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China's next generation of yuppies,[link widoczny dla zalogowanych]
What's driving it all? Merely looking at per capita income can be misleading. An urban "young white-collar" worker who earns as little as 5,000 yuan (about $625) a month typically still lives and eats with his parents and so may have almost 100 percent disposable income. It isn't uncommon for this demographic to save for months to buy a brand-name handbag or pair of sneakers for hundreds of dollars. Young Chinese are much more comfortable taking risks than their parents because they see little opportunity for safe investment,[link widoczny dla zalogowanych], other than real estate.
A young man listens to his iPod while checking his cellphone at a hip coffee shop in Shanghai.
Expectations. In making purchasing and other lifestyle decisions,[link widoczny dla zalogowanych], some young Chinese take their cues from what they see in western media. A college student says she started smoking because she thought Sarah Jessica Parker looked so cool with cigarettes on Sex and the City. "It's different from five years ago,[link widoczny dla zalogowanych], because now they have a range of options with which to define themselves,[link widoczny dla zalogowanych]," says P. T. Black,[link widoczny dla zalogowanych], whose market research firm,[link widoczny dla zalogowanych], Jigsaw International,[link widoczny dla zalogowanych], focuses on Chinese youth,[link widoczny dla zalogowanych], defined as 15 to 35. "To a proactive person, the entire world is available underground hip-hop to the catwalks in Milan. We track them as one generation because their tastes change really quickly from Nike to Louis Vuitton,[link widoczny dla zalogowanych], as they enter the workforce. They're moving forward so quickly, and their expectations are high."
To this end,[link widoczny dla zalogowanych], brands are vying with comic effect capture the attention of the Chinese consumer. Watchmaker Cartier,[link widoczny dla zalogowanych], for example, created a massive ice sculpture of its flagship Paris store at this year's ice festival in the northern city of Harbin. Tiffany erected a huge replica of its trademark blue gift box outside a Shanghai shopping mall. Other brands choose to go with age rather than size. At a smoky Shanghai bar, young Chinese men sit at tables glancing at each other uncomfortably, sipping whiskey mixed with green tea. On one wall is projected a video presentation about John Walker in Scotland in 1805 his sons. This is an event hosted by Diageo. The 50-odd people in the bar have been invited as "potential consumers,[link widoczny dla zalogowanych]," whose names were collected from other events. "We want to strengthen their brand loyalty by sponsoring a prestigious experience for them," says Timothy Cheng, a marketing manager for Diageo. "To Chinese consumers,[link widoczny dla zalogowanych], heritage and age mean something." Lithe young women in black and yellow jackets stroll around the room refilling glasses while a well-known video jockey from Taiwan emerges and works the room. He stops by one table and asks a scrawny man in mid-sip, "What is the motto of Johnnie Walker?" " 'Keep on walking'?" the man responds hesitantly. Bingo! A young woman rushes over and hands the man a bag filled with Johnnie Walker paraphernalia.
Competition for this new breed of shoppers is fierce. Foreign brands are battling not only with each other for a piece of the mainland market but also with a legion of increasingly innovative Chinese companies. Theft of intellectual-property rights also cuts into profits,[link widoczny dla zalogowanych], especially for technology-driven products.
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