Catering to Chinese Millennials: Karaoke, Hot Pot, and the Quest for Authentic Experiences

## Embracing Novel Experiences

Acclaimed director Francis Ford Coppola recently addressed the evolving entertainment preferences of young adults in China and how businesses can adapt to this trend.

The cohort born in the 1980s in China, dubbed the “80后” (bālínghòu), possesses a unique set of values and lifestyles. Witnessing China’s rapid transformation since the end of the Mao era, they have faced opportunities and challenges vastly different from their predecessors’, leading to a significant generational gap.

Today, China stands as a global economic powerhouse, with many citizens earning enough to venture beyond its borders and explore the world. Unlike their American counterparts still grappling with the aftermath of economic downturns, young Chinese adults have experienced income surges of nearly 35% in the past three years. In the preceding year alone, the number of Chinese tourists traveling internationally skyrocketed by a staggering 20%. The hospitality industry has taken note, with almost 60% of U.S. hotels and 80% in the Asia-Pacific region reporting a considerable increase in young Chinese guests.

A recent Hotels.com survey of young Chinese adults revealed that 90% prioritize “relaxation and leisure” as their primary reason for international travel. Notably, international gaming has also emerged as a popular activity among these travelers, becoming a sought-after aspect of their trips.

As reported by the Wall Street Journal, Sin City has experienced a significant 80% increase in visitors from China over the last five years. This phenomenon is not merely a fleeting fad; a recent poll indicated that Vegas is now the leading global destination for mainland Chinese individuals in the millennial generation. Undoubtedly, a substantial opportunity exists for enterprises that can effectively cater to the vacation desires of this demographic.

One strategy to entice these youthful travelers? Consider repurposing underutilized areas, such as those tranquil afternoon periods in taverns or lounges, into vibrant, adaptable spaces. By doing so, you can accommodate diverse groups and requirements throughout the day.

It’s worth noting that while young individuals in numerous Western nations socialize at coffeehouses, pubs, or nightclubs, Chinese millennials often gravitate towards a different ambiance. Karaoke, or KTV as it is referred to in Asia, holds immense popularity in China and Southeast Asia, connecting generations and captivating millennials.

However, this is not merely a casual singing session. For Chinese millennials, karaoke represents an artistic expression, an opportunity for uninhibited self-expression, and a means of fostering profound connections with companions.

Maybe that explains why karaoke continues to be a core offering for business owners in Southeast Asia, where cultivating connections is frequently the key difference between thriving and collapsing. In nations like China, uncovering the “authentic you” is a vital part of individual and career advancement.

Western companies aiming to connect with Chinese millennials have a chance to do so by incorporating karaoke itself, and more crucially, by interweaving the captivating and relevant aspects of the karaoke experience into other business segments.

Companies seeking to entice Chinese millennials might consider converting physical spaces that experience lulls (e.g., pubs or lounges in the early afternoon) into adaptable areas that can cater to diverse consumer groups throughout the day.

The renowned Hai Di Lao hot pot franchise, for instance, has flourished in a cutthroat market by, among other strategies, presenting its dining experience as an optimal venue for social gatherings — ideal for patrons with time on their hands.

Hot pot, for the uninitiated, essentially entails dipping cuts of meat and vegetables into a gently boiling broth. The culinary idea is straightforward and easily understood, making it simple for rivals to copy.

A top-tier hotpot restaurant group in China, Haidilao, has found success by emphasizing the complete dining event, including the queue. They are renowned in the Chinese culinary world for fostering exceptional customer and staff allegiance, an uncommon feat in the industry.

These experiential components are evidently crucial to Haidilao’s achievements. As patrons await tables (occasionally for extended periods!), they are content and occupied with a range of complimentary offerings: wireless internet access, shoe polishing, mobile phone mending, nail care, and hand massages. This distinctive method of handling wait durations holds significant promise for other businesses in the hospitality and entertainment sectors. By concentrating on specific junctures within a customer’s encounter, such as the waiting interval, they can turn a routine occurrence into a lasting memory.

While U.S. millennials predominantly prioritize spending funds on experiences over physical possessions, their Chinese counterparts appear to desire both.

This demographic in China appreciates experiences and showcasing their uniqueness. In the near future, Chinese millennials will emerge as the leading consumer power in the leisure and hospitality industries.

This cohort of shoppers in the Middle Kingdom presents an intriguing contradiction. They possess a strong desire to engage with the globe, a marked difference from their parents’ cohort and centuries of cultural heritage. For multinational corporations operating in China, securing the interest of these Chinese young adults offers both a valuable prospect and a distinct hurdle.

Consider Volkswagen, the German automotive powerhouse, as an example. A few years ago, they initiated an unconventional advertising effort tailored specifically for their Chinese demographic. They understand the significance – China holds immense importance for them; in 2013 alone, they moved nearly 3.3 million vehicles there, exceeding double their sales figures in Germany! Even their high-end marques, Porsche and Bentley, view China as their most substantial market.

Their campaign, “Fun – Don’t Wait,” centered around the legendary Beetle, was squarely targeted at young Chinese individuals. Envision this: a gathering of senior citizens attempting to recapture their youth – imagine lively gatherings, skateboarding, even street art! Naturally, their bodies aren’t entirely up to the task, resulting in some amusing imagery.

The message was unambiguous: Volkswagen, with its stylish, international image, is intended for the youthful and the young at heart. They aimed to resonate with these millennials, reminding them that Volkswagen embodies not merely history, but also advancement, contemporaneity, and unadulterated driving enjoyment.

The objective is to engage with youthful Chinese shoppers who prioritize embracing life to its fullest, in the present moment. They’re finished with postponing gratification – they desire experiences, and they desire them immediately.

Disregard past successes. To genuinely captivate the interest of Chinese millennials, you cannot simply recycle outdated strategies. These are not their predecessors.

Undoubtedly, they still desire desirable possessions, but it extends beyond that. They yearn for brands that mirror their distinct identities and principles. They seek deeper connections with brands (and one another), pursuing authentic encounters and sincere relationships.

Therefore, how do you tap into this vast generation of consumers? It’s straightforward: familiarize yourself with them. Allocating resources to focused consumer research is paramount for any enterprise aiming to win over these digital natives.

For those crafting spaces for leisure and interaction, think expansively. Avoid subjecting them to the mundane and repetitive. Chinese millennials crave variety, distinctiveness, and genuineness. They aspire to explore the globe and transcend cultural barriers. Present them with novelty, something unconventional, something exhilarating.

Roberto Coppola, a top market analysis authority, just released a report emphasizing the vast possibilities within the Chinese travel sector, especially among those born in the Year of the Dragon. This specific group presents a substantial $264 billion market for companies prepared to meet their distinct desires.

To discover how to access this profitable sector, you can obtain a copy of the report via email request.

Coppola contributes over 15 years of expertise to YWS, an international design company recognized for developing exceptional destinations. Their specialization lies in shaping environments for hospitality, gaming, retail, and entertainment – consistently aiming to blend their clients’ aspirations with prevailing market trends. With a main office in Las Vegas and branches globally, including Tulsa, Singapore, and Macau, YWS is strategically situated to comprehend and foresee worldwide tendencies.