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Nike, Adidas, Puma, Sony, IBM -- all these grand brands represent modern fashion in the mind's eye of today's youth. Hip-hop, Linkin Park, street dance -- these popular icons hold a deep allure for teenagers. Internet, computers, cameras -- these cutting-edge digital products attract young consumers.

Recent research undertaken by the McKinsey Company has revealed the staggering amount of consumption the younger generation is responsible for. Direct annual consumption for young people has reached 290 billion yuan (US$36.25 billion) with indirect consumption soaring to 225 billion yuan (US$28.13 billion). Around 90 percent of parents stated that they often gave in to "reasonable" demands from children, thus increasing their offspring's expenditure.

Like their peers in developed countries, many young people in China also crave fashionable and famous brands. The difference separating Chinese youth is their firm grasp on traditional values and beliefs. Combining the traditional and modern spirits together, this young avant-garde shows more confidence in itself than earlier generations.

In the survey, 88 percent of young people preferred domestic brands while 65 percent also liked foreign ones.

As for how they spend their leisure time, young people in China resemble their Western counterparts. Watching TV takes up one third of their free time and reading books, newspapers and magazines occupies 22 percent.

According to the research, youth in China can be divided into four groups: fashion-oriented, from low-income families, the leisure-centered and the economical and rational consumers.

The fashion-oriented group, dominant in large cities and possessing a buying power of 74 billion yuan (US$9.25 billion) in value, are becoming important mass media and advertising targets. The economical and rational consumers who dislike unhealthy food, such as fast food and soft drinks, are often located in small or medium cities. Healthy food in restaurants and groceries are their favorite choices. Since the fashion-oriented and leisure-centered groups will look for relevant information on the Internet before spending, websites have become a major battleground for advertising and sales.

(China.org.cn by Wang Ke, August 30, 2006)