What investors need to know about the ‘little sisters’ army of young women powering China’s consumption growth story

Women overall make three out of four purchases in China, boosting shares of companies ranging from cosmetics to duty-free shops

Households are shrinking in China, and women are marrying later, if at all, amplifying their buying power

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Women have become a driving force of consumption in China. Here, women wearing walk along a business street after shopping in Beijing. Photo: Agence France-Presse)

Published: 7:00am, 10 Aug 2020Updated: 11:17am, 7 Dec 2020

An army of young women dubbed the “little sisters” is fast becoming a driving force of spending in China, boosting the fortunes of companies selling everything from beer and liquor to streaming TV shows and cosmetics.

They are well-educated, and are delaying or just skipping marriage and motherhood, giving them more money and the confidence to spend. Meanwhile these “little sisters” see themselves reflected in popular TV shows – like the summer hit Sisters Who Make Waves – that encourage them to kick back and splurge on themselves. As such, “little sisters” are an increasingly important segment of China’s female consumers, who among all age groups account for three out of four purchases in the world’s most populated country, according to a report by Frost and Sullivan.

“The rising power of well-educated city women in their 20s to 40s is now a hit genre in mainland TV series and entertainment shows,” said Wendy Liu, a Hong Kong-based strategist at UBS Group and author of a new note on what she calls the “little sisters” economy.

“Collectively, their rising disposable income and aspirations for the ‘good life’ have had a strong impact on demand for cosmetics, duty-free, health care, and mobile games/internet content. More importantly, the ‘little sister’ economy may impact spending by families and children across the spectrum” of e-commerce and entertainment etc,” she said.

These “little sisters” will lead to booms in sectors spanning from make-up and athleisure to food, beverages and home appliances, according to UBS and HSBC Holdings, which also has put out a new report on the growing spending power of Chinese women.

What investors need to know about the ‘little sisters’ army of young women powering China’s consumption growth story

Women overall make three out of four purchases in China, boosting shares of companies ranging from cosmetics to duty-free shops Households are shrinking in China, and women are marrying later, if at all, amplifying their buying power

Women overall make three out of four purchases in China, boosting shares of companies ranging from cosmetics to duty-free shops

Households are shrinking in China, and women are marrying later, if at all, amplifying their buying power