According to McKinsey’s biannual report on consumer spending, there is increased spending by the young generation in China in the fitness industry.
Despite the Chinese economy being hit due to the ongoing trade war with the US and a recent slump in the growth of the Chinese economy the young and free spenders in China have actually increased their purchases from last year. Health consciousness in the people and particularly in the young generation seems to have increased.
The top ten categories that were at the top of consumer spending charts included the likes of fresh milk, skincare products, yogurt and sportswear. These so-called young free spenders are generally from China’s less developed cities and towns.
The cause for the increase in spending as told by McKinsey is that these people do not have as high living costs as the people living in highly developed cities like Shanghai and Beijing. The work schedules and the pressure of these people are also less than their peers living in metropolitan cities. It gives these youths more disposable income and also the time to involve in healthy activities and take proper care of the body.
According to McKinsey’s reports, the investment in this sector can bring high returns for the company and there has to be an immediate focus on the marketing of these products to the young generation. It can lead to high volume sales for the companies associated with the healthcare and fitness sector in general.
Going further the reports say that this group represents approximately 40% of the Chinese population but has 60% of the consumer spending in the fitness sector. The study was conducted which covered 5,400 respondents who live in 44 cities some of which are highly developed while some are not.