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 TRAVEL 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.