What Gen Z splurges on
The spending habits of Gen Z (born between 1995 and 2010) appear to be different from previous generations. In China, for instance, the more than 250 million cohort are price-conscious with routine snacks like noodles or bubble tea, but splurge thousands of dollars on toy collectibles (such as those made by trendsetter Pop Mart) and celebrity items.
Similarly in the United States, Gen Zs zealously search for online bargains for daily necessities, but do not hesitate in spending on brands and hobbies (pricey concert tickets, film paraphernalia, and so on) that baffle their parents.
“The new consumer is self-indulgent, devoted to hobbies, less price-sensitive and spends on things they can connect to emotionally or those that provide sensory pleasure,” Shenzhen fund manager Li Shouqiang tells The Business Times.
“Essentially, anything that their elders consider frivolous,” he continues.
The Business Times describes the case of a 20-year-old in Shenzhen who collects Formula 1 model cars, which cost hundreds of US dollars each, and cuts back on food to pay for them. His parents think of his hobby as a waste. This dilemma is increasingly common.
However, investors are catering to Gen Z. Jewelry maker Laopu Gold shares have multiplied more than 15 times since its listing last year, as have those of Mao Geping Cosmetics. Pop Mart maker Kayou is about to launch an initial public offering on the Hong Kong stock exchange. Toymaker Miniso Group plans to list its Top Toy brand in the area as well.
“These businesses have clearly read the room and adapted to trends, which are likely here to stay,” Shanghai consultant Mark Tanner tells The Business Times.
However, in the proper setting, the generations can work well together. At Malaysian pimple patch start-up enterprise Dododots, which was founded by twenty-somethings, two senior citizen interns, in their fifties and sixties, have become father and mother figures to the young team. Leslie Mah is warehouse manager while Loh Kit Lan is resident personal assistant.
This scenario is reminiscent of the Hollywood movie “The Intern,” played by Robert de Niro, whose boss is a generation younger, played by Anne Hathaway. In real life though, friction is minimal and mutual respect reigns.
While the computer aspect of the job was their biggest challenge for the two seniors, the young team praises their common sense and can-do attitudes. “We confide in them so easily,” cofounder Ethan Wong tells The Straits Times. “Being a team of young, emotional fresh graduates, sometimes we go through difficult moments. Having them as a shoulder to cry on, and knowing that you can trust their judgment, is irreplaceable.”
Wong’s grandmother helped him pack goods when the company started, which made him interested to have energetic seniors on board. “It would be so sad to think that the elderly who have experience, are perfectly capable and have the time and energy, are restricted from work because of bias.”
Speaking of Hong Kong, the US$12-billion casino empire of the Lui family has ensured smooth succession after the demise of the patriarch Lui Che Woo last year.
As chair of the key holding company, eldest son Francis Lui solidified control of a significant portion of his father’s shares, while his four other siblings continue to play key management roles. Paddy heads the gambling and real estate operation, Alexander takes care of properties, Lawrence runs the hotels, Eileen is in human resources. All siblings work harmoniously towards the growth of the family business.
“The patriarch has done one thing that is really good,” Professor Jeremy Cheng of the Chinese University of Hong Kong tells The Business Times. “He plans ahead. The division of the road happened a long time ago, in 2012. That is pretty rare for a lot of the families here in Hong Kong or mainland China.” INQ
