Unlike many western countries that are experiencing economic slowdown in recent years, China’s retail market continues to expand. Much of this continued growth is contributed to the Chinese youth between the ages 15 to 28.

As a result of the one-child policy, the so called “First Generation” has become the major spending group in China. It’s common here in China to see parents and grandparents saving and pampering the only child in the family (that’s four grandparents to one child). Thus, making the youth of the country the most influential consumers with strong spending powers. Some have declared that to win in the retail market in China, “is to capture the hearts, minds and wallets of youth”.

China Polling recently conducted a Youth Omnibus survey that studies the purchase behavior of the Chinese youth. Of the 210 participants, when asked what activity occupies most of their time, Net Surfing, Shopping and Watch TV are the top choices, representing 48%, 13% and 12% of choice by the group respectively. In terms of their spending patterns, almost 86% of the respondents spend more money than they make:

Also, unlike their parents and older generations, when asked what they are going to buy first if they had a million dollars (RMB – Approximately USD $148,000), the top ranked item is automobile, followed by purchase of a home and a lot of digital products. Purchasing a home is the undisputed favorite for older generations.

Findings above showed that 22% of respondents chose Digital Products as their first choices and among all PC, Mobile Phone and Digital Camera are the most desired. Because of these changing priorities, it’s even more important for multinational companies to understand how the young Chinese consumers are thinking and acting in purchase behavior, this understanding will be crucial for marketers to sustain optimal long-term growth here in China.