Insights Report - GenZ Consumption
According to the white paper on Gen Z consumption power released by Tencent QQ Advertising, China’s Gen Z population (15-23 years old) is the largest, approx.149 million people, accounting for 40% of the overall consumption power. Generation Z have strong consumption power and dare to make money and spend, so consumption starts early. Their average monthly income is as high as 3500 yuan, especially for the 19-23 year-olds generation Z in school, 35% of which have multiple sources of income:
Part-time outside school expenses (67%)
The family provides living expenses (54%)
On-campus work-study salary (40%)
Sell second-hand items (7%)
65% of Gen Z want to have a common language with friends. They are eager to socialize but have a lot of social pressure. In particular, heavy schoolwork limits the opportunity to face the outside world. They maintain their social circle by purchasing hot items that circulate in the group. Common topics, keep up with the trend in the circle and hope to better integrate into the circle.
I am what I buy!
Generation Z likes to constantly explore and try different styles. They look for a lifestyle that suits them by consuming different brands and products. They are at an age to understand themselves, so before finding a style that suits them, Gen Z said that they want to have some unique experiences (such as limited editions) that they have not tried before, deepen their interest, and create their own exclusive Person setting.
More than 50% of Gen Z agree that spending money is for happiness and satisfaction 'at the moment'. Since the development of interest takes a long time to accumulate, in this long process, they will enjoy the instant happiness brought by having their favourite items and satisfy their immediate desire for happiness. For example, 31% of Gen Z have begun to use instalment payments. Because of the endless emergence of credit consumer products, which lowers the threshold for young people, they are willing to pay more to buy items that meet their preferences.
How can Marketers use these trends?
Social: Brands need to expand their brand influence to meet the needs of young people who love to socialize and build a stronger willingness to share, so it is suitable for using interactive innovative marketing
Personalized: Brands need to combine the interests of Gen Z to better arouse their attention to the brand and their willingness to seed content, suitable for vertical marketing that combines interests and hobbies
Impulsive Mico-moment: Brands need to use the influence of a strong social chain and community to guide and accelerate the buying decisions of Generation Z, which is suitable for precision marketing implanted in social occasions or private traffic via selected WeChat private groups.
How can we identify these groups of people?
Tencent Advertising and QQ Advertising are definitely some of the preferred platforms. Here are some advertising examples:
For questions about the full report or Tencent advertising, please contact us!