The Yuanbao Group, in collaboration with the China Insurance and Pension Research Center at the School of Finance of Tsinghua University, recently published the "2022 China Internet Insurance Consumer Insight Report" (hereinafter referred to as the "Report").

As the economy recovers and market confidence improves, insurance awareness and demand awakened during the pandemic are expected to be unleashed, ushering in a new growth cycle for the Chinese insurance industry, says Li Hong, head of the marketing department at Yuanbao Group.

The Report provides a detailed analysis of the consumption behavior of Internet insurance users, focusing on insurance expenses, purchasing channels, product demand, and claims services while also describing typical consumer demographics in detail.
Millennials Show the Strongest Acceptance of Internet Insurance
Li Hong highlights that among all age groups, Chinese millennials, or those born in the 1980s, have the strongest acceptance of internet insu...

Music, video, and gaming are the primary types of media consuming Chinese Gen Zer’s attention. More and more new media types are emerging to attract Generation Z’s attention.

In terms of engagement, Music (59%), Video (short-form 58%, long-form 55%), and gaming (53%) are Generation Z’s top choices in China. In terms of usage time, Chinese Gen Zers spend around 2 hours on gaming, videos, and live streaming, both on workdays and during the weekend, according to a Tencent survey.

Short videos are gateways; long videos are gaining traction. More young people are watching long-form videos. 43% of they said that they have kept the habit even after Covid.

Short videos are an effective gateway to attract their attention. And long-form videos do better in terms of interaction. 39% of Gen Zers that have watched long videos over the past 3 months said that they were attracted first by short-form videos.

49% of Gen Zers engage in interactions such as comments, sharing, and shopping whi...

Attention is a scarce resource in today’s world. It has unique distribution patterns and characteristics. Only with proper methods, can brands capture, develop and manage it.
Chinese Gen-Z Attention Distribution
Time
Chinese Generation Z’s attention is widely allocated across different time periods. If we look at a 24-hour calendar day, Gen-Zs generally spend a significant part of their attention during late night, particularly from 10 pm to 2 am the next day.

They mainly spend their time on watching videos, listening to music, and gaming. And if we look at a 365-day calendar year, Gen-Zs tend to pay more attention to festivities and holidays comparing with elder generations. They often treat themselves by shopping.

Gen-Zs usually have 8 pm-2 am at their disposal to allocate their attention at will. They generally stay until late at night and indulge themselves in entertainment during their private time.

8 am-12 pm and 2 pm - 6 pm are two time periods where they don’t have ...

With China’s increasing domestic consumption demand, new domestic makeup brands are emerging and are introducing new product lines at a rapid pace, hoping to capture more market share vis-à-vis multinational brands.

At the same time, the Generation Z consumer base is growing, driving the concept of Fashion Makeup to evolve.

Under these changing market conditions, the big question for makeup brands is how to improve their brand awareness and attract the younger generation of consumers. The success of L’ORÉAL Paris ‘ Super Brand Day in collaboration with the social media giant Douyin (TikTok's Chinese version) may provide the industry useful insights.
120 million reach; RMB 22 million GMV
what are the secret ingredients of Super Brand Day’s success?

On 1st May 2021, L’ORÉAL Paris’s first offline global flagship store was opened in Shanghai. On the same day, L’ORÉAL’s online flagship store was also opened on TikTok’s e-commerce platform. Both stores sell identical product l...

China's automotive market would boom in the third to fourth-tier cities over the next ten years, with those born after 1995 being the dominant force of car buyers, according to the JD Big Data Research Institute's report on Gen-Z, released in August 2021.

Apart from the vast incremental market opportunities, the report also stated that consumption upgrade will continue to be the main trend of the addressable market, driven primarily by users from China's younger generation with higher education who prefer better quality, roomier, and more popular driving gears.

By the end of 2020, China saw 281 million cars, on par with the United States.

At the same time, new energy vehicles accelerated their development from 2014 to 2020, making China the world's largest single market for both new automobiles and new energy vehicles – a pace that corresponded to China's post-1995 generation's growth and consumption demand.

