Click the image for details The mainstream may no longer be you, but the happiness of town youth?! Whether under the media spotlight or the magnifying glass of the internet, town youth are returning to the public eye with a fresh attitude, becoming a rapidly rising new generation of consumers. Born in the 1980s and 1990s, they currently work and live in third- to sixth-tier cities and towns. Despite being far from big cities, the internet has broken down information asymmetry barriers, and the chain of entertainment and consumption culture has sunk down, seamlessly connecting town youth with urban trends. Without the survival pressure of fleeing Beijing, Shanghai, or Guangzhou, town youth can enjoy relatively ample leisure time. They love pets, domestic brands, and internet fashion trends, with considerable spending power. They have shifted from mere material satisfaction to choosing or creating a lifestyle through consumption. Daring to try and loving novelty, the era of fluidity built by young people has arrived, making the business world full of uncertainty and fragmentation. According to Su Yin, senior user research expert at Alimama, in this context, it is important for brand merchants to understand marketing from the perspective of current consumer demands and find brand opportunities. Recently, Alimama's user research team released the "Town Youth Snacks, Beverages, and Alcohol Industry Insights and Marketing Suggestions." Through in-depth interviews with seasoned foodies and drinkers, analysis of hundreds of millions of users' behavior over three years, and supplementary data from 2,000 questionnaires, they studied town youth's consumption preferences to help merchants better understand this consumer group and target their efforts effectively.

  1. Town Youth Playbook With Tokyo, Beijing, and Shanghai women's playbooks, in a market environment where channels are sinking, the town youth playbook may be more interesting for merchants. From the transaction volume on mobile Taobao and Tmall over the past three years, town youth's consumption growth rate is higher than that of urban youth. They allocate consumption assets more reasonably, even overdrawing in advance, with spending power beyond their income. In the beverage and alcohol industry, the transaction volume in the town youth market generally grew rapidly in 2018, indicating the huge potential of this group. The snack industry faces trends of demand differentiation and quality upgrade, also hinting at intensified brand competition. Alimama also found that the traditional Maslow's hierarchy of needs theory is being challenged. The past ladder model from sensory stimulation, functional supply, situational resonance to identity belonging is collapsing with the advent of the fragmented era. The abundance of materials, coupled with the internet breaking down connection barriers, has made consumer value orientations diverse and individualization obvious, possibly jumping across levels to find value identity. Therefore, merchants should grasp the demands of town youth and find marketing touchpoints from industry trends, lifestyle, and other angles. Those who win hearts win the world. Specifically, what brand and category preferences do town youth have? From this, we can also see what kind of group this is. Snack and beverage consumption trend one: appearance, fun, freshness, uniqueness Overly standardized and single-function products may find it hard to win the hearts of town youth. In the market, we have already seen many brands seize this trend by creating their own images or cooperating with IPs to form strong brand recognition and cultural identity. The report also shows that cartoon/cute beverages saw a year-on-year increase of over 2000%, one of the largest categories. Town youth not only have a "girly heart" but also are full of childlike fun. The growth rate for "prank" snacks reached 77%, and the penetration rate for "creative" beverages increased by 373% year-on-year in 2017, proving that fun and innovation create added value and favorability for products. Town youth's desire for uniqueness has nowhere to rest; besides live streaming and short videos, they express their individuality through shopping. Customized bottled beverages became an overnight hit on Taobao, with a penetration rate increase of 467% year-on-year in 2017 and a unit price increase of 100% year-on-year. Returning to taste itself, spicy, original, and braised flavors can no longer conquer their taste buds. "Stinky" flavors are no longer just talk; with town youth's preference, this flavor saw a growth rate of 153%. Mint, passion fruit, brown sugar, and others are also not far behind. Of course, if different flavors are mixed and sold together, there will be even more unexpected effects. Town youth's preference for mixed packs has driven product penetration growth rates to exceed 225%. Snack and beverage consumption trend two: more segmented, healthier Consumers' demand for health is increasingly reflected in snack choices. Nutritious and convenient ready-to-eat fruit categories, such as dried vegetables, dried strawberries, dried pineapple, and dried papaya, are becoming new choices for consumers. Conversely, high-fat seed nuts and sweet traditional pastries are being abandoned by the market. That's not all; the functionality of beverages is also being strengthened, with highlights on beneficial ingredients like enzymes, collagen, and lactic acid