FOCUS - CHINA: New generation the most optimistic

A strong economy and a freer flow of information have caused the Chinese consumer psyche to become far more complex and sophisticated compared with recent years. According to a major study by ACNielsen Media International - Target Audience Grouping System (TAGS) - seven distinct traits have been identified: the venerables, security seekers, disaffected, materialists, comfortable middle class, assured achievers and the next generation. However, the 18-month survey of 44,000 people in 30 of China's largest cities found that it was the next generation which was shaping up to be the most progressive group in the country's recent history. But while the nine to 14 year olds made up the smallest group identified in TAGS - 8.4 per cent - this group believed that men should help with the housework and their top concern for the future was protecting the environment. They also believed that keeping up with technological developments was the key to their success although they also felt it important to preserve their culture and heritage. Philip Rich, ACNielsen Media International China and Hong Kong executive director, said, "China's youth appear to be the most optimistic and confident segment of the population in China today. "Around 70 per cent believe they will reach their goals and have a bright future, and their attitude towards the environment and technology are comparable to their counterparts in the West." The new generation was born into Deng Xiaoping's 'open door' policy and has benefited from the fast growing economy of China since birth. More than 80 per cent surveyed in this group said that understanding technology was key to their success in the future with 78 per cent agreeing that China's culture and heritage should be protected at the same time that the country is embracing modern changes. This is the first time that such a comprehensive study has been conducted in China. The other six consumer groups identified by TAGS consist of: - The venerables (21 per cent) make up the largest proportion of the population. Nearly half are aged 50 or over and 45 per cent are retired. This group is the least concerned with financial matters. - The security seekers (19.2 per cent) are the next largest group of consumers. They are not defined by age, but 60 per cent are female. They are high school educated in regular white or blue collar occupations. They are attracted by sales and foreign goods and respond to all types of advertising. - The disaffected (16.6 per cent) tend to be in mainly blue collar jobs or unemployed. They are the least comfortable with the economic changes occurring around them. They reject television advertising. - The comfortable middle class generation (13.4 per cent) is the newly emerging class, made up of professionals and entrepreneurs. - The materialists (11.8 per cent) are better educated. Two-thirds are male and most are between the ages of 30 and 49 years old. They value financial measures of success and they choose more familiar brands. - The assured achievers (9.7 per cent) are mostly aged between 20 and 39 years old. They are well educated and most are in professional/white collar occupations. They are less financially driven and their shopping behaviour is more experimental. TAGS adds a new dimension and deeper insight into the motivations and priorities of emerging consumer sectors in China's fast-moving economy. Said Mr Rich: "Taking into account the tremendous economic and social changes that have swept China in recent years, we cannot generalise any longer about the Chinese consumer. "The market has been constantly evolving over the past 10 years and today there are distinct groups and consumer sub-cultures that international marketers should be aware of."

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