China enters a new era of consumption
Sunday marks China's 95th National Youth Day. The occasion follows a three-day Labor Day holiday, during which the economy enjoyed another small boost. Today's trendy young Chinese generation, contributed quite a bit. CCTV reporter Ai Yang took to the streets to found out how young people's spending habits are shaping the country's economy.
The new, young consumers of China are a unique class. Unlike the older generation, they've experienced little hardship, have been exposed to many different cultures, and they are most likely an only child. They're also more financially bestowed, and therefore more careless about spending.
With growing encouragement especially in the holiday season, shopping to some, seems to have become a competitive sport.
"I go shopping every weekend and spend 5 to 10,000 yuan each time. I feel like a shopaholic sometimes.”
"I usually spend 10 or 20,000 yuan on clothes and cosmetics each month. And I shop online almost everyday and spend about 10,000 yuan a month.”
Young Chinese people today are more confident about spending. Just like the country's rapidly expanding economy, their pursuit for a higher standard of life quality has reached new heights. This new generation of Chinese is a growing force of China's GDP, but are their consumption habits sustainable for themselves in the long term?
For years, the country has been trying to remodel its economic pattern to one that relies more on consumption than exports. With such a new direction, it's expected that by 2020 consumption in China will account for 60 percent of GDP. Young people's fierce spending habits are much needed by the economy, however, not everyone finds this new lifestyle affordable.
"Beijing is a very expensive city. It's very difficult to save money when I'm spending so much. I don't have any fianancial plans."
"For young people it's very stressful to live in big cities. There's barely any money left for any sort of investment. My priority for now is buying a house."
With such concerns - but still attracted to the new consumer lifestyle - financial awareness is slowly on the rise.
"Generally speaking young people these days are more aware of financial investment, but they have very little wealth to manage compared to older clients. They tend to spend more than they have. It has indeed boosted the domestic economy, and on the other hand their spending habits have inspired new financial products especailly tailored for them, such as internet finance. They will continue to shape the economy in many ways and in turn new services will be aimed at helping them sustain their lifestyle." Financial analyst Fan Zhiqiang said.
With today's choices and temptations, it seems moderation may be a challenge for China's new consumers.