Report Download: China’s Connected Consumers – the Rise of the Millennials
According to a survey of 3,004 consumers done by KPMG China and Mei.com, approximately 77 percent of respondents picked online shopping as their favourite pastime.
eCommerce in China is a powerhouse industry that will continue to evolve at a rapid pace, shaped by Chinese Millennials changing shopping behaviour. The survey findings revealed that a generational shift is likely to occur with the first batch of Millennials set to overtake older consumers as the biggest spenders in mainland China.
To cater to the rise of tech savvy Chinese Millennials, many retail businesses are integrating their online and offline operations via an omni-channel approach – widely known as New Retail. Many leading companies are focusing their efforts towards this, creating a seamless interaction with customers.
With more online presence, it opens up an outlet for business to adopt a customer centric approach. In the survey, posting comments on an online store is the most common post-purchase activity, followed by sharing product feedback via social media platforms. This is a window of opportunity for brands to build customer engagement, and at the same time analyse these valuable consumer data for their research and development, catering to the immediate demands of consumers.
Product wise, there is a growing demand for luxury goods amongst the millennials. Approximately 70 percent of Millennial respondents estimate that their consumption of luxury goods and services are likely to increase or significantly increase over the next 12 months. The top 3 popular luxury product segments among Millennials are cosmetics & perfume, watches and clothings. The main reason for owning a luxury product, according to the survey is the higher product quality and services, followed by the better reflection of personality and tastes.
The majority (74 percent) of Millennials in China are also interested in innovative products and services associated with emerging technologies. Some popular emerging technologies include; smart cars and virtual reality. This pursuit of innovation have spurred the creation of new platforms and channels on which goods and services are being sold. This can be justified by the prevalence of sharing economy platforms such as bike sharing and lodging sharing.
With Millennials being the key driver of China’s consumer and retail market, it is critical for businesses to adapt their strategies to the needs and wants of young consumers. With that, they are able to stay relevant and be at the forefront of the fast-evolving market.