Well-to-do Chinese students are gradually changing some retail business models due to their attractive purchasing behaviors. These rich students are taking over the trends in retailing as more Western companies helm products and services targeted at this particular consumer group.
According to the South China Morning Post, many students who come from wealthy Chinese families are given allowances that go beyond what most working adults make on a monthly basis and this has encouraged western brands to establish models targeted at getting the attention of Chinese students.
Co-founder and operations director of Chinese retail intelligence firm Emerging Communications, Melody Yeh, noted that Chinese students are "seriously desirable customers" for western brands.
Yeh explained that the reason why many brands are targeting this consumer group is due to the "big spending power" that they have compared to other consumers.
The retail expert further noted that in terms of disposable income, the estimated amount that wealthy Chinese university college students have under their wing could hit up to $37,000.
Yeh pointed out that the said amount does not include apartments, condos, or accommodation, nor does it involve money to pay bills with. Instead, the amount is only for "personal spending on goods."
Due to the increasing number of Chinese students moving to western countries for studies, the retailing industry has started developing products and services aimed purposefully for these students.
Yeh noted that if western brands really want to get inside the circle, they should get Chinese KOLs (key opinion leaders) to talk about their goods or services. This is because Chinese fans are very faithful and adhere to what their KOLs have to say.
Furthermore, Yeh recommended that retail companies should not fear promoting on Little Red Book, WeChat, Weibo, and other Chinese-centric social media networks. The said Chinese platforms can be great channels for selling products to wealthy Chinese students.
Aside from university students, research is also expanding regarding the purchasing behavior of Chinese airport travelers who, like wealthy students, have the capacity to splurge on luxury products and brands.
Chinese shoppers have been recognized as 2018's top consumers, accounting for 13.2 percent of the global duty-free sales market. These travelers and airport-goers are known to make luxury purchases due to their solid buying power.
Industry experts have been urging global brands to set their eyes on forging stable partnerships with airports and airliners. Strong collaborative ties will help retailing brands have a more established name among Chinese travelers who don't mind splurging on items that interest them.
China remains one of the top purchasers around the world. Retailers are urged to develop business models that tend toward the needs of Chinese consumers.
