Decoding Gen Z: Navigating China’s Youth Market 

In the dynamic realm of modern marketing, connecting with the younger generation is paramount. China’s Gen Z, born approximately between 1995 and 2010, represents a demographic with unique behaviours, preferences, and digital habits. 

For businesses, understanding and effectively engaging with this audience is not only a strategic move but a necessity. In this blog, we will delve into the behaviours and preferences of China’s Gen Z population and explore strategies for engaging them effectively.

 

The Digital Landscape of Gen Z: Where to Connect

To effectively engage with Gen Z, businesses must first know where to find them. Gen Z is digitally savvy, and understanding the platforms they frequent is key. Three prominent platforms have garnered significant attention:

  1. WeChat: WeChat is an essential platform for connecting with Gen Z. Furthermore, this multifaceted platform offers messaging, social media, payment, and e-commerce features. Therefore, leveraging WeChat can help businesses create engaging content and build brand presence.
  2. Weibo: Often compared to Twitter, Weibo is another valuable platform. It’s a hub for real-time updates, trending topics, and viral content. Weibo can be an effective medium for brand engagement, particularly through influencer partnerships.
  3. Douyin (TikTok): The short-video platform Douyin, internationally known as TikTok, this platform has become a cultural phenomenon. Furthermore, it offers a creative and interactive space for brands to reach Gen Z, especially through engaging video content.
  4. RED: Xiaohongshu, known as “Little Red Book” or “RED,” is a popular social media and e-commerce platform in China. It enables users to share reviews, recommendations, and shopping experiences, making it a valuable resource for consumers seeking product information and lifestyle inspiration.

 

Strategies for Impactful Content Creation

Creating impactful content for Gen Z requires a nuanced approach. Here are some strategies to consider:

User-Generated Content: Firstly, encourage user-generated content as Gen Z enjoys co-creating with brands and sharing their experiences.

Short-Form Video: Secondly, short-form video content on platforms like Douyin is a powerful way to capture Gen Z’s attention. Keep it engaging and concise.

Storytelling: Thirdly, craft brand stories that resonate with their values and aspirations. Gen Z appreciates meaningful narratives.

Influencer Collaborations: Lastly, partner with influencers who align with your brand. Influencers can bridge the gap and connect with Gen Z authentically.

🤳 Discover more about the KOL (Key Opinion Leader) economy

Recently, Moutai, a prestigious brand of Chinese liquor (specifically baijiu), has successfully engaged with China’s youngsters in a cool and memorable way. As a result, it has effectively elevated its brand image and promoted itself among new consumers.

Moutai Ice Cream China's Gen Z

Moutai Ice Cream Exhibition

🥃 Read the Full Case Study on Moutai Marketing Strategies Targeting Gen Z

The Influence of E-Commerce on China’s Gen Z Purchasing Decisions

Secondly, e-commerce plays a central role in the purchasing decisions of Gen Z. They are digital shoppers who rely heavily on online platforms to make informed choices. To optimise your online presence for this audience, consider the following:

Mobile-First Approach: Ensure your online shopping experience is optimised for mobile devices. Gen Z shops on the go and demands a seamless mobile experience.

Interactive Shopping: Implement interactive features in your e-commerce platforms. Features like virtual try-ons, augmented reality, and chat support can enhance the shopping journey.

Transparency and Reviews: Gen Z values transparency and peer reviews. Make sure your product information is accurate, and consider integrating reviews and ratings into your e-commerce site.

Sustainability: Sustainability matters to Gen Z. Highlight your brand’s eco-friendly practices and products.

 

Establishing Brand Trust and Authenticity

Building brand trust and authenticity is crucial for engaging with Gen Z. They are discerning consumers who scrutinize brands closely. To achieve this, strategies include:

Social Responsibility: Engage in social and environmental initiatives and communicate your brand’s values and contributions.

Transparency: Be transparent about your practices, sourcing, and manufacturing. Gen Z values brands that are open about their processes.

Consistent Messaging: To begin with, ensure consistency in your brand’s messaging across all platforms. Mixed or contradictory messages can erode trust.

Engagement, Not Just Sales: Furthermore, focus on building relationships, not just making sales. Gen Z appreciates brands that engage with them on a personal level.

