An analysis on how Millennials are driving the transformation of the mainland China retail sector
KPMG and Mei.com have launched China’s Connected Consumers: The rise of the Millennials, which analyses how young consumers are transforming the operating landscape of the mainland China retail sector.
The fourth annual China’s Connected Consumers survey analyses responses from 3,004 consumers in the mainland to understand their current and future shopping habits.
The survey finds that online shopping has effectively become a national pastime in China with 77 percent of respondents identifying it as their favourite leisure activity. This is reflected in the popularity of online shopping festivals such as Single’s Day and Double 12.
Almost nine in ten Millennials are shopping online more than once a week, and 80 percent expect the frequency to increase in the year ahead. With 31 percent of Millennials expecting a significant increase in income over the next five years, young consumers are set to become a key component of China’s retail sector.
The rise of this experiential generation has prompted a surge in demand for luxury products as well as the affordable luxury segment. Millennials are expected to spend more on luxury goods and services in the next year, of which high-end clothing, shoes, cosmetics and perfume are the most sought after.
Businesses are adopting different strategies to deal with the evolving retail landscape. Companies are increasingly adopting a multi-brand strategy to seize market opportunities. They are also focusing on omnichannel strategies to provide a richer consumer experience through “personalised” shopping.
For more insights, please refer to the report.