Youth unemployment is at a record high and growth is faltering – but China’s gloomy economic backdrop hasn’t stopped Gen Z from shelling out on travel and leisure.
Since the start of the year, consumers born after 1995 have steadily increased spending on items such as cinema tickets, beauty services and visits to bars and sporting events, according to consultancy Mintel Group.
Forty per cent of respondents spent more on leisure in August than in the previous month, Mintel's survey found, a larger proportion than in other categories of dispensable consumption, such as clothing.
That along with travel are the two categories that have featured steady increases in spending among Chinese youth this year, defying the rising unemployment rate for youngsters.
“Experience-led spending, from going to the cinema and visiting exhibitions to exercising outdoors, has become the mainstream way for Gen Z to resume their lives post Covid,” Mintel senior research analyst Blair Zhang said.
China’s youth are seen as key to growth in the country’s huge consumer market.
But as the economy struggles post-Covid and companies pull back on hiring, the jobless rate for those aged 16 to 24 hit a record 22 per cent in June before authorities halted the data – stoking concerns the real number could be even higher.
But rather than pulling back on spending, Gen Z consumers are instead re-evaluating their priorities.
Many are splashing out on relatively affordable experiences rather than scooping up big-ticket items such as gadgets or working towards longer-term financial goals, such as building up savings or buying a home. Overseas travel is out of reach for many but domestic hotspots are booming, as is China’s box office, which is setting records.
Recent college graduate Yang Zhifeng, 22, became discouraged and decided not to hunt for a full-time job after seeing hundreds of applicants applying for one white-collar position.
Despite her new degree, she settled for work as a part-time receptionist at a Shanghai hostel catering to job seekers, for only 1,000 yuan ($137) a month.
Regardless, Ms Yang said she still allocates money to visit local tourism spots, attend comic conventions and try new restaurants with her friends.
“When the job market is that bad, why are we struggling and giving ourselves a hard time?” she said.
“This is a good time to rethink what lifestyle fits us better and makes us happier.”
Savannah Li, a 23-year-old college graduate who is searching for a marketing assistant job, agrees it is important to treat yourself occasionally. During lockdowns last year in her hometown in the Xinjiang region, she would sneak out to make clandestine chocolate purchases through a window to lift her spirits.
The thrill of doing something to make herself feel good has led to a desire to “live happily now", she said, adding that she wouldn’t hesitate to spend 1,000 yuan or more on a dress despite not having a job.
The number of Chinese Gen Zs who want to drop out of the rat race – a movement known as “lying flat” – has grown in the past 18 months as a response to the ultra-competitive job market, said Zak Dychtwald, founder of trend research company Young China Group.
People are still spending in traditional sectors, with consumption data strong in the first half of 2023, according to Bloomberg Intelligence.
However, retailers with large youth customer bases in China – from Unilever to Yum China Holdings and Chow Tai Fook Jewellery Group – have either voiced concerns over the uncertainty surrounding China’s recovery, or are relying on discounts and promotions to support sales.
When they do shop, some young Chinese are being more cautious than they have in stronger economic times.
“We’re still seeing young consumers come out and spend,” said Christine Peng, head of Greater China consumer research at UBS Group, “but they’re now more realistic, looking for cheaper options”.
Chinese budget retailer Miniso Group Holding posted 40 per cent quarterly sales growth in the mainland from a year ago for the three months ended June, with about one third of its shops hitting sales records in July.
The company’s latest marketing campaign positions the brand as cheerful and supportive, with giant, winking red balls installed in city centres.
Post-Covid, Gen Z consumers “attach greater importance to self-worth, personality and emotions", vice president and chief marketing officer Robin Liu said.
Luxury label Coach, owned by US brand house Tapestry, has launched campaigns encouraging self-expression among younger shoppers.
That helps “build self-confidence and resilience in the face of a tight job market", Coach China marketing and e-commerce vice president Judy Chang said.
Tapestry’s latest quarterly sales in China were up 50 per cent year-on-year, despite a slight dip in its overall global business.
Still, marketing can only go so far without an income.
“If I keep failing to find a satisfying job and forcing myself to further lower my expectations, I’ll have to spend less,” said Ms Li, the college graduate who remains on the job hunt.
