Potential Obstacles:

• US market lack of centralization of one main review app to increase the content and quality of a “US DianPing”
• General US privacy + data collective apprehension

2Group Chat Culture

WeChat group chat culture is unrivaled. Apart from WeChat’s super app abilities though, the culture that has been created with the establishments of group chats has allowed for companies, communities, and culture to grow. Gen-Z’s in China will use group chats when starting a new project, building a community, or sending a message because of the simple yet effective tools that group chats can provide.

Key Point of Group Chat Culture

• “Scan Me”

Scanning QR codes to be added to a group chat of up to 500 people per group chat about a community, cause, project that you are passionate about. To keep the interactivity of the group chat feeling while also scaling, often group chats will have multiple sections ex. 1. SAMPLENAME, 2. SAMPLE NAME as a solution for the 500 max person limit per group

• Interest Groups/Passion/News

• Group chats can serve as platforms as do Facebook groups. However, the group chat function makes it feel more like you are chatting with friends than you are posting on a wide open board. Group chats also serve as daily news updates that you get in a text message from making it feel more personal

• Simple Functions

• While WeChat and other Chinese social media apps can build up extensive features, the group chats have stayed relatively simply in their functionality to sustain the culture. Key features include the group notice feature, the @all feature to call everyone, the group note sign up feature, group tools, and group live feature.

• Sending posters

• Across thousands of groups with millions of people, everyone from companies looking to hire someone new to party and event planners send out simple one page flyers across many group chats as a simple way to spread the message. This simple one flier system gives constraints to the functions that serve to better effectively communicate lots of information

• Sending Official Account Info

• Since firms and organizations can create official WeChat accounts that establish their reputability, they are seen as a trusted source to send content across WeChat. WeChat’s built in article and official account functions allow for the more formal content style like in-app videos, articles, and posts to be easily sent around in app across group chats. This is typical for companies sharing a new promotion or weekly blog, media outlets sending daily news articles, or even personal accounts writing their own content to be shared within the platform’s existing services.

Opportunities for the US market:

• Creating a group chat culture with an existing or new messaging app

Potential Obstacles:

• Lack of one super app in the US that everyone is one to form an active group chat ecosystem as China has on
• General US privacy + data collective apprehension

3Daily live stream

The livestreaming industry has taken off in China in the last few years as super e-commerce apps have grown, making it easier and easier for people across China to purchase products online. In order to maintain the relationship between the e-commerce brand and the buyer, major companies are turning to daily live streamers who are constantly live streaming reviews of different products sponsored by brands across China. Often livestreams will have dozens of phones at once so they can livestream across every social media platform and do it multiple times a day.

Opportunities for the US market:

• Content consumption is available constantly and the technology for live streaming has been implemented on most apps – yet not fully utilized
• The turn towards live stream video versus pre-recorded videos make the buyer feel more a personal experience with the product because they are being able to see it live, ask and react to questions in the moment, and have more exposure to the product than just with a multi-time edited ad

Potential Obstacles:

• The US market’s live streaming platforms lack the interactivity and culture for live streaming to take off as a method for brands and influencers to share products
• Restrictions on how many times people live stream and where people are allowed to live stream from socially appropriate (ex: a livestreamer in China could go to a restaurant with five phones to do a livestream but the same is not currently accepted mostly in the US)

4Super Apps

In essence, the foundation of the technology Gen-Z market is built off of super apps like Alipay, WeChat and TaoBao that have taken over the market by being the one-stop-shop for everything and anything you might need on your phone and beyond. Super apps are the one-stop-shop for everything including flight tickets, charity donations, medical appointments, food delivery, ride hailing, messaging, and more.

Mini-Programs

Super apps have become so popular that there has been a decline of news mobile apps in turn for “mini-programs’ ‘, particularly WeChat mini programs. In order to reduce the friction that a user may have to go and download another app from the app store, companies/organizations/firms now create a simpler version of an app within the super app with a miniprogram that has most functions an app would have, without the barrier of asking the customer to go and download a full other app. Instead, the user can now just add a mini-program into their existing WeChat app in the same way you would “follow” someone new on Instagram.

