Why is it important for companies in China to keep the generational change in mind?

Companies should keep the generational change in mind and the effect of differently held values on the consumption behavior of China’s younger generation. According to a study on Chinese consumers conducted by the Samsung Economic Research Institute, the young consumers of China are a unique class. As a result of the one-child policy implemented since 1979, parents are generous in giving financial support to their children, affording them more comfortable financial prospects and larger budgets.

Unlike the older generation, China’s youth has little experience with hardship and more exposure to different cultures; as a result, they are more optimistic, open-minded and individualistic, caring more about their own independence, freedom and distinctiveness. They judge themselves and others by what they buy, and have been exposed to foreign and domestic brands. They love big brands and spend money to reflect their personal tastes, sensibilities and sense of individuality, pursuing self-expression in their purchases.

They are also better educated and informed than previous generations, with a broader vision of the world, motivating them to pay much more attention to environmental and social concerns than previous generations did. Companies should adapt to this new generation by differentiating their offerings and adjusting their branding and marketing strategies to attract younger consumers.