The specs
Engine: 2.9-litre, V6 twin-turbo
Transmission: seven-speed PDK dual clutch automatic
Power: 375bhp
Torque: 520Nm
Price: Dh332,800
On sale: now
About Proto21
Date started: May 2018
Founder: Pir Arkam
Based: Dubai
Sector: Additive manufacturing (aka, 3D printing)
Staff: 18
Funding: Invested, supported and partnered by Joseph Group
TEACHERS' PAY - WHAT YOU NEED TO KNOW
Pay varies significantly depending on the school, its rating and the curriculum. Here's a rough guide as of January 2021:
- top end schools tend to pay Dh16,000-17,000 a month - plus a monthly housing allowance of up to Dh6,000. These tend to be British curriculum schools rated 'outstanding' or 'very good', followed by American schools
- average salary across curriculums and skill levels is about Dh10,000, recruiters say
- it is becoming more common for schools to provide accommodation, sometimes in an apartment block with other teachers, rather than hand teachers a cash housing allowance
- some strong performing schools have cut back on salaries since the pandemic began, sometimes offering Dh16,000 including the housing allowance, which reflects the slump in rental costs, and sheer demand for jobs
- maths and science teachers are most in demand and some schools will pay up to Dh3,000 more than other teachers in recognition of their technical skills
- at the other end of the market, teachers in some Indian schools, where fees are lower and competition among applicants is intense, can be paid as low as Dh3,000 per month
- in Indian schools, it has also become common for teachers to share residential accommodation, living in a block with colleagues
Fixtures (all in UAE time)
Friday
Everton v Burnley 11pm
Saturday
Bournemouth v Tottenham Hotspur 3.30pm
West Ham United v Southampton 6pm
Wolves v Fulham 6pm
Cardiff City v Crystal Palace 8.30pm
Newcastle United v Liverpool 10.45pm
Sunday
Chelsea v Watford 5pm
Huddersfield v Manchester United 5pm
Arsenal v Brighton 7.30pm
Monday
Manchester City v Leicester City 11pm
The%20stats%20and%20facts
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How to come clean about financial infidelity
- Be honest and transparent: It is always better to own up than be found out. Tell your partner everything they want to know. Show remorse. Inform them of the extent of the situation so they know what they are dealing with.
- Work on yourself: Be honest with yourself and your partner and figure out why you did it. Don’t be ashamed to ask for professional help.
- Give it time: Like any breach of trust, it requires time to rebuild. So be consistent, communicate often and be patient with your partner and yourself.
- Discuss your financial situation regularly: Ensure your spouse is involved in financial matters and decisions. Your ability to consistently follow through with what you say you are going to do when it comes to money can make all the difference in your partner’s willingness to trust you again.
- Work on a plan to resolve the problem together: If there is a lot of debt, for example, create a budget and financial plan together and ensure your partner is fully informed, involved and supported.
Carol Glynn, founder of Conscious Finance Coaching
The specs: 2018 Jaguar F-Type Convertible
Price, base / as tested: Dh283,080 / Dh318,465
Engine: 2.0-litre inline four-cylinder
Transmission: Eight-speed automatic
Power: 295hp @ 5,500rpm
Torque: 400Nm @ 1,500rpm
Fuel economy, combined: 7.2L / 100km
The specs
AT4 Ultimate, as tested
Engine: 6.2-litre V8
Power: 420hp
Torque: 623Nm
Transmission: 10-speed automatic
Price: From Dh330,800 (Elevation: Dh236,400; AT4: Dh286,800; Denali: Dh345,800)
On sale: Now
The specs: 2018 Dodge Durango SRT
Price, base / as tested: Dh259,000
Engine: 6.4-litre V8
Power: 475hp @ 6,000rpm
Torque: 640Nm @ 4,300rpm
Transmission: Eight-speed automatic
Fuel consumption, combined: 7.7L / 100km
Tamkeen's offering
- Option 1: 70% in year 1, 50% in year 2, 30% in year 3
- Option 2: 50% across three years
- Option 3: 30% across five years
Silent Hill f
Publisher: Konami
Platforms: PlayStation 5, Xbox Series X/S, PC
Rating: 4.5/5
The specs
Engine: 3.0-litre six-cylinder turbo
Power: 398hp from 5,250rpm
Torque: 580Nm at 1,900-4,800rpm
Transmission: Eight-speed auto
Fuel economy, combined: 6.5L/100km
On sale: December
Price: From Dh330,000 (estimate)
KILLING OF QASSEM SULEIMANI
How to watch Ireland v Pakistan in UAE
When: The one-off Test starts on Friday, May 11
What time: Each day’s play is scheduled to start at 2pm UAE time.
TV: The match will be broadcast on OSN Sports Cricket HD. Subscribers to the channel can also stream the action live on OSN Play.
THE LOWDOWN
Photograph
Rating: 4/5
Produced by: Poetic License Motion Pictures; RSVP Movies
Director: Ritesh Batra
Cast: Nawazuddin Siddiqui, Sanya Malhotra, Farrukh Jaffar, Deepak Chauhan, Vijay Raaz
Zayed Sustainability Prize
UAE currency: the story behind the money in your pockets
