CITIC Construction Investment Greater Consumer Goods Chengdu Forum
2022year11month8On the day, the CITIC Construction Investment Greater Consumer Chengdu Forum (hereinafter referred to as the 'Conference') hosted by CITIC Construction Investment Securities was successfully held. The Conference brought together many front-line experts and senior executives from listed companies within the industry to jointly offer suggestions for the development of China's consumer industry and facilitate investment discussions.2023China's major consumption trend in 2023, grasp the investment main line.
Frost & SullivanFrost & SullivanDing Zhuowen, Executive Director of Frost & Sullivan Greater China and Dean of LeadLeo (Shanghai) Research Institute, was invited to attend the conference11month8The main forum held on the morning of the day delivered a keynote speech titled 'New Demographics, New Product Categories: A New Consumption Era Amidst Opportunities and Transformations'.
Executive Director of Frost & Sullivan Greater China, Dean of LeadLeo (Shanghai) Research Institute Ding Zhuowen
Firstly, Ding Zhuowen pointed out that consumption is one of the most important drivers for the sustained and substantial development of the national economy.
The report of the 20th National Congress of the Communist Party of China clearly states that it is necessary to adhere to promoting high-quality development as the theme, organically combine the implementation of the strategy to expand domestic demand with deepening supply-side structural reform, enhance the internal driving force and reliability of the domestic large cycle, and improve the quality and level of the international cycle.
The total social demand consists of consumer demand, investment demand, and export demand. Among them, consumption and investment are domestic demands, while exports are external demands. Therefore, an important aspect of expanding domestic demand is to actively stabilize household consumption.
The core of consumption is always the satisfaction of demand. So, what changes have taken place in the new era of consumption? Ding Zhuowen believes that these mainly focus on three levels: the generational transition of consumer groups, the upgrading of consumption methods and scenarios, and the reshaping of consumption order.
What are the new consumer groups?
Ding Zhuowen said,15 - 50The aging population is the most core consumer force in China, and its current size is approximately7Around hundreds of millions, they were born1972till2007Between years, from an intergenerational perspective, that is,70Later00The span thereafter.
Based on basic attributes such as age, gender, and place of birth, as well as acquired characteristics like education level, occupation, income level, marital status, and fertility, categorizing these core consumer forces into corresponding consumer groups reveals: Intergenerationally, it is mainlyZGenerations andYgeneration; In terms of occupation and income level, both white-collar workers and middle-class individuals are included; In terms of lifestyle, this is particularly evident among solo young people and new-generation mothers; This is a summary of the six core consumer groups, their values, consumption preferences, and categories of purchases.
New consumer groups:Zgeneration
ZGenerations, simply defined by time, are born in1995 - 2009Groupings between the years. ChinaZGenerational population exceeds2.64hundred million people, accounting for about the total national population19%, where “95The latter, accounting for nearly 40%,00after" and "“"05The latter accounts for about 60%. They are the original inhabitants of the internet and also lived through the most rapid period of our economic development. Their parents' economic accumulation helped them live a better life, so self-satisfaction has becomeZThe core of generational consumption.
Ding Zhuowen believes that the economic foundation of the original family, plusZGenerations have gradually entered the workforce, started earning income, and this group has gradually become the backbone of consumption.
ZThe strong consumer power across generations has spurred the development of new categories, with the beauty economy being at the forefront.2022Since the beginning of this year,ZSales of high-value-for-money products have increased year-on-year across generations166%.
Secondly, the health preservation economy has broken out of its niche, starting from various beverages and expanding to multiple fields such as food and condiments.2022Since the beginning of this year,ZThe sales volume of low-sugar products purchased by generations has increased year-on-year by more than20times. In addition, due toZThe concept of health preservation across generations, as well as the sales volume of health management products such as astaxanthin and seal oil-based health supplements, has also seen unprecedented high growth rates.
