It has been predicted that soon the youth of China will be the core driver of consumer spending in that country. There is an estimated 300 million people in China between the ages of 16 and 30 and they have about $136 billion to spend.
The key to successful marketing is to win the loyalty of these youth. This new generation of consumers prefers to select brands that reflect who they are or aspire to be. It can also be how they compensate for what they don't have or it's just a way for them to express themselves. What's beginning to emerge now in China is that their youth are also receptive to brands that can improve or radically change how they lead their lives.
It is the youth in China that can now decide what they want. It used to be that the youth had to accept whatever their parents had chosen for them. There wasn’t a lot of money to spend. Today's youth are more focused on their needs, and want to define themselves in a different way more than ever before. There is a desire to be unique or an awakening sense of self.
Research has found that consumers under the age of 28 had zero savings. The reason for this is that they are optimistic about their futures that they are willing to spend everything they earn on clothes and consumer electronics. In a recent survey the respondents said they expected 10% to 20% annual salary increases so that they are spending completely for purposes of enjoying themselves. It is that optimism that has helped to increase the number of credit cards in circulation in China. It is not strange to see Chinese secretaries making $800 a month buying $1,000 Gucci bags.
The high end youthful shoppers are only part of the picture. There are many smaller cities where the youth don't have a lot of money to spend. It is in these smaller cities that the big brand names have a tougher sell. These youth have a different mindset and believe that