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Small Age, Big Business

When TIME Asia put the young Chinese writer Chun Shu on its cover in February 2004, a pop cultural symbol of China’s “Post-80s” generation was appearing in the public media for the first time. By the time Li Yuchun, the champion of the 2005 Super Girl Voice competition, returned as a Post-80s icon to Time Asia’s cover, the cultural concepts involved had come to symbolize something more: huge business opportunities.

The numbers facing Li Zhe, a third-year university student in Beijing, add up: skin care, four times a month, 500 yuan; clothes and accessories per month, 300 yuan–800 yuan; haircuts, twice a month, 300 yuan–600 yuan; cellphone cards per month, 200 yuan; food and transportation each month, 600 yuan. Her level of personal spending makes Li a one-woman business investment programme, but she’s far from alone. Despite living at home, getting a 500 yuan per month allowance given by her parents and earning a 2,000 yuan per month salary from her job as a part-time employee of a privately owned company in Beijing, Ms. Fang, also a student, always finds it difficult to make ends meet at the end of every month. Her income is always exhausted by sizable expenses. She joked that she is a member of the "moonlight group" (people who use up their salaries every month). Fortunately, this doesn't affect her life or mood.

"I'm much better off than many of my pals," said Fang, who said some of her friends even ask for money from their parents.

Fang typifies the "one-child" generation born in the 1980s that resulted from the Chinese Government’s 1979 decision to encourage couples to have only one child as a measure to control China's population growth. In the past, students such as Li and Fang could hardly be considered “consumers,” because as college students and young adults their sources of income would have been few and spare. However, with China’s reform and opening and the resulting new affluence of Chinese society, the Post-80s generation has become a significant block of consumers that can no longer be neglected.

"This generation has no idea of thrift because in the ages of their growing, they lived in an environment with a rich supply of commodities," said Xing Yuan, professor of sociology at the Shanxi University.

Qi Xin, a 23-year-old office worker and a 2006 university graduate, got 99 roses with a golden “I Love You” affixed to them from her 24-year-old boyfriend as a Valentines’ Day gift in February. The roses cost the boyfriend nearly 1,000 yuan (US$129), which was nearly half of his monthly salary. He waxed philosophically about the spending: “Living in an increasingly open society, it is time for us to change our outdated attitudes. I think we ought to declare our love in a more open and direct way.”

There are many young people, especially the Post-80s generation, who love to observe western holidays and their rituals. That brings tons of opportunities for businesses. According to a survey, Valentine's Day has become one of the most popular holidays among the Chinese, especially for people under age 30.

Roses in Beijing sold at 10 yuan to 20 yuan (about US$1.20 to 2.40) during holidays in early 2007, up from 3 yuan (39 US cents) on usual days. Rare roses with unusual colours can sell for as much as 150 yuan (US$19.50) each on special occasions, and roses accounted for a large proportion of all roses sold on Valentines’ Day, trailed by carnations and lilies. Beichen Plaza in Beijing sold its entire supply of roses, worth 20,000 yuan, along with chocolates valued at 100,000 yuan (US$13,000).

Elsewhere, clever retailers used local post offices to ship roses for people to their beloved throughout Beijing. Restaurants decorated with candles, created a special romantic atmosphere, and they offered delicately-designed chocolates and delicious cookies as welcoming gifts to couples who dined there.

The Post-80s generation avidly pursues trendy, fresh ideas and new ways of living. Shopping online, for instance, is becoming commonplace in China, with more than one-quarter of Internet users in the country now shopping online. There were 123 million Internet users in China in 2006, and most of the online shoppers in China are well-educated young people, born in the 1980s. Statistics available at taobao.com indicate that more than 30 million Internet users have registered on the Web site and have made use of its facilities. The Web site's overall trade volume in 2006 rose to 16.9 billion yuan, more than US$2 billion. The "hottest" items available via the Web site are mobile phones, cosmetic items and laptop computers. More than 40 million cosmetic products and 2.2 million mobile phones were sold via the Web site in 2006. The report concludes that this generation will have an even greater influence on consumption trends during the next five–ten years.

Many domestic and foreign companies are trying to take advantage of a trend involving young people who have money and can make their own spending decisions.

Motorola built “MOTO MUSIC” (http://www.motomusic.com.cn/), a Web site where people can download MP3 music and ring tones to their mobile phones, and read music news. In August 2006, Motorola specially opened a "Jay Chou (one of Asia’s most popular pop stars) Space" on MOTO MUSIC, featuring ring tones, full tracks, music videos, exclusive footage and interviews. Users can use the videos and music of Jay Chou on the Web site, set background lights and combine music videos by themselves. Motorola has also established a Web site featuring more than 450 games its customers can play via their cellphones at http://www.motogames.com.cn/.

