Food
As their spending power grows, Chinese millennials are set to disrupt the nation’s retail sector, says a joint survey by KPMG China and shopping platform Mei.com.
Already retailers are transforming their businesses in response with new strategies such as omnichannel platforms, says the fourth annual China’s Connected Consumers survey. It analyses responses from 3004 mainland consumers to understand their current and future shopping habits.
Online shopping has effectively become a national pastime in China, the research shows, with 77 per cent of respondents identifying it as their favourite leisure activity. This is reflected in the popularity of online shopping festivals such as Double 12 and Single’s Day.
Nearly nine in 10 millennials are shopping online more than once a week, and 80 per cent expect the frequency to increase in the year ahead. As well as this, 31 per cent of millennials say they are expecting a significant increase in income over the next five years.
“The modern retail industry is less about what companies can create, but more about what consumers want,” says KPMG China partner/head of consumer and retail Jessie Qian. “We’re living in an increasingly customer-centric world, and the strategic focus of businesses should be on how they can build customer engagement and product distribution based on immediate demands.”
With the rise of the experiential generation there has been a surge in demand for luxury and affordable-luxury products. In the next year, say 70 per cent of millennials, they plan to spend more on luxury goods and services, mainly clothing, shoes, cosmetics and perfume.
“It is increasingly difficult for a single brand to be able to fill multiple segments,” says Qian. “As China’s retail market continues to develop, more consumer groups such as millennials will rise to prominence. It is imperative for companies to diversify and maximise their relevance to different groups of consumers.”
