China's Youth Define "Cool"
A new survey may help companies capture the hearts, minds, and wallets of Chinese youth
by Jeff Smith and Jean Wylie
Imagine a population roughly the size of the Netherlands', made up of a generation of only children. Add the words "newly rich," "fashion-savvy," and "young," and you have just described China's millions of university students. To tap into this lucrative market, companies must first discover what these students want and how they think.
A recent survey conducted by Hill & Knowlton (China) Public Relations Co. Ltd., in conjunction with Seventeen magazine (China) and Sinomonitor International, set out to uncover students' dreams and aspirations, their role models and preferences, and their definition of "cool." The April 2004 "China Cool Hunt" survey polled 1,200 18- to 22-year-old students from 64 universities in Beijing and Shanghai about the who, what, and why of cool. Half of those surveyed were from Beijing and half from Shanghai; the gender split was also 50-50. The surveyed students majored in 97 different subjects—though English was the most common—and came from 229 cities in 27 provinces.
Student traits, beliefs, and role models
The China Cool Hunt survey found some expected, but also unexpected, views among students. When asked to describe their personality traits, survey participants defined themselves as honest, friendly, and easy-going. Yet Chinese students also displayed a remarkable independent streak—26 percent defined themselves as individualistic and 76 percent described themselves as entrepreneurial. These students also know what they want—including independence within the workplace. Almost two-thirds agreed that, "Sooner or later it would be better to work for myself than be employed by a company."
China's university students are optimistic, full of confidence in themselves and their judgment, and believe they can achieve their goals. Seventy-two percent of the survey participants—young men and women scored nearly the same—are optimistic about their future. Just over half of the students surveyed agreed with the statement, "I usually manage to get what I want." And according to the survey results, students also do not seek guidance—they are happy to make their own decisions and follow their own ideas.
Along these lines, the survey queried students on their role models. More than one-third of respondents report that their parents—not celebrities, businesspeople, or government leaders—are their role models. This is especially true for young women, of whom 41 percent considered their parents as role models, compared to 28 percent of young men. But like young people everywhere, Chinese students do not always listen to their parents. About 83 percent of those surveyed agreed, "It's better to follow my own ideas than to do exactly what my parents want me to do." A mere 5 percent disagreed.
When students were polled on dating, the survey found that nearly 70 percent of those surveyed dated during high school or college. This marks quite a change from only a few decades ago, when Chinese society frowned on dating, and even picking one's own mate was uncommon. At the same time, a full two-thirds reported that they would not allow a relationship to compromise their studies.
"Cool" defined
In an unprompted and open-ended question on what brands students view as cool, the Nike brand was the clear winner, making 30 percent of students' lists.
Facts and Figures on China's Youth
China's teens and twenty-somethings are a powerful demographic. The numbers help put their current and potential influence into perspective:
- China has roughly 200 million citizens aged 15 to 24. Twenty million young people enter adolescence each year, a population that is reaching sexual maturity four or five years earlier than in the 1970s.
- Young people account for 35.9 percent of China's 21.9 million Internet users, logging on an average of eight hours per week.
- Compared to 29 percent of people aged 25 to 39, 36 percent of 15- to 24-year-olds "often" spend money on nonessential items.
- In China, 43.5 percent of 18- to 24-year-olds have more than 14 years of education, compared to 34.4 percent of people aged 25 to 39.
- In China, 26.3 percent of 18- to 24-year-olds have mastered at least one foreign language, compared to 13.4 percent of people aged 25 to 39.
Sources: Sinomonitor International, 2004 China Marketing and Media Study/China Target Group Index; and Xinhua News Agency
Yet a closer look at the students' lists of the top 10 global brands reveals that no single industry dominates—not fashion, sports, or technology. The list covers two athletic companies, Nike and Adidas; four technology firms—Microsoft, Samsung, Nokia, and IBM; and two fashion clothing and accessory brands, Christian Dior and Only (a subsidiary of Bestseller A/S). Just two Asian brands, Samsung and Sony, made the list.
Because so many of the chosen brand names were not consumer products, we wondered what Nike, Microsoft, and Nokia had in common with BMW, Coca-Cola, and IBM, which all ranked among the coolest brands in the world on the students' lists (see p.34). To find out, we asked the students, "In one sentence please describe what you mean by 'cool'." Just under half of male and female respondents in both Beijing and Shanghai indicated that individuality and innovation make a company cool. As might be expected by students' descriptions of themselves as individualistic, they recognize, and bond with, brands that are unique and that show an individual style. Students seek products that help them stand apart from the crowd.
The survey results revealed a few surprises about how students perceive Chinese brands. Fifty-one percent of respondents stated that China does not have any cool brands. Thus, for many respondents, Chinese companies do not even register on the global scale of cool. If the perceptions of the surveyed students are any gauge, "China Inc." has far to go to develop a cool image, regardless of its impressive business success.
