## Seeking Fresh Adventures
Roberto Coppola investigates how companies can meet the growing entertainment needs of young adults in China.
Individuals belonging to China’s “80后” group, born after 1980 and frequently referred to as Chinese millennials, exhibit a unique set of characteristics. Having witnessed China’s swift transformation since the end of the Mao era, they face opportunities and challenges vastly different from those their parents encountered. This has created a significant generational gap between young Chinese adults and their older counterparts.
China’s economic boom has provided many citizens with the financial resources to explore the world. Unlike their American counterparts, who are still grappling with the aftermath of the Great Recession, Chinese millennials have enjoyed a nearly 35% salary increase in the past three years alone. This financial power has fueled a travel surge, with the number of outbound Chinese vacationers increasing by an astounding 20% in the last year alone. The hospitality industry has taken notice, with almost 60% of businesses in the US and 80% in the Asia-Pacific region reporting a substantial rise in Chinese millennial clientele.
What are these young adventurers seeking? Relaxation takes the lead, according to a recent Hotels.com Chinese International Travel Monitor survey, with 90% of Chinese millennials identifying it as their primary reason for traveling internationally. Global gaming also ranks high among the preferred leisure activities for Chinese travelers.
The *Wall Street Journal* published an article detailing a dramatic 80% increase in travelers from China visiting Las Vegas in the last five years. This isn’t simply a travel anomaly; a new poll showed that mainland Chinese millennials consider Vegas as *the* top vacation destination. For companies, comprehending the desires of these youthful tourists is like finding an oasis in the sand.
One suggestion? Convert those dormant afternoon areas – picture hotel taverns or lobbies – into vibrant, multi-use locations. Appeal to various demographics at different points during the day. Ultimately, adaptability is paramount.
It’s widely known that young adults in the West adore their coffeehouses, pubs, and nightclubs for mingling. Although China has these establishments as well, millennials there frequently lean towards something else: KTV. Imagine private karaoke suites, but elevate it to a cultural sensation. Throughout China and Southeast Asia, it’s incredibly prevalent with everyone, particularly the younger demographic.
For the Chinese, KTV is more than simply singing songs loudly; it’s a social custom, a method to unwind and bond on a deeper plane. It’s about displaying your authentic self, without facade.
Maybe this clarifies the enduring appeal of karaoke as a crucial business strategy for Southeast Asian entrepreneurs, where cultivating relationships often holds the key to success. In nations like China, unveiling the “authentic self” is paramount for both personal and professional development.
Western enterprises currently working with or aiming to connect with Chinese millennials have a chance to leverage this by incorporating karaoke itself, or more significantly, the captivating and pragmatic aspects of the karaoke experience, into other business domains.
Organizations seeking to resonate with Chinese millennials might consider transforming underutilized physical areas during specific periods, such as morning hours in bars or lounges, into adaptable modules catering to diverse customer groups at different times.
Haidilao Hot Pot, a chain immensely popular among Chinese millennials, flourishes within a fiercely competitive market. The company presents its physical locations as the ultimate setting for social gatherings—perfect for patrons with ample leisure time.
The premise of hot pot—submerging meat and vegetables in a gently boiling broth—is straightforward and easily imitated by rivals.
The HaiDiLao hot pot restaurant chain enjoys immense popularity in China. The reason? They understand that a satisfying dining experience begins well before the meal is served. During your wait (and be prepared for a wait!), they provide complimentary internet access, shoe shining services, phone repairs, and even manicures! This level of service is uncommon in China, contributing significantly to the loyalty of both customers and staff.
This concept of “transforming waiting time into an experience” holds valuable lessons for other businesses. Consider the potential in hotels or entertainment venues! Convert that idle time into something memorable.
Speaking of experiences, young adults in the United States prioritize spending on experiences over material possessions. Chinese millennials? They desire it all! Experiences, possessions, the whole package. They seek personalized and distinctive experiences. And here’s the key takeaway: they are poised to become the largest consumer group in China’s leisure and hospitality sector. Take note!
Present-day shoppers in China are a captivating blend! They are grounded in their heritage, upholding the customs of their predecessors, yet brimming with the vitality of a millennia-old civilization and a yearning to embrace the world. This presents a distinct prospect for international firms in China, especially when it comes to engaging young adults. However, it is not devoid of obstacles.
Consider Volkswagen, for instance. A few years ago, they initiated a promotional effort for the Beetle in China, one of their largest global markets. In 2013, their sales figures in China were nearly double those in their home country, Germany! In any event, this campaign, titled “Enjoy it now,” was particularly directed at youthful Chinese individuals. Their advertisements depicted senior citizens attempting to recapture their youth – reveling, riding skateboards, even engaging in street art! Naturally, it proved to be a tad overwhelming for them.
The objective was to establish a connection with young Chinese buyers by infusing the legendary Beetle with a revitalized, lighthearted image. They aimed to capitalize on the global perception of the Beetle as an automobile that embodies both classic and trendy aesthetics, contemporary yet enjoyable to operate.
The objective is to engage with youthful Chinese shoppers who prioritize living in the present and pursuing experiences before they disappear.
To pique the interest of Chinese millennials in a tangible product or location, it’s crucial to acknowledge that past approaches might not resonate with them. For instance, presuming they’ll consume – and what they’ll consume – identically to their parents would be a significant error. Undoubtedly, Chinese millennials desire material possessions as well. However, they also seek self-expression in ways that feel genuine to them, aligning with their yearning to truly connect with individuals they encounter and cultivate profound, significant bonds.
Any enterprise aiming to tap into this substantial potential revenue source should allocate resources to consumer insights research with the express purpose of shaping a development initiative that speaks directly to Chinese millennials.
For businesses in the leisure and hospitality sectors, this entails transcending the limited, singular, and localized aspects of a designated setting. More expansive experiences – fueled by a craving for distinction, singularity, and authenticity – should also be envisioned in a manner that reflects and even fosters a fusion of cultural boundaries, ensuring that those who partake are consistently exposed to novelty.
Roberto Coppola, the Head of International Market Analysis at YWS, has published an intriguing report entitled “The $2.64 Trillion Dragon Baby: Your Next Top Client.” For a copy, contact him at [email protected]
Roberto contributes more than 15 years of market analysis expertise to the YWS group. YWS is a worldwide frontrunner in crafting and establishing extraordinary leisure destinations and comprehensive design strategies, merging market-informed approaches with the distinct perspective of each customer. Their proficiency extends across diverse industries, encompassing hospitality, gaming, retail, and entertainment sectors. Established in 2001 and based in Las Vegas, YWS also maintains offices in Tulsa, Singapore, and Macau.