The evolution of majority China automotive consumers

Recent years have seen significant changes to China automotive consumer groups. With post-80s reaching the age of 22 to 32, and post-70s into their 40's, the post-80s have become the largest automotive consumer group in China; Meanwhile, post-60s is shrinking in their consumption size while the post-90s are starting to show their presence in the market; On top of age demography changes, gender inclination is also shifting ,even though the market is still male dominant, number of female drivers has been rocketing for recent years and is now 40% of the market.

What is worth noticing is that, even the youngest of the post-80s has joined the workforce couple of years back and the more senior ones have reached their 30s, job, personal commitment lead to increasing needs for their own vehicle and the rise in wealth has made it possible. The most recent data shows that post-80 buyers has reached 40% of the market today from 20% in 2007 and will reach a dominating 60% by 2015. With increasing sense of independence and accumulated economic strength, female drivers are another point of interest, as they will continue their growth in size. This is more evident in first-tier city than in lower tier cities.

As the main consumption force in the automotive market, the consumption characteristics of post 80s'has become the key research topic of automobile manufacturers for future model design. As the first generation after the implementation of China's Reform and Opening-up policy, post-80s exhibit distinct differences from the post-70s in terms of characters and values. Post-70s are more influenced by traditional values, caring for family, eagerness for success, and needing for recognition remaining their life theme; In contrast, post-80s advocate individualism and freedom, the pursuit of "in" and trendy, focus in getting fun from both life and work, and constantly looking in expanding their social circle. The differences between the two groups are explicitly reflected on auto purchase demand as well as behavior.

The purchase motive of post-80s are two-fold, the need to satisfy practical demands, such as commuting to work and shuttle for family, and the need to show off who they are, as well as personal hobbies and enjoyment. The real reason for a car purchase is more about the express of individuality, the pursuit of fashion, facilitation of social network and enjoyment of life.The purchase consideration includes more attention to inner feelings, sensitive to popular brand and models, more inclination to latest models; In terms of the exterior and interior design, on top of Chinese traditional aesthetics, post-80s pursue more fashion and personality, novelty and differentiation. They pay more attention to the feeling of cockpit and the interior details. They are keener to high-tech equipment and elements, expecting a well-controlled driving feeling. The desire for more driving pleasure and passion is the main reason for all these aspirations.

When it comes to the purchase behavior, plenty of post-80s receive financial support from their parents during the early stage of marriage and work. Thus their average age of first car purchase is generally lower than that of post-70s. Their trendiness nature leads to a shorter cycle period in changing vehicles. Internet has become the main source of information, as post-80s will carry out a detailed online study before any purchase. In addition, online word-of-mouth has gradually become the number one factor influencing choice of brand models. Meanwhile, the purchase process is relatively shorter, generally completed within 2-4 weeks, due to the vast volume of information available on the internet. Comparatively, post-80s are more emotional in their decision-making, with more impulsive and emotional factors. Regarding purchase channels, in addition to dominant 4S stores, online purchase and group purchase is burgeoning among post-80s. With their more western spending and financial habits, post-80s are more willing to purchase a car by installment.

Considering the above-mentioned consumption characteristics of post-80s, auto manufacturers must take measures accordingly. First of all, in terms of research and design, on the premises of traditional Chinese aesthetics, personalization should be put in an important position - both the exterior and interior design are supposed to meet consumer's individual needs, a critical factor to win the satisfaction and loyalty of post-80s. In the meantime, trendy designand high-tech configuration will be crucial to attract the eyes of the post-80s, so as to meet their needs of "in" stuff.

As far as brand communication is concerned, advertising spend should be strengthened in internet-related channels, apart from usual traditional media ones, as internet has become the main source of information for the post-80s - forum, twitter, blog, video, SNS are extremely attractive to them. Social network marketing strategy should become the focus of manufacturers' business issues, and on-line and off-line branding channels should be integrated in the communication strategies to create synergy. Efforts should be made to maintaining positive interaction between brand and consumers, and to timely monitor changes in consumer interests and tastes, in order to gasp consumption demand evolution in real time. In addition, OEMs should encourage loyal users to share their life experience via virtual channel, and to link such user experience with latest trends, and eventually it will generate unexpectedly pleasant surprises to the OEMs.