The Future Chinese Consumer: Forget Everything You Know
January | 2018
Exclusive in-depth workshop Summary × [ PRESENTATION OVERVIEW ]
WHAT’S HAPPENING IN 2018?
You’ve heard the story before: China is developing at lightning speed. If you feel overwhelmed by all the digital tools at your disposal in Western markets, buckle up for the ride that is marketing to the Future Chinese Consumer. But before you can begin to grasp the complexities of Weibo influencers, Taobao shops and Alipay games, ground yourself first: get to know China’s “Awakened Generation”.
WHY LOOK AT ARTS & CULTURE?
Modern, confident and worldly young Chinese consumers are tuned in to global trends. At the same time, they’re forging new ground at home based on their own unique ideas of what it means to be Chinese and how to celebrate that identity - and how not to.
WHY LOOK AT TRAVEL & LEISURE?
Modern, young Chinese are lightyears ahead of their parents, looking not only to see more of the world, but experience it fully and authentically. Desire to consume is not their primary driver - it’s their desire to fully immerse themselves in something different.
WHY LOOK AT THE ENVIRONMENT?
China’s Awakened Generation are bearing witness to the grave effects of pollution all around them. Though activism may not be an option, they can use their spending power to improve their health and living environments.
WHY LOOK AT SELFHOOD?
The way China’s Awakened Generation sees themselves and their roles in the world is completely unique - from both their older compatriots and from their Western counterparts. Until brands understand how this generation sees themselves, they can’t engage with them authentically or resonate with them meaningfully. [ METHODOLOGY ]
IN-DEPTH CONVERSATIONS WITH 70 GEN-Y AND GEN-Z ACROSS CHINA’S TOP-TIER CITIES QUALITATIVE INTERVIEWS
MOBILE SURVEY OF 1,000 GEN-Y AND GEN-Z QUANTITATIVE ACROSS CHINA’S TOP-TIER CITIES SURVEYS
UNCOVERING THE NEXT BIG THING TREND FORECASTING
OUR WORK AT RTG CONSULTING GROUP MAKING BRANDS RELEVANT SC ST ET BI
THE AWAKENED GENERATION A PORTRAIT OF CHINA’S AWAKENED GENERATION
LATE 80’S, POST-90’S Age IN OR RECENT GRADUATES FROM UNIVERSITY
A STRONGER CHINA A NEWFOUND CONFIDENCE IN Context THEIR CHINESE IDENTITY
DIGITAL NATIVES, GLOBAL CITIZENS PLUGGED INTO WORLDWIDE Mindset NEWS AND TRENDS
OPEN TO NEW WAYS OF BEING Beliefs SOCIALLY LIBERAL AND EXPERIMENTING WITH THE “SELF” [ METHODOLOGY ]
WHY “THE AWAKENED GENERATION”?
Ethnographers love to study generations. They tell us that millennials prefer avocado toast to home ownership. The “Me Generation” ruined America’s economy. Generation Z have attention spans shorter than their Snapchat stories. But the truth is, of course, never so neat. While we use the term “post-90’s” to popularly refer to this generation, project after project for our clients at RTG Consulting Group has revealed to us a distinct set of traits unique to China’s college-educated young people. Somewhere within the tail end of China’s Generation Y and its upcoming Generation Z lies a group of people who stand out as confident, worldly and capable of chasing a future fully their own.
We call them The Awakened Generation. [ PRESENTATION OVERVIEW ]
SC ET
SOCIOPOLITICAL CONTEXT EMERGING TRENDS
As the driver of change, the We showcase the trends that are specific sociopolitical context that shaping the lifestyles and mindset the Awakened Generation grew of the Awakened Generation. up in is captured and dissected.