Two or three years ago, Motorola China began to switch its marketing focus to young people. Now, 60 percent of Motorola users are under 25. The company is pleased with its “young-people strategy" and its market share in China ranks second only to that of Nokia.

"You cannot sell directly to young people. They don't like that," said Ian Chapman-Banks, general manager of Marketing and Business Development for Motorola Mobile Devices, North Asia. "Young people hope to dig and find something by themselves; they like to do it personally, so we'd like to offer them some unique experiences."

When Li Yuchun--a popular Chinese singer born on 1984 –became the brand spokesperson of SWATCH, the “Corns” (her fans) bought out the entire supply of SWATCH watches. And Nike's latest advertisement, “Not the next, the first,” caters to many Chinese young people who pursue individuality and uniqueness. China Mobile’s "M-Zone" was originally only an SMS discount option, but after it was packaged as "Be My Own Master," which means more choices, this brand became a symbol of individuality that many young people sought.

To realize their orientations toward young consumers, companies made some consumer-oriented adjustments in their organizational structures, such as doubling their sales channels and setting up new teams, including retail marketing groups to adapt to the new marketing atmosphere. They have also created business development departments and at least one consumer research group. In the "M-Zone" department of China Mobile, all the decision-makers are aged 20–30. They easily understand and accept novel ideas.

According to the experience reported in the United States and in some other countries, every generation of consumers, such as baby boomers, Generation X, or the Millennium Generation, forms the ground for new brands. If some companies do not learn to cater to these new consumer tastes, their brands, built through years of hard work, may sink forever.

““Post-80s Doll Fun--Chen Xingfu

Chen Xingfu, a name of a handcrafted cotton toy cat, has become more popular among fashionable young people. This Chinese toy combines simple cotton cloth, Chinese symbols and the specific inspiration of a four-person group of Post-80s designers to achieve the Chen Xingfu Studio design effect. Their cat and their rabbit series have become widely recognized toys in the market and are favourites of fashion fans 10–35. In 2007, they will promote their bear series, an important new Cheng Xingfu doll. They have decided to establish their own retail stores instead of operating via sales agents. If compared with Hello Kitty products, Chen Xingfu is lower priced, with its most expensive doll selling for less than 400 yuan. But their main goal today is to establish their Cheng Xingfu brand.

Address: Room 4026, 3.3 Building, 33 Sanlitun Beijie, Chaoyang District

Room 103, No. 4 Building,

SOHO New Town

“The Post-80s generation is a very important focus of local cartoon and animation industry production; these products are available at places such as the sixth floor of SoShow in Chongwen District. All forms of entertainment are on offer, domestic and imported, with some specializing in games and models based on cartoons. There are also two stores with products strongly influenced by the cartoon and animation industries.

Cosplay Clothes-Maker--Lingdang Home

At Lingdang Home, various kinds of cosplay clothes attract fans of cosplay--a subculture in which children and adults wear costumes featuring their favourite toys or media personalities from computer games, anime, cartoons, fairy tales. The clothes, some available for rent, sell in a range from hundreds of yuan to thousands. Renting cosplay clothes to attend cosplay parties or competitions has become a fashion trend with the Post-80s generation worldwide and Beijing is no exception. Store owner Ling Dang studied to become an accountant in college, but she has now turned to cosplay clothes-making and has become influential in the field. Customized cosplay clothes that highlight a specific customer’s characters and fancies are somewhat more expensive than others, but people can spend as little as 200 yuan–300 yuan (US$25.80 to US$38.70) to buy them. Princess dresses, pirate masks, and king’s magic cloaks can be found at Lingdang Home. 

Tel: +86 10 5167 1156

Address: 53–54 6/F SoShow,

Chongwen District

Tempting Your Heart--Cartoon Community

When the Post-80s generation got out of primary school and returned to their homes in their youth, many of them encountered toys and media created by Hello Kitty, Disney, Doraemon, TAKARA Transformers, Saint Seiya, which become their favourite play or media friends. Different types of these cartoon originals challenged Post-80s children to expand their curiosities and interests. Doraemon and TAKARA Transformer or cartoon characters can be found in decorations or baubles inspired by their toy or cartoon originals. Sold as hanging ornaments, refrigerator magnets, and large or electronic toys, they may also be found widely throughout Beijing. They feature various gestures, and some may take on more exaggerated looks. In July 2007, the film Transformers, produced by Steven Spielberg, made the toy creatures seem real, with help of 3D animation technology, and stirred young people’s interest in Transformers and related products.

Address: 082/083, 6/F SoShow, Chongwen District