What defines China's Generation Z?
In China, Generation Z is also known as the "post-95 and 00 generations." As the country's first generation of digital natives, they have demonstrated a strong attachment to the internet. In recent years, Generation Z accounted for nearly 30 percent of China's online population. China's Gen-Z users spend almost 160 hours online each month, 12 hours more than the average. O2O local services, social media, and online shopping were the most prevailing online services among China's Gen-Z internet users.Though many of them are still students, Generation Z in China outearn previous generations. With an average monthly income of more than 4,200 yuan, Gen-Z consumers in China were estimated to contribute over five trillion yuan in consumption.
How do Gen-Z consumers reshape China's retail landscape?
The younger generation has made a strong presence in many fields of China's consumer goods industry. As of 2022, Zoomers accounted for 23 percent of China's fashion consumers, only next to millennials. Furthermore, they have become an increasingly important consumer group for electronics and personal luxury goods. As a result, many businesses have started shifting their focus to Zoomers and their spending patterns.Like in many other countries, the technophile Generation-Z consumers in China favored online shopping more than the older generations. According to a 2022 survey, nearly 40 percent of consumers below 24 years old made several online purchases a week. Heavily engaging in social media, Gen Z are also a significant user group of China's social commerce and live commerce.
Patriotic consumption is another growing trend for Generation Z in China. In a survey, more than 70 percent of Gen Z consumers said they had bought fashion items from domestic brands, significantly higher than Generation X and Generation Y. In another survey, nearly 80 percent of respondents born after 2000 confirmed that they prefer local brands over foreign ones.
