Per reporter: Bi Yuanyuan Li Jianning Per reporter: Dong Xingsheng
Growing up in the best of times, Gen Z is becoming an economic promotion force and a consumption force that cannot be ignored.
Generation Z has been studied and interpreted repeatedly, but they cannot be simply defined. They are keen to bargain for more and more, and they also have the courage to spend thousands of dollars, and in the niche circle, their spending power is amazing, just to seek an "identity".
According to the "2022 Decoding Generation Z" report released by Dentsu China, the consumption contribution of Generation Z in the fashion field has increased year by year, and the consumption scale of the post-90s, post-95s and post-00s trend markets has reached 80%. In 2021, in the decentralized Chinese market, nearly 300 million Generation Z people are expected to leverage consumer spending of 5 trillion yuan.
Whether it's high-end consumer goods, beauty, fashion items or jewelry, Gen Z's attitudes are changing. On the occasion of "3·15", the Daily Economic News released the "2021 China Fashion Industry Consumption Research Report - National Tide Report" released by the fashion group, and together with Tmall and Red Brin, conducted a survey on the consumption data of the Z generation to deconstruct the image of the Z generation of fashion consumers.
Tmall data shows that first- and second-tier cities are the core consumer cities of Tmall luxury products and the fastest growing areas, mainly beijing, Shanghai, Shenzhen, Hangzhou, Guangzhou, Chengdu, Nanjing, Chongqing and Suzhou.
Among Tmall luxury consumers, the proportion of 25-34-year-olds is more than 50%, which is the most core consumer group of luxury products, followed by 18-24-year-olds and 35-39-year-olds. However, from an intergenerational point of view, the post-95s and post-00s are the two groups of people with the fastest growth rate in the number of purchases and purchases in all groups, and they are also the two groups with the highest proportion of luxury browsing, collecting, and shopping carts. The Gen Z crowd on Tmall luxury products is growing rapidly, and in addition to the rapid growth in the number of buyers, there are also very active online interactions.
·Case 1· Prada opens a vegetable farm, Hermès does a gym, and the hard luxury big brand "grounded gas"
In September 2021, Prada actually opened a wet market in China, whether it is the signboard, façade or interior of the market, there are printed posters of Prada everywhere, but the market sells real green vegetables and eggs. What's more, in this 2,000-square-meter market, Prada handbags are given when buying vegetables on the spot.
It is reported that a series of printing bags have a total of 3 patterns, which are limited to 10:00~16:00 every day.
Therefore, as soon as the market opened, it attracted many consumers to punch in. Netizens joked that this is the closest they have to luxury goods. More netizens sighed, "This is probably the only Prada I can afford."
Coincidentally, in May 2021, Hermès opened the world's first interactive space in Chengdu Sino-Ocean Taikoo Li, "HermèsFit".
Although it is a pop-up shop, the design of the gym is not ambiguous at all, and the gym presents the brand's iconic "Hermès Orange", which has customized equipment walls, boxing rings, climbing walls, sandbag exercises and other sports scenes, where consumers can experience the fitness courses launched by Hermès.
With the popularity of sports and fitness, in recent years, more and more high-end consumer goods brands have launched sports goods, such as Louis Vuitton's dumbbells, jump rope, table tennis, Chanel's surfboards, spreader sets, Prada's ski series sports equipment, golf bags and water cups.
After getting used to the publicity of high-end big brands, consumers feel fresh about the publicity of this cross-border cooperation, and this sense of contrast of "grounded gas" is more likely to arouse consumers' attention, which enhances the spread and volume of brand topics.
With the gradual rejuvenation of the consumer population, the cross-border brand of fighting creativity, boldness and unexpected has extended the story and connotation of the brand.
