Fast and efficient online sales and delivery are no longer a point of difference for China’s digital natives who expect next-day delivery, authentication services and Augmented Reality as standard parts of their online shopping experience.
Instead, to win China’s Gen Z consumers, brands and products must capture their imagination and passions by tapping into their values and lifestyles on a deeper level.
This was the message to marketers from panellists at the MarketingPulse conference’s “Gen Z Consumer Playbook” session held last week in Hong Kong.
From information to inspiration
A major shift has taken place in the marketing process, which for years was understood as a linear transition based on awareness, interest, desire and action.
This textbook approach to marketing doesn’t work for Gen Z, said Andy Wong, CEO of Hong Kong retail outlet PapaHome.
Instead, a successful sale starts with inspiration, which may come from observing people using a particular product, a recommendation from an influencer or a friend or from a product’s particular value associations. Product and brand exploration and connection to a community are also key mechanisms, which drive repeat buying and loyalty to a brand, he said.
Experimenting with humour
Inspiring young people is a vital part of medicinal products retailer Beijing Tong Ren Tang’s marketing to Gen Z, according to Marketing Director Han Lu.
The firm - which has a history of over 300 years - is well known for the quality and reliability of its medicinal products, yet she acknowledged it lacked appeal to young consumers.
To respond to this challenge, in 2019, the company launched a new sub-brand Sesame Health, which focuses on health food and crossover products, such as breakfast foods and herbal coffee.
Moreover, the company experimented with online campaigns, such as launching a variety of coffee flavours with names playing on the Chinese words for “bitter” and “hard work”, which mocked perceptions in society that young people are not resilient.
The campaign triggered young people’s sense of humour and received significant publicity, while simultaneously communicating the company’s brand advocacy for physical and mental health, said Ms Han.
Value-based marketing
Continuing the theme, Chen Yifang from food and shopping delivery platform Meituan emphasised that resonating with young people’s values and lifestyles offers the most potential for brands to win over Gen Z consumers.
He noted the rise of singledom as a lifestyle is driving demand for products and services, such as domestic pets, single-serve restaurants and tour packages for singles.
Another trend is the formation of subcultures around obsessive devotion to pop stars, bands and cartoon, anime and manga characters. To demonstrate devotion, young people engage in the frenzied collection of peripherals, such as posters, figurines and badges, known as guzi – an approximation of the English word “goods”.
Gen Z members hold gatherings to display their guzi collections and form connections based on shared passions. “Young people today are digital natives and highly diverse,” he said. “But they also want to find people who have the same interests as them.”
Extreme divergence
Young people’s preference for spending based on emotions and interests does not apply to all product categories, observes Mr Chen, pointing to some youngsters spending the least amount to get maximum value, which he dubbed “an extreme divergence.”
“On one hand, Gen Z pursue extreme cost effectiveness, while on the other hand they are willing to spend on their interests and the emotional value associated with their hobbies.”
For marketers, capturing the imagination through aligning products with young people’s values and interests is key.
More insights
The session formed a highlight at this year’s MarketingPulse and eTailingPulse conference, which attracted more than 1,600 industry professionals from 22 countries and regions to explore the latest trends and strategies in brand marketing.
Some 80 expert speakers from around the world presented on a variety of hot topics, including the application of data and AI in marketing, the integration of art, music and culture in marketing strategies and the rising importance of inclusive marketing.
