chinese millennials and food habits

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TO ACCESS MORE INFORMATION ON ONLINE ADVERTISING IN CHINA, PLEASE CONTACT [email protected] “Millennials & Food Habits” OCTOBER, 2016

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Page 1: Chinese MIllennials and Food Habits

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“Millennials & Food Habits”

OCTOBER, 2016

Page 2: Chinese MIllennials and Food Habits

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INDEX

About Chinese Millennials

Why are Chinese Millennials not cooking?• Factor #1: Fast-paced lifestyle• Factor #2: Ease to order online• Factor #3: Looking for variety• Factor #4: Desire for Social life

Key findings

Page 3: Chinese MIllennials and Food Habits

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About Chinese Millennials

Born after 1980, millennials are now between 18 and 35 years old. Currently, China has about 450 million millennials. They make up around 30% of China’s population and are becoming the most important consumer group for the global economy. Millennials are the first generation of Chinese to have grown up with political stability, rapid economic growth and a growing digital connection to the rest of the world.• Educated: Chinese young people

are much better educated and more knowledgeable about the world. They are digital natives and more globally aware.

• Urbanized: Whereas 77% of them are born in rural areas, more than 60% of them live in urban areas.

• Affluent: Wealthier at a younger age than their parents, their average annual income reached 5,900 $USD in 2015 ( around 40,000 yuan).

With rising income and various choices in the market, millennials require higher quality products & services and want to pursue a more diversified lifestyle. Chinese millennials eating habits have dramatically changed compared to older generations. Those born in the 90s and 80s eat out and order food more often than their parents.

Page 4: Chinese MIllennials and Food Habits

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Why are Chinese Millennials not cooking ?

Page 5: Chinese MIllennials and Food Habits

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• China’s GDP has been growing by an annual average of 10% since the 1980s. This high growth has led to rapid urbanization. More than 770 million people moved from the countryside to urban areas.

• The cost of living in the downtowns of large cities have now become unaffordable for most millennials who do not have enough savings and financial support from their parents. Thus, many of them choose to live in less centrally located areas.

• Additionally, many millennials are forced to work harder and longer to remain competitive in the job market.

• Long work hours and lengthy commutes result in a lack of time or energy for home cooking.

• Their poor cooking skills and lack of confidence in the kitchen demotivate them.

Factor #1: Fast-Paced Lifestyle

Page 6: Chinese MIllennials and Food Habits

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Decrease in time of cookingWeekly frequency of young people eating at home: 44% eat outside of the home at least five times a week.

39%

17%

25%

19%

Eathomealmosteveryday

Eathome3-5daysaweek

Eathome1-2daysaweek

Eathomealmostnever

Reproduced by Daxue Consulting from the Xinhua News Agency

Page 7: Chinese MIllennials and Food Habits

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• The emergence of O2O (online-to -offline) food delivery services is changing millennials’ dining habits. The extremely tech savvy young generation of consumers is favoring the digitalization of the industry.

• Cheap delivery costs and the convenience of online payment via Alipay or WeChat wallet attract a large number of millennials who are discovering the joys of deliveries to their homes, workplaces, and universities.

• The total value of online food delivery market in China grew by 50% to reach 20 million $USD in 2015.

• Online food ordering users were 150 million in June 2016.

• The industry is dominated by three big players: Ele.me, Meituan Waimai, and Baidu Waimai, with 36.5%, 30.5%, and 15% of total market share respectively.

Factor #2: Ease to order online

Page 8: Chinese MIllennials and Food Habits

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The increase in quality of life for many people in China thanks to rising incomes has meant that technology, travel, and a global awareness have become a larger part of normal life.• 94% of millennials own a smartphone and

58% of internet users are millennials with most accessing via mobile.

• By 2020, Chinese millennials will make up more than 40% of the outbound tourism from China.

• A more international outlook from this has lead Chinese millennials to desire the taste of international cuisines, who are increasingly choosing western food, and western restaurants.

There has been a surge in popularity of foreign cuisines. Japanese and Korean food, as well as Australian steak, are especially popular in China. Rising income have made eating out more affordable. Millennials are more likely to try different cuisines compared with those ages 35 and older.

Factor #3: Looking for variety

Page 9: Chinese MIllennials and Food Habits

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72.30%

61.40%

45.80%

12.20% 10.90%

20.30%

7.50%

15.30% 15.30%

2.80%6.60% 7.60%

4.70% 5.20%

11%

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

70s 80s 90s

Foodpreferencescomparison

TraditionalChinesefood Fastfood Hotpot

Foreigndishes Barbecueandsnacks Linear (TraditionalChinesefood)

Linear (TraditionalChinesefood)

What do Millennials order online?

Page 10: Chinese MIllennials and Food Habits

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• For millennials specifically, as a result of the one-child policy, there is a greater desire for a bigger social life than people born in previous generations.

• 53% of the post-80s and 63% of the post-90s are dining out more frequently with their friends and colleagues than with their parents and other family members.

• For millennial couples, dining together occupies more than 80% of all social activities.

• Moreover, shopping malls “shops + restaurants + cinema,” capitalize on the demand from millennials for shopping, dining, and entertainment at the same time.

• Chinese millennials also like to take pictures of their food and to share it on social media, as a part of the eating out experience. Around 60% of Chinese mobile users share food on social media.

Factor #4: Desire for Social life

Page 11: Chinese MIllennials and Food Habits

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24%

24.80%

27.30%

9.50%

22.90%

28.80%

76.20%

97.20%

87.90%

0% 20% 40% 60% 80% 100% 120%

70s

80s

90s

Food Selfieandfriends Eatingenvironment

Which pictures do Millennials take while eating?Chinese millennials enjoy dining out with their friends and colleagues. Beyond taking food pictures while eating, the post -90s generation also tend to take more selfies and pictures with friends to show their lifestyles and maintain social network. The desire for active social life is then directly impacting their dining habits and preferences.

Page 12: Chinese MIllennials and Food Habits

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• Chinese millennials seek to fulfill three key desires when it comes to their eating habits: convenience, experience, and a better quality of life (health and well-being).

• Millennials are becoming the biggest consumer group in the food industry. To target them, restaurants and food businesses must adapt their strategies in two ways:

• Achieve differentiation: This may include the introduction of new food, investing in improving the taste and quality of existing foods, providing a dining experience or targeting the health niche.

• Utilize technology and integrate O2O services into the current business model: For instance providing O2O food delivery or accepting payment through mobile devices (Wechat Pay, Alipay, etc.)

Key findings

Page 13: Chinese MIllennials and Food Habits

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Page 14: Chinese MIllennials and Food Habits

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