According to JD's data, online sales of new energy cars on JD.com ...

China’s domestic consumer market has grown to a considerable size. However, there’s still much potential in it. China will offer a US$5 trillion consumption growth opportunity in the next decade, according to a latest research by the McKinsey Global Institute.

Citizen’s incomes are increasing at a steady pace. China’s number of households with upper middle income and above (defined as households with annual incomes of US$22,000 or more in 2011 international dollars, on a purchasing power parity basis) is slightly lower than that of Europe’s.

But in just 10 years, this number will grow to about 400 million, as many as Europe and the United States combined.

But the increasing scale and rising incomes are not the full stories of the new chapter of China’s new consumer market.

Changing demography and social environment, together with unstoppable technological penetration, are reinforcing the diversity of the market. Consumer preferences and behaviors are shifting, sometimes in ...

The average number of installed mobile apps increased to 26.3 in Jun 2021 from 24.9 a year ago.

Mobile internet monthly active users in China increased to 1.164 billion in June 2021, according to data from QuestMobile. 41% came from Tier-1, New Tier-1, and Tier-2 cities.

Social networking, videos, and shopping have the highest mobile user penetration in Q2 2021.

China's mobile internet users saw faster growth in post-70s and post-00s segments while post-90s dropped to 30.3% from 33.1%, ranking the second largest age group following post-80s (32%).

Overall, tier-3 cities accounted for the largest proportion of mobile internet users (24.7%) in China.

Report: China Mobile Economy
...

Spending on luxury in China has rebounded strongly as restrictions to global travel have pushed Chinese consumers to make luxury purchases domestically rather than abroad. Growth for the mainland China luxury market is expected to climb by 48% to reach almost RMB 346 billion in 2020.

This growth has driven China to double its overall share of the global luxury market in 2020, with further growth expected through 2025, according to a joint report published by Bain & Company and Tmall Luxury Division.

The global luxury market shrank by 23% in 2020, however, mainland China’s market share nearly doubled, growing from about 11 percent last year to 20 percent in 2020.

This growth is likely to continue, putting the country on track to claim the biggest share of the global luxury market by 2025—even after the world economy returns to pre-pandemic levels.
Through the Covid-19 pandemic, we have seen the global luxury goods market shrink, as economic and social considerations have l...

Among the potential buyers of cars in China in the next six months, the post-95 generation (born between 1995-1999) accounted for 11%, according to China New Car Purchase Intention Study 2021 by JD Power.

Over 60% and nearly a quarter of the post-95 potential customers tend to buy domestic brands and new energy vehicles (NEV), the highest among all age groups.

The study finds that the purchase intention of Chinese domestic brands is 49%, up from 22% in 2016. Generation Z has the highest purchase intention (61%) among all age groups, which is 8 percentage points higher than the average and 9 percentage points higher than people born between 1990 and 1994.

The top reasons for Generation Z to consider domestic brands are attractive design and styling exterior; comfortable drive and ride experience; interior is spacious and comfortable; safety and fuel efficiency.

Consumer purchase intention of NEVs also increases to an all-time high of 16%, up from 3% in 2018, among which Gene...

Attention is the first impetus for people to start thinking and take part in the action. It has become a scarce resource in the prosperity of the Internet. Today's young people's daily cross-screen multithreading behavior has intensified the dispersion and switching of resources.

When is their attention most active? What do they focus on? What formats? How to activate? What are the characteristics? All these will have an important impact on the economic and social practice in various fields.

As a group of young people growing up in the Internet age, the distribution, capture, switching and other aspects of attention of the post-95 generation are different from other generations.

Compared with those born before 1995, many post-90s have not yet formed a family, and they are more "time independent"; post-00s are new to the society, facing dramatic changes in social identity and pace of life, and also have more "freedom of consumption", according to a Tencent research.

The rese...

Today, in some areas of consumption in China that were originally only for women, men's consumption has also begun to emerge.

