Question

Chinese Generation Z (born in post-1995 to early 2000) has been considered to have massive consumption capability. According to OC&C Strategy Consultants, “with consumption power growing steadily in China, Generation Z is emerging as a distinctively new consumer segment that brands want to learn more about and target”. In fact, China accounts for the highest share of Generation Z household spend at 13% compared to only 3% for the UK and 4% for USA. It is estimated that the consumption of Chinese Generation Z will account for 40% of total consumption power in China by 2020. Therefore, international brands need to pay much attention to this important segment of Chinese consumers.

1. Describe the characteristics of Chinese Generation Z and their consumer behavior.

2. Assume you are a marketing expertise in a Hong Kong Consultancy firm, suggest some effective marketing measures with reasons to your Hong Kong client who wants to promote their fashion products to this group of consumers in China market.

Answer 1

1. As the Chinese economy and consumption market maintain a stable expansion, the nation's Generation Z is growing to be a significant consumer group leading new consumer trends and boosting consumption. Gen Z is a complicated but vitally important set of consumers for brands and retailers to understand as they will make up a huge proportion of global consumers in just over 10 years.

This group is the most likely to spend money out of all of the generations, becoming the least likely to save. Many in this generation have also used credit cards as a way to fund their purchasing.

Gen Z is the most technologically savvy, and the quickest to adopt the latest trends. Their purchasing behavior is very impulsive and driven largely by social media, with over 70% of young adults in China between the ages of 18-22 willing to purchase products through social media according to an Accenture survey.

Gen-Z’ers place a high value on individualism and use social media to follow the latest global trends. They often spend their parent’s money and are a huge factor in influencing their parents purchasing habits too.

The internet and social channels make it ever easier for this online Generation to share ideas and access the same information and media.

Chinese Generation Z was born in the era of the country’s one-child policy and exponential economic growth, they live comparatively wealthier lives than any other generation in China.

2.

• It is beneficial for fashion companies to promote their products and services through fashion opinion leaders like bloggers,influencers of opinions, beliefs, attitudes and behaviour.
• Provide personalised service. It is essential to emphasize their uniqueness, as they are willing to pay for products that fit their identities Brands can strengthen their links with young people by opening flash stores and co-exhibitions with artists when marketing to China’s Gen Z.
• Gen Z is interested in equality, safety, the environment, and helping the less fortunate.To attract younger consumers and, corporations need to take a position on these topics that this generation cares about.
• Generation Zgroup are characterized as having typical preference for live broadcasting, short videos, and more fragmented and visual content consumption, these being the main force of future consumption.Gen-Z customers can easily affect many customers, bysharing their shopping experience.
• Email remains an effective way to engage with Gen Z, and the number of email users will continue to increase as they get older and enter the workforce.
• It’s important to choose the right channel to deliver each and every message that want to send in order for digital marketing to yield the best results possible for brand and industry.
• Optimize your sales funnel to accommodate leads from social media channels.Gen Z feels confident making purchases after seeing an item on social media
• Brand’s values and mission.In order to cultivate a personal connection with Gen Z, sharing brand’s story and values will help.
• Web celebrity economy- The Fan economy generally refers to business income-generating behaviour based on the relationship between fans and followers. It is a business operation mode that can enhance customer loyalty and obtain both economic and social benefits.
• Focus on content and cultural branding
• Keep interaction with the audience and show their professional knowledge about fashion.
• Coordinated development of various platforms. The modes of communication should be diversified, such as timing, targeting a customer’s position and other technical means.