In the past six months, a lot of discussions in the consumer industry have focused on the “post-00”. I think the proper discussion is correct, and too much discussion is wrong.
First of all, “after 00” still does not have a large area of its own disposable income (do not use cases to lift the bar). Secondly, according to the National Bureau of Statistics, the birth population of China has experienced a relatively large decline since 1998. In the past ten years, it has remained at more than 20 million people per year. At the same time, it reached its peak after the reform and opening up in 1988. Since then, it has never appeared.
Therefore, for today’s consumer goods companies, don’t spend too much time exploring “after 00.” The entire “post-90s” is 190 million (the other version of the data is 188 million), and the entire “after 00” is about 140 million.
It is most important to seize the first two waves of the “post-90s”, that is, the “post-90s” who have been working for about five years, or those born in 1990-1995.
At present, the understanding of the “post-90s” in the entire consumer goods market can be said to be full of mistakes and absurdities. In fact, “post-90s” is a generation with no common label. Moreover, they are normal human beings, with seven passions, love, fear, greed, laziness, and dreams.
To illustrate the matter of white, we first pull the time back to the 1990s.
China in 1990
When history entered the last 10 years of the 20th century, China will enter a stage of full take-off after the first phase of reform and opening up.
In 1990, China’s per capita GDP was only 344 US dollars, and the corresponding local currency was 1644 yuan a year. Let us look at the nodes in 1995 and 1999.
In 1995, the local currency was 5,046 yuan, corresponding to 604 dollars.
In 1999, the local currency was 7,159 yuan, corresponding to 865 dollars.
What does this set of numbers mean? It means that at different times in the 1990s, it was like being born in a different economy. This must be reflected in the shaping of human character, values and consumer attitudes.
When I compare the data of Europe, I find that the average annual growth rate of 2% in Europe is very good, and in the 1990s, many years in China were 10% to 14% growth, which was given to the whole 90s. The impact is more than half a century in modern Europe.
Therefore, “post-90s” cannot have a unified label because they were born in an era of intense and rapid change, their parents are changing rapidly, and their hometown is changing rapidly.
Some of them are descendants of workers, some are descendants of peasants, some are descendants of merchants, some are on the coast, some are inland, and some people do not see the high-rises of the provincial capital until they are admitted to the university. Someone lived in the city from an early age. Some of them have experienced struggles since childhood.
Their composition and experience are too complicated. Therefore, we have to make a clear statement: “After the 90s” cannot be labelled at all, and it cannot be simply classified. But they still have some commonalities, and they show great differentiation under the commonality.
Let us look at the contents of Vipshop X Nandu’s “Social Newcomer Consumption Report”. (Note: The definition of “social newcomers” in the survey: “post-90s” group aged 20-29 years old and graduated into society for less than 5 years. It was born in 1990-1995.
Local rich, research and price
For the things you like, dare to make big expenses. More than 50% of the “post-90s” social newcomers said that although their income level is medium, they will not be soft when buying big-name wear and high-end skin care products. This is more prominent in the “post-95s” group.
There is a word called “local rich”. It is those who are particularly able to spend money in certain places. For example, some people especially like to play with headphones, most of the disposable income is used to buy headphones, which is prominent in the “post-95” generation.
What is the revelation of the brand? That is, the average disposable income may not be meaningful for many industries. Users like you. If you don’t have money, you can buy it with cash. If you don’t like it, you won’t buy more. We should actively find those loyal fans and give them reasons to die.
Since it is a local rich, then places outside the local are often going to return to reality. The pursuit of cost performance is very fancy. At the same time, “post-90s” has a high level of culture and highly symmetrical consumer information. They are good at using various tools to compare prices, and are good at avoiding the “flowers” of the merchants. According to the survey data of Vipshop, nearly 90% of the “90s” will buy goods after the price comparison, and nearly 80% will participate in special activities such as discounts and spikes.
Once again, it is not conflicting to study the price/performance ratio and the local rich. It will happen to one person at the same time.
Offline social degradation, KOL influence, peripheral consumption
The “post-90s” offline social ability has obvious “degeneration” compared with the previous two generations, and it corresponds to the improvement of online social skills, and it shows that the online conversation is very wild and the offline is often very embarrassing.
“90s” social newcomers spend 1 to 3 hours a day on social apps, and over 80% have their own specific communication circles. Even if they don’t know each other, they will always come together to become a common consumer preference and hobby. The most intimate sisters on the Internet, and more male “sisters”.
KOL’s influence on the “post-90s” is declining. However, after the “90s” women took off from KOL, they began to become the main consumer of TV dramas. Many TV dramas, such as jewelry, handbags, women’s shoes, and dresses, became explosions.