Though Chinese brands may not be cool on a global scale, they are not completely out of the running. When asked specifically about cool Chinese brands, Haier topped the list. Who would have thought that a white goods manufacturer would be the trendsetter for a whole new generation of Chinese students? The presence of computer-maker Lenovo (formerly Legend) and sports gear maker Li Ning on students' lists is perhaps less of a surprise. But there is a strong point to make here: Haier, Lenovo, and Li Ning all have dynamic and inspirational leaders—and have received loads of good publicity.
Interestingly, fashion items (in the Western sense) did not score particularly high in the cool stakes—only Christian Dior and Only made the top 10. When students were asked to name their top three favorite fashion brands, Nike was the clear leader but three technology companies—Sony, Nokia, and Samsung—also made the list. Li Ning was again the only Chinese brand. The results demonstrate that a company does not have to be a fashion brand per se to be perceived as one. In China, fashion is about lifestyle, so any product has the ability to become a fashion brand.
Though foreign brands scored near the top in many survey categories, music is one area where they fell short. Asian, not Western, musicians are viewed as cool by this generation. No international pop stars were among students' top 10 favorites. China's Wang Fei was the most popular singer, with 17 percent of the votes. Though language may play a factor in music selection, culturally, Chinese pop music is preferred to Western.
Spending power
But the million-dollar question is: Do students have money to burn, or at least to spend? The answer is a resounding yes.
More than 60 percent of the students interviewed spend more than ¥500 ($60.38) per month—a huge sum considering that in 2002, Beijing's per capita annual income was ¥13,252 ($1,600) and Shanghai's was ¥14,396 ($1,739). Ten percent of these students spend more than ¥1,000 ($121) a month. Female students in Beijing and Shanghai have similar disposable income levels—roughly ¥300 ($36.23) per month. But there are some exceptions. While more than three-quarters of the male students polled in Shanghai have more than ¥500 to spend per month, less than half of male students polled in Beijing have more than ¥500 to spend each month.
Students were also polled about how they would spend their money if they became successful entrepreneurs. When respondents were asked which brand of car they would buy if they earned ¥1 million ($120,773) per year, respondents mentioned 75 brands and models. Initially it seemed that German cars made a clean sweep—31 percent of university students would buy a BMW, followed by a Mercedes-Benz, and then a Volkswagen. But on closer examination a more complicated trend emerged: Students chose a range of cars that were either backed by companies with strong corporate reputations or that possess a distinct style, such as Ferrari.
Translating cool into profits
Today's students perceive brands and companies in a similar way. Brand names and corporate reputation overlap. Common themes that the top-rated global cool brand Nike and the top-rated Chinese cool brand Haier share are individualism and inspiration. Nike symbolizes empowerment because it encourages individuals to believe in themselves and that they can "just do it," while Haier's CEO is a charismatic, inspiring figure who leads by example and stands out from the crowd. Possessing a unique product may give students a sense of empowerment. So for companies to build strong consumer brands in China, and to reach China's youth, they must also build strong corporate reputations. Corporations seeking to succeed with this group of Chinese consumers, then, must work to embody and project an image of individualism, entrepreneurship, and empowerment.
China Cool Hunt Survey Questions
| What Are the Coolest Three Brands in the World? |
| Company/Brand | Beijing % of Votes | Shanghai % of Votes |
| Nike | 31.7 | 29.9 |
| Sony | 18.7 | 13.1 |
| Adidas | 18.6 | 11.5 |
| BMW | 10.8 | 9.4 |
| Microsoft | 12.3 | 5.9 |
| Coca-Cola | 12.2 | 5.4 |
| IBM | 7.6 | 8.7 |
| Nokia | 8.4 | 6.0 |
| Samsung | 6.0 | 4.2 |
| Ferrari | 6.2 | 3.9 |
| Christian Dior | 3.4 | 1.6 |
| Only | 3.0 | 3.1 |
| What Are the Coolest Brands in China? |
| Company/Brand | % of Votes |
| Haier | 37.1 |
| Lenovo | 17.7 |
| Li Ning | 16.1 |
| TCL | 6.2 |
| Please Name Your Top Three Fashion Brands |
| Company/Brand | % of Votes |
| Nike | 25.2 |
| Adidas | 12.6 |
| Sony | 9.2 |
| Only | 7.9 |
| Elle | 5.3 |
| Nokia | 4.3 |
| Li Ning | 4.2 |
| Samsung | 3.9 |
| Christian Dior | 3.7 |
Notes: University students polled=1,200; Beijing=600; Shanghai=600
Source: China Cool Hunt survey, April 2004; administered by Hill & Knowlton (China) Public Relations Co. Ltd., Seventeen magazine (China), and Sinomonitor International
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Jeff Smith is managing director at Hill & Knowlton (China) Public Relations Co. Ltd. in Beijing.
Jean Wylie is business development director and deputy regional director of marketing communications at Hill & Knowlton in Shanghai.
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