In July 2021, at the “From the Heart— 2021 Founders & Investors Conference on China’s Consumer Brand Innovation,” Zhang Peiyuan, Managing Partner at BA Capital, shared the latest research findings on the “nighttime economy.” Below is a summary of the presentation.
We conducted 30 hours of in-depth interviews across six major cities, speaking with 12 “nightlife enthusiasts.” We also carried out an online quantitative study with a sample size of 1,500 people to jointly explore the role of the nighttime economy in young people's lives. Three core functions emerged: facilitating social breakthroughs, enabling inclusive consumption, and fostering a sense of local belonging.
The first trend is that young people seek to break through social barriers. First, there's “no interest” — after work, young people are unwilling to keep “working” socially. Second, there's “no ability” — the prevalence of social media has eroded offline social skills. Third, there's “no way” — young people now belong to too many fragmented subcultures.
So how can we better support youth socialization? First, use physical space to filter the crowd and create topic cues that spark connections. Second, proactively design participatory mechanisms to create an atmosphere where interaction feels effortless.
The second trend is inclusive consumption. Young people are no longer blindly pursuing refinement and luxury. There are two implications for businesses: First, remove gimmicks and focus on product substance — strip away what users don’t need to reduce operational costs.Second, optimize supply chains — by opening enough stores, providing good service, and vertically integrating the supply chain, it’s possible to achieve ultimate cost-performance.
The third trend is fostering local belonging — becoming a “spiritual local.” The key drivers behind this include: Firstly, young people need a sense of security and tend to seek stability in their communities; secondly, the post-95 generation has a stronger civic consciousness and is more willing to engage in community building; and finally, commercial projects are increasingly open to embracing authentic local culture and inviting youth to co-create urban culture.
In conclusion, BA Capital’s research on the “nighttime economy” among young people suggests that nighttime is the most important time-space for young people to build their identity, take control of their lives, and establish social connections. The nighttime economy is a new way to explore the future of living and to restore life to life itself.
Why did BA Capital conduct this research? Because we’ve always believed that studying consumer brands ultimately means studying consumers.