(photo credit, tokyocraiger)

Shanghai has long been a city where civil initiatives are often filled with bicycle focused suggestions and solutions. In the year 2010, it’s difficult to see any bicycle friendly implementations in a city littered with construction signs and clogged roads, mired in an unprecedented Expo frenzy.

There is hope however, and it comes from one of Shanghai’s oldest bicycle brands: Shanghai Forever Bicycle Company.

In the year 2008, as the patches of industrial buildings and residential houses along the Huangpu River had yet to be removed to make room for Haibao and his crew of merry workers, Forever set in motion its grand plan to integrate a comprehensive bike rental system along Shanghai’s streets. Mirroring successful bike rental platforms in Paris and Hangzhou, Forever took a small step into this foray with the introduction of a solitary rental system in Pudong’s Zhangjiang High Technology Park. Located directly next to the subway station, this bike rental system is meant to appeal to workers seeking transportation between the Subway and their final destination. Often the highest necessity for those lacking proper transportation, this last stage, referred to by city traffic planners and Xu Xuefeng, a Shanghai People’s Congress delegate, as “the very last three kilometers [between homes, schools, or communities to traffic hubs]“, is the most critical spot to place bike rental systems as this offers the most convenient and largest opportunity for adoption by potential rental bike users.

Following a recent string of bike related government initiatives, including a free bike trials in Shanghai’s Minhang district, and a focus to add more bike lanes in these “last three kilometers”, Forever’s bike rental system represents an ambitious plan to show off a modern Chinese biking society during the May 2010 Shanghai Expo. Currently in one of China’s most central districts, Xuhui, there are nine such rental bike ‘hot-spots”. A representative from Forever indicates that in Xuhui alone, there will be 40 or more of these bike rental “hot-spots” by the time the Shanghai Expo begins. However, by 2012, Forever hopes to have more than 3500 bike rental “hot-spots” spread across Shanghai’s vast city landscape at a cost of over 400 million yuan.

Forever’s commitment in this endeavor is not only for increased brand exposure and the promotion of bike culture in Shanghai; Forever also hopes to reduce motor vehicle emissions as well as provide the “healthiest capillary vessel” in Shanghai’s ever growing Public Transportation system. It also may be one of Shanghai’s most technologically advanced. Access to the bike rental service can be arranged by purchasing a RFID “bike credit card” for 200RMB that gives each user 100 “rider credits”. As riders return their bikes within certain pre-determined time frames, points are either deducted or added based on these times. The service is accessible for both locals and non-China natives; a government issued ID card, or passport is required to purchase the “bike credit card”. This attaches direct accountability for the bike and will hopefully deter thefts.

We’ve recently spoken with many local bike shops, riders, and city planning experts regarding bike rental systems and the consensus indicates that for Shanghai to successfully implement a system like this, it must keep in mind two things: accurately distanced rental stations based on usability and proximity to buses and subways, as well as proper government funding and attention. Essentially this cannot be a half-assed effort or it’s adoption rate will be low and over 400million RMB is simply thrown away.

The adoption rate among youth Bike riders is also a question of debate. 22 year old enoVate team member, Jermaine Chen, appreciates the program and it’s opportunities for environmental benefits as well as solving many people’s “last three kilometer” problems. Recent enoVate bike research also indicates that Shanghai youth are not vehemently opposed to renting a bike, instead praising the possibility to “bring friends together for a fun and enjoyable bike ride”.

More information about the bike system and bike news in Shanghai can be found on Forever’s official info website, China RMB.

Over the last week, the enoVate team has pondered the changing trends in parenting as post-80’s born Chinese are having kids of their own. Changes are taking place in the household, supermarket shelves, internet, and countless services popping up offering baby and parenting-related services.

Let us first consider the new mother. Recently dubbed 辣妈 (la ma, “Spicy Mother”), she’s urban, middle to upper class, has a job, and despite giving birth, still very much conscious of her body image. We’ve already seen this archetype with previous generations, but it is becoming far more common. Young women increasingly illustrate a strong desire to be more than just mothers. After giving birth, they want to get back to work and remain active. Some families depend on two incomes, leaving a mother little choice but to return to work. Nevertheless, today many young women go back to the office because they desire to do so (for more, check out BeiBei’s post).

