Inside Asian Gaming

inside asian gaming March 2015 10 Cover Story raised in a period of relative abundance. Their parents, who lived through years of shortage, focused primarily on building economic security. But many G2 consumers were born after Deng Xiaoping’s visit to the southern region—the beginning of a new era of economic reform and of China’s opening up to the world. They are confident, independent minded, and determined to display that independence through their consumption. Most of them are the only children in their families because when they were born, the government was starting to enforce its one-child policy quite strictly. “McKinsey research has shown that this generation of Chinese consumers is the most Westernized to date. Prone to regard expensive products as intrinsically better than less expensive ones, they are happy to try new things, such as personal digital gadgetry. They are also more likely than previous generations to check the Internet for other people’s usage experiences or comments. These consumers seek emotional satisfaction through better taste or higher status, are loyal to the brands they trust, and prefer niche over mass brands. Teenage members of this cohort already have a big influence on decisions about family purchases, according to our research.” It’s Generation 2 that will drive the coming surge in Chinese outbound travel. Analyst Aaron Fischer of leading Asian brokerage Another variable that will have a profound effect going forward on Macau’s mass-market gamimg revenue—and might already be exerting its sway in the market’s current softness—is the rapidly evolving tastes of China’s middle class. China’s Middle Class Will Spread Westward Source: Center for Consumer and Customer Insight, Boston Consulting Group Middle and affluent urban households as a percentage of total urban households Less than 20% 20-30% 30-40% 40-50% More than 50% 2012 2020