The power of Generation Z, a demographic born between 1995 and 2003, has started to penetrate the Chinese personal luxury goods market in 2018. This is a trend that is set to continue and expand in 2019, making it highly necessary for luxury brands to observe and understand their consumption habits and motivations.
A new report titled “Gen Z Spending Power White Paper,” released by data intelligence company Kantar Group in collaboration with Chinese tech firm Tencent last week, offers fresh insights into China’s Gen-Z shoppers. It estimates that the demographic now totals 149 million people, and will account for 40 percent of global Gen-Z purchases by 2020.
The survey of nearly 3,500 Gen-Z consumers said the monthly purchasing power of China’s Gen Z stands at $507 (RMB 3,501). Meanwhile, 35 percent of survey respondents said they have a stable income source, such as part-time employment and scholarships, aside from money from their parents.
China’s Gen-Z consumers have also started to purchase luxury and cosmetics products at a much younger age (about 15 years old) than previous generations like the post-’60s and post-’70s. They have accounted for approximately 30 percent of spending on cosmetics and shoes in 2018, the report noted.
Last but not least, the report discussed the three most important factors that motivate China’s Gen-Z shoppers to spend their money on brands:
Buy for social
I am what I buy
My pleasure, right now
To download the full report, please visit our Report Library.