On August 5, the Digital Economy Watch China‘s 2022 Beijing News Shell Finance Summer Summit continued. In the forum of “Digital Life: The New Trend of Consumption of Generation Z”, Yao Liming, Vice President of China Business Economics Association, Bao Yuezhong, a new retail expert and Chairman of Baum Enterprise Management Consulting Co., Ltd., Zhou Yanlong, General Manager of China Quanjude Group, Babi Foods Liu Huiping, chairman and general manager, Liu Ruizhi, co-founder of Park Cheng Dairy & Jane Eyre, and Tan Li, co-founder of Ningji, 6 experts and corporate representatives in the field of fast-moving consumer goods, focusing on the impact of Generation Z on digital life consumption, the consumption belt of Generation Z Discuss topics such as opportunities and challenges to come.
Generation Z, also known as “Net Generation””“Internet generation”, usually referring to people born between 1995 and 2009. They are seamlessly connected to the network information age from birth, and are greatly influenced by digital information technology, instant communication equipment, and smart phone products.
existExperts and business representativesIt seems that the main characteristics of Generation Z are self-confidence, autonomy, tolerance, diversity, and obvious personalization. Generation Z’s Consumer Markethuge,It is both an opportunity and a challenge for enterprises.Vice President of China Business Economics AssociationYao Liming proposed that enterprises should maintain continuous innovation, seize the most essential needs of this group, and accurately provide personalized products that Generation Z consumer groups need.New Retail Expert, Chairman of Baum Enterprise Management Consulting Co., Ltd.Bao Yuezhong suggested that enterprises should iterate the entire marketing model and marketing system, attach importance to niche markets, accelerate product innovation and iteration, and form an “online + offline + community” marketing system for omni-channel operations.
For enterprises, how to win Gen Z consumers has become a must-answer question, which requires rapid changes in various fields such as digitalization, innovation and R&D capabilities.Zhou Yanlong, general manager of China Quanjude Group, said that companies need to break the “unfamiliarity” of time-honored brands and young consumers.”embrace young consumer groups with online consumption and digital consumption.Chairman and General Manager of Babi FoodsLiu Huiping believes that the personalized consumption of Generation Z requires companies to have strong supply chain capabilities and faster iterative capabilities for goods and services.Co-founder of Park Cheng Dairy & Jane EyreLiu Ruizhi mentioned that if you don’t understand Generation Z, you will be easily eliminated by the times. Enterprises should embrace changes,Product design and concept should be close to the needs of Gen Z。Co-founder of Lemon SeasonTan Li believes that companies must truly understand the consumption needs of Generation Z in order to seize consumption opportunities.The most important thing about digital consumption is internetization.
Talking about the characteristics of Gen Z
Confidence, Inclusiveness, Personalization
Beijing News:What is Gen Z like?in your opinionWhat words can be used to summarize their salient features?
Yao Liming:Generation Z was born and raised in the Chinese economysocietyThe golden age of development is also an era of rapid Internet coverage and in-depth digital economy in all aspects. Relying on the Internet, this generation has a profound understanding of the world and a profound insight into society. If you want to make a rough portrait of this group, it should be “innovation and change”, “confidence”, “autonomy” and “self”. The self here is not a derogatory term, but refers to the awakening and externalization of individual consciousness. Specifically, Generation Z has two characteristics: one is to look at the world, self-confidence, autonomy, self, and respect for diversity and inclusiveness. They are willing to accept new things, try new things, and accept new challenges; the second is to pursue quality, advocate individuality, and obey Interest is the basic life concept and consumption concept of Generation Z.
Bao Yuezhong:Gen Z is characterized by self-confidence and individuality. Self-confidence mainly comes from the prosperity of the country and nation, especially their high trust or dependence on national brands, which fully reflects the characteristics of self-confidence consumption. The second is personality,With the development of Chinathe supply capacity of the whole society is very strong, there is a strong demand capacity, and there is a strong supply capacity, thus promoting the personalized consumption of the Z generation.
