Millennials are set to become a key driver of China’s consumer and retail market, according to a new survey by KPMG.
The survey, jointly commissioned by KPMG China and online shopping platform Mei.com, was carried out by Ipsos in September and involved 3,004 mainland China consumers.
Called ‘China’s Connected Consumers’, the survey found that millennials expect to earn more and spend more in the coming years, especially on luxury goods, with approximately 70 per cent of millennial respondents estimating that their consumption of luxury goods and services is likely to increase or significantly increase over the next 12 months.
Much of that increased spending power will go towards higher-end clothing (47 per cent), cosmetics and perfume (47 per cent) and shoes (44 per cent).
According to the survey, the majority (74 per cent) of millennials in China are also interested in products and services associated with emerging technologies, with smart cars, smart wearable devices, virtual reality and augmented reality popular. In comparison, 69 per cent of non-millennial respondents are interested in emerging technologies.
“The survey findings revealed that a generational shift is likely to occur in the next five years, with the first batch of millennials set to overtake older consumers as the biggest spenders in mainland China,” said KPMG.