ST BI
SOCIETAL TOUCHPOINTS BUSINESS IMPLICATIONS
To decode their values, we We encapsulate each identify 4 societal touchpoints societal touchpoint’s key takeaways through which to engage the in 3 succinct business implications. Awakened Generation. SC ST ET BI
4 SOCIETAL TOUCHPOINTS
1.1 THE ADVENT OF “FREESTYLE”
1.2 ROOTS AWAKENING
1.3 HERITAGE IN VOGUE ARTS & CULTURE TRAVEL & LEISURE
CULTURE HUNT 2.1
LIVING SPIRITUALITY 2.2
“ LIVE “ EXPERIENCES 2.3
3.1 A QUEST FOR WELL-BEING
3.2 THE SWAY OF ROLE MODELS
3.3 THE POWER OF “ WE ” THE ENVIRONMENTTHE
POETIC LIVING 4.1 SELFHOOD
GENDER IDENTITY ON A SPECTRUM 4.2
MODERN LOVE 4.3 1. ARTS & CULTURE SC ST ET BI
[ TOUCHPOINT #1 ]
ARTS & CULTURE 1. ARTS & CULTURE SC ST ET BI
[ TOUCHPOINT #1 ]
ARTS & CULTURE
EMERGING TRENDS EXPRESSIVE IDENTITY USING EXPRESSIVE ARTS TO COMMUNICATE 1.1 CHINESE CULTURAL IDENTITY
EMERGING TRENDS ROOTS AWAKENING RECONNECTING WITH CULTURAL 1.2 ROOTS
EMERGING TRENDS HERITAGE IN VOGUE 1.3 BRINGING THE PAST TO LIFE IN A MODERN WAY 1. ARTS & CULTURE SC ST ET BI
Cultural Revolution, cultural destruction
During the most extreme years of Mao’s rule, foreign and traditional Chinese culture were purged in favor of a strict Communist ideology.
China on the rise
With the opening up of China following Mao’s death, China embarked on a rapid journey towards economic liberalization.
A part of the global conversation
Thanks to the Internet and social media, everyday Chinese are more in tune with what’s happening in the wider world than ever. 1. ARTS & CULTURE SC ST ET BI
EXPRESSIVE IDENTITY PT I
USING EXPRESSIVE ARTS TO COMMUNICATE CHINESE CULTURAL IDENTITY
EMERGING TRENDS
Hip-hop, Chinese-style
The reality show “The Rap of China” amassed 1.3 billion views in just over a month’s time. This nationwide phenomenon made hip-hop feel distinctively Chinese as the contestants used this form of expression to address the challenges they face every day.
YOHO! as fertile ground for youth culture
The rise of hip-hop, streetwear and skate culture has flourished in part thanks to youth-focused platforms such as YOHO! This magazine and e-commerce platform also hosts an annual convention called YOHOOD!, which in 2017 brought 150 fashion brands and influencers like Pharrell Williams, FUTURA and NIGO to the 60,000 fans who attended. 1. ARTS & CULTURE SC ST ET BI
EXPRESSIVE IDENTITY PT II
USING EXPRESSIVE ARTS TO COMMUNICATE CHINESE CULTURAL IDENTITY
EMERGING TRENDS
Hip-hop stumbles into trouble Just as “Rap of China’s” winners, PGOne & Gai, were enjoying their fame, they ran into official trouble. After the discovery of a 2015 song by PGOne containing lyrics that purportedly offend women and promote drug use, he was removed from Chinese music apps. He’s also become Weibo’s ‘most hated man’ after rumors circulated of an affair with married actress Li Xiaolu (above left).
Reining in hip-hop’s influence
After Gai was removed without explanation in mid-January from China’s latest music show phenomenon, “The Singer”, (see above), China’s State Administration of Radio, Film, and Television issued a friendly reminder to keep things classy - and within Party lines - banning the depiction of tattooed artists and hip-hop culture. 1. ARTS & CULTURE SC ST ET BI
ROOTS AWAKENING
RECONNECTING WITH CULTURAL ROOTS
EMERGING TRENDS
Louis XIII: Heritage Past Present
Louis XIII celebrates China’s cultural heritage and endangered craftsmanship with the Heritage Past Present campaign. The French brand empowered modern Chinese artists to bring ancient arts to life in new and innovative ways.
Breathing new life into the past
Prada restored and relaunched the Rong Zhai mansion in Shanghai, a symbol of the city’s belle époque that combines Western-style architecture with Chinese deco elements. The mansion will serve as a cultural center to host exhibitions, shows, and events, celebrating Shanghai’s history and further deepening Prada’s links with culture and art. 1. ARTS & CULTURE SC ST ET BI
HERITAGE IN VOGUE
BRINGING THE PAST TO LIFE IN A MODERN WAY
EMERGING TRENDS
Gai stays rooted
Before his abrupt exit from “The Singer”, “Rap of China” co- winner Gai performed a special rap at the CCTV 2017 Mid- Autumn Festival Gala that delved into homesickness, a popular theme in Chinese poems that are often recited during this family holiday. The rap even incorporated lyrics lifted straight from traditional Chinese poems.