One great adaptation of the mini-programs has been the use case with restaurants in China. Arriving at a restaurant, you no longer see physical menus, only QR codes. What China has done differently than the west though with the QR codes is how the QR code menus are only accessible once the user follows the restaurant’s social media – in the case of China, the restaurant’s WeChat mini-program. This is a simple way that restaurants have been able to grow their social media following, increasing rates of returning customers because they are already subscribed to them after their visit, and retain and grow new customers.

Games

In an effort to keep users on the super apps more, super apps like Alipay have created a full gaming ecosystem within the app that lures that user in as a fun light hearted game to play in the app. Since the user is already spending so much time on the app, they may forgo a game on another app for the app that is already built within their super app that is already connected to their other platforms where they can seamlessly share their experiences on social media and messaging platforms.

Work-Mode Documents

Super-messaging apps have noted the use case of messaging for work and business and have built in-house Google Drive-like platforms so users can easily integrate their work into their messaging apps.

Ant Forest

Using the power of the superapp Alipay, Alipay launched Ant Forest as an in-app strategy to reduce carbon waste. “If users walk, travel by public transport, pay utility fees online, pay traffic tickets online, make online hospital registration, book tickets online and generate other low-carbon activities, they would reduce corresponding carbon emissions’ ‘ and thus their Ant Forest score would grow. This serves a huge opportunity for a leadership or competition board for Gen-Zs to compare their scores in an effort to boost the core values that Gen-Zs have towards protecting the environment.

Opportunities for the US market:

• The opportunity for the US market to adapt a “super app” structure like China is huge with companies like Amazon already beginning to enter this space however it is an uphill challenge
• A super app would allow for many logistical, technical, and beauratractic functions of technology to be mitigated and allow for centralization
• Creating a super app for an industry, age group, particular segment in market
• Huge 350 million + user base onboard

Potential Obstacles:

• The US is typically skewed towards a less centralized form of technology than China, seemingly stemming from an authoritarian vs democratic government
• Potentially of antitrust issues within the US – already seeing examples with FaceBook
• General US privacy + data collective apprehension

5TaoBao E-Commerce Social Media-like Experience

While TaoBao is often called “The Amazon of China”, TaoBao is far more powerful. One main reason is because TaoBao has implemented a social media feeling to its app where users’ e-commerce experiences have turned into a social media interactive one instead. Users browse items on TaoBao likely to be photos of their friends’ vacation, not like the new pillow they need for their room in a 2 x 4 grid form.

• E-Commerce companies to adapt the social media feeling and culture of TaoBao that would increase the interactivity and sales of products on their platforms
• Creating a social media tab within e-commerce brands that encourage users not just to leave reviews, but to share and post photos, videos of the products like they would on their feed

Potential Obstacles:

• – The US is not as mobile-reliant as the Chinese market is which may make the transition from shopping on Amazon on your computer to posting TikTok style social media content on the page more difficult
• General US privacy + data collective apprehension

6Blind Box Marketing

With so many products out there, decision fatigue can become a true problem. This is why companies in China have adopted Blind Box Marketing where customers can buy surprise content from their favorite brands. The blind box marketing offers spontaneity and a reduction of decision fatigue for already committed and lightly risk taking customers.

The adoption of blind box marketing is huge for industries including fashion, beauty, and tech that each have considerable fan bases that are constantly looking for new and exciting products. There is also a huge opportunity to create subscription models of blind boxing as a revenue model.

