Hong Kong and Macao, important part of this trend is sharing their experience with others – showing the most visited destinations are South Korea, Taiwan and Malaysia – and the off their ‘cultured life’ on social networking platforms. Maldives are tipped to become the next hot spot.

The Chinese government is pushing for more cultural stimulation, as it wants Targeting more affluent Chinese consumers, HH Travel offer bespoke to be recognised for more than its economic prowess. Towns and cities across packages that cater to the experience hunting crowd. It offers them the China are building museums at a startling pace, with a record 451 having opportunity to see the world, in the form of an 80-day around-the-world trip, a opened last year. Yet the rate of expansion is so fast that museums are ten-day fine art appreciation tour of Europe or an eight-day Life of Pi-inspired struggling to attract enough visitors, leaving many empty or abandoned. trip to India.

Luxury

Luxury brands are incredibly popular among Chinese shoppers, with a quarter of all global luxury purchases happening in China, as the nation surpasses the US to become world’s biggest spender on luxury goods. The appetite for these products stems from the country’s rising number of ultra-high net worth individuals. Between 2005 and 2010, the number of Chinese billionaires rocketed from two to 64.

Following a series of corruption scandals, China’s business and politics elite now prefer to stay away from extravagant displays of wealth. The chairwoman of state-run electricity company China Power received a bashing on Sina Weibo for wearing a furry trenchcoat, with scathing comments labelling her a ‘show-off’. There’s a clear shift towards understatement, with Louis Vuitton, a traditionally popular brand in China famous for its logo-plastered products, now losing its appeal.

The Chinese love of travel means people are increasingly buying luxury products abroad – and it’s been estimated to account for about half of Chinese luxury spending. Men are more likely to buy luxury products – but what they buy is changing, with many preferring to treat themselves.

Understated luxury The days of logo-centric brands dominating China’s luxury sector are numbered, as people shift away from ostentatious displays of wealth towards a more understated look. Simply being expensive is no longer enough; products must reflect a way of life and a unique taste. People now respond more to brand values, characterised by a genuine interest in heritage, authenticity and quality.

As a result, niche labels are being approached with greater interest. For the Stella McCartney fashion label, business is growing fast – leading to a third flagship store being opened in China in late 2013. Other contemporary labels are also proving popular, with Marc Jacobs, Shang Xia and Alexander Wang becoming the go-to brands for China’s young generation. Many now prefer an understated look like Brioni, which makes suits for the James Bond films

Home-grown brands struggling to capture attention The emergence of male shoppers Countless Western brands enjoy huge success in China, but homegrown Investors were beginning to worry about sales of luxury products slowing luxury labels struggle to make an impact. They’re finding it difficult to source down – but now, men have emerged as the new driving force for the sector. quality craftsmanship in China, undermining their brand values. They’re also The breaking down of long-standing gender stereotypes has led to a growing struggling to shake off their low-cost associations, and most don’t have the interest in fashion among men, who now seek trendsetting designer-wear. patience to build up a brand reputation. But this doesn’t mean they have no Their approach to shopping is very different from women, though – they’re following, as an interest for all things Chinese still remains. less prone to impulse buying, preferring to research ahead instead.

The quality of Chinese manufacture can be a problem. High-end art-focused Men account for over half of China’s luxury customers, partly driven by company X+Q had to discard almost 200 cracked sculptures – and many businessmen buying expensive gifts. But a growing number are buying for brands, like jewellery company Qeelin, are turning to foreign workshops. themselves, and brands are responding to the growing appetite. Brioni, a They’re also teaming up with established luxury giants to make use of their luxury brand which focuses on understated, premium quality fashion for men, expertise – like lifestyle brand Shang Xia joining the Hermès Group. is now very popular in China, with fourteen stores nationwide.

Media and entertainment

While games like Call of Duty and Grand Theft Auto are wildly popular in the West, the Chinese have a different taste in gaming. In a PC-dominated market, being connected is the key to understanding the habits of Chinese gamers. Real-time strategy games like Starcraft, massive multiplayer online games like World of Warcraft, and team-based ‘battle arena’ games like League of Legends and Dota 2 hit the spot for Chinese gamers. Yet, with smartphones becoming the central hubs of life, there’s a strong shift towards mobile gaming.

As technology makes its way to more and more Chinese households, it’s affecting the way people are entertaining themselves. Watching TV is no longer the norm, with a growing number of people seeking entertainment online. What people watch is changing too, with China’s film industry making great strides to compete with Hollywood.