At the same time, Ding Zhuowen also said that as an internet native,ZThe consumption preferences of generations towards smart products are also self-evident; they generally love to buy smart home products.3CProducts, etc. If purchasing a car for commuting, people also prefer more intelligent new energy vehicles.
New consumer groups:Ygeneration
YGenerations refer to those born in1980till1994Annual population. In terms of population size,YThe number of people in each generation has reached3.15hundred million, thanZThe base of the population is even larger, and it remains the most core consumer force at present. The same is true in terms of consumption scale.YThe annual consumption expenditure per capita across generations is approximatelyZgenerational1.5times.
Ding Zhuowen believes thatYThe generation that first enjoyed the reform and opening up and the progress of information technology is characterized by dual contradictions. It can be observed in them the coexistence of materialism and idealism, the combination of internationality and nationality, and the presence of both modern and traditional elements. While enjoying material prosperity, we are also bearing the immense pressure brought about by striving for a better life.
Due to such a growth background, as well as the current majorityYThe lifestyle of successive generations has led them to spend more on quality and refined living, which can showcase personal taste while also embodying pragmatism in improving lifestyles. Therefore, smart homes that can greatly improve living standards areYA favorite that has been passed down from generation to generation. In addition to this,YGenerations are also the main force in medical beauty consumption. This is not only closely related to their consumer needs but also to their age group, as well as their relative wealth accumulation.
New consumer group: Rising-middle-class professionals
Ding Zhuowen further stated that in addition to looking at the core consumer group from an intergenerational perspective, it is also possible to better grasp this segment from the perspectives of occupation and income.
Living in high-tier cities, with85later and90The new generation of white-collar workers, who are mainly in their careers and seeking advancement, generally have very high demands for convenience in consumption. They are still in a period of career struggle and work at a very fast pace. Therefore, they particularly favor online channels, such asO2O modelHome platform.
In addition to convenience, urban white-collar workers place great emphasis on a sense of ritual. Therefore, various festivals and shopping festivals are important times for them to place orders. At the same time, they are very concerned about self-improvement, both externally and internally, hoping to always maintain their best state. Therefore, in addition to beauty care, skincare, and health preservation, they are also a major group that pays for knowledge.
New consumer group: Senior middle class
There are also senior middle-class individuals living in high-tier cities,70later,80Later generations are now the main focus. Compared to the younger generation, senior middle-income earners have relatively ample wealth accumulation and exhibit a more mature consumption outlook.
Ding Zhuowen stated that most senior middle-class individuals hold the consumption philosophy of 'light price, heavy quality'. Online shopping emphasizes quality, with more choices for brand official flagship stores; offline shopping focuses on experience, and they are enthusiastic about new retail stores represented by Hema Fresh.
In addition to being pushed to the forefront due to generational changeZBeyond generations, the two major consumer groups emerging due to lifestyle changes also have a profound impact on the development of the consumer industry.
New consumer group: Single-person young people
Data from the National Bureau of Statistics show,2015Since [start year], compared with multi-person households, the proportion of one-person households has gradually increased.2019Annual achievement18.5%More and more young people prefer to live alone. According to statistics from the Ministry of Civil Affairs, there are currently7700Wan Duojiu Youth.
Ding Zhuowen pointed out that living alone does not affect the quality of life. People who live alone are less influenced by others when making consumption decisions, and instead, they have a much higher desire for consumption upgrades in certain categories than non-single-person households.
New consumer group: New-generation moms
Another force that cannot be ignored is the new generation of mothers-to-be. According to Ding Zhuowen, New-generation mothers in high-tier cities often hold multiple roles, being working professionals, caregivers for their children, and the omnipotent managers of their entire family. New-generation mothers are gradually transitioning from80Later, it became more youthful90The latter group accounts for more than 60%.
90The postpartum mothers have become more independent and free. The improvement in their educational background, personal income, and social status has made them not only attach importance to the needs of the family and each individual but also pay more attention to self-improvement in their consumption structure.