This, once again, cements the crucial role grandparents play in raising children during the 9 to 5 hours. Yet things may not stay so rosy for eager grandparents. Much to the chagrin of nainais and laolaos, a new phenomenon is changing the dynamics of parenting: “Social-Parenting.” Unfathomable to Chinese parents a decade ago, the internet is becoming a significant source for parenting advice. On average, mothers spend 45 minutes a day on sites like Babytree.com – the most popular of these sites. Parents post countless photos of their toddlers, as well as share advice on brands, infant health, and all other kid-related issues. enoVate’s Joey Dembs

states, “This unusual hybrid of embracing new technology and resorting to less restricted parenting methods bodes interesting results for China’s yet-to-be-named youth of ‘00.”

End of a Dynasty

Yet another significant shift in parenting may mean the end of China’s Little Emperor. Parents are thinking twice about spoiling their kids. Many post-80’s Chinese parents believe the 90’s-born generation have become difficult and spoiled due to parenting habits born in large part out of China’s One-Child Policy. Too few kids receiving too much attention from too many family members… This is a trend many young parents hope to avoid. According to a Euromonitor article, some parents even enroll their kids in not-so-pleasant camps dedicated to teaching some discipline to those Little Emperors.

A Growing Market

Chinese families spend a lot on their children. Families spend an average of 20 percent of total income raising a child to 6 years of age, with some families spending up to 50 percent. On average, it takes 81 thousand Yuan to raise a child until 6 years of age. In big cities such as Beijing, Shanghai, Guangzhou, and Shenzhen, families spend 118 thousand Yuan, while in provincial capitals the cost is 76 thousand, and 60 thousand in lower tier cities.

If spending habits during the financial crisis is any indicator, this market is not likely to shrink anytime soon. 80 percent of parents with children under 3 did not cut child-related expenditures, instead cutting back on their own expenses such as dining out. And of those with children between 3-6, 66 percent of parents did not cut their spending. Taking into account these statistics and the continued growth in Chinese disposable incomes, we forecast the market for infant products and services will maintain solid growth.

A case in point being infant milk formula. Despite recent melamine scandals, sales have continued to grow – the difference being foreign brands now occupy an increasing share of the market. Bord Bia, a food and trends insights agency, estimates foreign brands now occupy 70 percent of China’s high-end milk powder market. Between 2003 and 2008 infant formula sales grew at an astonishing 24 percent per year to 25 billion Yuan, and it is billed to continue growing at 18.7 percent a year until 2013.

Myriad other services are popping up. Mothers who want to get back in shape after their pregnancy are relying on the Postpartum Recovery Centers opening in cities throughout the country. In 2004, the first such center opened its doors. Now, Meilimama boasts over 100 locations in China.

West is Best for Kids?

As the above-mentioned infant milk formula case indicates, foreign brands are a popular choice for those that can afford it. On the one hand, there is the prestige associated with Western and Japanese brands. Young parents are more familiar with foreign brands, and may be more compelled to dress up their kids in an Osh Kosh jumpsuit.

On the other hand, Western brands are associated with quality and safety. Countless scandals have damaged the reputation of domestic brands. The last five years have seen issues with baby clothes, toys, and formula. What else is there to mess up? As a result, Chinese parents across 15 cities have stated they are willing to spend 20 percent or more on brands they can trust for their kids. And unless Chinese brands don’t maintain stricter standards, that may mean foreign brands.

It’s still way too early to predict the consequences of these new developments, but you can be sure we will be keeping a close eye on parents and the ’00 generation.

A recent Forbes article describes a rash of new Chinese parents logging on to “social-parenting” sites such as Babytree.com to offer advice and garner parenting tips from other new Chinese parents.

While this is not a new phenomena, it points to a potential societal change amongst young Chinese parents from a familial baby-raising environment, to one where what is best for Little Xiao is not solely dictated by his Grandparents, but instead entrusted to thousands of faceless online members.

However, many of these Post-80’s Chinese parents will not follow advice to spoil and restrict their babies, learning offline that this has led to China’s 90’s generation children as being difficult and spoiled. China Daily spoke with Jiang Yao, a 27 year old Middle School Teacher who shared this viewpoint.

“My students, the post 90s, are a group of spoiled and difficult children. I won’t be an old-styled mom and I won’t bring my child up like that,” said Jiang, explaining the more restriction, the more disobedience.