According to the data of a white paper from So Young, the number of male medical cosmetology consumers in China has increased by 52.30% in 2019, which is lower than the 70% growth rate of female consumers, but it is still far higher than the counterparts in mature markets such as Japan and South Korea.

Now about 30% of medical cosmetology consumers in China are male.

According to the data jointly released by Tmall and Cainiao, the stock of imported cosmetics for men increased by more than 3000% for Double 11 over the same period last year.

Moreover, according to CCTV news, 31% of male users said that they would never use cosmetics in 2016. However, by 2019, this proportion has been reduced by two thirds. It is estimated that by 2023, the global market for men's cosmetics will reach 540 billion yuan.

According to Euromonitor, the retail segment of ...

China has the largest group of Generation Z (Gen Z) in the world with a population of 149 million. Gen Z is between 15 and 23-year-old and will account for 40% of consumption power in 2020. Their average time spend on mobile internet is 4.7 hours per day. And, they like Zhihu, Tantan, Xiaohongshu more than WeChat.

China's Gen-Z has an average monthly income of 3,501 yuan (US$493), among which the studying group (19-23 years old) has multiple sources of income. Their top interests are video, social networking, music, online shopping, and gaming.

They spend an average of 56.2 minutes daily on social networking and instant messaging. Videos also take a significant amount of their time (over 53 minutes).

Word of mouth through friends is the top source for China's Gen-Z to know products, followed by online ads, shopping mall, TV commercials, and etc.

Gen-Z Sources of Products Discovery: Male vs. Fema...

Alibaba quietly launched Luxury Soho, a new channel on the Tmall e-commerce platform targeting young and value-conscious luxury shoppers.

Coach, MCM among the first to join Luxury Soho

Luxury Soho is named after New York’s fashionable Soho district. It's created as a solution to help luxury brands attract younger consumers as well as those who may even be new to luxury.
Tmall Luxury Pavilion vs. Tmall Luxury Soho
Alibaba created Tmall Luxury Pavilion in 2017, where consumers can find the hottest new collections and services, while Soho stores are home to luxury deals, older collections, timeless classics and vintage collectibles.

It is more focused on branding and aimed at a more affluent class of consumers. Luxury Soho, on the other hand, targets younger, newer luxury consumers, such as those from China’s lower-tier cities or Gen Z shoppers who are just entering the world of luxury.

The majority of...

31.2% of the Chinese population have the habit of listening to audiobooks. And, China has over 200 million evening podcast users with a total playing duration of 10.9 billion hours, according to a recent report from research company Analysis.

Users' evening usage time in the mobile audio segment account for 46.3% of the total usage time, which is higher than that in online video, short video, and mobile music.

In recent years, the "night economy" is regarded as a new growth point of urban economic development in China. According to the data of Analysis, the compound growth rate of China's night economy from 2013 to 2018 is 11.9%, and the market is expected to reach 17.4 trillion yuan in 2020.

The number of night podcast listeners reached 217 million in 2019, reaching 10.9 billion play hours, up 95% year on year.

After 9 pm, when the users of short video and long video decreased significantly, the mobile audio was still active. And, the average usage time is about 40.7 m...

Four segments of China's outbound travelers are worth noting: high-income group, the backpackers, generation Z, and female outbound travelers.
High-income Group: Experience Focused

This segment of outbound travelers is mostly male (69%), married, and backbones in their companies. Post-80s accounted for 55%. Married users account for 84.1%; 75.3% have children according to data from iResearch.

Managers at the middle level and above account for 33.8%. The average monthly household income of more than 30,000 yuan accounted for 66.4%.

Characteristics: high expenditure, focus on travel quality, love to buy luxury goods, digital enthusiasts.

Outbound tourist with the expenditure of over 20,000 yuan accounted for 61.6%
Tourists who choose Michelin-recommended restaurants accounted for 39.2%
Tourists who choose five-star hotel accommodation accounted for 38.2%
63.9% of tourists spend more than 10,000 yuan on shopping
29.1% of tourists will buy luxury goods
2...