Ding Zhuowen stated that in the face of parenting, new-generation mothers with a bachelor's degree or above place great emphasis on scientific parenting concepts. From various maternal and infant products to services, and then expanding to pre-school, in-class, and extracurricular education for their children, new-generation mothers pay close attention to scientific design, materials, systems, as well as the safety, quality, effectiveness, and other aspects they embody.
New consumer preference: pet economy
According to Ding Zhuowen, recently10In recent years, the number of pet owners has been increasing continuously. The latest data shows that the number of pet owners in urban areas of China has reached6,800ten thousand people, this6,800The ten-thousand-strong pet-keeping army90Second most important, accounting for46.3%, but at the same time00Later, it gradually joined in and became an important part. The spending of these young pet owners on pets cannot be underestimated, with an average annual consumption per dog2,634Yuan, average annual consumption per single cat1,826yuan.
The number of pets is also increasing year by year. According to2021Data from the 'China's Pet Industry White Paper' for2021The total number of urban pet dogs and cats nationwide exceeded1.12Hundreds of millions, with urban pet owners per capita owning one pet1.64Only. Interestingly, the number of pet dogs is about5,400Ten thousand, the number of pet cats is about5,800Ten thousand, cats have surpassed dogs to become the largest pet category.
Ding Zhuowen further pointed out that in addition to products and services, another new direction of the pet economy worth noting is: More and more adorable pets are gradually enteringKOL (Key Opinion Leader)In this field, he has become a blogger and a regular visitor to short video and live streaming sections. Behind the numerous pet care bloggers taking to live streaming, it is not difficult to see that cute pet live streaming is in a blue ocean of development. The pet live streaming market is vast and thriving.IP addressHow to effectively monetize traffic remains an important issue that needs consideration in competing for this segment.
Preferences of new consumer groups: Smart Home
Ding Zhuowen pointed out that in recent years, with the gradual maturity of artificial intelligence and Internet of Things technologies, supported by policies and regulations, the domestic smart home industry has entered a fast track. Various products have gained wider recognition from consumers and entered thousands of households.
YGenerations andZGenerations have gradually gained control over the discourse on home improvement and interior design, due toYGenerations of pursuit for quality of life,ZGenerations' pursuit of fashion trends has undoubtedly matched the needs of these two groups for this category in terms of home appliance consumption with highly technological, convenient, intelligent, and interactive home products.
From purchasing products to services, from the implementation of basic functions to willingness to pay for high-end quality and cutting-edge technology, the demand for personalized and diversified smart home consumption is becoming increasingly prominent. Ding Zhuowen believes that although some consumers still hold reservations about full-house intelligence, China's vast consumer market and industrial accumulation provide ample time and space for enterprises to continuously iterate and upgrade product solutions.
Preferences of new consumer groups: Health preservation
Returning to the body, health preservation and wellness, many young people have already embarked on this path. According to the 'China's Great Happiness Survey (2020 - 2021)》shows, in2021Among the consumer expectations for next year, health care and wellness rank18till25The second place on the consumption list of young people, proportion33.27%, only a fraction of the way behind the number one-ranked tourism sector0.75%.
Ding Zhuowen introduced that more and more young people are beginning to pay attention to health and wellness, with increased consumer spending accelerating the development of health and wellness products and related niche areas. The first sector hit hardest is the health supplement industry, ranging from traditional Chinese base products such as bird's nest, fish gelatin, and black sesame pills to Western supplements like collagen, probiotics, lutein, melatonin, etc. The scenarios mainly focus on enhancing immunity, regulating the gastrointestinal tract, improving sleep, etc., with increasingly refined efficacy and more diverse products.
In addition to maintaining health, beauty products infused with medical aesthetics ingredients are also favored by a wide range of young female consumers. Currently, particularly popular medical aesthetics ingredients include hyaluronic acid, collagen peptides, glutathione, and various patented components. Product forms are also quite diverse, including tablets, powders, instant oral liquids, as well as drinking water, yogurt, compressed candies, and more.