China’s Gen Z as Luxury Consumers

Gen z China luxury

In the ever-evolving landscape of consumer trends, Chinese Gen Z has emerged as a seasoned cohort of luxury consumers. Notably, having grown up in a rapidly modernizing China, they are not just digital natives but also well-versed in luxury brands and products. This generation displays a strong inclination towards individualism and self-expression, seeking unique and personalized experiences. Moreover, their consumption patterns reflect a combination of traditional values and modern sensibilities, making them discerning shoppers who value quality, authenticity, and brand reputation. They are no longer just aspirational buyers but are actively shaping the luxury market’s trends and narratives, demanding a seamless blend of online and offline experiences while prioritizing sustainability and ethical practices. This seasoned luxury consumer base poses both challenges and opportunities for brands looking to engage with them effectively and tap into their evolving tastes and expectations.

🛍️ Read more about China’s Youth Appetite for Luxury

In summary, China’s Gen Z represents a unique and influential demographic. Understanding their digital habits, preferences, and values is crucial for effective engagement. By leveraging the right platforms, creating impactful content, optimizing e-commerce experiences, and prioritizing trust and authenticity, businesses can unlock the potential of this discerning generation.

As we navigate the digital landscape and the preferences of the next generation, let us embrace this opportunity to connect with China’s Gen Z and build lasting, meaningful relationships between brands and this influential demographic. For further information, please feel free to contact us at contact@thewechatagency.com to learn more.

 

Moutai: An Example of Spectacular Collabs Eyeing Gen Z

Today, we delve into the world of Moutai, a traditional luxury Chinese liquor brand that has gained spectacular virality in the recent weeks. Let us examine its essence, the factors underpinning its lofty status, and recent strategic moves. Moreover, we will look into the latest marketing campaigns and collaborations

 

Unveiling Moutai: A Testament to Tradition and Mastery

Moutai, also known as Maotai, is a distinguished name in the domain of Chinese liquor. Originating from the town of Maotai in Guizhou province, it stands as a symbol of China’s rich heritage of distilled spirits. Its meticulous craftsmanship, utilizing sorghum and wheat, bears testament to centuries of perfected techniques. The result is a globally acclaimed elixir embodying the essence of Chinese culture. Its steadfast dedication to time-honored techniques, while remaining open to contemporary trends, has been pivotal in captivating connoisseurs worldwide. One bottle of Moutai typically costs from 1,499 yuan ($223), to over 16,000 yuan ($2,390) for rare vintages. As it continues to evolve and redefine luxury, Moutai remains a pioneering force in the world of distilled beverages. Not only in China but eyeing global expansion as well. 

 

Moutai: Trendy Collaborations

First Moutai-inspired products started to appear last year with the first ever Moutai Ice Cream shop opened in the lobby of the brand’s headquarter in Guizhou province. After country-wide release, the product has quickly become an internet sensation. The flagship store had sold more than 5,000 Moutai ice-creams in 7 hours, achieving the sales of over RMB 200,000; while via the “iMoutai” APP 40,000 pieces were sold out in 51 minutes, generating a sales record of about 2.5 million yuan.

Moutai Ice Cream

It didn’t take long for another exciting collaboration to hit the market. This time Moutai joined forces with Luckin, another beverage giant famous for its coffees and other beverages. Together, they co-created a new flavor of latte, Moutai Latte which was an instant hit. Hashtags related to Luckin Coffee Real Moutai topped Weibo’s Hot List with hundred millions of views and users’ feed with full of pictures of the product itself or queues to Luckin stores across China. On the launch day, Luckin sold 5.4 million Moutai alcohol-infused lattes in one day topping 100 million yuan ($13.72 million).

A few days later, Moutai consolidated its modern and more approachable image with yet another one collaboration. This time, the brand collaborated with Dove on Moutai-infused chocolate. Again, the hashtag about the collaboration had immediately topped all social platforms’ trending topic lists.

Moutai Luckin Coffee

Successful Pivot Towards Gen Z

The creation of Moutai-inspired products is a strategic move to tap into the young consumer market, who normally have a oldish image towards the strong liquor. At the same time, many foodies including the youngest one might not be able to afford a bottle of spirit. Now, they can literally get a taste of it thanks to these different collaborations. For many of them, it will be their first encounter of the famous alcohol.