Zhou Yanlong:From the perspective of consumption behavior, young people of Generation Z live in an era with a large amount of information and sufficient consumption choices, and consumption is more autonomous and has a greater degree of freedom.In terms of personality, the young generation Z is a very wise and tolerant generation. Wisdom is reflected in their strong self-confidence as support, makingwhen choosingQuick response, with clear or logical logic. Inclusiveness is reflected in their recognition and respect for time-honored brands.
Liu Huiping:In general, Gen Z is a generation whose work and life depend on the Internet. The consumption of Generation Z has three major characteristics. First, it is networked, mainly online consumption, and offline consumption behavior is less and less; second, it is the control of appearance and the pursuit of the “beauty” of products; the third is the pursuit of personalization, this demand stronger.
Liu Ruizhi:From a consumption perspective, this generation’sIt is characterized by the underlying freedom to drive self-expression and project it in daily consumption. As a generation of mobile Internet, they have access to a lot of information and opportunities to express themselves through the Internet, which has also shaped the unique consumption concept of the Z generation – those who understand me are generous, and those who do not understand me are generous.
Tan Li:Generation Z pursues individuality, looks for what suits them best, and invests in areas of interest and interest. They have three characteristics in consumption, one is cultural identity; the other is interest-driven, such as buying blind boxes, figures, two-dimensional, Hanfu, etc.; the third is value marketing, breaking the aesthetic deviation, and pleasing him to become pleasing to himself.
Talking about the Generation Z Consumer Market
Opportunities and challenges for enterprises
Beijing News:What opportunities and challenges does the consumption pattern of Generation Z bring to the development of enterprises, brands, and digital consumption?
Yao Liming:There are three opportunities for enterprises. First, the Z generation group is huge and the market scale is huge; second, the development of digital technology and digital economy has greatly enriched the technical means and conditions for product design and production and business model innovation; third, the Internet makes products And services are spread in a vivid and three-dimensional way and form, reaching consumers quickly and comprehensively.
There are also three challenges. The first is how to discover and grasp the most essential needs of this group in a timely manner and create their favorite products and services; the second is how to maintain continuous innovation capabilities; In the whole process of product production, precision is achieved through digitalization, and high-quality and personalized products that are most needed by generation Z consumers are provided.
Bao Yuezhong:In order to seize the new opportunities brought by digital consumption, companies must first innovate products, innovate products based on consumption characteristics such as self-confidence and individuality of young consumer groups, and keep up with the changes in the needs of young consumer groups. Another challenge facing businesses is how to adapt to the current digital environment. Digital transformation should seize four key words: online, connection, data, intelligence. How to highly integrate the digital concept model with consumption upgrade is a very important opportunity to grasp the wave of digital consumption in the future.
Zhou Yanlong:In the face of a large number of Generation Z who are gradually becoming the main consumer group, thetime-honoredThere are challenges and opportunities.The first challenge faced by time-honored brands is “unfamiliar”The problem is that they are relatively unfamiliar with the age structure, product model and service model of Gen Z consumers, and Gen Z is also unfamiliar with time-honored brands.ifwere ableBy better docking the two sides, the advantages of time-honored brands can be transformed into attractive points for young consumers.
The second is how to solve the problem of co-frequency resonance. The traditional service concepts and methods of time-honored brands are more based on years of historical accumulation, but Gen Z consumers may not take a long time to understand the cultural connotation and historical accumulation of the brand. Therefore, how to adapt to fast-paced consumption, how to use online consumption, digital consumption and new business models to integrate and embrace young consumer groups is an important opportunity for us.
Liu Huiping:Generation Z’s consumption behavior is online shopping, and the rapid rise of e-commerce companies is a huge opportunity. However, the challenge is that the enterprise’s supply chain capabilities must be strong, organizational capabilities must be strong, and capital capabilities must be strong. The faster an enterprise goes, the greater the possibility of survival and the greater the market space it occupies. Secondly, the personalized consumption trend of the Z generation has higher and higher requirements for the innovation ability of enterprises, and the iterative ability of all aspects of goods and services must be fast, otherwise it will be easily eliminated.