Gamers swapping PCs for smartphones PC gaming remains the most popular form of gaming in China, largely due to a 13-year ban on consoles (lifted in 2013). But as mobile penetration hits new heights in China, the nation is switching to mobile. An estimated 100 mobile games are launched every day, and the number of Chinese mobile gamers is expected to exceed the entire US population in 2014.

Among the most popular games are Happy Landlord Battle and Stranger Bubble Rabbit. The former is a digital version of one of China’s most popular card games War, where players compete to put out a hand larger than their opponent’s. The latter is a social take on a classic bubble-shooter game type, with the location-based app letting players share their score with others.

Consuming media on computers is now preferred over traditional channels

Streaming popularity soaring Homegrown cinema culture Online video is growing in popularity across the globe, and nowhere is this China’s determination to become the global leader in as many fields as more evident than in China. Around 450 million people, 80% of the country’s possible extends to its cinema culture. While homegrown movies struggled to online population, stream online – making it the world’s top streamer. Its make an impact only a few years ago, they made up seven of the top ten popularity is driven by a shift away from traditional TV caused by government highest grossing movies in China in 2013. The improving quality of films and censorship – in 2012, less than a third (30%) watched TV. While YouTube is fast development of cinemas across the country (almost 5,100 were built in blocked in China, countless providers offer a similar service, including Youku 2013) led to the cinematic adaption of the Chinese literary classic Journey to Tudou, Sohu and QQ TV. the West: Conquering the Demons becoming 2013’s most popular film.

Chinese online video provider PPTV has launched a new reality show The To help boost China’s film industry, the nation’s richest man Wang Jianlin has Goddess Office, about four young women creating their own e-commerce green-lit a $8.2 million development in Qingdao, featuring some of the best company. It’s only available online, making it more interactive, with viewers studio and production facilities, theme parks and hotels. The announcement able to ask the stars questions, or send them money and ideas. event attracted big names like Christoph Waltz and Leonardo DiCaprio.

Technology

China is becoming one of the world’s technology hotspots, with the fastest growing smartphone ownership in the world – increasing by 150% in 2012 alone to a total of 330 million users. With one in four people in China having access to a rich user interface on their phone, the way everyday tasks are carried out is changing – and smart devices are at the heart of this shift.

In an attempt to move China’s reputation beyond its economic prowess, the government is focusing on making the nation a world leader in technological innovation. As a result, a growing number of start-ups and well-established international tech companies are constructing headquarters in one of Beijing’s rapidly developing districts, Zhongguancun.

And to make sure that China is leading global tech rather than just catching up, the nation has entered the space race. In 2013, China sent a rover to the moon to demonstrate that it can match the achievements of any nation.

China’s Silicon valley The Zhongguancun District in Beijing has become one of the world’s hotspots for innovative high-tech companies. As more people see potential in what the latest technology has to offer, entrepreneurs are gathering in Zhonggauncun to turn their big idea into a start-up. But while it draws comparisons with Silicon Valley, people aren’t simply making copies of US products – they’re adopting their work culture and way of thinking.

The business park in Zhongguancun attracts thousands of new companies every year. Xiaomi and Yiheng Technology are two of the area’s best-known success stories, with the former being a Chinese low-cost smartphone company and the latter focusing on fast storage appliances used by internet giants like Baidu. QR codes are giving rise to billboard supermarkets, where scanned groceries are home-delivered

Smartphones becoming ‘life hubs’ QR codes taking off For the Chinese, smartphones are beginning to resemble ‘life hubs’, linking While QR codes have lost popularity in the West, they’re fully embraced in people with the world around them. People use them to connect to fitness China. Nearly three quarters of the smartphone-owning population has used devices, smart TVs and home automation systems, and as a convenient and them before, and nine million QR codes were scanned every month in China fast way to pay for goods. While only half (48%) of mobile-owning Chinese in 2013, up from two million the previous year. Some scan codes to get people sport a smartphone, the number is expected to rise in the next few exclusive discounts, while others want more information about a product. years, letting more people connect with their surroundings. WeChat targets mobile payment, letting people pay their bills with QR codes.

Phantom, the Chinese answer to Nest, lets smartphone owners connect with QR codes can be seen everywhere in China, from a giant code on the UK their home environment. Its product line includes smart light bulb Nova, embassy in Beijing to a cemetery in Shenyang, which places QR codes on which can be adjusted for brightness and color using an app, and air gravestones that can call up obituaries. Even watermelons have QR codes, monitoring station EcoTower, which informs people of the temperature, which people can scan to see where they were grown, in an attempt to humidity, and quality of air in their home. improve confidence following China’s series of food scandals.

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