Recently, the news about “young people reverse consuming” has gone viral, not only trending on search engines but also resonating with many netizens.
Previously, young people were known for their “wild consumption,” where extravagant spending was often shocking. For instance, when the Rwandan ambassador to China came to sell 3000 jin (approximately 1500 kg) of coffee beans, all the products were snapped up by netizens even before others could start promoting them.
There were many similar examples. Young people’s “wild consumption” had once become a trend, enabling numerous live-streaming hosts to ride the wave. However, in the past two years, young people have stopped “wild consuming” and have started “reverse consuming” instead.
News such as “young people are not keen on changing their mobile phones anymore,” “challenging 5-day expenditure of 27 yuan,” and others have sprung up, illustrating a return to rational consumption. Young people are shedding their previous over-consumption obsession and starting to practice minimalism.
Some reduced hoarding during this year’s 618 Shopping Festival and only purchased necessary items, no longer engaging in lavish spending like before. Others started to use various substitutions to reduce living expenses, focusing on the concept of cost-effective consumption, which has made discount retail outlets such as outlets and Vipshop popular.
For example, the People’s Daily pointed out why outlets are becoming increasingly popular. In 2022, the sales growth of China’s outlet industry was 8%, surpassing that of other retail formats by a significant margin.
During the Labor Day holiday period, the sales volume of Beijing Yan Sha Outlet soared by 3.8 times, and that of Oriental Outlet also surged by 2.7 times. At the Bailian Outlet in Qingpu, Shanghai, parking spaces were in high demand, and it took about half an hour to an hour to queue to enter the parking lot during holidays.
On May 1st, Bailian Outlet in Qingpu recorded its highest sales volume in 17 years of operation. Last year, 46 outlets in China had a sales volume exceeding 1 billion yuan.
On the other hand, Vipshop has also seen a significant increase in users and turnover. This year during the 618 Shopping Festival, the sales volume of core categories such as women’s clothing, men’s clothing, and bags on Vipshop increased by more than 20%.
For instance, the overall year-on-year increase for women’s clothing was more than 25%, jewelry sales increased by 42% year-on-year, and the sales volume of digital electronics and daily household items increased by more than 30% year-on-year.
Regarding the popularity of discount retail, People’s Daily has pointed out the truth. People’s Daily stated: “The ‘good’ and ‘money-saving’ characteristics of outlets meet the demand for consumer upgrades.”
After experiencing the era of wild consumption, consumers, including a large number of young people, have returned to rationality and are pursuing cost-effectiveness in consumption. The business model of discount retail such as outlets and Vipshop meets consumers’ pursuit of cost-effectiveness and the desire for consumption upgrades.