Within the last 3 months, Moutai gained more than 25 billions impressions on Chinese social media platforms.

Moutai Impressions 2023

Insights into Moutai: Captivating in its Simplicity

What are the intriguing facets of Moutai that contribute to its allure:

 

  1. Craftsmanship in Every Bottle: Each bottle  is a product of meticulous production processes, reflecting the dedication and artistry of its craftsmen.
  2. Collectible Value: Beyond its function as a beverage, Moutai holds significant collectible value. Rare and limited editions attract attention from collectors and investors, adding a unique dimension to their appeal.
  3. Strategic Collaborations and Limited Editions: The collaboration between Moutai and Luckin Coffee, resulting in alcohol-flavored coffee beverages, ice-creams and chocolates showcases the brand’s adaptability and willingness to explore new avenues.

 

Diversification and Expansion: A Strategic Trajectory

Moutai’s growth extends beyond the realm of distilled liquor. Recent ventures into diversified consumer products like chocolates and ice cream demonstrate strategic diversification, aligning with evolving consumer preferences and expanding its influence. Here’s to Moutai – a brand that epitomizes excellence and continues to enthrall the world with its sophistication and innovation. A toast to the legacy of perfection and the journey of innovation!

10 Fashion Trends on Douyin You Need to Know Today

The speed of change in China is transforming all aspects of society, including the emergence of new cultures, fashion styles, aesthetics, and living standards. Social media has quickly replaced traditional means of brand interaction and shopping in China. Every day, people are exposed to new shopping trends, and KOLs are crucial to setting these trends. 

With 70.2% of the country’s social media users, Douyin, China’s version of TikTok, is one of the most well-liked social media platforms in China.  The audience consistently follows any new fashion trends that become popular on Douyin. Today, surely it’s the best platform to observe new emerging trends among Chinese Gen Z and youth. 

A few weeks ago, we shared with you the latest post on:

🔥 Douyin (China’s TikTok) Statistics 2022 [UPDATED!]

Let us share with you the key findings from the ‘2022 Douyin E-commerce Top Ten Trends and Life Trends Report‘ published by Douyin. These are the top fashion trends on Douyin that have drawn so many users in 2022. Explore them and perhaps experiment and try to include them in your China strategy. 

Before we dig into it, make sure you check How Douyin is Different From TikTok as these two are not the same.

Trend One: Stay away from cities

Glamping China

ⓒ Lucija Mica

Glamping has emerged as one of the most talked-about topics in 2022, with 42.2% of Douyin users citing outdoor activities as a way to unwind. For example, the younger generation that is interested in fashion is accustomed to sharing their glamping attire and experiences on Douyin. There are currently 1,300 million people who travel and engage in outdoor activities. The outdoor market is predicted to generate 240 billion CNY in profit by 2025. This demonstrates the potential market for outdoor products in China.

 

Fashion Trend Two: Street Shooting

Street Style China

ⓒ Sane Sodbayar

The new Generation-Z is excellent at finding those off-the-beaten-path shooting locations. Think a small shop or a narrow street close to home. They enjoy taking pictures in the hot spots to document their sense of style and post them on Douyin. In order to display confidence and a positive outlook on life, people are more interested in street photography and fashion pairings. Over 122 billion streams are focused on the street shooting on Douyin. As a result of this development, 30.6% of Douyin users are discovering new stores in their daily lives and sharing their outfit pictures taken from there. For this street photography trend, 63% of those individuals favor a simple outfit, followed by modern style (43.6%) and romantic style (42.9%).

 

Fashion Trend Three: Staycation

Staycations are now a popular option for the younger generation in China. Therefore, they want clothing that is stylish when they go out and comfortable at home. During the weekends, 27.4% of Douyin users prefer to stay home. Within that group, 89% of people are wearing homewear, and more than 45% have more than three different home wears. Feeling comfortable and casual has become a hot topic for the staycation lifestyle.

 

Fashion Trend Four: Sustainability

The younger generation has begun to show a greater concern for the environment, and sustainability is currently on trend. 29.9% of Douyin users pay attention to environmental protection. They are in favor of living sustainably and are ready to pay more for those goods. The new generation is becoming more and more accustomed to minimalism. Green fashion is a new trend that makes use of sustainable materials and natural plants.

