BEIJING, Oct. 20, 2020 /PRNewswire/ -- Phoenix Tree
Holdings Limited ("Danke" or the "Company") (NYSE: DNK), one of the largest co-living platforms
in China with the fastest growth, recently released a
comprehensive survey on the spending behaviors and attitudes
of Chinese millennials. The survey revealed that about 66.5% of
Chinese millennials and Gen Z consumers have a balanced approach to
budgeting and personal spending.
The survey was conducted on Danke's platform starting at the end
of September. The survey aimed to better understand the lifestyle
and consumption habits of Danke's main tenant demographic,
China's millennials and Gen
Z. Over 3,700 responses were
collected for the survey.
According to the survey, about 63.2% of respondents mentioned
that they have additional income streams besides their full-time
salary. Respondents with higher salaries were more likely to report
having multiple income streams. While 75% of respondents with
monthly incomes of RMB15,000 or
higher had multiple income streams, 76.1% of those with incomes
under RMB3,000, relied solely on one
job.
|
Do you have
additional income streams besides your full-time
job?
|
|
Yes
|
63.2%
|
|
No
|
36.8%
|
All respondents listed rent as their largest monthly cost. Men
reported spending the second-largest portion of their budget on
food and beverage consumption, while women tended to spend the
second-largest portion on daily necessities.
When asked about their attitudes on spending, 66.5% of
respondents stated that they had a balanced approach to budgeting,
spending where needed but trying to save money where possible.
22.4% of respondents stated that their budgeting philosophy is
saving money above all else. The remaining 11.1% of respondents
reported making spending decisions based on their mood and
impulses. These responses indicate that most young respondents are
rational and discerning consumers.
Respondents with higher incomes tended to make more rational
spending choices. Amongst respondents with monthly incomes of
RMB15,000 or higher, 78.8% claimed to
follow a balanced budgeting approach.
|
Your approach to
spending and consumption
|
Percentage of
respondents
|
|
I make spending
decisions based on my mood and
impulses in the moment
|
11.1%
|
|
I prioritize saving
money above all else
|
22.4%
|
|
I have a balanced
approach to budgeting, spending
money where needed, saving where I can
|
66.5%
|
|
Monthly income
(in RMB)
|
Spending attitude
breakdown by monthly income
|
|
Make spending
decisions
based on mood and impulses
|
Prioritize
saving
money above all
else
|
Prioritize
budgeting,
spending where
needed
|
|
Under
3,000
|
17.0%
|
26.1%
|
56.8%
|
|
3,000 to
5,000
|
16.9%
|
19.8%
|
63.3%
|
|
5,000 to
8,000
|
14.4%
|
18.5%
|
67.1%
|
|
8,000 to
10,000
|
12.9%
|
15.2%
|
71.9%
|
|
10,000 to
15,000
|
13.5%
|
15.2%
|
71.3%
|
|
Above
15,000
|
9.6%
|
11.5%
|
78.8%
|
The survey also inquired about spending habits. When asked about
the most important factor when considering buying an item, 49.7% of
respondents said practicality and function, followed by brand
reputation (23.1%), price (16.2%) and packaging design (10.9%)
|
What is the most
important factor when you
consider buying an item?
|
Percentage of
respondents
|
|
Practicality and
function
|
49.7%
|
|
Brand
reputation
|
23.1%
|
|
Price
|
16.2%
|
|
Packaging
design
|
10.9%
|
|
Others
|
0.1%
|
When asked about how they prioritize spending discretionary
income, 34.5% of respondents said they prioritize investing in
themselves by taking classes on fitness, tea ceremony preparation,
flower arranging, and foreign languages. 31.7% said they would use
discretionary income to improve their current living conditions,
while 27.4% said they would put leftover money into their saving
account. This response indicates that the younger generations care
about self-improvement and educational experiences.
|
After subtracting
for daily expenses, how do you
prioritize spending your discretionary income?
|
Percentage of
respondents
|
|
Invest in myself by
taking classes to learn new skills
|
34.5%
|
|
Improve my current
living conditions
|
31.7%
|
|
Place the money in my
saving account
|
27.4%
|
|
I don't have much
left after daily expenses
|
6.5%
|
"Buy now, pay later" is a common spending trend amongst younger
generations in China. With credit
cards and online consumer credit services now readily available,
consumers can now buy products first and pay for them later. Such
services enable consumers to pay in installments if the cost is too
high to pay off initially. According to the survey, 91.8% of
respondents have used credit cards or online consumer credit
services such as Alipay Huabei and JD Baitiao. When asked what
products they tended to use these services on, male respondents
mentioned daily expenditures, consumer electronics such as mobile
phones and laptops, and trendy sneakers. Female respondents tended
to spend on daily expenditures, apparel and handbags, and consumer
electronics such as mobile phones and laptops.
|
Have you used
credit cards or online consumer credit
services such as Alipay Huabei and JD Baitiao?
|
Percentage of
respondents
|
|
Always use
them
|
45.5%
|
|
Sometimes use
them
|
46.3%
|
|
Never use
them
|
8.3%
|
This survey indicates that millennials in China tend to have different attitudes towards
spending than previous generations. They are more willing to spend
on improving their day-to-day lives and invest in personal
development, indicating healthy and balanced consumption habits.
The survey also shows that the younger generations are increasingly
taking on part-time work or using consumer credit services to
supplement their monthly salary and cash-flow needs. Millennials
and Gen Z also prioritize self-improvement and experiences as well
as buying goods.
ABOUT DANKE
Danke, one of the largest co-living platforms in China with the fastest growth, is redefining
the residential rental market through technology and is dedicated
to helping people live better. Empowered by data, technology, and a
large-scale apartment network, Danke's vibrant and expanding
ecosystem connects and benefits property owners, residents, and
third-party service providers, and delivers quality and
best-in-class services through an innovative "new rental" business
model featuring centralization, standardization, and a seamless
online experience. Danke was founded in 2015 and is headquartered
in Beijing, China. For more
information, please visit ir.danke.com.
CONTACTS
Danke PR
Email: pr@danke.com
Greta Bradford
ICR, Inc.
Email: DankePR@icrinc.com
Phone: +86 178-8882-8731
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SOURCE Phoenix Tree Holdings Limited