The dramatic generational differences between Chinese consumers

The ‘China years’ guideline is used much like ‘dog years’ – things that happen over seven years in most countries, takes just one year in China. The term captures China’s extraordinary rate of change since 1979.

China’s GDP has grown to more than one hundred times what is was in 1979, which has helped see 800 million fewer people living in poverty. Less than 20% of the population lived in cities in 1979; now it’s around two-thirds. A teenager then had five siblings on average, whereas almost one-in-six born over the next few years won’t just be without brothers or sisters, but no uncles and aunties too.

When Coca-Cola launched in 1979, there were scarce pickings to choose from. Now consumers have access to products from everywhere in the world plus a myriad of innovative local brands, bombarding them with advertising at rates not even seen in NY or London. Many can be delivered in less than 30 minutes from purchase.

This rate of change has impacted how generations have been shaped, resulting in definitive changes between different age groups in China. Whereas every country has its quirks and differences between generations, in China they are far more pronounced.

Many overseas commentators have high expectations for China’s ballooning elderly population, viewing them through the lens they view Boomers in the West. Whilst China’s silver consumers are warming to consumerism and are much easier to reach now, many are still jaded from periods of extreme austerity as recently as the 60s and 70s with the Great Famine and Cultural Revolution. This has resulted in behaviour not unlike many grand and great grand parents in the West who lived through war times and the Great Depression, wiring them to save for a rainy day, and making them much more frugal as a result.

Every decade in China has presented significantly more opportunities than the last. Chinese born in the 90s are seven-times more likely to have a university degree than those in the 70s. In 1981, 285 people took the TOFEL exam required to study in the US and Canada. By 1985 it was 8,000 and more than 40,000 by 1990. There were over 500,000 Chinese studying in North America by 2020. Between 2010 and 2020, the number of trips Chinese took abroad more than tripled, and were to much more diverse locations.

In addition to their education and worldliness, each generation’s consumption has been shaped by which stage of China’s development cycle they came of age. Chinese born in the 80s have seen China transform from relatively poor and undeveloped to the wealthy, modern country it is today. As a result, they are less likely to take things for granted.

Whereas those born in the 90s have only ever known a wealthy China and we have seen them become much more liberal spenders. The difference has become more pronounced with each subsequent decade.

The rise of China’s free-spending generations has seen many brands pin their hopes on the 11-26 year old Gen-Zers. In many categories, foreign brands may be aiming a little too young. If you look at who is buying most of the imported products through cross border ecommerce, it is the less-hyped 26-35 year-old Millennials who account for more than half of all purchases.

Millennials spent their formative years when foreign brands were their most aspirational. They were at the optimal age for discovering travelling and studying overseas when it was still a privilege and not an expectation. Similarly, Chinese brands’ quality was more questionable and their marketing not as slick as it is now.

On the other hand, many Gen-Z’s golden years to travel and study overseas were scuttled by Covid. Over this period, there was less exposure to the world outside China, which was amplified by rising geopolitics and subsequent propaganda. On top of that, closed borders saw many foreign brands struggle to adapt to the changing market while local brands improved. This has seen their preference to domestic brands register higher than the Millennials before them.

In addition to generational differences, China also has some age-specific cultural expectations which can be relevant to targeting strategies. An example is “leftover women” which refers to women who are unmarried in their thirties. Although becoming less important as marriage rates fall, it remains a sensitive topic for many Chinese, and brands such as SKII have successfully addressed the stigma through thoughtful marketing. More age-specific discrimination has recently been blowing up online in China with the ‘Curse of 35;’ a widely discussed subject that employers don’t want you after 35.

Like in any market, to connect and resonate with target audiences, marketers need to understand why they behave the way they do and how it relates to their brands and products. China Skinny is well-placed to help you navigate the intricacies spanning China’s generations and the subtribes within them. Get in touch to learn how we may be able to help both define your target audience and optimise your marketing to make it resonant with them.