Liu Ruizhi:After Generation Z has become a major consumer group, we are worried that we will not understandGen Z, unable to provide the products and services they want. For enterprises, it is necessary to embrace changes and recruit and absorb more and more young people, but this also brings a management problem, that is, there are few contexts for communication and sharing, and communication may be hindered.
Tan Li:In recent years, many fast-rising brands belong to the new consumption field. Why do new consumer brands have great opportunities? Because Generation Z does not pay much attention to brands, they are more willing to try new products, and at the same time, they tend to be rational in consumption. Consumption is to show themselves and achieve their own lifestyle. Therefore, in order to truly understand Generation Z and seize consumption opportunities, we must understand them.
Talking about the layout of generation Z consumption
Understand the needs of socialization and rapidly iterate innovative products
Beijing News:Facing young consumer groups like “Gen Z”, what measures are companies taking at this stage? How does it affect the consumption trend of Generation Z in terms of digital consumption layout?
Zhou Yanlong:Relatively speaking,Quanjude, a time-honored brand, lacks innovative genes. In recent years, Quanjude has also been thinking about the pain. In response to the huge changes in the market, it is based in Beijing and is a restaurant that makes locals and young people feel warm. In terms of expanding the food business, it pays more attention to innovation in two dimensions. The product side has changed its emphasis on taste and nutritional ingredients, and has shifted to paying equal attention to both appearance and nutritional taste, which is closer to the needs of Generation Z consumers. The second dimension is the change of the scene. The new Chinese decoration style is introduced, and the light and shadow restaurant and the animation three-dimensional immersive restaurant are boldly launched, which injects a lot of new vitality and impetus into the catering business of the time-honored brand.
In terms of products, Quanjude is studying the transformation of catering products into food, including pre-made dishes, and has also developed a gift box product of Pian Pian Duck, which is exclusively for online sales. For young consumer groups, it has launched a one-person food product. As a time-honored brand, Quanjude must constantly capture market changes and deeply understand the needs of young generation Z. We will continue to explore and experiment boldly on this road.
Liu Huiping:Generation Z has two characteristics, networked work life and personalization. In response to this behavioral feature, Babi Foods has strengthened the sales of online shopping channels, strengthened the sales behavior on Ele.me and Meituan platforms, including product development, marketing management capabilities, and strengthened the development of catering food retail products. Sell pre-packaged products on e-commerce platforms such as Tmall, JD, and Hema.
We have also continued to strengthen the development of personalized products, and will develop some Internet celebrity products, such as crayfish buns, snail powder buns, and various Internet celebrity soups or beverages. In addition, we will also do some work on food health and nutrition.
Liu Ruizhi:Traditional yogurt is mainly consumed at home, but in the future, the huge generation Z group may form smaller family units or individuals, and consumption will change. We have laid out the Gen Z brand “OP3N”. The design and concept of the products are close to the needs of Gen Z people. The products are on the border of yogurt and desserts, and they must be nutritious and interesting. In terms of brand communication and consumer interaction, Jane Eyre has also innovated, and increasingly maintains close interaction with consumers on self-media, social media, and iterates products and launches new flavors based on consumer feedback.
Tan Li:Generation Z is the main force of current consumption. The consumption of this group of people is not only just needs, but also needs for people. To get more attention from everyone, they have needs to please themselves, they hope to achieve self-satisfaction, and they have social needs. Among them, social networking is the most important section for young people now. All our products and even coupons will take into account its social attributes. For example, coupons can attract consumers to take pictures and send them to the circle of friends through interesting forms, gain the attention of friends, and achieve social purposes.
