'Young Nationalist Shoppers' Generation Z in China... Determines the Rise and Fall of Western Brands

Bloomberg Highlights China's Generation Z Emerging as 'Largest Shoppers'
Distinctive Patriotism and Demanding Attitudes Toward Foreign Brands
Mentions Korean Gentle Monster as a Success Case

China's Generation Z, who take exceptional pride in their national culture, including wearing traditional Chinese clothing. (Source: Bloomberg)

[Asia Economy Reporter Kim Hyunjung] "Consumers with enough money to splurge, who avoid foreign brands, and possess nationalist tendencies capable of toppling global brands"

On the 25th (local time), Bloomberg News described China's 'Generation Z' in this way, reporting that they are emerging as a 'major force' influencing the rise and fall of global brands. This powerful purchasing group of '270 million' born after the mid-1990s is already wielding significant power. They exhibit the fastest spending growth among any Chinese generation, are the largest consumers in cosmetics and tourism services, and are the key players overturning the online shopping landscape.

According to China Renaissance, their influence is expected to increase about fourfold by 2023 to 16 trillion yuan (approximately 3,019 trillion KRW) compared to current levels. Their influence has changed the business strategies of Western brands, which had long expected steady demand, and local companies have been able to establish growth foundations due to the desire and pride in 'domestic products,' the news agency explained.

Jacques Diehtwald of trend research firm Young China Group said, "Generation Z is China's first true consumer generation," adding, "Like the American baby boomers, China's Generation Z is redefining China's consumer economy and will continue to do so throughout their lives."

Raised by parents willing to spend on everything they need, these 'Little Emperors (Xiao Huangdi, only children overprotected in China)' have witnessed the headwinds against China's 'sustained growth,' which they had taken for granted, through their first encounter with the 'pandemic (COVID-19).' Bloomberg diagnosed that this situation is reflected in Generation Z's spending habits.

According to a report by global consulting firm OC&C, about 25% of China's Generation Z do not save at all, which is significantly lower than the global average of 15%. They are also more prone to impulsive purchases.

This generation, with strong patriotism, takes a tougher stance against brands that touch on sensitive issues. They led boycotts against H&M and Nike for rejecting cotton from the Xinjiang Uygur Autonomous Region amid human rights controversy. Local brands such as Anta and Li Ning have grown in their place. These brands have fueled patriotism further by offering clothing and sneakers adorned with Chinese characters. Similarly, while market shares of foreign cosmetics brands like Maybelline New York, L'Or?al Paris, and Christian Dior have declined, local brands such as Wanmeierzi and Huashizi are performing well.

Veronica Wang, partner at OC&C, said, "Foreign brands need to recognize that young Chinese shoppers are much more demanding than previous generations," adding, "It is no longer possible to enter the Chinese market with an arrogant attitude of 'It's a great product, just accept it.'" She emphasized, "Brands must better understand what Chinese consumers want and like, embrace Chinese culture, and have a more open mind to adapt to the local market."

She also cited the Korean eyewear brand Gentle Monster as a success story. Wang explained that the brand was able to establish its position by providing product innovation and memorable experiences to Generation Z.

This content was produced with the assistance of AI translation services.