Other segments such as dietary therapy, fitness products, sleep products, and massage devices will also benefit from the dividends brought about by the development of the health economy.
Ding Zhuowen believes that young people becoming the main force in health and wellness consumption is an inevitable trend of the future, which will bring development opportunities to the health and wellness industry and related sectors.
Preferences of new consumer groups: Prefabricated dishes
The pace of life and work in high-tier cities is quite fast. As family sizes tend to become smaller, working women strive for a balance between work and family, and the young consumer group spends less and less time cooking. , Cooking skills are generally lacking, and considering the long-term impact of eating out and takeout on health, coupled with pandemic factors, the popularity of ready-made meals has almost become an inevitable trend.
Compared to takeaways, pre-prepared foods that are frozen or refrigerated offer consumers a relatively healthier impression due to the precise control of seasoning usage during the pre-processing process.
Moreover, the cooking process of prefabricated dishes is not complicated, allowing the younger consumer group to fully experience them and gain a greater sense of accomplishment. Therefore, they are highly regarded by this group.
According to Ding Zhuowen, since2011Since the beginning of the year, the number of pre-packaged dish enterprises registered has increased rapidly, especially2020Year-end2021Between the years, the impact of the pandemic led to a surge in prefabricated dishes.2021The number of prefabricated food enterprises increased to7.19Wanjia, according to Tmall's data statistics,2021The sales volume of prefabricated dishes increased by nearly16Biped, becoming one of last year's 'Top Ten New Year's Products'.
Ding Zhuowen further pointed out that the explosive growth of this sector has attracted widespread capital attention, currently with approximately29The listed company has involved in and expanded the prefabricated dish business , It mainly includes professional prefabricated food enterprises (Weizhi Xiang, steamed, braised and boiled foods), agricultural and animal husbandry aquatic product enterprises (Shengnong Development), traditional frozen food enterprises (Sanquan Food), catering enterprises (Guangzhou Restaurant), etc.
The primary market is also bustling with activity.2021Year to2022In the first half of the year, there were a total of40Yuqi financing project.
Preferences of new consumer groups: Maternal and Infant Economy
Regarding the maternal and infant market, Ding Zhuowen believes there are two aspects that are favorable and worthy of attention:
1.The dividend of the two-child policy has begun to show results. With the gradual relaxation of China's two-child policy, although the total birth rate has declined, the number of births to second children has been steadily increasing. This can also be regarded as one of the important drivers supporting the growth of the maternal and infant consumer market in the future;
2.Consumption upgrading has replaced the demographic dividend as the main driver of industry growth. With “90after"“95The new generation of parents, represented by 'postpartum', are becoming the main force in maternal and infant consumption. They advocate scientific parenting and have a high willingness and demand for refined maternal and infant products. Maternal and infant consumption is gradually showing trends towards high quality, greater segmentation, and a focus on appearance.
Research data shows,2021year,90The postpartum mother spends more than85Post-moms. As a group who grew up under the internet, they advocate for scientific parenting, are more willing to spend money on their children, have stronger purchasing power and higher consumption intentions, and pay more attention to new trends in products.
The main consumer group for infant travel products is pregnant women, new mothers, and0 - 6Infants and toddlers at this age, therefore, the development of the infant travel product industry is highly correlated with the number of infants and young children in our country. According to data from the National Bureau of Statistics,2010Year-end2014In [year], the number of newborns in our country continued to rise, bringing growth dividends to the travel consumption market for infants and young children.
The reduction in the number of newborns has posed growth challenges to the infant travel product market. However, with consumption upgrades, improved product performance, and a richer product matrix, parents are spending more on each childARPUThe value is on the rise, and there is still incremental market in the industry.
Ding Zhuowen also pointed out,90later,95Post-new generation parents pay more attention to the consumption details and service experience of products, and also have a relatively high level of interest and acceptance in innovative technologies and products. They are eager for scientific parenting knowledge, and recommendations from maternal and infant communities and industry experts have a significant impact on their consumption decisions.