Opportunities for the US market:

• Connecting with brands with an established customers base to crate mystery monthly boxes for their customers to subscribe to
• – Creating an industry wide mystery box service (ex: Sephora as a hub for beauty) that customerscan provide
• Great use case for gifts/small presents to share with others, not just buying yourself

Potential Obstacles:

• Lack of demand for surprise items in some markets that are not yet saturated enough

7Gen-Z Restaurants/cafes

In China, restaurants and cafes are no longer just places where you eat – they are a hub for experiences. Restaurants including HaoDiLa, a famous hotpot chain, offer services like painting nails and massages while customers wait for their food. Many restaurants have a “photo-shoot-like” set where customers can set their food on a stand to take the most social-media worthy photo to share with their followers to document their experiences.

Opportunities for the US market:

• Providing opportunities for restaurants chains to elevate themselves beyond ujst serving food, but as a full immersive experience where people want to spend hte whole day there – much like a club

Potential Obstacles:

• Establishing the culture that place is not just for food, it’s for the experience
• Safety/health regulations for different activities

8Locker System 丰巢 fengchao

If you want to drop something off at your friend’s work building, home or studio, you will almost positively find a locker system to do so. More often than not, a Gen-Z will use a KuaiDi (super fast delivery service available across China) to deliver something instantly to someone across town everything from a document to a pair of shoes. The KuaiDi agent will then attend to the lockers where they will scan a QR code to open the locker and place the item in. Then, the receiver will be able to open the locker with a specific QR code. These lockers systems are often used for food delivery services too.

Opportunities for the US market:

• Huge established trucking market in the US. Many trucks or vehicles not being used all the time or to it’s best effective potential
• Can repurpose other vehicles and build into ride sharing apps

Potential Obstacles:

• Lack of existing infrastructure and capital to mobilize workers and large vans/trucks on short notice like one would a smaller car

10XiaoHongShu

XiaoHongShu, also known as Little Red Book, is known as the Instagram meets E-Commerce of China. It originated as an Instagram social media app that then evolved into an e-commerce app where each post has links to buy the products seamlessly. Instagram has evolved into doing e-commerce form the posts but has yet to dive into the business model like XiaoHongShu where one can “if I want to buy a good shampoo, I can simply read though “shampoo posts” to get a better idea”.

Opportunities for the US market:

• Build e-commerce experiences integrated into social media apps that show products including snapchat, instagram and TikTok to have a one click transaction experience

Potential Obstacles:

• Lack of financial infrastructure to scale and payment for different apps
• No super app that could integrate the purchasing and payment system across platforms without switching of providers
• General US privacy + data collective apprehension

11AI Generated Virtual Idols

China has taken influencers to the next level by developing AI generated influencers. The virtual idols are created by firms to do the same as an influencer would without the cost of having a real influencer. Some key examples include Ayayi and Luo Tianyi who have taken over apps like XiaoHongShu with their
virtual content creation by brands.

• Key example:
  https://jingdaily.com/virtual-idols-china-celebrities-crackdown-ayayi-luo-tianyi/

Couple of weeks ago, Kizuna Ai did her last streaming. Here is a screenshot showing the number of audience in her bilibili streaming channel at that time.

Opportunities for the US market:

• Brands to develop specific key virtual influencers for dedicated customers to follow and subscribe to

Potential Obstacles:

• Faces competition to the existing influencer market
• Lack of authenticity of having real humans
• General US privacy + data collective apprehension

12 Mobile-first approach

Gen-Zs in China have a far more mobile-first approach than Gen-Zs in the west. Everything on the desktop is directed to mobile with QR codes on desktops to scan to download a mobile app. This higher reliability on mobile apps shows the commitments that the market has to mobile devices rather than desktop ones.

Opportunities for the US market:

• US brands to direct more of their customers to their mobile experiences, particularly their in-app experiences rather than a desktop website
• In app mobile experiences allow for less friction across different apps, payment, e-commerce, and social media

Potential Obstacles:

• Cultural shift of focusing more on mobile app developments than websites. More US companies
  focus on websites than mobile apps at the moment

133D Screens

• See example here:
  https://youtu.be/L0z5kAnsN_g?t=95

While billboards have become an advertising tactic of the past, the same is not to be said about 3D screens that have taken over the screens of big cities in China. As opposed to normal 2D screens, the 3D screens that display realistic videos elevate and recapture Gen-Zs as they are crossing major crosswalks and force them to look up from their phones.

