Source: McKinsey & Company, original article
By Aimee Kim, Paul McInerney, Thomas Rüdiger Smith, and Naomi Yamakawa
Gen Zers (born 1996–2012) are coming of age. By 2025, the group will make up a quarter of the Asia–Pacific (APAC) region’s population—the same as millennials (born 1980–1995). And as Gen Zers mature, they will make and spend more money. Although Gen Zers share many qualities with millennials, it’s wrong to think of them simply as a younger version. Generation Z has its own unique characteristics. For one thing, unlike millennials, Gen Zers are entering into adulthood during a global pandemic. Still, the demographics are clear: by 2025, the two cohorts will compose half of APAC consumers.
The five principles that companies should keep in mind as they approach Gen Zers:
1.Relevance and speed are more important than ever
2.The quality and price equation has to be just right
3.Social-media marketing needs to pay more attention to video
4.Being green isn’t enough: Price and quality also matter
5.Brands need to be locally relevant
By Aimee Kim, Paul McInerney, Thomas Rüdiger Smith, and Naomi Yamakawa
Gen Zers (born 1996–2012) are coming of age. By 2025, the group will make up a quarter of the Asia–Pacific (APAC) region’s population—the same as millennials (born 1980–1995). And as Gen Zers mature, they will make and spend more money. Although Gen Zers share many qualities with millennials, it’s wrong to think of them simply as a younger version. Generation Z has its own unique characteristics. For one thing, unlike millennials, Gen Zers are entering into adulthood during a global pandemic. Still, the demographics are clear: by 2025, the two cohorts will compose half of APAC consumers.
The five principles that companies should keep in mind as they approach Gen Zers:
1.Relevance and speed are more important than ever
2.The quality and price equation has to be just right
3.Social-media marketing needs to pay more attention to video
4.Being green isn’t enough: Price and quality also matter
5.Brands need to be locally relevant
In an effort to understand the distinctive ways that Gen Zers research, consider, purchase, and use products, in the second half of 2019 McKinsey surveyed more than 16,000 consumers in six countries—Australia, China, Indonesia, Japan, South Korea, and Thailand.1 Then we compared results across three generations—Gen Zers, millennials, and Gen Xers (born 1965–1979). The survey asked respondents about their general attitudes toward brands, shopping, digital, and media, as well as their outlook on the world. It also asked specific questions about shopping habits and brands for selected categories (Exhibit 1).
Gen Zers in APAC: Five consumer trends
Obviously, there are massive differences among the six surveyed countries in their population profile (aging Japan versus more youthful Indonesia), economics (Australia’s GDP per head is several times that of Thailand), and history and culture. In specific areas, China shows tendencies that set it apart. Nevertheless, we were able to come to five broad conclusions about APAC’s Gen Zers:
Obviously, there are massive differences among the six surveyed countries in their population profile (aging Japan versus more youthful Indonesia), economics (Australia’s GDP per head is several times that of Thailand), and history and culture. In specific areas, China shows tendencies that set it apart. Nevertheless, we were able to come to five broad conclusions about APAC’s Gen Zers:
- They rely on social media but are thoughtful about how they engage with it.
- They want it all—and are used to getting it.
- They prefer brands that show their personality and uniqueness but that are also well known enough to be recognized.
- They are greatly influenced in their brand selection by video content.
- They want to be seen as environmentally conscious, but they often don’t want to pay for this.
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