Capella Shanghai’s modern “shikumen”
International luxury hotel brand built their resort on one of Shanghai’s only remaining traditional shikumen, a unique kind of lane community built during the 1920’s and 30’s. The style stays true to French art deco and Chinese aesthetics popular at the time and offers visitors an immersive step back in time. 1. ARTS & CULTURE SC ST ET BI
#1 Empower Authentic Self-Expression
BE A PLATFORM FOR EXPRESSION, BUT BE MINDFUL OF OFFICIAL SENSITIVITIES
BUSINESS #2 Embrace A Long Term Cultural IMPLICATIONS Outlook
BE COMMITTED TO PLAYING A LARGER CULTURAL ROLE
#3 Celebrate And Innovate Heritage
PRESERVE AND RE-SACRALIZE THE PAST IN A CONTEMPORARY FASHION
READ MORE
CHINESE RAPPERS ARE CLEANING ESTEE LAUDER ON GROWING UP THEIR LYRICS LOCAL RELEVANCE IN CHINA
YOUNG ART COLLECTOR XUFU 5 MINUTES WITH 4 CHINESE HUANG ON THE NEW MEANING OF DESIGNERS AT NYFW LUXURY 2. TRAVEL & LEISURE SC ST ET BI
[ TOUCHPOINT #2 ]
TRAVEL & LEISURE 2. TRAVEL & LEISURE SC ST ET BI
[ TOUCHPOINT #2 ]
TRAVEL & LEISURE
EMERGING TRENDS CULTURE HUNT 2.1 HUNTING OUT NEW, AUTHENTIC AND SENSORIAL EXPERIENCES
EMERGING TRENDS LIVING SPIRITUALITY
REDISCOVERING THE « COMMON 2.2 SENSE » OF LIFE
EMERGING TRENDS « LIVE » EXPERIENCES
PURSUING STIMULATION AND IMMERSION 2.3 THROUGH LIVE EXPERIENCES 2. TRAVEL & LEISURE SC ST ET BI
China opens up
After decades of controlled movement, Chinese citizens began to go abroad as tourists in the 1990s thanks to economic development and the first flush of prosperity.
Tour groups were the norm
However, given the cultural gap and language barriers, group tours were the preferred method of travel.
All caught up and looking for more
The rapid explosion of outbound tourism as well as technology means that today’s young Chinese are not only all caught up to their Western counterparts, but looking for even more profound experiences, from travel and sport to museums and galleries. 2. TRAVEL & LEISURE SC ST ET BI
CULTURE HUNT
HUNTING NEW, AUTHENTIC AND SENSORIAL EXPERIENCES
EMERGING TRENDS
Traveling off the beaten path
The days of traditional tour groups are over. China’s Free Independent Travelers (FIT) are young, well-educated and relatively affluent. They travel to immerse in rest & relaxation (56%), nature, culture and history (47%), and lastly, to shop (42%). Rental car online booking increased by 88.6% in 2016 as Chinese FIT make their way beyond the ‘coastal capitals’ of LA and NY to destinations like national parks, New Orleans, and even Iowa (where Xi Jin Ping famously spent time).
Adventure travel takes off
As young millennials tick off the classic destinations on their list, they are increasingly looking for more unique and immersive experiences that others have not yet tried. As such, awe-inspiring trips such as exploring the Arctic and Kilimanjaro ‘glamping’ are climbing up on the millennial traveler’s wish list. 2. TRAVEL & LEISURE SC ST ET BI
LIVING SPIRITUALITY
REDISCOVERING THE “ COMMON SENSE “ OF LIFE
EMERGING TRENDS
Return to nature
Eco-conscious young people with greater spending power are driving the emergence of eco-tourism across China. Anji bamboo forest is seeing a wave of eco-luxury resorts sprout up as young urbanites opt for a different kind of travel escape from their busy lives. Shanghai-based brand naked Retreats offers low-carbon tourism getaways featuring converted traditional housing and organic farm-to- table food.
Traveling to find yourself
“Another Me in this World” is a CCTV documentary television show about a young Chinese man, Yang Fan, who goes to find other people with the same birthday. Together, they become travel companions, riding their motorcycles around the world. The show has been critically acclaimed as a collective portrait of a post-90’s generation seeking a more poetic way of living. 2. TRAVEL & LEISURE SC ST ET BI
“LIVE” EXPERIENCES
PURSUING STIMULATION AND IMMERSION THROUGH LIVE EXPERIENCES
EMERGING TRENDS
Livestream goes mainstream
Livestream emerged out of obscurity in 2016 to become the new mainstream, and luxury brands are using the new platform to engage younger, more connected consumers. When Kris Wu showcased Bulgari watches, the livestream event attracted 24.8 million views.
