IAG March 2015 - page 10

Cover Story
raised in a period of relative abundance. Their parents, who
lived through years of shortage, focused primarily on building
economic security. But many G2 consumers were born after
Deng Xiaoping’s visit to the southern region—the beginning of
a new era of economic reform and of China’s opening up to the
world. They are confident, independentminded, and determined
to display that independence through their consumption. Most
of them are the only children in their families becausewhen they
were born, the government was starting to enforce its one-child
policy quite strictly.
“McKinsey research has shown that this generation of Chinese
consumers is the most Westernized to date. Prone to regard
expensive products as intrinsically better than less expensive ones,
they are happy to try new things, such as personal digital gadgetry.
They are also more likely than previous generations to check the
Internet for other people’s usage experiences or comments. These
consumers seek emotional satisfaction through better taste or
higher status, are loyal to the brands they trust, and prefer niche
over mass brands. Teenage members of this cohort already have
a big influence on decisions about family purchases, according to
our research.”
It’s Generation 2 that will drive the coming surge in Chinese
outbound travel. Analyst AaronFischer of leadingAsianbrokerage
Anothervariable thatwillhavea
profoundeffectgoing forwardonMacau’s
mightalreadybeexerting its sway in the
market’s current softness—is therapidly
evolving tastesofChina’smiddle class.
Center forConsumerandCustomer Insight,BostonConsultingGroup
Middleandaffluent urbanhouseholdsasapercentageof total urbanhouseholds
Less than20% 20-30%
More than50%
1,2,3,4,5,6,7,8,9 11,12,13,14,15,16,17,18,19,20,...48
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