Opportunities for the US market:

• Established billboard space across the US in both dense cities (ex: Times Square) and rural screens (ex: highways) to utilize existing space to recapture a dwindling target audience
• Gives brands an opportunity to produce more realistic and engaging content

Potential Obstacles:

• Large technology investment needed to upgrade existing screens from 2D to 3D
• Higher standard/quality of content to be shown on these screens with greater possibilities

14BiliBili

Many consider BiliBili to be the Youtube of China, however, there are some crucial differences that have captured the attention and screen time of Gen-Zs in China. One main aspect of BiliBili is its reliance on gaming for revenue, less on ads, with their bigger focus on gaming related content.

That said, one aspect that draws so many Gen-Zs to BiliBili is the huge interactivity opportunity with the audiences beyond just basic likes/dislikes, commenting, and subscribing. One key feature of such are bullet chats – “Bullet chat is a commentary system unique to the Bilibili ecosystem, where viewers leave comments that scroll across on-screen content. This year there were a cumulative 10 billion bullet comments”. Bullet chats have proven to be a far more interactive way for viewers to interact with their streamers.

Opportunities for the US market:

• Video content creation platforms to implement more interactive features on the platform like Bullet Chats that allow for more connectivity between the viewers and the streamers
• Twitch/Discord gaming platforms to implement more Bilibili like feature onto their platforms

Potential Obstacles:

• Lack of centralized content platform that focuses on growing the new features

15Beauty camera

Both influencers and non-influencers are more inclined to use beauty cameras to post photos and videos. Much like a socially acceptable Snapchat filter, a beauty camera is built into main video and photo apps that allow for users to apply makeup, flowers, and accessories to their selfies as they both their content across the platforms.

Opportunities for the US market:

• Creators to engage with AI/VR content to spice up their photos with different filters that are interactive with their backgrounds and surroundings
• Can be easily built upon existing video/photo apps

Potential Obstacles:

• Raising awareness for authenticity online with a world without filters

16PingDuoDuo

PingDuoDuo has become the poster child of social commerce, allowing for Gen-Zs in China to collectively purchase more expensive items and share it. PingDuoDuo is an interactive and value-for-money driven ecommerce platform that allows people to pull together money to purchase a bigger item. “On Pinduoduo, users can discover and purchase products from a wide range of sellers. What sets Pinduoduo apart is the social aspect where users can easily share what they have browsed or purchased with their social network, inviting them to join teams of mostly two people within 24 hours to enjoy a lower price. Users get a clear benefit of enjoying a lower price while still having the convenienceof getting the product shipped to them individually. This in turn drives greater sales volume for sellers, allowing them to continue offering value-for-money prices due to economies of scale. “

Opportunities for the US market:

• Allowing for younger generations with less money to pull together money in a social effort to buy bigger purchases both physically (ex: car, washing machine, oven) and virtually (ex: virtual subscriptions, etc.)
• Can be built upon existing or created new as the first e-commerce platform that allows for small scale crowd funding for people t pitch in to buy something bigger, helping support local communities, younger generations not ready to make a big investment, and create connections through joint e-commerce purchases

Potential Obstacles:

• Lack of financial infrastructure to scale and payment splitting system across the US
• General US privacy + data collective apprehension

17Xianyu 闲鱼app

Xianyu is known as the second hand e-commerce app in China. Xiaoyu has built up a culture where people feel low barriers of entry unlike some western apps to sell items both big and small on short notice. XiaoYu, like many other apps, is under Alibaba. So, it easily connects with Taobao and TMall, non-second selling e-commerce apps. What takes the experience to the next level is how sellers can legitimize their products. For example “especially when ppl want to avoid buying fake items, Xianyu has the function to directly link to Taobao/TMall’s original link so that both sellers and buyers know the credibility”. XianYu has also made great strides in reducing waste in China by closing the loop on some otherwise trashed items.

