Economic downturn? Whatever!https://obj.shine.cn/files/2019/06/19/54c58239-29bd-4338-969e-b0b5e8873174_0.jpg
Nasdaq-listed fintech company LexinFintech has observed that China’s young consumers are not spending any less as the economic growth slows, especially on domestic brands, according to its annual 618 e-commerce shopping festival.
Sales on its installment e-commerce platform Fenqile surged 60 percent during this year's 618 shopping event and the number of customers increased by 90 percent.
Young consumers are not spending any less despite an economic slowdown and the 150 million Gen Z are increasingly the driving force behind consumption.
Nearly 70 percent of consumers on Fenqile were under 25 during the festival, and domestic brands like Huawei were popular.
Sales of domestic mobile phone brands jumped by 71 percent year on year. Huawei saw a particularly significant rise of 138 percent, eclipsing iPhone’s 65 percent growth, although the latter remained the favorite brand, taking up close to 80 percent mobile phone sales on the platform.
This echoes a Credit Suisse study in 2018 that a generation of consumers is emerging who are more likely to opt for domestic brands.
Digital products, sportswear, and cosmetics were the most popular categories during the festival. The concept of making purchases on an installment basis is seen by young consumers as not just a way to satisfy an urgent need, but as a normal shopping method.
While spending more, they are also spending more rationally than they are usually perceived, with an average monthly repayment of 373 yuan (US$53.9), down by 23 percent compared with a year before.
Lexin analyzes customer behavior and profiles to make targeted recommendations. Attributes like age, gender, educational background, region, and purchasing history are factored in.
During the initial phase of so called US-China Trade War, US citizens boasted themselves to have benefited more because their purchase power was raised. In fact, the truth was they were buying stock pile that must be cleared. Then came the new supply with import tariffs that Whie House master slapped heavily with happiness and joy so as it was China who suffered, according White House Chief Economic Advisor Navarno to US DT.
Now, the bite is sinking deep without mercy but just to cry for assistance. US is said to be the Land of the Free and Home of the Brave! Look at its mentality in analyzing economic model. By stopping US microelectronic products to be sold to Huawei, it aims to stop Huawei from growing to be the single largest smart phone and soon other electronic products manufacturer and with the MOST RIDICULOUS EXPLANATION that it was due to national security. Now that US has no further proof and will be willing to trade its 'national security' for trade plus would make US the laughing stork!
Perhaps, time has come for US to take a second place and let the world decides for it.
All US high tech companies are going and will be paying their high price for lacking in ability to challenge their competitors from not only China but others like India and countries never heard before!
Poor foresight cause your competitor to fail. Seize this opportunity!
What difference does it make if Jesus is coming with fire .