Small Campus Big World: How Brands Tap Into the Multi-Billion Campus Market?
In 2024, China’s college student population hit an all-time high of 47.63 million. With monthly allowances ranging from 1,501-2,000 yuan, these students are driving a massive consumer market worth approximately 850 billion yuan.
As the new driving force of the market, college students’ purchasing power is set to fuel brand growth. The campus market, with its untapped potential, is becoming the new battleground where brands are competing for attention.
How can brands build an effective campus marketing strategy? Let’s dive into the spending habits of gen z college students.
01: THE NEW MOTTO: SAVE SMART, SPEND BOLD
On one hand, they proudly call themselves 'happy cheapskates' while comparing prices across livestream channels, yet on the other hand, they splurge at expensive merchandise stores.
Brands are often confused: Are college students experiencing a downgrade or upgrade in their consumption habits?
This seemingly contradictory behaviour has become the new normal for gen z, best described as 'smart savers, bold spenders'. Today’s college students avoid unnecessary expenses and believe in spending on what truly matters, making sure every yuan counts.
That’s why they’ve developed their own 'budget hacks' - finding cheaper alternatives for food and clothes, buying near-expiration items, and mastering the art of freebies.
Just when you thought using Meituan for food delivery or Pinduoduo for shopping was thrifty enough, today’s students have found even better deals. They’re pros at buying wholesale-priced clothing directly from factories through 1688.com, getting three meals for 9.9 yuan using Pin Haofan (group ordering platform for food delivery), and even turning a profit through takeout review cashback apps.
They save on daily necessities and snacks too. By using free samples instead of full-sized products and buying near-expiration snacks instead of regular supermarket items, students not only cut costs but also reduce waste. Shops like Harmay, HotMaxx and HitGoo are packed with students, even turning several into popular chains worth hundreds of millions.
For entertainment, students have discovered the art of 'mooching.' They join senior hobby classes, visit school snack stands for cheap treats, and even tour new real estate on weekends for free food and community experiences.
So, for all their frugality, what are students willing to spend on?
02: FOOD: THE #1 SPENDING PRIORITY
Looking at students’ bills, it’s clear their biggest and most willing expense is food. Stats show that over 50% of their monthly spending goes toward eating. Over the past two years, discussions about food and drinks among students on social media have increased more than fourfold, keeping food trends on the rise.
From BBQ in Zibo to spicy hotpot in Tianshui, to the recent trend of 15,000 students in Zhengzhou organizing a 50-kilometer night bike ride to eat soup dumplings in Kaifeng, plus the rising popularity of food-themed games like Airplane Chef and Shawarma Legends - food isn’t just a necessity for college students, it’s a genuine passion.
In the past, students would eat instant noodles all month to save for new sneakers, today’s students say, “I’ll skimp on anything but good food!”
Behind this enthusiasm for food lies a deeper truth: this generation of college students values authentic experiences more than ever, seeking quality and a real connection to their own tastes and needs.
03: EXPERIENCE DRIVEN WALLETS
Even while being budget-conscious, college students are still willing to pay for experiences. 'Youth has no price tag' - they want to create fresh memories while they can.
Travel, music festivals, and concerts remain their top three non-essential expenses. Beyond music and travel, cultural experiences with humor and wit - like comedy shows, stand-up, and traditional Chinese comedy - have become popular among students, driven by variety shows like Amazing Night and Rock & Roast.
They’re also discovering new ideas with everyday experiences: KTV rooms are being transformed into study rooms during finals week at 38 yuan for 8 hours, students flock to bars for academic lectures and research discussions, and dorm rooms are turning into nail salons and snack shops. These hybrid spaces that blend multiple functions and engaging experiences are becoming the latest “draws” for students.
04: PAYING FOR HAPPINESS
'Emotions' have consistently impacted the buying behaviours of gen z, significantly influencing their purchasing decisions. Even if something lacks practical value, as long as it provides enough emotional satisfaction, it can become their favourite with a good 'happiness value.'
Take the popular 'squishes' for example. These soft, squishy toys have become students’ favourite study companions thanks to their cute appearance and the satisfying feeling. Some attractive 'squishes' can even be resold among students for up to 1000 yuan.
Some high 'happiness value' items aren’t even physical products. More and more virtual emotional products are trending on campus. These include things like the 'Einstein’s Brain' (hope for a smarter self) selling for 0.1 yuan on Taobao, or spending a few yuan for a 10-minute therapy chat, services like 'awaken from relationship delusion,' 'emotional support' and various other 'anonymous sharing and venting' services, as well as 'good luck spray' (wishes for success and luck) that costs just a penny.
