The new generation who grew up and started their career during the era of economic reforms in China is characterised by self-confidence, high income and high spending power. As such, the new generation of mainland consumers has become the sales target of Hong Kong companies in recent years. To successfully capture this market, understanding their mentality and needs is important in order to offer the right products and services meeting their requirements. Moreover, innovative sales promotion campaigns addressing their personal concerns and preferences are recommended.

The new generation of mainland consumers is typically leading a stressful life and thus they crave for a leisurely and carefree lifestyle. Weekend or holiday getaways to unwind and relax have become a popular pastime among the new generation. Some go to beauty parlours and gyms regularly not only to keep fit but also to relax. Indeed, the new generation of mainland consumers regardless of age and income is extremely health conscious. They are even willing to pay for health by buying products and services that can help relieve stress and relax, as well as health food and products. Hence, beauty treatment, fitness exercise, yoga, travel and green food have become increasingly popular on the Chinese mainland in recent years.

Despite the craving of the new generation for a leisurely and carefree lifestyle, few of them are ready to accept a lower income in return for a less stressful life. On the contrary, the majority of them are highly career-minded. In a survey conducted on the new generation, 75% of the respondents reckon work can confer social status and is a means of self actualisation. Work is thus one of the key aspirations of the younger generation, with the majority of them willing to sacrifice family and social life for more chances of career success. They pursue continuing education as a means to achieve success at work. In the year prior to the survey, 48% of the respondents have enrolled in training courses, 34% have taken foreign language courses and 28% have attended academic seminars.

The ideal self image of the new generation encompasses inner virtues and outer appearance. To boost self image, over 70% of them resort to improving and equipping oneself, such as developing new interests to nurture inner virtues and pursuing further studies to acquire new knowledge. About 80% of them also agree that appearance and attire can enhance self image. Hence, they would dress up smartly and go to gyms and beauty parlours in order to boost their image. To the new generation, upmarket brands are a status symbol associated with a certain class of consumers. In general, the need for a sense of achievement or recognition is rather strong among the new generation. They are willing to spend money on acquiring symbols of success so as to prove that they have made it in life.

At the consumption level, the new generation goes after enjoyment and experience. They would buy luxury items, frequent high class venues, drink red wine, play golf, buy collectibles and travel overseas to reward themselves for working hard and to reaffirm their self worth. In general, they are receptive to new things and find excitement in discovering new products and new services in life. While 75% of the respondents say they are willing to try new products, 57% are eager to use the latest technology gadgets. The new generation appreciates that the consumption process itself is an enjoyment and is willing to pay a premium for special "experiences" such as attentive service, pleasant environment, classy ambience, and advanced technology. 72% of them point out that for the things they really like or enjoy, money is out of the question.

However, the new generation does not spend indiscriminately. Although they have the money and are willing to spend, they are still sensitive towards price. 76% of the respondents say they would carefully weigh different factors including quality-to-price ratio before making purchase decisions. Also, while they are well aware of the latest trends, styles and technology, they do not follow the crowd blindly. 73% of them say they keep a close eye on and readily accept fashionable items but they would not follow trends blindly. 77% say they are more interested in keeping their personal style and taste. Hence, they reckon that value-for-money items must offer excellent quality, service, brand value, design and image, and that such items must be something they like and find suitable.

The new generation believes that a brand can tell the status of a person. They tend to pursue brands that can best match their own status. Hence, brands targeting the new generation should not be positioned at the very top end of the market or the mass market. Instead, such brands should have their own characteristics and styles. The new generation is well informed on brands and has their own preferences. In general, they reckon that international brands are better managed and offer better quality than local ones, but that does not necessarily mean that foreign products and cultures per se are superior. They are proud of the Chinese culture and do not consider it inferior in any way. As such, they do not go after westernised products blindly, with 67% of them supporting national brands.

The new generation still embraces traditional Confucius values which are very much family-centred. To them, the family is by no means a burden but a source of joy. 87% of them consider that "having a perfect family is a prerequisite for a happy life" and are ready to share their fruit of success with their family members such as travelling and enjoying life together. The vast majority (89%) of them indicate they are willing to provide their family with the best material comforts. For example, they are very generous in buying health food for their parents, travelling with their children and nurturing their talents.

The new generation of mainland consumers has a good impression of the "Hong Kong brand", the core advantages of which include style, innovation, quality assurance, and cultural affinity. These advantages are fully demonstrated in various kinds of products. For example, Hong Kong's garment, footwear, jewellery and accessories are stylish; Hong Kong's home decorative objects and household products are known for their innovative designs; Hong Kong's processed food products, health supplements and medicines are tailored for the Chinese culinary culture and have premium quality; and Hong Kong's services such as financial and wealth management, retail, catering and beauty are highly professional. Armed with these core advantages, products and services that are well suited to the needs of the mainland market will have excellent prospects.

In sum, to break into the mainland market effectively winning the hearts of this middle-class new generation, Hong Kong products and services must:

• Offer niche products and services. For example, taking into consideration that the new generation attaches great importance to relaxation, physical and spiritual health, personal development, life experiences, boosting personal image, and cherishing the family, products and services meeting their practical and psychological needs should be offered to arouse their interest and consumption desire.
  
  
• Build a distinct brand image. The new generation of mainland consumers is confident, independent in thoughts, and has their own character. Although they reckon famous brands can help boost one's image, they are also concerned about personal taste and style, and are therefore more receptive to brands that have both character and substance.
  
  
• Monitor the changing preference of the new generation and offer the right products and services accordingly. In general, the new generation is highly receptive to new things and eager to try new products. Innovative elements are thus crucial in boosting the attractiveness of the products and services for this market. Even well-known brands have to maintain a fresh look all the time by adding new elements so that the consumers will not get tired of them. As the new generation considers the environment and the experience of their consumption as a kind of personal satisfaction, Hong Kong companies are advised to pay great attention to the interior decoration of their business venue and the quality of service offered in addition to the product or service itself.