bacteria to attract consumers' attention. They are becoming more rational in snack consumption, starting to have a fitness awakening. Alimama also found that there is still a huge potential market for snacks and beverages targeting segmented groups such as the elderly, children, and pregnant women. Merchants should also cater to the long-tail needs of niche groups when developing products and marketing. Snack and beverage consumption trend three: more differentiated The function of snacks for consumers is showing obvious differentiation. Snacks are both a personal companion for body and mind and a lubricant for social relationships. The report shows that during the alone time from midnight to 5 a.m., dried bean products, dried beef with braised flavor, and shredded squid saw significant growth. From 3 p.m. to 6 p.m., it is mostly office scenarios, and in the evening, family scenarios, with super-large pack snacks growing by over 230% during these times. It is worth mentioning that snacks as gifts are declining; the popularity of gift boxes, New Year goods, birthdays, and other "gift"-related snacks is decreasing. However, beverages, due to innovations in form and packaging, have gained good acceptance, especially during Qixi Festival, where the penetration rate of customized beverages grew by 11011%. Snack and beverage consumption trend four: easier to ferment and lead trends Taking a new blue beverage from Bali as an example, Alimama found that since the beginning of this year, town youth's penetration rate for this product has gone from far behind to far exceeding that of urban youth, with ages concentrated between 18 and 26. And a certain IP watch milk tablet that went viral online in March this year sparked an entertainment frenzy among town youth. This is because, with the popularity of mobile internet, more and more town youth are becoming protagonists on emerging content platforms like live streaming and short videos. They are proficient in using the internet, keeping up with the pace of e-commerce platforms, familiar with the discourse system of this group, and more adept at driving sales. With the amplification of the internet, "Douyin" same-style snacks are quite popular. "IP same-style" snacks saw GMV growth of over 150% in 2017. Snacks labeled as "internet celebrity" grew even faster, with town youth's transaction volume increasing by 4510% year-on-year in 2017, about twice the growth rate of urban youth. In a sense, they are the trendsetters of this era, beginning to lead fashion trends and even influence cities in reverse. Alcohol consumption trend one: taste conquest Although mature alcohol brands have high awareness, town youth no longer blindly buy by brand but begin to have their own taste preferences, with attributes like cost-performance, origin, brand, and sales volume being secondary. In taste selection, they go through a process from broad to refined, with a concentrated preference for cocktails, baijiu, beer, whiskey, and brandy. Emerging alcohol types like plum wine, wine, and fruit wine, without prior brand loyalty, still have room for competition and opportunity. Alcohol consumption trend two: getting drunk is not the goal The function of drinking to drown sorrows or get drunk is weakening. More and more consumers regard alcohol as a beverage, which to some extent points to the logic of consumption upgrade, such as pursuing low-alcohol tipsiness, taste, or extreme and refined experiences in brewing techniques. Specifically, Alimama found that low-alcohol baijiu saw a year-on-year transaction volume increase of 53% in 2017, and fragrant-flavored liquor increased by 63% year-on-year. In the beer category, craft beer grew by over 56%, focusing more on taste and technique compared to regular beer. Beer below 8 degrees also rose sharply, with a year-on-year transaction volume increase of 22% in 2017. The beverage attribute of alcohol is also reflected in red wine, with sweet wine increasing by 43%, focusing more on taste. Alcohol consumption trend three: more daily and smaller packaging Alcohol used to be an indispensable item at banquets, but now young people seem less accustomed to toasting heroes with a cup, preferring to enjoy it alone. The report shows that small-packaged alcohol saw a year-on-year transaction volume increase of 126% in 2017. At this time, sipping alcohol is more like a projection of personal emotions and a companion for daily leisure. Whether it's a drink while watching a drama, a drink during game leisure, or a hearty drink while watching a match, beer is the first choice for most consumers. When expressing joy, they drink domestic baijiu; when bored, they choose sake or foreign spirits; when sad and wanting to get drunk, they choose strong foreign spirits. One type of alcohol represents a certain emotion; life is seen in alcohol. Alcohol consumption trend four: style identity For consumers, drinking has gradually shifted from simply getting drunk to a cultural symbol. The type and brand of alcohol have increasingly become identity labels for cultural style. Different consumers, starting from self-positioning, begin to seek group and identity recognition through alcohol. Craft beer, which reflects brewing techniques, is one such style category, with a year-on-year transaction volume increase of 38% in 2017. In categories similar to those labeled as culturally deep, fun, and easy to get started, the next explosive product may be born.