 

Fashion Trend Five: China-chic

Guochao

ⓒ Dan Ma

The new generation has a stronger sense of patriotism than ever before, which has increased the local culture’s visibility. Gen-Z believes that local culture and brands should become the new standard in fashion and highly recommends them in Douyin. 30.8% of Douyin users support national goods and value Guochao culture. Users of Douyin favor Chinese- and Guochao-style clothing for a variety of reasons, including:

  • People are recognizing traditional cultures.
  • Combining traditional and modern elements looks good.
  • A popular global fashion trend is emerging from a Chinese design.
  • Affordability and high quality

As Guochao draws more attention, premium designs start to emerge in order to satisfy the young generation’s demands for fashion.

🇨🇳 We covered guochao recently on our blog. 

Fashion Trend Six: Office Outfit

Fashion China

ⓒ Juhno

Gen-Z likes to express their personality in their daily life through working outfits. The videos about work attire have been viewed more than 2 billion times on Douyin. 35.3% of Douyin users believe people should pay attention to what they wear on professional occasions. Sales of professional attire are predicted to grow by 4-5% annually until 2025 when they will total 167 billion CNY. The simple yet sophisticated design is now the norm for business settings.

 

Fashion Trend Seven: Retro

Users have watched videos on vintage style more than 11 billion times. The nostalgia wave has once more broken, thanks to Generation Z. The new standards for this new trend are now Hong Kong and Y2K fashion. Therefore 32.7% of users on Douyin are becoming more and more interested in nostalgia, collecting antiques, and occasionally willing to try out vintage clothing. The 80s and 90s fashion trends have been revived once more.

 

Fashion Trend Eight: Street Fashion

The new generation wants to express themselves in a novel way by fusing music, skateboarding, and other subcultures. 30.4% of Douyin users support using street culture as a form of self-expression. Street fashion found a new market niche thanks to rap, hip-hop, and new fashion brands among the younger generation. For example, the most popular theme for street fashion in 2022 will be oversize. Newer increasingly drawing more and more attention to it.

 

Fashion Trend Nine: Fitness Outfit

Yoga China

ⓒ Stephanie Green

With everyone becoming more concerned about their health, gymnastics-related topics have grown in popularity, gathering 15.8 billion views on Douyin. Working out while wearing a cute outfit has become mandatory for the younger generation. 45.2% of Douyin users recognize the importance of their health and insist on exercising every day. Fitness topics are currently very popular, especially when it comes to permeability and other useful features. Hence, the technologies of the materials, such as keeping warm, windproof, quick-drying, shaped, and so forth, have advanced quickly as well.

 

Fashion Trend Ten: Manga

The younger generation doesn’t hesitate to express themselves; they want to flaunt their comic book attire in public. 10.8% of Douyin users are open to accepting JK and are interested in the ACGN culture. Similarly, more than 86 billion times have played Lolita, cosplay, or other related games on Douyin. The hottest topic in the dimension world will soon be “genderless.” The genderless fashion trend, which combines sweetness and masculinity, has gained popularity since 2021.

 

Douyin Fashion Trends – Conclusion:

In the era of the Internet, consumers are playing an active role in creating new trends. Social media platforms also set the bar for fashion statements. To stay relevant with peers, people follow trends on social media sites like Douyin on a daily basis. 

Above all, understanding the popular fashion trends among potential customers is a great way to comprehend them and their needs. If you already have your Douyin strategy in place check out our article on advertising on Douyin to reach even more consumers. 

If you wish to know more about Douyin or other marketing techniques in China, please contact our team. We use our knowledge and expertise to help businesses build meaningful partnerships and develop their networks among Chinese customers. For additional information, please contact us at contact@thewechatagency.com

Female Gaming – One of China’s Most Promising Trends

China is a nation that enjoys playing. More gamers reside there than in any other nation in the world, and a third of them use their phones for gaming. It also makes China one of the most lucrative gaming markets in the world, with 666 million gamers spending an average of 445 yuan each on video games. 

Despite being a domain where men predominate, video games are no longer just for men. Women are experienced gamers who like anything from mobile crossword puzzles to first-person shooting games.

Players in the business can no longer deny how female-focused gaming has evolved from a niche interest to a mainstream market, especially when considering monetization.

