Thread Newsletter – August Edition
It’s back to school season and as parents are nervously getting their kids, teens and young adults ready for school, we’ve turned our attention to that exact same group. Why you might ask? Well this group, called Generation Z (born between 1997 to 2016), is a force to be reckoned with. Although they haven’t quite overthrown the Millenials in size (at least independently in China and the USA), in totality they are the largest cohort making up 32% of the global population. One third of the population, let that sink in. This matters especially for Chinese brands looking to go global, which is an ever increasing trend.
Though since we’re in China, let’s focus things back onto home turf. These kids were born into a digitally connected world, get (almost) anything delivered instantly with a few clicks on their mobile and spend as their hearts desire – some with a RMB 8000 monthly allowance. Who needs to save when financial support comes from 6 adults (mom, dad and two sets of grandparents) and the knowledge that you’ll get it all, in due time. Many haven’t even reached University and are accounting for 13% of household expenditures – broken down by 10% for their own personal spending from pocket cash and hongbaos and 3% on purchases they are influencing. As a benchmark, the Gen-Z’s in the USA and UK only account for 3% of household expenditure.
They’ve seen China become a global powerhouse, Facebook turn to copy WeChat, and every day people become KOLs, earning millions, what a world we’re in! Now it’s up to the Brands to convince them they’re worthy of their attention and wallets. If you’re unsure of how to do it, reach out to have a chat with us, we’d love to make this situation less scary and much more exciting!
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