China is in the process of giving birth to a new group of consumer known as Fuerdais (富 二代).
This type of consumer is particularly interesting for many brands in the High Tech, luxury or foreign brands because these new generations of consumers are impulsive and have the fund to back up their habits.
Madness consumption for the sons or daughters of the rich
Chinese news is filled with tabloid news on the lavish lifestyles of the offspring’s of the rich. They have high power consumption due to their generous Chinese parents.
Many parents have suffered from poverty or famine before they made their riches, so now they want to provide the best for their children beyond normal standards. They provide a large portion of their wealth and their income to their offspring to use as they wise. Also due to the one child policy, the golden child receives maximum pampering from both parents and grandparents.
These kids are raised in a privileged environment and enjoy a level of consumption the past generations have never experienced.
Guo Meimei, the infamous “Fuerdai”
You’ve probably heard of Guomeimei, an illegitimate daughter of a Chinese wealthy industrialist became known on the Internet. She pretended to be a leader of the Red Cross in China, but flaunted her wealth on her microblog for the world to see which sparked a scandal in Chinese news.
Guanerdai, the official second-generation
Guanerdai are the son of officials who also have generally had a happy childhood, a strong purchasing power with little to low limits.
If Lifan, son of Ligang angered the Chinese people with the accident and the insolence he has proof.
The only child really reinforced this phenomenon; a child-centered egotistical king himself is the object of attention of the family.
These children generally are too pampered for their own good.
A privileged class for Luxury products and imports
These sons are often sons of party officials, entrepreneurs or financiers / speculators. And are part of the privileged class in China. These rich son are particularly targeted by many Chinese girls, who all dream of hitting the marital jackpot by marrying one of them.
Due to the fast growing economy in China the powerful rich consumers are generally younger than in the western world.
An attractive target for foreign brands
This demographic can be a big potential for foreign brands because Fuerdais are young and have yet to develop their taste. They are constantly looking for newer better things to improve their image so brands who position themselves right can have the potential of attracting life long consumers for cars, upscale clothing, timepieces and much more.
These immature spenders are not prices sensitive because they are not bothered by financial burden. This class of people is often the center of the Chinese pop culture and TV series where their lives are both idolized and criticized.
How to reach this demographic?
These young people spend the majority of their time on the Internet. A communication on social networks is very important. Internet is usually not used to promote luxury brands, since it is regarded as cheap and lacking craftsmanship in Europe.
But in China, Internet is an indispensable communication tool. After each purchase, youth people exhibit their treasures on their microblogs (Weibo) to show off their new purchases.
Events are also very attractive for this type of consumer, who likes to be invited to VIP parties, which has a need for recognition and pampering.
The final sale and purchase of luxury products is still mostly done in stores. These city dwellers usually visit the most prestigious shopping centers in their city to make the most of their purchases after they receive information on luxury goods on the internet.
You can find the french version. Fuerdai
How do they buy properties overseas?
Interesting reading. Do they buy properties overseas? How will they make the disision? Will they be touched by above property?
They usually spend money only for joy and fun and considering nothing but joy when they spend money. So if they think they can enjoy life in a property, they will probably buy it.