Spoiled Squirts Sprouting

Brandweek, July 5, 1999 by Marian Salzman

Marian Salzman is director of Young & Rubicam 's Brand Futures Group, New York. For more info on Y&R's China 2005 Project, on ongoing monitor of business and consumer intelligence focused on Chino, visit www.brandfutures.com.

At the end of the 1970s, China instituted its population-control policy of limiting each married couple to one child. Today, these "xiaowangdi" or "little emperors" who grew up without siblings are entering their teens and early 20s, and it is clear that this unique upbringing has created a generation that is vastly different from its predecessors.

"The one-child policy [has produced] a society of little emperors pampered and spoiled by an extended family, which can lead to arrogance and an 'I'm used to getting things done my way' mentality," said Barry Coleman, chief representative at WCJ Shanghai. The world is watching as these children grow up and into their roles as China's newest generation of conspicuous consumers and the potential business leaders of China Next.

So how are these little emperors shaping up? A lot like teens and twentysomethings in developed markets around the world, it appears. A prime characteristic seems to be a waning interest in tradition, something that is happening for the first time in China's history.

A gulf is developing between these fast-moving, fast-talking young people and their elders. While the older generation feels little emperors lack respect, the young themselves are aware they have an uncertain future and must make a niche for themselves quickly. The days of guaranteed state employment and the so-called "iron rice bowl" of guaranteed food, clothing and shelter are gone. While this has given young people the freedom to develop career paths, it means the pressure is on to find jobs and make their own way.

"One of the biggest changes people are seeing is in the increasing freedom in choosing a lifestyle, increasing opportunities and temptations as well," said Helen Yan, senior associate at Burson-Marsteller, Shanghai. "Freedom of choice is good, but it often creates frustration about not being able to own everything one wants."

The pressure to strive, achieve and acquire are causing a number of social ills. There are reports of young people turning to crime and prostitution for a "better" lifestyle, taking drugs and becoming serious social problems.

Not all youth trends are so worrying, however. Materialism has also created a new mall culture and the growth of shopping as a leisure activity. "Malls are being built at enormous speed," said Olivia Zhang, senior account executive at WCJ. "It is changing people's lives. [People under 30] tend to spend more time shopping."

With a growing interest in shopping comes an enthusiasm for status-type brands similar to the phenomenon that occurred in the U.S. in the '80s, another factor that divides younger and older consumers. "The older generation tends to see brands as a recognition device," said Lau Seng Yee, general manager, DY&R Shanghai. "But the younger one sees brands more as a symbol. They identify with the personality each brand brings forth."

Parents restricted to one child are ensuring that their little emperors/empresses have all the necessary tools to get on in life, so these upscale urbanites are surfing the Web for products, general information and lifestyle tips. Government-run housing complexes also provide Internet services to residents, but restrict access to certain "approved" Web sites. Elsewhere, the growth of hip, "illegal" Internet cafes has provoked speculation that all this exposure to new ideas is helping to produce a generation with a very different view of its country's politics and role in world events.

This broader world view may cause the younger generation to look askance at the government, but it also affects their view of the Western world. City kids may hang out at KFC and McDonald's, but they were quick to protest when NATO mistakenly bombed the Chinese embassy in Belgrade. While they worship sports heroes like Michael Jordan, they also idolize their own soccer players and Canto pop stars.

As a driving force behind China Next, the little emperors are clearly a force to be reckoned with. High-achieving, smart and materialistic, they form yet another highly defined unit in China's fragmented culture.

MUSIC TO WASH GRILLS BY

Retailers love to sell a musical "mood" along with their merch, especially when it adds $12.99 or so to the ticket. But Waffle House, a diner chain known for its blinding yellow decor and infinite hash browns permutations, has taken theme music to the next step with a "Jukebox Favorites, Vol. 1" CD, which can be purchased online (www.wafflehouse songs.com). As the name implies, the songs are staples on jukeboxes at the Norcross, Ga.-based chain's 1,200 restaurants, where they are flagged on machines by yellow tags.

While Starbucks ("Blue Note Blend"), Old Navy, Putamayo and others license tunes for CDs that subconsciously further the brand "lifestyle," the charm of Waffle House's entree is that it is so blatantly self-promotional. Each song talks up an aspect of the chain's food or service: "Special Lady" is a truck driver's ode to his favorite waitress, "844,739 Ways to Eat a Hamburger" touts flexible fixins. "I'm Cookin"' is sung by, you guessed it, a short-order cook.