Feature: Ditching the bling, young Chinese prioritize value, fulfillment in new consumption trends
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E-mail Xinhua, January 13, 2025
Editor's note: Young people are often seen as the driving force for renewal and growth. As 2025 begins, Xinhua presents a series of five stories exploring the passions and pursuits of young Chinese, from the perspectives of consumption, careers, culture, innovation and lifestyle, discovering how they are reshaping the country's future trajectory. This is the first piece on their inspiring journey.
by Xinhua writers Yue Xitong, Shi Yifei and Ren Yaoti
BEIJING, Jan. 13 (Xinhua) -- Red carpets are traditionally synonymous with glittering gowns, radiant jewels and an air of opulence.
However, at the recent Golden Rooster Awards, China's top film-award ceremony, young director Shao Yihui stole the spotlight with her effortlessly understated elegance, proving that simplicity can sometimes shine brighter.
The 33-year-old director, who attended the event with her latest hit film "Her Story," confidently graced the runway in a vintage-style floral dress that she revealed cost only 200 yuan (about 28 U.S. dollars).
"I think this dress is just as good as any luxury brand," she said with a smile.
Shao's choice of attire not only reflects her distinctive personality but also captures a burgeoning trend among young Chinese.
Rather than chasing luxuries for the status or social prestige that they confer on their owners, the new generation, born in the 1990s and 2000s, refuse to surrender themselves to the verdict of others, and are reshaping new consumption trends by advocating their thoughtful preferences on practical needs, personal values and hobbies.
QUALITY OVER LUXURY
Reports from international consultancy firm Bain & Company revealed a downturn in China's luxury market last year. Some attribute this decline primarily to reduced spending by young Chinese people, but that explanation could be overly simplistic.
Following the country's economic take-off after the reform and opening-up started in the late 1970s, people's purchasing power surged, and designer fashion, for instance, became increasingly popular among the rich who tended to flash their wealth through fancy brands and status symbols.
"But nowadays young Chinese are becoming more self-assured," said Dong Jizhou, an analyst at leading financial services group Nomura. "Many have stopped seeking external validation by wearing luxury brands to showcase their social status or identity."
This shift in consumption preference is evident in Shao's recent film "Her Story." Flashy heels are gone. Instead, the film's young female characters are all seen wearing comfortable sneakers.
"I wear whatever feels right for me, not what's on the price tag," Shao told Xinhua. "I chose this dress for the red carpet because it's exactly what I would wear any day. It's that simple."
Apart from the stronger need for self-expression, China's growing manufacturing strength also provides a catalyst as many young Chinese are questioning why they would pay premium prices when equally good alternatives are available at lower prices.
"Affordable alternatives are becoming a new choice for young consumers, creating unprecedented opportunities for the rise of new domestic brands," said Yang Huaiyu, a consumer-goods industry analyst at a Shanghai-based consultancy. Yang added that some domestic brands have cost advantages in production, enabling them to offer high-quality products at lower prices.
Over the past few decades, China has transformed from an underdeveloped industrial backwater into a global manufacturing powerhouse, boasting comprehensive industrial categories and a well-rounded manufacturing system.
"Whatever our young consumers are interested in, 'Made in China' can deliver," economist Pan Helin said in an interview with Xinhua.
Li Xiangtian, a 31-year-old office worker in Beijing, prefers domestic electric vehicles (EVs) when considering his first car purchase.
"Maybe in the past, I would have spent around 300,000 yuan on a Volvo," Li said. "But now, I have a wide range of options for top-quality EVs, even with a smaller budget."
However, the surge in the popularity of homegrown goods does not mean that young Chinese people are turning away from international brands.
A report from the popular e-commerce platform JD.com in 2024 showed that 80 percent of Chinese consumers show interest in buying imported products. Young Chinese, it said, are important buyers of foreign digital products, healthcare products and cosmetics, among others.
"For them, where a brand comes from doesn't matter as much as whether it provides better products to meet their needs," said Dong.
FOCUS ON FULFILLMENT
Analysts found that young Chinese consumers are placing greater emphasis on emotional value and cost-effectiveness in their spending. A new trend known as "Yueji" consumption has emerged. The trend has been illustrated by the enthusiasm of young Chinese for spending more money on their interests to maximize pleasure, rather than confining themselves to material pursuits.
A survey by a financial platform under The Beijing News showed that 37.4 percent of respondents under 35 are more inclined to pay for their hobbies.
Sun Lingling, an avid ski enthusiast, said she wouldn't hesitate to open her wallet for expensive ski equipment, while one of her friends, after becoming passionate about pour-over coffee, spent 100,000 yuan on a professional coffee machine.
"She even travels the world to collect coffee beans," Sun said.
Besides, young Chinese are also willing to pay for fresh and pleasant experiences. Sales of non-functional products and services, such as travel, gaming, music festivals and blind boxes, shot up during the 2024 "Double 11" shopping festival, according to the social platform Soul App.
Analysts attribute emotion-driven consumption to a growing demand for a better quality of life. As per capita GDP increases, young Chinese are moving up Maslow's hierarchy of needs.
"These seemingly unconventional products are popular because they resonate with the emotional needs of young people," said a report released by Premia Partners, a Hong Kong-based financial institution.
As this consumption trend continues to reshape market dynamics, experts say it has opened up new business opportunities.
"Brands that can empathize with consumers are more likely to stand out from the competition," said Wang Wei, a senior researcher at the Development Research Center of the State Council.
Businesses are adapting to the shifting mindset of young consumers, investing more heavily to enhance the added value of their products.
Pop Mart, a Chinese brand known for its blind boxes, is a prime example. Driven by the excitement of surprise and the joy of collecting, these "mystery" figurines, each costing about 70 yuan, have captured the hearts of many "kidults" in China. The company reported a whopping 62 percent growth in the first half of 2024.
"My parents disapprove of my collecting, calling it a waste of money," an enthusiastic collector of Pop Mart posted on the lifestyle platform Xiaohongshu. "But think about this: for just 70 yuan, you can have an entire happy day, so why not?" Enditem
(Xinhua reporters Huang Yuzhang and Wang Aihua also contributed to the story.)
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