This unusual hybrid of embracing new technology and resorting to less restricted parenting methods bodes interesting results for China’s yet-to-be-named youth of ‘00. We will let you know in ten years how it turns out.

Analysis of youth trends and cultures published by popular media and orchestrated by leading “youth” market research firms is often conducted, hilariously enough by individuals far removed from actual youth culture. It is one thing to conduct research with youth, and it is another thing to conduct research as a youth (for disclosure purposes I am 23 years old). In a meeting yesterday with a leading advertising and design firm, we were discussing the lack of intuition among popular market researchers and the negative impact of this reflected in their methodologies. This is such a crucial point. An individual who is not actually living among the youth is going to have a harder time reacting to and identifying percolating trends.

Fact.

I understand experience is a necessary attribute for many things. However, when youth culture is being discussed at major conferences, or in corporate business meetings, there is generally one thing missing: THE YOUTH.

Reading the summarization of Juliet Warkentin’s “Crack the Youth Code to Unlock the Future”, (here) it was hard not to laugh and shake my head. Her main thesis? Today’s youth is soliciting and gathering fashion advice and making purchasing decisions primarily (and in the future maybe SOLELY) from social networking sites such as Myspace, Facebook, and Twitter. I disagree with this theory and her subsequent analysis. Let’s take a closer look at some of her key points:

“This group [the youth] communicates, participates, and collaborates more than any other…At the heart of this is the power of social networking…”

Social networking is not at the heart of this. In fact as a member of Facebook for over 5 years I have witnessed an increased privatization of online social interaction. Most interaction is between close friends and family, rather than including the public online community. This actually limits the overall communication and collaboration between youths. Myspace is regionally cool and uncool among the youth and Twitter has yet to even enter the youth’s social networking sphere.

“People will soon use social networking to source opinion and advice from the masses…”

Yes, this is called crowd-sourcing. Successful crowd-sourcing companies such as Threadless are incredibly niche. I foresee more growth in niche areas such as fashion or technology in gathering advice, but as social media fatigue continues to settle in, crowd-sourcing may not be the best viable option for every company.

“Opinion is formed and identities built on Facebook, Bebo, Twitter and Ning…”

Let’s be realistic. Identities may be formed and built online, but the youth is not not simply a twitter name or a Facebook page. People may gather opinions and ideas from social networks, but it’s the actual real-life implementation that drives trends. It’s more rational to say that youth interact with friends, family & traditional media in the real-world and THEN take these ideas back to social networks and spread the word. Trends are driven forward in a more cyclical manner from online to the real-world, rather than simply linearly online.

A few key summaries and business implications:

• Privatization and social media fatigue among the youth will make it harder for companies to make connections using social media. Do not solely rely on social media. This is marketing suicide.

• Crowd-sourcing must be done organically and not forced upon youth consumers. Successful crowd-sourcing is generally derived from consumer demand, not company supply. Crowd-sourcing will be successful in niche categories by the “right” companies.

• Personal style and trends among the youth may be displayed online, but is still driven by real-life interactions. A healthy balance of actual real-life immersion and online social media immersion in youth environments is key doing successful youth market research.

Please chime in with comments, critiques or questions.

A direct contrast from heavily branded and sponsored festivals I have attended in the States, Antidote parlays it’s exclusivity and organic nature into an extremely fulfilling experience (the one major brand sponser I noticed, Vedett, sells beer. Beer sponsors are of course exempted from criticism). For example, examining my ticket, I noticed they were individually numbered by hand and only 450 were dished out. This made me feel exclusive and and entitled to be attending such an event. Companies looking to tap into a successful “experience” and “environment” should keep in mind this level of exclusivity. It’s an overall mindset of witnessing something amazing and knowing there are only 449 other people sharing the same experience. It’s impossible to feel this way in the midst of hundreds of thousands.

Antidote’s locale was set in a four-walled traditional Chinese courtyard. In order to find the venue, one had to first traverse through Zhujiajiao’s picturesque bridges and waterways. There was definitely an “adventure” type feeling to finally getting there. And the setting also provided a great way to gain a more rounded perspective of Chinese culture and music. The interconnectedness was both natural and stimulating.

