Millennials and a sharing society

This group – defined as those born between 1980 and 1995 – is driving a paradigm shift towards a “sharing economy” that shuns the ostentatious, luxury-obsessed ethos of the preceding generation.
“Sharing is the new buying” could well be the millennials’ motto as they prefer to rent, rather than buy, goods and services such as housing and transport. Since they are also the “digital generation”, they know exactly how to find what they want, just when they need it.
Business needs to take notice of this trend. It is not a passing fad. PWC forecasts that China’s sharing economy will grow from US$15 billion (Bt539 billion) today to more than $335 billion by 2025.
It is even recognised in the government’s 13th Five-year Plan, which wants to boost it even further.
Examples of the sharing economy include Uber taxis and AirBnB accommodations. Local companies are also getting into the act with staggering numbers of users already.
Didi Taxi boasts 100 million users across 300 cities within the country.
Tujia, a service similar to AirBnB that launched in 2011, has raised $300 million in venture capital and has 300,000 properties distributed across a network of 250 cities.
Yongche, which is similar to Uber, has two million users, 50,000 cars and has expanded across Asia to Europe and the US.
Other innovations share a close cultural link to Chairman Mao’s obsession with collectivisation and self-sufficiency.
You+, a type of commune that combines collective living and the support of a start-up incubator for 20-45-year-old entrepreneurs, is backed by Lei Jun, the founder of Xiaomi Corp, a smartphone company.
There are now about 20 You+ communities in major cities such as Beijing, Guangzhou and Shanghai.
While many young Westerners are using shared services out of necessity, due to the decline in work opportunities and earnings potential, many of China’s highly successful, cash-rich millennials share because it makes an active statement about their lifestyle, philosophy and values.
According to Nielsen, 94 per cent of Chinese are willing to share – more than double that of their counterparts in the US (43 per cent).
Even though Chinese millennials are more interested in “sharing” than “showing” compared with past generations, they are no less keen on making money. Their attitude is – why own when you can rent and plough the money you save back into your start-up or going concern?