China's post-90s consumers have shown amazing purchasing power. Born between 1990 and 1999, they make up 12% of China’s population (about 174 million). These young consumers have a greater appetite for buying and consuming. According to a report from BCG, the total share of consumption by 18 to 30-year olds in China will reach 53% in 2020.
The Portrait of the Post-90s in China
Since China's post-90s are the majority of the purchasing force, it is essential to learn which factors matter when they make purchasing decisions. Today, we will share our insights into the consumption preferences of China's post-90s. We would like to give you insights on their preferences and characteristics towards consumption.
They focus on “me” and “myself”, and are not afraid of expressing their uniqueness.
They are keen on self-improvement by working hard to pursue what they believe in and have passion for.
They desire different experiences.
They value creativity and individuality.
Given these shared traits, post-90s are open to new products and new concepts. Instead of caring only about the brands, these young consumers think highly of the quality and innovativeness of a product. In general, they are constantly pursuing higher quality or creativity with lower price.
The Post-90s are buying for other age groups
The post-90s are not just buying for themselves. They are buying for their children and (grand) parents as well. As we mentioned in an earlier insight, Probing into China's Silver Economy, about 48% of elderly products are purchased by the Millennials in 2019.
Case Study: Perfect Diary
A young beauty brand, Perfect Diary, started its Tmall shop in August 2017. In 2018, Perfect Diary sold 100 million yuan (12.46 million euro) worth products within 88 minutes. In 2019, it took them only 13 minutes to reach the same sales amount. Perfect Diary took the No. 1 makeup brand from L'oreal Paris in 2018, just a year from its birth. It continued to achieve the first-ranked sales growth in 2019. For Perfect Diary, one of the key success factors lies in their ability to amaze young consumers with the creative and explorative spirit. Not to mention that the quality-price-ratio of their products is very high. Winning younger consumers' heart clearly works for Perfect Diary. Of course, there are more factors contribute to its rapid growth.
Every product has its target user groups. The reason we consider post-90s (or the younger generations) so important is because they are often the decision-makers in a family when making purchases. And the younger consumers' will, of course, make decisions based on their own beliefs and interests.