6 things to know about China’s Gen Z consumers – and how they can afford luxury brands
According to global insights and data firm Agility, Chinese Gen Z have deep pockets, even those in their teens, and put individuality and self-expression first when deciding which luxury brands best represent them
Millennials – a group over 300 million strong – are a key source of growth for many brands in China. Their successors, Generation Z (defined here as the “post-95” generation, aged 15 to 24), are even freer about spending – they include nearly 170 million people and and have the potential to contribute even further.
Global insights and data firm Agility conducted interviews with more than 500 Gen-Z (born 1995-2002) consumers in 14 tier 1 and tier 2 cities in China to gain deeper insights into their values, priorities, and how they approach and interact with brands.
Here are some key findings about China’s Gen-Z demographic:
1. They are free spenders
Even though many Gen Zs are not part of the workforce doesn’t keep them from spending money – including on big-ticket items. Seventy per cent of Gen Zs who were not employed full-time receive at least 3,000 yuan (US$420) in pocket money per month – with 21 per cent getting more than 10,000 yuan a month.
How do they afford high-priced purchases like designer bags, hot sneakers and jewellery? Two-thirds say they save up the allowances they receive to spend it on a coveted item, while others either use credit cards that their parents or other people pay for or even take out loans.
What does this mean for brands?
The target consumer, even for luxury goods, does not just start at twenty-somethings with office jobs. Many in their mid- to late-teens have cash on hand even if they don’t have an income and are keen to spend it.
2. They are individualistic and want to have control