Opportunities for the US market:

• Allowing opportunities for people to buy items at a lower price – well also legitimizing them by linking the items to the original item of purchase for authentication
• Leaning into the sustainable marketplace by encouraging buyers to purchase items that have been used instead of buying new items completely

Potential Obstacles:

• Established second hand sellers like EBay and Craig’s List that have a reputation of being uncredible with the items being sold – reshaping what a second hand market can be

18Karaoke

KTV

Drawing from the origins of “karaoke” in Japan, China has adapted “KTV” as a sing along interactive experience with friends. Usually, an entertainment KTV establishment takes up considerable real estate in a mall or as a stand alone shop with many varying types and sizes of rooms to sing along to your favorite songs. With competitive prices to rent out the room, KTV is a cheap and fun way for Gen-Zs in China to enjoy a night out. KTV also acts as a restaurant offering many food and drink options. It’s normal to see friends go out for KTV on the weekend, after dinner, for a celebration or even with family.

“Private rooms are usually elaborately decorated with bright, neon designs and large LED flat screens (often multiple screens covering entire walls). Lightning inside is usually pleasant, indirect, colored lights.” Inside each room, you’ll see comfortable couches, fridges, lighting options, and anything else you may need to enjoy a night of letting loose and jus singing!

KTV Booths

In China, there are small KTV booths in malls, metros, airports and other public places, made for only 2-3 people. You can pay a few RMB for 15 minutes (or longer), put on the headphones, and sing along to your favorite songs. Often known as “A haven for introverts”, these KTV booths allow Gen-Zs to casually sing some of their favorite songs in the comfort of being alone or with 1-2 close friends.

Opportunities for the US market:

• Many locations for both KTV and KTV boboothsxes in US malls, airports, subways, etc
• Huge western music market where people demonstrate they enjoy singing on social media etc
• Weaving in popular social media, especially Tik Tok, songs and trends into the songs that are sung at KTV to make it most “postable”
• Drinking age in the US is 21, so gives another activity for under 21s to go have fun – beyond shopping, driving, etc

Potential Obstacles:

• Creating the culture of KTV among Gen-Zs in the US
• Lots of KTV culture relies on drinking/staying out – not applicationable for younger generations but ok for over 21
• If KTV is in suburban malls and people drink, they will not be able to drive home – posing as a barrier to go out

SOURCES:

1My Personal Gen-Z Experience in China

a. Anecdotal, photos, my mobile phone usage, etc.
2WeChat Group Chats
I’m a member of over 50 active WeChat groups with each over 500 people focusing on topics ranging from entrepreneurship to student life to e-commerce and beyond. Each chat shares insights, experiences, and trends in China. I drew upon the chats and conversations from these group chats
3Online – Western
a. RADII (China-based), TechCrunch, SmartShanghai, Youtube, ChinaDaily, Pandaily, South China Morning Post, DaoInsights, JingDaily, etc.
4Online – China
a. Collecting content, reading articles, following accounts and profiles on WeChat, XiaoHongShu, PingDuoDuo, etc.
5My Network in China
a. I reached out to over 100 over my friends in China including NYU Shanghai Chinese and International Students, foreign international school and local students in China, young professionals in China, international expats in China, young Chinese entrepreneurs, and more on WeChat asking:

“I’m working on a project now where I’m brainstorming a list of Gen-Z/younger generation tech trends in China that could be applied to the western market. Ideas like this include interactivity of DianPing, the mystery boxes, and daily live streaming. Can you think of any other ideas or examples? Would be a huge help!”

I received some great responses, anecdotes, examples, and testimonies of their experiences which I have directly quoted throughout this report.

You can access the White Paper here.