Female Gaming China

Why Should Companies Focus On Female Gaming

Approximately 300 million women play video games in China, according to the 2019 China Gaming Industry Report. Over 46% of all people in the country identify as gamers. 

According to Abacus, both larger Chinese studios (such as Tencent, NetEase, and Bilibili) and smaller ones have started focusing on the still-relatively unexplored market of female gamers.

In this regard, China differs from Western nations where games geared toward female gamers haven’t achieved significant economic success. On the other side, a few years ago, female-focused games in China began to gain widespread acceptance. As the top downloaded game in China in 2018, the role-playing game Love and Producer from publisher Paper Games even momentarily dethroned Honour of Kings.

Games for female gamers may become the next big thing when the “conventional” gaming market becomes saturated.

Most Popular Game Types & Scenario

China’s game producers have recently become aware of the potential economic value of the “second sex”.  The success of games catered to women like Shining Nikki, Love and Producer, or I Should Be a Rich Lady only strengthen this trend.

Female Gaming China

Most of them fall into the category of otome, story-based video games that is targetting women. Their goal is often to develop a romantic relationship with the game character. Others like the Nikki series focus on style battles and beatifying avatars through a series of challenges. 

As Miriam Dabrowa, Head of China Strategy at The WeChat Agency says ‘romance-oriented storytelling of the most popular games is not surprising. Since the beginning of COVID-19, most of the Chinese have been living from one lockdown to another. Hence often had limited human interactions, especially in a romantic sense. Often these young people work long hours as a part of the 9-6-6 culture (working from 9AM to 9PM, 6 days per week​​) and simply don’t have time or energy to get build intimate relationships.’

Of course, the female gaming industry is more complex than that and many players enjoy a wide variety of games. 

Mistakes Most Companies Make When Marketing To Female Gamers

The majority of female gamers have noticed how the business still prioritizes male players over female consumers. Female characters are frequently dressed in sexy styles and are objectified in the games aimed mostly at the male audience. It’s extremely hard for the game designers to change this narrative when games’ profits are often based on upselling more revealing clothing for female characters in the game.

Numerous improvements have lately been made to promote more diversity in response to the persistent and contentious issue of female underrepresentation in the business. 

Because of discrimination and judgemental behaviors, Chinese female players often prefer to discuss in their own circle establishing online communities on platforms like Douban.

Companies wanting to establish a strong community should be hyper-sensitive to their audience needs to effectively attract them.

Conclusion

Around 390 million female gamers were active in China as of February 2020, an increase over the previous few years. The purchasing power of Chinese women gamers has been increasing. This calls for a great opportunity for fashion, make-up, or lifestyle businesses if tapped into this target market.

Most of the otome games actively leverage key Chinese holidays like Valentine’s Day or the 520 festival. They launch special campaigns or new digital products. Co-branding with them can be the next Holy Grail when marketing to Chinese women. 

Ultimately, the female gaming trend will likely continue. With more women getting involved in gaming, it’s only natural that more games will be developed for a female audience. Hence, it is a great opportunity for smaller companies looking to build a brand in China.

If you wish to know more about other gaming & marketing techniques in China, please contact our team. We use our knowledge and expertise to help businesses build meaningful partnerships and develop their network among Chinese customers. For additional information, please contact at contact@thewechatagency.com.

China’s Gen Z As Luxury Consumers

From Balenciaga to Gucci and Louis Vuitton, the Chinese market has become the most crucial driver of growth for European luxury brands. Nothing is more important for success in the Chinese luxury industry than capturing the hearts and minds of Gen Z. These are the Chinese consumer generation born after 1997.

Chinese Gen Z is growing as a diverse customer demographic that global brands want to understand more about. The luxury industry, in particular, given that China accounted for more than a third (32%) of the global market for luxury goods in 2020. It’s expected to surpass the US to become the world’s largest market for those products in the next five years.

Traditionally, luxury companies relied on an older, established, and affluent buyer base, with a minority of younger buyers keen to express wealth and status. While this buying pattern persists today, the luxury market has become significantly more democratic, younger, digital, and global in the last three decades, with luxury products considered not only as a method to indicate wealth but also as a way to represent one’s particular style.

What Makes China’s Gen Z Such a Good Target Group for Luxury Brands?