The “90s” male newcomer’s “good heart” is around the animation, not only to buy their own pajamas, home clothes, men’s tops, but also to buy animation IP toys for children. Vipshop will show that its sales of related products increased by 77.39% year-on-year in 2018; Chongqing bought the most orders from Man Wei, Shanghai people bought the most money, and second-tier cities spent the most money on the purchase of King Glory and Marvel. On the peripheral products.
Preferred domestic products
In the recent report of “Existence Insights for the First Half of 2019” published by APP, I saw the following trend observation: The consumption habits of young people are also reflected in the preference for domestic products. Chinese goods rose in unexpected ways.
I will first say a brand that is more familiar with “80s” and “90s” – Li Ning. A few years ago, the Internet was still discussing the decline of Li Ning, but in the past two years, it has returned to our vision with the image of the tide brand. When I discussed the re-emergence of the Li Ning brand with the “post-95s”, they told me that “Is Li Ning not really good?” To be honest, I was surprised.
Perhaps our older generation is talking about the rise of old brands, and consumers of the new generation think they have been very bullish. Many “old” brands have seen reverse growth. For example, the beauty skin care brands Xie Yuchun, Kong Fengchun, Meijiajing, etc., the “95 post” fans accounted for more than 30%, significantly larger than Estee Lauder, Lancome and these seemingly fashionable international big names.
Vipshop and Nandu Research Institute conducted a survey of nearly 3,000 new socialites and found that young people who trust and identify Chinese goods account for nearly 17%, and nearly 50% of young people have a good impression of Chinese goods.
3 years, the difference is obvious
With about 1995 as the watershed, China’s “post-90s” was divided into two or three generations. A generation of about 3 years.
In addition to age division, there is an important division that belongs to the city level.
The first is about the house. According to the survey data of Vipshop, the proportion of “post-90s” purchases in low-tier cities such as 2,345 and 4 has exceeded 40%, while that in first-tier cities is 29.91%.
But another value happens to be the other way around, and that is savings. In the first-tier cities, over 15% of the “90s” have deposits of more than 100,000 yuan, but less than 10% of the third- and fourth-tier cities.
This means that China has such a huge volume, about 190 million “post-90s”, it is easy to lose the partial grasp in the average. And every part, such as 10%, means 19 million.
Many people are confused about the understanding of cause and effect. Because the roots of the “post-90s” are different, they show a big difference. Rather than because they have some differences in behavior, they are different. We must always remember this.
Small fortunate, small and beautiful values
After discussing the similarities and differences between the bottom layers, we have to look at the current situation, whether there is any change in the “post-90s” in the figurative trend of consumer goods.
According to the big data of Vipshop, the sales of beauty instruments began to grow explosively in 2017, and the sales growth of beauty instruments in the sixth-tier cities in 2018 was the first.
The TOP5 health care products on the Vipshop platform are mainly nutritional supplements and weight-loss products; while the conditioning drugs sales nourish kidney, acne, and gynecological menstruation.
In the past three years, sportswear, fitness equipment, sports shoes, and protein brewing sales have maintained double-digit growth among “90s” users. But this does not mean that they really spent a lot of time on fitness. They can only say that they have practiced when they bought it.
Compared with the “70s”, “80s” and “90s”, the newcomers in the society have experienced rapid growth in the consumption of decorative objects such as cups and saucers, vases and tablecloths. This reflects the fact that small and fortunate, small and beautiful values are spreading rapidly.
At present, the growth rate of new kitchens and small household appliances after the “90s” society has exceeded the “70s” and “80s”, ranking first. The sales of “Sweeping Robots” surged year-on-year in 2018. The growth rate of first-tier cities was close to 166%, and that of fifth- and sixth-tier cities was also about 50%. The growth rate of smart speakers, bread machines and juicers was similar.
“After the 90s” is like a new generation of smart consumers. They buy big names and don’t be soft, but when they buy daily necessities, they are sensitive, sensitive to brands, and more price sensitive. The sale model, from the US TJMaxx to the domestic Vipshop, has been rapidly gaining momentum through the growth of these emerging consumers. It is not a traditional big sale model, nor is it a simple low-price clearance. The brand sale cuts the demand for quality consumption and the demand for consumption by a new generation of savvy consumers.
Above, the seemingly illogical and different categories of features tell us one thing: consumerism is a fait accompli in the “post-90s” mind, no need to re-educate. They love consumption, they are generous and stingy, they are a group of people, not a group of people.
When 190 million “post-90s” became the backbone of consumption, you did not understand them. This is a desperate thing.