The mix of hipster laowai’s from all over the world, local Chinese youth, curious older Chinese people, and the gazing eyes of bewildered Chinese cops is an astute example of globalization and international influence among China’s youth. Music has long acted as a cultural bridge and Antidote continued much in this tradition. Foreigners danced to Chinese DJ’s such as Ben Huang and B6, and old Chinese people were cutting rugs to foreign acts, such as Reptile and Retard and Ben Houge. It was also great to watch the artists finish their sets and then mingle in the crowd, enjoying the other shows, having a blast. Music is superb at bringing together diverse and eclectic people, and musical events in China such as Antidote, and other future events will continue to be a way for China’s music scene to grow. I hope to continue to see a cross transfer of musical ideas and cultural influences between China’s youth and international youth. It makes the world flatter, the music better, and party-goers drunker.

个性 loosely translates to individuality. But like most words it has many connotations: personality, confidence, character, swagger, uniqueness, something that represents who you really are. These are the meanings of 个性 in a youth Chinese context.

At enovate we are looking at several market segmentation areas in relation to youth and 个性. Some of these market segmentation areas include:

•    Generational differences
•    Social Class
•    Education level

It is important for us to identify the key 个性 elements within these market segmentations to best target youth consumers. For example, in the area of generational differences, a few target 个性 elements include self-expression through style, heritage branding, and shopping habits. In the social class segmentation some of our 个性 elements include brand quality and economic value. It is then our approach to then analyze the specific areas of 个性 within these targeted market segmentations and provide unique insights for companies looking to connect with youth consumers.

Essentially we want to find out how to give products and brands the necessary 个性 to appeal across different market segmentations. This is the ultimate goal of every company right? So how are we doing this?

•    Identifying key trends in Chinese youth fashion and retail.
•    Documenting actual street culture by attending concerts, taking pictures and gathering insights.
•    Three-pronged quantitative data gathering from targeted youth consumers.

We know China’s youth has 个性  and we want to find out what it is. Stayed tuned to the enovation labs for updates on 个性 and youth consumers.

My recent trip to the MIDI festival this past sunday re-ittereated a trend being followed closely by many in the youth Chinese research department (including but not limited to China Youthology, 56minus1, etc.).

The trend is simple: Chinese identity.

As an outsider with a fascination in Chinese heritage products and Chinese history, it was impossible to miss the proliferation of these heritage products or 经典国贸 being worn by China’s rock & roll youth.

As I walked around the outskirts of the MIDI festival lawn, I noticed nonchalant salesmen watching hazily as people browsed their products, many deciding to purchase things representative of China’s past. People bought blue and white striped fitted shirts known as, 海魂衫 . These shirts were worn by members of the Chinese navy and are said to represent the “Soul of the Sea”. People who wear this shirt are not only imitating their favorite rock musicians or being fashionable, the shirt is also said to bring a healthy spirit to the upper body. Paired with a 少先队的红领中, or Young Pioneer red scarf worn on the neck, arm, or leg, and a pair of Warrior, or 回力 sneakers, youth Chinese rock fans displayed their revolutionary rock spirit. Everyone’s pants, sneakers, and clothes were also garnished with mud as a badge of reverence for hardcore concert going.

Guys and girls adapted the past ubiquity of these products and wore them on this day as a tribute to their current rock and roll mentality. Rather than explicitly wearing military clothing to acknowledge revolution, many Chinese youth instead choose to wear historical “common” clothes to signify generational unity. Thirty or so years ago people wore 海魂衫 with 回力鞋子  because of functionality rather than fashion. They did not do this because it was considered cool, this was simply a necessary choice. But now, many Chinese youth choose to wear these clothes to proudly display their Chinese identity. And also because these clothes are no longer as common, they are able to individualize themselves from the masses today. It is an interesting cyclical effect, one that occurs frequently in Western fashion trends. But unlike Western fashion trends who often mash together generational trends, these Chinese youth are buying exactly the same product as their parents or relatives.

There are many market implications for this trend. Can local Chinese brands capitalize on the coolness factor that their clothes now possess? Can international brands entering China also adopt and modernize historical Chinese clothing to advantageous effects? It is a distinct possibility and we here at enoVate are keeping our eyes to both the past and the future.

And in between band sets, it was impossible not to get drawn into the crowd unity and Chinese nationalism as the crowd spontaneously burst into a singing of the Chinese National Anthem. I watched as the older faces in the crowd smiled and mouthed the words.

(a Joey Dembs production)