For luxury brands, Gen Z is a dream generation. They consider themselves to be “personal brands,” and spending up to nine hours a day online creating social media material qualifies them as expert brand builders. Many are familiar with crypto and NFTs, hastening a quick transformation in new luxury categories that earlier generations struggled with.

According to McKinsey, Gen Z, those born between the late 1990s and the early 2010s, represent 15% of China’s population. That equates to more than 210 million individuals. They grew up in China amid an unusual period of rapid social and economic development. Recently, Chinese brands have benefited from the country’s growing sense of confidence – and Generation Z may be the most confident of all Chinese generations.

This confidence translates into a more critical and outspoken approach toward foreign fashion labels. As a result, this generation may have a significant impact on the Chinese fashion and luxury sector.

They are brand sensitive, hungry for uniqueness, and wealthy, ticking all the boxes that luxury brands set out to offer. Winning over these key actors in high-end purchasing is the first step for global luxury brands to flourish in China.

What Works With Gen Z?

The growing influence of millennial and Generation Z consumers in the luxury business can be seen in how brands communicate their message and who they hire to speak it for them. WeChat, which is a one-stop platform that allows users to interact with friends and family, stay up to speed on the latest news, engage with one’s favorite companies, and pay for a variety of goods and services, also plays an important part in these conversations and sales.

For luxury brands, millennial and Gen Z spokespeople, brand ambassadors, and creative directors are becoming the standard. This is especially true in China. Gen Z celebrities such as Wang Yibo (born in 1997), Cai Xukun (born in 1998), Fan Chengcheng (born in 2000), and Ouyang Nana (born in 2000) are fronting advertisements for Chanel, Prada, Givenchy, and others. However, simply being present on social media, hiring young brand ambassadors, and dressing up popular celebrities is insufficient to reach and influence Gen Z customers.

For starters, like with millennials, rigid premium brand loyalty is virtually non-existent among Generation Z customers. This is especially true in China, where according to McKinsey & Company, 52% of consumers born after 1990 will purchase luxury goods other than their “favorite” brands.

Gen Z & Luxury – Do’s & Dont’s

The most common mistake in attempting to attract Gen Z is to appear as though a brand is particularly young or funky even if it does not fit the brand. “Young collections” are a good example of this. Many established fashion businesses attempted this and failed. When a company isn’t relevant to Generation Z as a whole, creating a purportedly youthful collection and hoping young customers will take the hook seldom if ever, works. To be relevant to Gen Z, brands must be present on platforms such as Bilibili, Douyin or Xiaohongshu. This is where they can better engage with the audience and create trending articles to attract the right audience. 

Learn more about What is Bilbili? and the main differences between Douyin and TikTok.

Generation Zers, on the other hand, value authenticity due to their easy access to information. People, in fact, expect brands to be brutally honest and truthful. As a result, many incumbent brands appear out of reach, inauthentic, and remote to younger audiences. A new, honest, inclusive, and spontaneous method of communicating with Generation Z is required. 

The implication for luxury brands is to be brave and unapologetic in their position for something. Clear values are what Generation Zers look for in brands. As a result, brand equity, brand positioning, and brand narrative are more important than ever. This might be putting many incumbent businesses at a considerable strategic disadvantage. 

According to reports, some of the most compelling reasons for Generation-Z customers to purchase personal luxury products in China in 2020 are:

  • Signaling social status – 6%
  • Gift – 20%
  • Identity statement – 24%
  • Uplift of confidence – 45%
  • Pursuit of fashion – 61%
  • A reward for self – 68%

Conclusion

Millennials (ages 26 – 41) are huge, but China’s Gen Z (ages 10 – 25) might be even bigger. As a new generation of consumers emerges, brands’ strategies and marketing must evolve to cater to this new demographic. This indicates that brands must be honest, truthful, and inclusive in order to reach out to the next generation, in addition to being trendy and developing products for the younger age.

Massive developments in the digital age indicate that generational divisions are narrowing, for better or worse. If businesses want to flourish and prosper in today’s ever-changing world and create a business in China, we believe they must discover more relevant ways to reach consumers of all generations. Check out our piece on China’s eldest consumers – Silver Generation

If you wish to know more about Gen Z consumers or need assistance in China, please contact our team. We use our knowledge and expertise to help businesses build meaningful partnerships and develop their network among Chinese customers. For additional information, please contact at contact@thewechatagency.com.