Chinese millennials born after the late 1980s are increasingly buying domestically branded-goods rather than overseas luxury goods, according to a new report from the global consultancy A.T. Kearney cited by Chinese news website Jiemian.
He Xiaoqing, partner and head of consumer and retail at A.T. Kearney's China office, says this suggests Chinese domestic brands are growing in prestige, but could also mean it is difficult to satisfy consumers with high-quality products and services. He says Chinese young people born in the digital era will be the largest group of consumers of domestic goods in ten or twenty years' time.
According to the report, three-fifths of young consumers are interested in practicing ethical consumption and buy environmentally-friendly goods. The produce sector is a prime example of the trend. In addition, young Chinese consumers are less interested in whether a brand has a long history or tradition than other demographics, the report found.
He Xiaoqing said the attitudes of young Chinese people towards domestic brands had changed in part due to Chinese businesses' clever use of Key Opinion Leaders (KOL) to market their goods. These are celebrities and 'influencers' with large social media followings, and bloggers who interact with netizens.