The mall is alive and well, but China's young consumers have adopted a new approach to their shopping experiences that may ultimately lead to a slow death for traditional retailers.
As they step into the mall, they consider purchasing a refreshing cup of milk tea... but ultimately decide against it and sip from their water bottle instead.
Next, they make their way through the through various fast-fashion stores, where they engage in lively discussions about garments, casually inspect price tags, and openly critique the overpriced and less appealing items with their friends. They snap pics of their favorite items, but don't make a single purchase.
Now to complete the look (that they won't be bringing home today.)
Experimentation takes center stage as they try on hats, play with accessories, and head to the makeup counter. However, the high prices tend to discourage them and once again they leave the store empty handed.
As their journey culminates, they find themselves in the mall's dining precinct. Here, photographs are snapped to encapsulate the moment, followed by a quick inexpensive snack.
Here's what's changed:
- Then: Buying a cup of milk tea from the shop.
Now: More likely to bring their own water bottle and sip for free.
- Then: Trying on products in store and making purchases immediately in person.
Now: Trying on products in store, snapping a photo and then shopping online for a better deal after returning home.
- Then: Spending ¥200-300 on a meal at the mall.
Now: Cautious consumers either have a (cheaper) meal before going to the mall or plan for a quick healthy meal out.
- Then: Spending around ¥50 on round-trip taxi rides.
Now: Opting for shared bicycles, emphasising saving money.
The bottom line... China's young consumers have changed the game. They've become more selective with their spending and more health conscious in their choices.
How much longer can the mall model last with this shift in behaviour?
Josh Gardner - Follow Josh
CEO @ Kung Fu Data | Building Brands In ChinaCEO @ Kung Fu Data | Building Brands In China