China’s Gen Z digitises consumption with new tech, shifting preferences

Increased economic participation from China’s roughly 280 million members of Generation Z is driving innovation in e-commerce, fintech and digital services, transforming the digital sector into an even more significant component of the country’s economic growth, a survey has found.

China Trading Desk collected 1,900 valid responses out of a total of 2,400 in January, determining that Generation Z, a cohort also known as “Zoomers”, is made up of “digital natives”.

The Singapore-based marketing agency concluded the “adventurous, lonely, lethargic and liberated” generation is at the “forefront” of adopting new technologies, which in turn influences their consumption habits.

Gen Z, those born between 1996 and 2010, are “no less important” than their millennial predecessors – sometimes called Generation Y – and their “influence on the world’s largest marketplace is just beginning,” said China Trading Desk founder Subramania Bhatt.

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For the purposes of its survey, the agency defined Gen Y as those between the ages of 28 and 43.

As an example, researchers pointed out that young Chinese women, especially Zoomers, are a major force for outbound travel and “changing the pattern of Chinese tourism”.

China’s Zoomers are far more interested in South Korea than their older counterparts, they said – particularly those of Generation X aged between 44 and 59 – as the Gen Z population has “made that country their second-most visited destination”.

“Thailand – a traditional favourite of Gen X and older tourists – has taken a hit from Gen Z’s changing tastes, seeing a much slower rebound to pre-pandemic [tourism] levels.”

For Generation Z, which consumes content on digital platforms, cultural exports … can be highly influential in shaping travel desires

Subramania Bhatt

Bhatt noted that Northeast Asian countries have made significant cultural inroads in China, particularly South Korea thanks to the widespread popularity of its pop music, television dramas and cuisine.

“For Generation Z, which consumes content on digital platforms, cultural exports from these countries can be highly influential in shaping travel desires,” he added.

The shift of tastes from Southeast to Northeast Asia by Zoomers can be explained by the diverse experiences the latter region offers, ranging from technological marvels and urban exploration to rich cultural and historical sites, Bhatt noted.

Additionally, survey results showed that China’s Gen Z prefers to “live alone”, shop online, spends less time working out and has less interest in getting married and having kids than Generations X and Y. The younger generation also tends to favour experiences over material goods.

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Besides their travel preferences, Zoomers also look outside China when it comes to cars and alcohol consumption.

“More than twice as many Gen Zers and Millennials want German cars versus Gen X, and three times as many Gen Y and Gen Zers want Japanese cars compared to Gen X,” survey authors wrote.

Bhatt explained that American cars may not enjoy the same level of appeal among Zoomers in China due to several factors such as perceptions of quality, value for money and brand positioning.

“Historically, European and Japanese car brands have established a stronger foothold in the Chinese market, often perceived as offering superior technology, better fuel efficiency and higher status,” he said.

But in contrast to the status of American cars, the survey found that American fast food companies have established strong brand recognition and a youthful image through extensive marketing.

“The experience, ease, and novelty factor associated with American fast food align with the preferences and lifestyle of Zoomers, who value convenience and are open to global culinary experiences,” Bhatt added.

Personal values and social beliefs are key factors in the consumption choices of more educated members of Gen Z, according to the survey, which determined those of the younger generation are more open to disclosing their sexuality and care about the environment, expressing a willingness to make lifestyle changes to reduce carbon emissions.

South China Morning Post