The “2016 RTG Brand Relevance Report,” released by Shanghai-based RTG Consulting, surveyed more than 4,000 consumers in China’s first-tier cities, 2,000 each drawn from Generation Y (born Eighties to mid-Nineties) and Generation Z (born mid-Nineties to the Aughts).
The survey, conducted in July, found that technology companies came out on top for both generations, with Apple the “most relevant” brand among Gen-Y consumers, and Chinese cell phone brand Xiaomi number one for Gen-Z.
Also in the top ten for Gen-Y were social networking app WeChat, e-commerce platform Taobao, as well as Alipay, the online payment system of e-commerce giant Alibaba. Sporting brands Adidas (number five) and Nike (seven) were also joined by fast-fashion brands Zara (six), Uniqlo (eight) and Hennes & Mauritz (10).
For younger Gen-Z consumers Adidas (in the second spot) and Nike (number three) remained very relevant, as did Uniqlo (four) and Zara (five). Other sport and streetwear brands to make an impact with this demographic of consumers were Converse (six) and New Balance (10).
While Apple (10) and WeChat (number seven) still made into the top ten most relevant brands for Gen-Z, both companies saw their rankings slip considerably compared with their results with Gen-Y.
China’s younger consumers are “probably the single most important demographic on the planet today” according to a report on Chinese Millennials released by Goldman Sachs late last year.
At 415 million consumers, more than the entire U.S. population, Millennials represent 31 percent of China’s total population. The Goldman Sachs report noted that these consumers have grown up entirely during an era of economic prosperity for China and therefore are less naturally austere with their spending habits, in comparison with their parents and grandparents who lived at least part of their lives during the turbulent period prior to former president Deng Xiaoping’s “opening up” policies.
The total combined income of Chinese Millennials was $3 trillion, a figure only set to rise as they reach their earning potential over the coming years.