Immunity-boosting products gain in popularity
Among the most popular healthcare products for those born in the 1990s are donkey-hide gelatin, or ejiao, red dates and honey. In terms of effects, these young consumers care most about enhancing immunity.
During last year's Singles Day shopping gala, health exam services, human papilloma virus remedies and instant bird-nest soups were the most popular health-related products for consumers under the age of 25 on e-commerce platform Tmall.
On JD Health, the healthcare subsidiary of Chinese tech giant JD, vaccine services and oral-health services have increased by 20 times and 12 times, respectively, last year compared with that of 2019.
Buoyed by the growth momentum, a slew of Chinese companies are innovating their healthcare products and transforming them into sought-after snacks for the sake of convenience to attract young consumers.
Pharmaceutical companies like Guangzhou Pangaoshou have launched individually packaged black sesame portions, believed by many industry insiders to be good for hair health.
Dong'e Ejiao Co Ltd also launched a product believed to enhance immunity. It uses low-temperature vacuum continuous drying technology to turn traditional ejiao blocks into individually packaged ejiao in small bags.
Behind the moves are also the country's efforts to support the healthy growth of new consumption and business models in order to boost consumption amid the COVID-19 pandemic.
Tong Ren Tang Group Co Ltd, which was founded in 1669 and used to mainly target middle-aged and elderly consumers, is offering coffees infused with herbs such as licorice, monk fruit and cinnamon.
"We need to keep pace with the changing times. Our herbal drinks have been highly recognized by young consumers," said He Junshuai, director of brand management for healthcare services at TRT Group.
"We also aim to meet the soaring demand for healthcare services from young consumers and therefore we established the innovative coffee. By exploring the youth market, we hope to remedy the shortcomings of a traditional pharmacy," he said.
Zhao Ziqiang, chief operating officer of e-commerce business at TRT Group, added that such products all sold well with young people increasingly aware of the importance of a healthy dietary regimen.
"As consumption levels increase, the standard for consumer products will be higher," said Wu Shichun, founding partner of Plum Ventures.
"New supply chains, new designs, new marketing strategies, new channels and new target groups such as Generation Z will be the next hot investment spot," Wu said.
Wang Wei, head of the Development Research Center of the State Council's Institute for Market Economy, said in an interview that spurring new forms of consumption, such as healthcare and online education, will stimulate innovation.
"China is shifting from high-speed growth to high-quality development, and consumption, as the 'stabilizer' and 'ballast stone' of Chinese economy, is becoming increasingly important," she said.
"What's more important is that the rapid growth of consumption and its contribution to China's economic growth are mainly driven by the consumption upgrade and innovation, with new consumption models becoming an important driving force and growth points of the economic development."