Now young people need to get attention very much, which means to understand their willingness to share and put some product content into it.For example, developingextra large drinkIt looks like a girl with a small face, which is convenient for taking pictures, so that consumers can help with publicity. The most important thing in digital consumption is Internetization. How to turn products into content, and then Internetize, this is what companies need to do.
Talking about the development of enterprise digital consumption
Pay attention to the niche market and pay attention to personalized consumption
Beijing News:Do you have any suggestions for the development of digital consumption of enterprises, so that digital consumption can be closer to the Gen Z group?
Yao Liming:Generation Z is a huge consumer group and a market composed of many niche markets. Enterprises and brand operators are faced with different social circles, and their needs vary widely. Therefore, in order to do business with Generation Z, first of all, we must have a clear target market and precise positioning; secondly, we must increase the interest of products and services to stimulate the willingness of this group to consume; thirdly, whether it is a material product or a spiritual product , they should be given as much cultural connotation as possible, and there are stories to tell; fourth, once an enterprise has selected a market, it must focus on it, step by step to deepen its cultivation.
We have noticed that when a product becomes popular, many companies will immediately expand and copy on a large scale.It is bound to be imitated by the market and cause market congestion.Thus, inIn the era of digital consumption, risk awareness in this regard is particularly important. On the one hand, enterprises must continue to innovate, and on the other hand, they must deeply cultivate the selected market.
Bao Yuezhong:I have two suggestions for companies, that is, two iterations. The first is the iteration of the entire marketing model of the enterprise. The personalized consumption of Generation Z has caused the current consumer market to change from a mass market to a niche market. In the niche market environment, we must do two things well. First, we must accelerate the innovation and iteration of products, and rely on accelerated product innovation to meet, meet, and adapt to the needs of young consumer groups; Use a professional team to manage customers.
The second suggestion is the iteration of the enterprise marketing system. The Chinese market has changed from the original single market structure to the ternary market structure. Originally, we only looked at the offline market, but now there are online markets and community markets, forming a consumer market structure of “online + offline + community”. In such a market environment, what enterprises need to do is to integrate these three needs and do omni-channel operations.
Talking about the future trend of digital consumption
Will become the main body of the market, enterprises should comprehensively enhance their online capabilities
Beijing News:What do you have to say to Gen Z, and what are your predictions and expectations for digital consumption trends?
Tan Li:Young people of Generation Z, please be more brave, more innovative, and more progressive. In terms of digital consumption, due to the great changes in the consumption concept of Generation Z, companies should learn to be IP, not Internet celebrities. In the future, I think brand innovation is greater than brand management.
Liu Ruizhi:I hope that Generation Z can make the world a better place by living their own life. At the same time, I also hope that more Generation Z will join consumer brand companies, so that they can truly lead the trend of the times, establish themselves in the Chinese market, go global, and become global Great product and great company from the brand.
Liu Huiping:The trend of digital consumption and online shopping consumption of Generation Z will become stronger and stronger. In the future, enterprises must strengthen online operations, online sales, and online marketing, otherwise they will be eliminated in this era sooner or later.
Zhou Yanlong:It is hoped that in the future, we can embrace both ways with Generation Z, break down barriers, and empower China‘s time-honored brands together, so that Quanjude can enter the era of consumption dominated by Generation Z with a healthier and more active look.
Bao Yuezhong:Digital transformation is an irreversible development trend in China. Under the socialized digital transformation environment, the lifestyle of consumers will be driven to become more digital. In the future, digital consumption will become the main body of the market, corporate marketing activities will be mainly online, and the online market will become the main channel in many fields and industries.
Yao Liming:Young people of Generation Z, enjoy all the beauty that this era brings to you, and make good use of the opportunities and challenges given by the era to improve yourself. In addition, digital consumption will inevitably penetrate into all aspects of consumer life, and even subvert everything we know now, but the result will definitely be that our consumer life will be more colorful, convenience and quality coexist, and diversification and personalization coexist.
Beijing News reporter Liu Huan
Edited by Li Yan
Proofreading Wang Xin