Recently, DT Finance and China Business Data Center (CBNData) released thePortrait of Young Consumer. The report takes the post-90s as the mainresearch object, studies the changes in the consumption habits of youngpeople, why young people buy, what influences the decision-making of youngconsumers, and how young people view brands.
According to the survey of the 2020 China Pet Industry White Paper , thepost-90s generation is already the largest group of pet owners. At present andin the next ten years, this group will be the main force in the pet consumermarket.
Consumption concept: practicality, value, cultural identity
Practicality
According to the Consumer Portrait, the most concerned factor duringpurchase is need of the product, which 93% of the consumers think highly of.49.7% of the consumers consider to purchase high cost-effectiveness products.The Consumer Portrait shows that young people have a trend of backing to thenature of products and service.
Contrary to the stereotype, consumerism is not prevalent among youngpeople，some even express clear opposition against it. In the meanwhile, thefactors that might have affected young consumers’ attention such as friends’advice or recommendation is gradually less affected.
Value
The current anti-consumerism of young people cannot simply be equated with thepursuit of practicality. In addition to material needs, spiritual satisfactionis also a factor of their concern. The Consumer Portrait shows that 30.8% ofconsumers will still spend more money on good appearance. Brand andcharacteristics can also take money out of consumers’ pocket. Young consumersobtain happiness through purchase, which is the reason behind consumerbehavior.
Among the influencing factors that cause consumers to repurchase, good qualityof the products and laziness of the consumer are the two key factors. 77.6% ofconsumers will repurchase because of good sense of use, and 56.4% of consumerswill repurchase simply because they are too lazy to select again. In addition,good quality, high cost performance, and large discounts also affectsrepurchase.
Overall, consumers pay more attention to their own feelings during purchaserather than others opinion. Only 3.2% of consumers believe that the approvalof the people around them will affect repurchase decisions, and 1.6% of theconsumer is influenced by a favorite celebrity endorsement.
Cultural Identity
Most young people are tired of labeling themselves with consumption. TheConsumer Portrait shows that demonstrating individuality through purchaseonly ranks No.5 of the influencing factors.
Compared with individuality, young consumers are more concerned about culturalidentity and the resulting social circle. The analysis believes that bypurchasing the same product, strangers will reach mutual recognition, shareknowledge and experience on social media, offline activities, onlineplatforms, etc., to form a community of same interests.
Regarding the cultural identity of young consumers, since young people’sconsumption of brands comes from social interaction, the purpose is also tosocialize. Young people are more inclined to get connected with people whohave the same values, attitudes and hobbies. Different social groups formspecific social and consumer circles. Moreover, the smaller the circle, thestronger the closeness of young people.
Consumer decision: Spontaneous feedback from real users is the mostimportant
Although there are more and more channels for obtaining information, thefactors that can influence consumers to really like a product have hardlychanged. The Consumer Portrait shows that from the post-80s to post-00s,friend recommendation is the primary channel for concerning to purchase.Regarding the choice of purchase, e-commerce platforms are the second mostimportant channels for the post-80s and post-00s when making purchase, yet KOLrecommendations have not entered the top five channels.
The Consumer Portrait shows that more than 95% of young people will dobackground check before consumption, which is enough to prove that youngpeople are becoming rational in shopping. However, as the channels forobtaining information become more abundant, young people also show differentcharacteristics in the choice of channels for reviews.
Among the post-80s and post-85s, searching engine is where they look forreviews, among the post-90s, post-95s and 00s, the highest ranking channel issocial media, for example, Xiaohongshu and Weibo. Video platforms areespecially popular among post-00s, which 43.3% of them use Bilibili, TikTokand other video platforms.
Brand recognition: technology determines loyalty
The younger the consumers are, the less they care about the big brand concept.Among the post-85s respondents, 20.5% of consumers think it is not worthspending more money on big brands, 25.5% of post-90s agree on this conceptwhile this figure rises to 29.8% among post-95s, reaches to 32.3% amongpost-00s. This trend shows that young people’s consumption structure haschanged rapidly.
In terms of brand loyalty, according to the survey, consumers have relativelyhigh brand loyalty to products with certain technical thresholds such as 3Cdigital, beauty and personal care, while shows relatively low brand loyalty tolow technical thresholds products in FMCG.
This trend is also confirmed in the 2020 China Pet Industry White Paper.According to the White Paper , 67.7% and 55.3% of the respondents in pettoys and leash categories respectively, chose not to pay attention to brandattributes. In the survey of consumers’ preference for cat litter brands, N1ranked first with only 11.6% consumer loyalty rate. In contrast, Petkit and Mireached 38% and 26% respectively in the ranking of smart product brands, andthey have the highest concentration in each category of pet products.
Many pet brands have also begun marketing with celebrities. However, despitethe decline in brand loyalty of pet owners, from the Consumer Portrait andWhite Paper , providing products with higher technical barriers is still themost effective means to increase brand loyalty.
The changes in consumer structure and consumer behavior affect branding andR&D. During CIPS, there will be concurrent events that offer methodology ofcoping with the changing situation, such as CIPS Design Corner, The 9th ChinaPet Distributors and E-commerce Conference, the 2nd E-commerce Training Camp,etc. The 7th GlobalPETS Forum Asia will take place online, which will informyou the changes in European and Chinese market in the field of manufacturingand consumer market during the Covid-19. CIPS as only b2b show to enterChinese market, will guide you through the changing market.
For more info: http://en.cipscom.com/
Contact: Ms. Meadow Zhang, Ms. Lisa Pang
Email: [email protected], [email protected]
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