Lots of love for ChinaJoy
ChinaJoy is the country’s annual event for tech fans and gamers as it showcases the leading technologies transforming gaming. With exhibitions and cosplay performances, the 2017 expo attracted millions of visitors eager to try out the new games and technologies for themselves. 2. TRAVEL & LEISURE SC ST ET BI
#1 Experiential Luxury
INVEST IN UNIQUE AND IMMERSIVE SENSORIAL EXPERIENCES
BUSINESS #2 Cultivate A Holistic Vision IMPLICATIONS Of Life
PROMOTE GREATER SELF-AWARENESS AND AWAKENING TO NATURE
#3 Stay Ahead Of Emerging Tech
WIDEN THE SCOPE OF SENSATIONS VIA TECHNOLOGY
READ MORE
CHOICE MATTERS FOR CHINESE VR IN CHINA OFFERS UNLIMITED LUXURY TRAVELERS POSSIBILITIES FOR LUXURY BRANDS
ARE CHINESE FIT TRAVELERS THE WECHAT OFFICIAL TRAVEL REPORT NEXT OPPORTUNITY FOR LUXURY 2017 BRANDS? 3. THE ENVIRONMENT SC ST ET BI
[ PILLAR #3 ]
THE ENVIRONMENT 3. THE ENVIRONMENT SC ST ET BI
[ TOUCHPOINT #3 ]
TRAVEL & LEISURE
EMERGING TRENDS EMOTIVE NARRATIVES 3.1 THE HIGHLY CONCEPTUAL IS KEY
EMERGING TRENDS ROLE MODELS PAVE THE WAY
3.2 IDOLIZING THE ACCOMPLISHED
EMERGING TRENDS THE POWER OF “WE” 3.3 COMMUNITY DRIVES ACTION 3. THE ENVIRONMENT SC ST ET BI
Zero focus on the environment over the last 50 years
With the economy, infrastructure, and nation- building as the focus, the cost of China’s rapid development has meant incredible damage to the environment.
Relentless food and other pollution scandals Chinese consumers are bombarded daily with news of unsafe foods, soil and water pollution, and unethical manufacturing practices that have led to real dangers. (Ex: melamine in milk formula scandal that led to the deaths of at least 6 children and affected at least 300,000)
Don’t call them activists In a country where expression is tightly controlled, activism as it takes place in the West is simply not an option. But that doesn’t mean consumers don’t care or don’t agitate for change. 3. THE ENVIRONMENT SC ST ET BI
EMOTIVE NARRATIVES
THE HIGHLY CONCEPTUAL IS KEY
EMERGING TRENDS
An Inconvenient Truth does not resonate
Though later documentaries like Chai Jing’s “Under the Dome” made waves, it was quickly suppressed by authorities, and as always, no route to official protest was made available.
The Mermaid Movie
With its unexpected environmental theme, The Mermaid movie was a sensational hit. The movie trailer asks what you would wish for if the world didn’t have a single drop of clean water or a single breath of clean oxygen. 3. THE ENVIRONMENT SC ST ET BI
THE SWAY OF ROLE MODELS
IDOLIZING THE ACCOMPLISHED
EMERGING TRENDS
Yao Ming stands with WildAid
WildAid has launched a series of public service ads in China starring celebrities like Yao Ming, actress Li Bing Bing and celebrity pianist Lang Lang.
Olympian Sun Yang sets an example
Hangzhou native and national hero Sun Yang returns to the famously beautiful West Lake of his hometown to ‘make a show of’ picking up litter in the area. 3. THE ENVIRONMENT SC ST ET BI
THE POWER OF “WE”
COMMUNITY DRIVES ACTION
EMERGING TRENDS
Ant Forest turns everyday tasks into eco-friendly actions
China’s leading mobile payment app Alipay uses a game called ‘Ant Forest’ to encourage its users to use Alipay more often by awarding them ‘growth points’ every time they use Alipay. The more growth points you earn, the more trees Alipay will pledge to plant. Users’ friends can see how many trees they’ve helped to plant, creating a competition to see who can use Alipay more to plant more trees.
