• the new generation

    especially Chinese influencers

    Let's turn to content making more tips on how to save money.

    to meet the needs of the new generation who are worried about the uncertain economic conditions

  • According to a survey by the People's Bank of China, more than 60 percent of Chinese

    Want to cut costs and save money as much as possible

    This caused the amount of consumer spending to drop considerably compared to the pre-COVID period.

  • China's Zero-Covid Policy

    It was one of the factors that resulted in a decrease in total consumption.

    The crackdown on government tech companies has affected many young workers.

Before the outbreak of COVID-19

Many young Chinese people dream of having a new car.

bigger room

Living a luxurious lifestyle

and use of vacation

But after the COVID-19 outbreak over the past few years, these ideas have collapsed.

And the concept of the new generation in the age of 20-30 years has changed.

They see saving and keeping as much cash as possible is important.

Because of the toxic effects of COVID-19, the economic situation in China has been volatile, both due to tight lockdown controls.

and world economy

causing many new generations to become unemployed

Even manicures have become wasteful.

cost saving trends

being influenced by social media influencers

that convinces the new generation to live a low-cost or down-to-earth lifestyle by choosing to offer content on tips to save money

This trend has a huge impact on the world's second largest economy.

It is trying to avoid a contraction in Q2, with consumer spending within China accounting for more than half of GDP.

or the value of China's gross domestic product

A female influencer in her 20s in the eastern Chinese city of Hangzhou.

with hundreds of thousands of followers

has continuously made clips about saving money

to appease followers who are looking for this kind of content

She posted a clip of how to, or how to make dinner, for a budget of just 10 yuan. The clip is about a minute long where she brings fish for 4 yuan, frozen shrimp for 5 yuan, and vegetables for 2 yuan. stir together

It was viewed almost 400,000 times.

There are also group discussions in the online world.

to exchange experiences in saving money

Or doing a lifestyle challenge with just 1,600 yuan in a month in Shanghai, the city where the cost of living is the most expensive.

Benjamin Cavender, managing director of CMR Group (China Market Research Group), said the group has been collecting data on Chinese consumer behavior for more than 16 years. There has never been a situation of concern for consumers in this young age group before.

At the same time, the measures to control the Covid to be zero.

especially the strict lockdown

strict control over travel

and screening for germs

It has a heavy impact on the overall economy.

In addition, the Chinese government's crackdown on large tech companies

It is even more a factor that affects the new generation of workers, no less.

According to Chinese government data, unemployment among 16-24-year-old workers is nearly 19 percent, after hitting a record 20 percent in July.

The new generation of workers are pressured to reduce their salaries.

An industry survey, particularly e-commerce, found that average salaries in China's 38 major cities fell 1 percent in the first three months of this year.

This makes the new generation of workers want to save money.

It's better to use it lavishly.

In July, retail sales in China rose just 2.7 percent from a year earlier, recovering 5.4 percent in August.

But it's still nearly 7 percent below average compared to 2019 before the COVID-19 outbreak.

While a survey by the People's Bank of China last quarter found that nearly 60 percent of Chinese citizens would like to save more.

Rather than spending or investing from three years ago, there were Chinese people who only wanted to save about 45 percent.

Households added 10.8 trillion yuan in new bank account deposits in the first eight months of the year, up from 6.4 trillion yuan in the same period last year.

Even saving money is a good thing.

But this is a headache for Chinese economic policymakers, who often rely on domestic consumption to support economic growth.

China is the only country among the leading economies to cut interest rates this year.

in hopes to stimulate growth

While many banks cut deposit rates on September 15 this past.

to reduce deposit incentives

and encourage more money to spend

The People's Bank of China is expected when the epidemic situation eases.

Investment and spending will eventually stabilize and increase.

Ji Wu Chen, senior professor of finance at the University of Hong Kong Business, said that amid the difficult labor market situation,

and pressure from the economic downturn

The younger generation will feel insecure and insecure.

especially with conditions they had never encountered before.



Yang Jun, a 28-year-old Chinese woman, said she used to have huge credit card debt.

Before the outbreak of the coronavirus

She started a group called

Low Consumption Research Institute in 2019 as a way to share tips on how to save money and resell unnecessary things.

to spend more money on things that are more necessary

She admits that COVID has made people more pessimistic.

So she couldn't use all the money she earned.

and thinks that she will earn the same amount in the next month

Now she cuts down on the Starbucks coffee she used to drink every day.

so she has no more debt left.

while another member said

She changed her makeup brand from luxury European Givenchy brand to domestic brand.

Which is cheaper than the original brand up to 60 percent, with more than 150 members already interested in joining,

000 people, consistent with data from luxury brand executives LVMH.

who owns Givenchy

and Starbucks admits

Both brands' sales in China have now dropped sharply in the latest quarter.

Although so far China has not sent any signal.

about when to cancel the policy to control the Covid to zero

But experts say

Security is also key for China's policymakers this year.

Especially when Mr. Xi Jinping continues to lead the country for the third time because every time the Chinese economy slows down.

Chinese consumers tend to expect the government to come up with a policy to quickly resolve urgent issues.

But the confidence of the new generation of consumers now feels uncertain.

and can't see the future

until moving forward

or decide to do something to temporarily halt

until their confidence reappears.

Author : Ajumma Opal

Sources: South China Morning Post, Reuters.