Oriental Fund Ran Wang: The consumer demand of generation Z is moving up, and the consumer sector is expected to come out of the gloom this year

2022-07-23 0 By

After a long period of valuation adjustment, the cost performance of investment in the consumer sector is gradually emerging, and the consumer sector is expected to gradually emerge from the gloom in 2022.On January 5, 2022, the “2022 Oriental Fund Brand Strategy Meeting” hosted by Oriental Fund was successfully held.With the theme of “2022 — Looking at a New Starting Point”, Oriental Fund managers and researchers were invited to share their insights for investors from macro, strategic and industry perspectives, and jointly discuss the macroeconomic trends and industry investment opportunities in 2022.Wang Ran, general manager of research department of Oriental Fund Equity, pointed out at the strategy meeting that with the frequency of economic policies to support the bottom and the improvement of medical means to improve the global epidemic, it is expected that the consumer sector is expected to gradually come out of the haze in 2022.Consumer plate after a long time of valuation adjustment, the current investment price performance gradually emerged.Generation Z, born between 1995 and 2009, has not only gradually become the core consumers, but also gradually become the trend-driving force of the market, which will bring new driving force to the consumer market.The consumption scale of Generation Z is growing faster than that of other generations, according to OC&C data shows that at present, the annual expenditure of generation Z in China has reached 4 trillion yuan, accounting for 13% of the total household expenditure in China.Nearly 30% of the students of Generation Z have monthly consumption expenditure of more than 1,000 yuan, while for the group of Generation Z who have entered the society, nearly 40% have monthly disposable income of more than 5,000 yuan, and nearly 40% have monthly consumption expenditure of more than 3,000 yuan, showing a high consumption power as a whole.”Although the consumption scale of Gen Z is still smaller than that of the post-1985 and post-1990 generations, it is growing fast and far faster than other generations.”Wang Ran points out.Wang Ran believes that due to the superior material conditions and good education of the Z generation consumer group, consumers have moved up the hierarchy of demands, and continue to pursue higher demands such as social contact, aesthetics, entertainment and self in addition to meeting basic needs such as physiology and safety.”At present, There are 300 million Generation Z in China. The main difference between generation Z and other generation groups is that this generation grew up in the Internet environment, received massive information from childhood, and was influenced by diverse cultures.”Wang Ran said, on the one hand, generation Z has the power of online discourse, high purchasing power, likes to try new things, has rational personality characteristics and a more self-oriented attitude towards life, and these characteristics are also projected in their consumption concept.On the other hand, “For Gen Z, money doesn’t feel tangible.This generation will pursue the quality of life to consume, usually can save and spend, do not advocate big brands, high-quality, high appearance level of goods are more attractive to them.”According to the “Baidu 2021 National Tide Pride Search Big Data” jointly released by Baidu and People’s Daily Online Research Institute in May 2021, the proportion of Chinese brands’ search heat increased from 45% in 2016 to 75% in 2021. In 2020, 66% of consumers prefer to consume local brands.An increase of 5 percentage points.”The Chinese public’s acceptance of domestic brands has reached a high level.”Wang Ran think about it, in 2001, the SARS epidemic in 2003, Beijing will hold the Olympic Games in 2008 wenchuan earthquake, a trade war with China began in 2018, 2020 new outbreak of crown and other important time nodes, the corresponding Z generation begins to have memories, began to observe social and independent thinking expression period, strong sense of national self-confidence, so Z generationIt is caused by the unique environment during the formation of the character of this generation. “The consumption concept of domestic products has been significantly improved, and now it is also a new starting point for China’s future national confidence.”In addition, Wang Ran also said that livestreaming and social e-commerce have made it easier for Domestic brands to reach consumers, and sports events have added more opportunities for brands to be exposed. Domestic brands are facing a golden age of development.However, as the proportion of generation Z who live alone and rent an apartment has increased significantly, the “couch economy” and “lazy economy” have emerged.”Generation Z pays more attention to personal spiritual and emotional satisfaction, and smart appliances in rental homes can effectively promote happiness, which has seen an explosion in recent years.The time occupied by the economic life of the Z generation group is being extended, and the maximum release of hands in a limited time has become the main driving force for the Z generation group to buy smart small household appliances, and the demand for non-economic life time released by smart small household appliances has been improved accordingly.Wang Ran said.Looking ahead to 2022, Wang Ran believes that with the frequency of policies to support the bottom economy and the improvement of medical means to improve the global epidemic, the consumer sector is expected to gradually come out of the haze in 2022.After a long period of valuation adjustment, the cost performance of investment in the consumer sector has gradually emerged. The rising price sector, emerging consumption growth sector, travel sector and valuation repair sector are worth investors’ attention.(The market is risky, investment should be cautious)