E-commerce giant Jing Dong gives back
JD.com, China’s other e-commerce giant, launched a clothing pick-up service in the country’s top-tier cities that leverages its existing army of couriers to recycle clothing for a second use. You can simply book a time for the delivery person to come pick up your used clothing, and JD will either donate it to charity, sell it in second-hand charity shops, or recycle it in an ecological way. 3. THE ENVIRONMENT SC ST ET BI
#1 Emotionally Engage On Sustainability
ENGAGE IN AN AUTHENTIC AND « NORMAL » BRAND STANCE
BUSINESS IMPLICATIONS #2 Engage A “Face”
ENLIST INFLUENCERS TO ACTIVATE THE YOUTH
#3 Empower A Community
LEVERAGE AND EMPOWER COLLECTIVE CREATIVITY TO MAKE AN IMPACT
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CONSUMERS DESIRE GREENER MICHAEL KORS ON BUILDING PURCHASES PHILANTHROPY IN CHINA
HOW BRANDS CAN LEVERAGE UGC IS KERING LEADING THE WAY FOR IN CHINA ECO-FRIENDLY SHOPPING IN CHINA? 4. SELFHOOD SC ST ET BI
[ PILLAR #4 ]
SELFHOOD 4. SELFHOOD SC ST ET BI
[ TOUCHPOINT #4 ]
SELFHOOD
EMERGING TRENDS POETIC LIVING
PURSUING A MORE MEANINGFUL & COLORFUL 4.1 LIFE OVER MATERIALISM
EMERGING TRENDS GENDER IDENTITY ON A SPECTRUM
CHALLENGING CONVENTIONAL VIEWS ON FEMININITY 4.2 AND MASCULINITY
EMERGING TRENDS MODERN LOVE CHALLENGING CONVENTIONAL THINKING ON 4.3 COMMITTED RELATIONSHIPS 4. SELFHOOD SC ST ET BI
The comfort of the crowd
Chinese society is not made up of individualists but is rooted in family, community, and country.
Self-staging to belong
The selfies and other content you post to your social feed is driven by a desire to build a virtual identity aligned with the crowd you aspire to be a part of.
Creative expression is on the upswing
However, individual expression is flowering with the younger generation, who grew up in a more economically sound and vibrant cultural atmosphere in which they have greater possibilities. 4. SELFHOOD SC ST ET BI
POETIC LIVING
PURSUING A MORE MEANINGFUL, COLORFUL LIFE OVER MATERIALISM
EMERGING TRENDS
Z Zegna: Be Your Own Style
Z Zegna’s AW17 line represents a modernistic expression of tradition to create an innovative, sophisticated aesthetic. ‘Be Your Own Style’ appeals to a new kind of ‘Urban Masculinity’: a young urban dweller, cosmopolitan, professional, fit and socially active man who embraces a new style that juxtaposes a sportswear vibe with essential classics for all occasions.
“Voice of the Youth” talk show
This CCTV show invites young Chinese to share their opinions and engage in conversational debate on topics relevant to them. In one episode, a panel of young Chinese entrepreneurs argue that dropping out of school is a fully acceptable way to grow up – in fact for some of them, it’s precisely because they dropped out of school that they were able to pursue their dream career and become successful. 4. SELFHOOD SC ST ET BI
GENDER IDENTITY ON A SPECTRUM
CHALLENGING THE CONVENTIONAL VIEW ON FEMININITY AND MASCULINITY
EMERGING TRENDS
Androgyny goes mainstream
The Chinese pop star Chris Lee has become a global sensation as her androgynous style is embraced by fashion and beauty brands. In addition to her deal with L’Oréal and becoming a Gucci ambassador, she paired up with Diesel to release the capsule collection “Go With The Flaw” to celebrate the beauty in imperfections.
China’s first all-girl boy band
FFC-Acrush exploded onto the scene in 2017 as China’s very first boy band made up of girls. With its five androgynous female members styled up in the fashions popular among male entertainers, FFC-Acrush is showing China’s youths the creative space they have to play with their own identities, both in terms of gender and otherwise. 4. SELFHOOD SC ST ET BI
MODERN LOVE
CHALLENGING CONVENTIONAL THINKING ON COMMITTED RELATIONSHIPS
EMERGING TRENDS
Post-90’s Chinese reject “ flash marriages ”
According to Chinese match-making website Zhenai, 70% of post-90’s Chinese said they are accepting of ‘flash marriages’; however, over half of this 70% said that even though they themselves would not be willing to get married so quickly.
“Addiction” portrays LGBT relationship
The Internet series “Addiction”, which told the story of a relationship between two gay teenagers, received more than 60 million online views before being taken down, as you are not permitted to show gay, teenage, and pre- marital sex on TV. While LGBTQ topics remain very sensitive in China, the changing attitudes among the younger generation is very much a reality. 4. SELFHOOD SC ST ET BI
#1 Inspire Self-Realization
BE A PLATFORM FOR INDIVIDUALS TO ENHANCE THEIR IDEAS OF SUCCESS
BUSINESS #2 Be Mindful When Addressing IMPLICATIONS Sexuality
ENGAGE IN A DIALOGUE ON GENDER CODES AND IDENTITY VS LEAD THE WAY
#3 Redefine What Love Means
FIND OPPORTUNITIES TO INSPIRE NEW PERSPECTIVES ON COMMITTED RELATIONSHIPS
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