China’s Sharing Economy And The Millennial Culture

The wealth gap in China has made it tough for millennials trying to make their mark.

Enter You+: co-living spaces where roughly 5,000 people live. What that means is a true living community where its residents are inspired to work together, while also expanding their horizons and skill sets through business workshops, networking and more.

And it’s a hotbed for startups that are seeking millennials to join their ranks. In fact, in a Bloomberg piece that features this community, it notes that around 60 startups call You+ in Beijing home.

And China isn’t the only place where this has become popular. There are also spots in the U.S., Denmark and Spain that offer similar co-living arrangements.

You+ has the backing of Lei Jun, who is the founder of the smartphone company Xiaomi. It’s gained its popularity mainly due to the fact that these young professionals are looking to break into the job market in a tough economy. It’s become the latest version of the “sharing economy.”

You+ provides the perk of having a room for as low as $500 a month, coupled with access to the co-working office space — plus entertainment spaces (like a bar and game room).

“Instead of working for years at a company to gain some capital, such a place allows young people to experiment with their startup ideas at very low costs,” Su Di, the 36-year-old You+ co-founder who lives in the space, told Bloomberg. “They meet new people, gain new ideas constantly, and that’s why more people are embracing it.”

Unlike in the U.S., the concept of communal living is embraced as part of a way to deal with challenging economic times. Plus, it takes away the pressure of overpaying for an apartment that’s often not being used. And it gives its residents the added social benefit, along with possible business connections.

“There’s an element of brain-power sharing when people bounce ideas off of each other in a space like this,” Tyler Xiong said in an interview. “In a sense the brain is the underused asset.”

Going back to the concept of the sharing economy, that’s a popular phenomenon that’s catching on in the region. Not only has it spurred great competition between Uber and Didi Kuaidi, but there’s also China’s version of Airbnb: Tujia. Tujia is making its mark on the map as a unicorn of its own after hitting the $1 billion club just a few months ago.

“The sharing economy is a new economic system that is entering the world stage,” Jeremy Rifkin, an economist and author of The Zero Marginal Cost Society, told Bloomberg. “Capitalism the parent has nurtured this new child, and let it grow and find its new identity.”

And that’s exactly why You+ is experimenting with this new concept — one it hopes will continue to grow for the millennial generation.