  2. Marketing Trio Starting from the consumption insights and industry trends of town youth, how can merchants grasp this potential market and find brand marketing opportunities? Alimama believes it mainly includes the following aspects. First, search as the entry point, full-link touch At the end of 2016, Alibaba proposed the Uni Marketing concept, redefining the classic consumer theory AIPL around the Alibaba ecosystem, namely Awareness, Interest, Purchase, and Loyalty. To intercept traffic well, merchants need to deploy at each stage, and the weight depends on industry and consumer characteristics. From the purchase path of town youth, mobile Taobao search remains the first entry point for retail, beverages, or alcohol categories, followed by mobile Taobao stores, product details, homepage, and transaction links. Among these, the alcohol industry has the highest proportion of brand search terms, close to 35%, followed by beverages and snacks. Alimama believes that when brand terms account for a high proportion in searches, it is necessary to establish brand mindshare in advance. Merchants can find marketing touchpoints from the lifestyle of town youth and achieve both internal and external cultivation: externally, use the full media matrix to grab user time for brand education; internally, occupy user paths to promote product conversion, such as through the "Guess You Like" touchpoint in the transaction link to complete the final step of conversion. Second, content strengthens brand and awakens demand As video gradually enters the daily life of town youth, content marketing becomes the main lever for brand mindshare establishment and reinforcement. Alimama found that town youth spend 3 times more active time on online video than on e-commerce platforms, and these deeply immersive, long periods are excellent opportunities for brand marketing. To move consumers through content, we need to deeply understand their content preferences. Alimama found that town youth prefer youth, animation, and war movies, while TV genres focus on workplace, rural, and era themes. Overall, content about career success, national pride, romance, and family viewing can better touch the hearts of town youth, satisfying the multi-dimensional emotions of their small world. When marketing content combines with the interests of town youth, brand mindshare is subtly strengthened, awakening consumer category demands. The report also shows that town youth who watch Youku content have relatively stronger spending power. They buy more, more frequently, across a wide range of categories, and with higher unit prices. The ability of Youku content to drive sales is evident. Third, full-scenario marketing with family as the core When do town youth watch videos? The report shows that from 8 p.m. to 10 p.m. is family gathering time. The most common scenario is town youth families watching TV together while eating snacks. Snack consumption and shopping reach a small peak during evening leisure. Animated shows like "Peppa Pig" and "PAW Patrol" are the most popular TV programs among town youth audiences. The choices of town youth confirm that the return of the big screen is a trend, which also represents new opportunities for merchants to tap into the "living room economy." In the mobile internet era, new media represented by mobile phones once became a new marketing trend, and traditional TV has faced challenges such as excessive competition and traffic diversion. But an undeniable reality is that with technological changes, smart TVs, with their unique big screen and internet advantages, remain a heavyweight carrier for content and marketing. Smart TVs provide better family scenarios for interaction with users. Therefore, merchants can try to use smart TVs as a link, with the family as the unit, for large-scale brand education. Source: Alimama (ID: alimama102) New Distribution will hold the 2019 (5th) FMCG + Internet Conference during the Chengdu Spring Sugar and Wine Fair from March 16 to March 18. This conference will focus on the topic of "Breaking the Game" and conduct in-depth discussions with numerous brand owners, supply chain service providers, distributors, retailers, and others. Compared to previous conferences, this summit will be fully upgraded. In addition to original topics like channel innovation, city distribution logistics, and distributor transformation, it will add multiple parallel forums on new marketing cases, IP + FMCG empowerment, community group buying, and innovative retail. Through three days of ten high-density, high-quality expert sharing and exchanges, we believe every brand owner and distributor can learn the latest business models, expert opinions, and practical methods, finding new tools and methods to break the game in 2019 and return to the track of rapid growth. -END-