·Case 2·" The first affordable LV"LV launches a free self-developed mobile game
In August last year, the famous French luxury brand Louis Vuitton (hereinafter referred to as LV) launched a free self-developed mobile game - "LOUIS THE GAME" on the occasion of celebrating the 200th birthday of the brand's founder Louis Vuitton, which was called "the first LV in life" by netizens. In the game, the player will play as LV's mascot Vivienne doll, in six different scenes by collecting candles to break through, each candle collected will get a postcard with "LV cold knowledge", so that players can understand lv's development story, design highlights, modeling meaning, etc. At the same time, players also have a chance to trigger the "Golden Postcard" and draw a limited 30 copies of the NTF digital artwork that has been auctioned at Christie's for nearly $70 million.
According to Qimai data, "LOUIS THE GAME" quickly attracted the attention of a large number of users after its launch, ranking first in the overall list for two consecutive days on August 6 and 7, 2021, and at the top of the list of free adventure and leisure in the subdivision.
In fact, this is not the first time LV has tested the waters of the gaming field. In 2019, LV launched a retro style parkour game called "Endless Runner", and then cooperated with "League of Legends" to launch the S9 League of Legends World Finals "Summoner Cup" custom trophy box, and designed a co-branded skin with LV elements for the game characters Chiana and Xena. In addition to LV, other luxury brands are also exploring linkages with games in different ways.
"The young market represented by Gen Z is too big for any brand to miss out on." In the view of Xue Hua, associate professor at the School of Economics and Management of the Communication University of China and director of the Fashion Management Research Center, whether it is asking virtual idol endorsements, launching digital collections or adding brand elements in games, it is all to reach young consumer groups. "Maybe the young group is not the main audience for high-end luxury goods now, but this does not mean that the future will not be, and the consumption potential of Generation Z is valued by all brands."
Xue Hua pointed out that the current young people's access to information is extremely diverse, the form of brand marketing and publicity is becoming more and more abundant, compared with traditional media, games with a high sense of immersion and timely feedback characteristics have a great impact on the cognition and consumption of Generation Z.
Case 3 · China's makeup out of the parity misunderstanding The supply chain has become the world's first
After 2010, domestic beauty brands have opened up the market at a rapid pace, from perfect diaries, oranges to huaxizi, all ushered in an outbreak.
The relevant person in charge of Huaxizi said in an interview with the "Daily Economic News" reporter that in the context of China's overall comprehensive national strength and rapid economic development, young people with "Generation Z" as the main body love the national style and have a strong sense of national pride, and Chinese traditional culture has a new trend of popularity. Hua Xizi wants to use makeup as a carrier to pass on traditional Chinese culture and oriental aesthetics.
It is understood that the user group of Huaxizi is mainly women aged 25 to 40, and the product price ranges from 89 yuan to 2189 yuan. "For a long time, the high-end market of Chinese makeup has been monopolized by international brands, and the development of Chinese domestic products for so many years has a misunderstanding - cheap, affordable, and traffic, feeling that domestic products have no way to go to the international big-name PK, but in fact, China's supply chain is already a world-class level." For example, Huaxizi applies many Chinese elements to brands and products, such as we take traditional Chinese daisy as the brand color and cinnabar color as the lipstick number; for example, integrate traditional Chinese medicine culture into makeup formula ingredients to create products with flowers to nourish makeup; for example, the traditional carving process is used on the lipstick paste, creating a new category of carved lipstick..." The relevant person in charge of Huaxizi said. At the same time, Huaxizi also expands the brand's popularity and influence by co-branding with brands of different circles such as wine, games, music, and movies.
Relevant data show that in 2020, Huaxizi GMV (total transaction volume) reached 3 billion yuan, and GMV in 2021 was 5.4 billion yuan. Not only that, Huaxizi has also achieved considerable popularity in overseas markets.
China used to be the "world's factory", but today, China may be the world's largest "brand incubator", and the world's cosmetics are about to enter China time - the internationalization of Chinese brands. On the basis of mastering the core competitiveness of brands, Chinese brands use Chinese aesthetics to influence the world.
Daily economic news