In the closely connected social circles of university campuses, peer influence plays a significant role in students’ purchasing decisions, making campus media more impactful on their spending habits than ever.
05: THE CAMPUS ENTERTAINMENT
Among internet users, college students are the top spenders on entertainment content. The hours spent by college students on audio/video platforms, including Douyin, are on par with their time on social apps like WeChat, and 64.47% intend to subscribe for content. Representing 70% of the audience for short online dramas, gen z is fueling a multi-billion dollar market.
Over 50% of college students are shifting from consumers to content creators, utilizing social media to market themselves or earn money, with blogging now the second most popular career choice.
They often showcase imaginative content related to their life on campus. Initiating the fastest shower challenge among universities, adapting the well-known series Empresses in the Palace in dormitories, capturing campus roadshows, hosting talent shows, and producing various reality shows focused on love and travel etc. This tech-savvy generation is poised to thrive in digital stardom and is crucial for transforming the entertainment industry.
In response to this trend, platforms like Tencent Video are now targeting college students with new variety shows centred on campus life. Consider Youku’s 'Twinkle Love,' focusing on college students’ love stories, and Bilibili’s 'College Students Who Love to Sing,' a talent show. Entertainment for college students on campus is becoming a solid business venture.
06: CAMPUS SOCIAL ECOSYSTEM: GROUPS, BOARDS, AND COMMUNITIES
The three major private campus media channels - 'Groups, Boards, and Communities' - have become deeply embedded in gen z college students’ daily lives, emerging as their most trusted sources of information and product recommendations.
'Groups' refer to WeChat group chats. According to student surveys, each college student joins nearly 200 group chats during their four-year college experience.
These range from official large groups like class groups, major-specific groups, grade groups, club groups, and dorm building groups, to smaller lifestyle support groups for second hand items, school bus services, and food delivery. There are even groups for campus fruit shop deals, gaming buddies for 'Honor of Kings,' and morning class attendance check-ins. Students have grown accustomed to using these group chats both for focused information gathering and solving various daily needs.
'Boards' aren’t physical boards on campus, but rather public accounts that serve as all-purpose virtual bulletin boards.
After students add campus board operators as friends on QQ, these operators can publish students’ submissions. These 'Campus Boards' facilitate various social functions like confessions, friend-finding, and sharing, while also helping with practical matters like lost-and-found, carpooling, group buying, and requesting tickets or books.
Many university campus board accounts have reached influencer-level visitor numbers, gathering all kinds of fresh campus information. For students, these 'Campus Boards' have become even more authoritative and convincing than official school announcements.
'Communities' are specialised sections within major apps designed specifically for college students. Platforms like Douyin, Bilibili, and Xiaohongshu all have their own 'Campus Community' features. When students enter their campus community, they can see social media updates from other students on campus, making these 'Campus Communities' an important medium for student entertainment and social interaction.
Today’s college students are more careful with their spending, while standard brand marketing approaches are losing their effectiveness. How can brands leverage these insights tailored to campus life to re-engage with the new wave of consumers and stay relevant?
What is Means for Brands and Business...
Creating Campus-Sync Brand Marketing
Brands should identify the distinctive ecosystem of the campus life when compared to other sectors, with a focus on the evolving consumption habits of students and fresh growth prospects. This indicates the importance of creating products that offer better value-for-money and practicality, while also innovating experiences that evoke emotional connections.
When it comes to brand communication, campus information networks play a huge role in influencing students’ buying decisions. To appeal to younger demographics, brands should immerse themselves in both on-campus experiences and online informational channels.
Our Works...
Take Lay’s as an example. Recognising the heightened desire for stress management among college students, Lay’s Potato Chips connected their product to emotional comfort and launched a fresh product called 'Lay’s Big Wave.'
Its rich, crunchy texture and enjoyable crispness led to its rapid rise as a favoured snack among students, providing both a flavourful experience and a source of stress relief.
At the same time, Lay’s tapped into students’ interests and daily life. Their first stop was the Strawberry Music Festival, a well-known escape for the younger crowd to unwind, where they unveiled 'Big Wave' chips as the ultimate treat for relaxing amidst the fun.
Partnering with eight top universities, Lay’s targeted the pressure-filled exam season when they presented two new offerings and started an initiative called the “Exam Season Stress-Relief Alliance on Campus.”
The campaign found a strong connection with students, leading to enthusiastic involvement. By June 2024, the hashtag #MoreSpiceLessStress had reached over 1.2 billion views on Weibo and 250 million views on Douyin.
