## A Craving for Novel Encounters
Celebrated filmmaker Francis Ford Coppola recently explored how companies can satisfy the expanding entertainment desires of Chinese young adults.
Individuals born in China during the 1980s constitute a distinct cohort. Observing China’s rapid evolution since the conclusion of the Mao period, they’ve encountered prospects and obstacles vastly different from their predecessors, resulting in a substantial generational divide.
China’s rise as a global economic leader has provided many of its inhabitants with the financial capacity to journey beyond its frontiers and discover the globe. Unlike their US counterparts, still contending with the repercussions of an economic downturn, Chinese millennials have witnessed their earnings soar by almost 35% in the past three years alone. The previous year alone observed an astonishing 20% surge in outbound travel from China. The lodging sector has felt the impact, with nearly 60% of enterprises in the US and a remarkable 80% in the Asia-Pacific region reporting a significant increase in Chinese millennial travelers.
A recent Hotels.com Chinese International Travel Monitor study concentrating on Chinese millennials indicated that a remarkable 90% of participants cited “relaxation” as their main impetus for traveling internationally. International wagering also surfaced as a highly favored vacation pursuit for Chinese visitors.
In recent years, Sin City has experienced a dramatic increase in visitors from China, with figures soaring by 80%, as per a Wall Street Journal article. This isn’t merely a fleeting fad either. A recent poll indicated that young adults from mainland China view Vegas as a prime location for their holiday excursions. Undoubtedly, comprehending what this demographic desires from their leisure time is a lucrative opportunity waiting to be unlocked.
So, how can enterprises capitalize on this? One concept is to consider how areas are utilized throughout the day. Perhaps a tavern that’s largely vacant in the afternoon could be converted into something different, serving diverse groups at various intervals.
Now, anyone acquainted with Occidental culture understands that young individuals adore their coffeehouses, taverns, and nightclubs for mingling. While China possesses comparable venues, millennials there frequently gravitate towards something distinct: karaoke, or KTV as they term it. This isn’t simply a niche activity either; it’s a cultural sensation across China and Southeast Asia, favored by millennials and senior generations equally.
However, this isn’t just your average singalong gathering. For the Chinese, karaoke is a serious endeavor. It’s a method to unwind, shed the facade, and unveil your authentic persona.
Maybe this explains why karaoke continues to be a vital commercial instrument for business owners in Southeast Asia, where establishing connections can be the difference between success and failure. In nations like China, revealing your “true self” is essential for both personal and career growth.
Western companies aiming to engage Chinese millennials, now and shortly, have a chance to do so by integrating karaoke, or more significantly, the engaging and relevant aspects of the karaoke experience, into other business domains.
To resonate with Chinese millennials, companies could explore converting underused physical areas at specific times – an afternoon pub or lounge, for instance – into adaptable, multi-purpose spaces that can adjust to diverse customer groups throughout the day.
The immensely popular HaiDiLao hot pot franchise, as an example, has differentiated itself in a crowded market. The company presents its eateries as perfect venues for social gatherings and caters to patrons with free time.
Hot pot, for those unfamiliar, essentially entails dipping meats and vegetables into boiling broths. The cooking concept is straightforward and easily copied by rivals.
The hot pot restaurant chain, Haidilao, has achieved remarkable triumph in China, primarily due to its emphasis on the holistic dining journey, commencing even before patrons are seated. The establishment is renowned for its devoted clientele and staff allegiance, an uncommon occurrence within the Chinese culinary landscape.
Undeniably, Haidilao’s experiential components contribute significantly to its prosperity. While awaiting a table, a process that can occasionally extend for hours, patrons express heightened contentment due to the abundance of amusement and relaxation amenities offered by the restaurant, encompassing complimentary internet access, footwear polishing, mobile device restoration, nail care, and hand massages. This innovative method of handling wait durations presents a plethora of opportunities for other enterprises in the leisure and hospitality sectors, illustrating how to leverage the distinct stages of a specific encounter, beginning with the pre-dining interval.
Although American young adults predominantly prioritize expenditure on encounters over tangible acquisitions when it comes to well-being, their Chinese counterparts appear to desire both.
The youth in China place significant importance on both experiences and individualized attention. In the foreseeable future, Chinese millennials will emerge as the predominant demographic propelling revenue expansion for businesses operating within the leisure sector.
Present-day shoppers in China are an intriguing fusion of past and present. They hold onto established principles and traditions while simultaneously being enchanted by the global landscape. This synthesis forms a distinct consumer psychology that is crucial for any international corporation aiming to thrive in China. For companies, particularly those focusing on Millennials and Generation Z, accurately capturing this essence is an exhilarating task.
A while ago, Volkswagen, the prominent German automaker, made a daring move to engage with youthful Chinese buyers. Recognizing that China was essential to their prosperity – their car sales there were double that of Germany! – they initiated a promotional effort for the Beetle.
Their advertisements employed humor to emphasize the Beetle’s enduring allure. They depicted older individuals attempting to recapture their youth through activities such as skateboarding and street art, all set to a memorable melody. It was a lighthearted acknowledgment that the Beetle allows you to maintain a youthful spirit, regardless of your age.
This campaign skillfully presented the Beetle as both vintage and trendy, tapping into that particular combination of heritage and contemporary style that characterizes young Chinese shoppers. It serves as an excellent illustration of how comprehending the subtleties of a culture can result in marketing triumph.
The objective is to engage with youthful Chinese shoppers who are passionate about seizing the day – their philosophy is all about living life to the fullest.
To captivate Chinese millennials with a tangible item or location, it’s vital to recognize that past approaches might not resonate with them. Presuming they’ll consume similarly to (or desire what) their parents did would be a significant error. Undoubtedly, Chinese millennials appreciate cool products. However, they also yearn for avenues to showcase their uniqueness in ways that hold personal significance. This connects to their longing for genuineness – they seek to understand the entities they engage with and desire authentic, profound connections.
Any enterprise aiming to tap into this substantial potential income source should allocate resources to consumer insights research particularly geared towards captivating Chinese millennials.
For companies in the leisure and hospitality sectors, this entails thinking beyond merely providing a limited, isolated, localized aspect within a specific setting. The overarching experience – fueled by a yearning for the distinct, unparalleled, and genuine – should also be presented in a manner that reflects and even fosters a fusion of cultural boundaries, ensuring that those immersed within it perpetually encounter something novel.
In his report, “2.64 Trillion Dollar Dragon Babies: Your Future Largest Consumers,” Roberto Coppola, the International Head of Market Analysis at YWS Design & Architecture, provides perspectives on attracting this profitable group. For a copy, contact the group at [email protected]
Roberto contributes over 15 years of expertise in market analysis to YWS, a company recognized for its acclaimed work in the hospitality and leisure industries. YWS focuses on crafting immersive and captivating settings for hotels, casinos, dining establishments, and retail locations, always aiming to embody the heart of the client’s concept. Established in 2001, the organization has its main office in Las Vegas, a worldwide center for entertainment, with other branches in Tulsa, Singapore, and Macau.