CONSUMERS OF TOMORROWGaurang Kotak

Head of Consumer Insights

The Nielsen Company- Vietnam

0403

01

02

GEN Z – CONSUMERS OF TOMORROW

IS IT TOO EARLY TO CARE ABOUT GEN Z?

GO DIGITAL –THE MUST TO

ENGAGE WITH GEN Z?

IS GEN ZTHE EXTENSION OF

MILLENNIALS?

WILL BUSINESSESNEED TO SPEND

MORE $$$ TO REACH –RESONATE - REACT?

WHO ARE WE TALKING TO?

Gen Z(12 – 21 years old)

Millennials(22 – 35 years old)

HOW DID WE GET THIS INFORMATION?

Sample size N = 370

HCMC (N = 185) & Hanoi (N = 185)

Gen Z (N = 210)

Millenials (N = 160)

Quantitative Research

Sample size N = 12

HCMC

Qualitative Ethnography

Youth Magazine Editor

Student Club/ Community Leader

Business owner

Brand manager of Millennial and Gen Z brand

Qualitative IDIs with Teen Influencers

The key SOCIAL STAKEHOLDERS that have regular interaction

and make impact on diverse aspects of teenage life

MYTH 1:IT IS TOO EARLY TO CARE ABOUT GEN Z?

QUICK FACTS ABOUT GEN Z GLOBALLY

AKA “generation connected” or “dot

com kids”

Use slanguage like “Cray cray”, “Defs”,

“Fomo” and “YOLO”

Over 70%surveyed Gen Z said they influence family decisions on buying

furniture, house-hold goods, food &

beverage

BY 2025, GEN Z GLOBALLY WILL…

reach:

2 Billion

be estimated to

contribute 27% into labor workforce

BY 2025, GEN Z IN VIETNAM WILL…

be:

20 – 29years old

reach:

14.7 Million

Contribute: 21% of labor workforce and

30% of Connected Spenders

HOW ABOUT GEN Z IN VIETNAM?

Source: Vietnam GSO (* Labor workforce: 15 – 64 years old)

VietnameseGen Z

95% Gen Z makes decision themselves

for Indulgent Food (*) & Beveragewhich has the market size of

US$ ~6.6 Bil in 2017

Q16. Which statement describe the best your involvement level in purchasing these products?

AND THEIR INFLUENCING POWER ON PURCHASE IS NOT LIMITED TO INDULGENT FOOD & BEVERAGE

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BUSTEDMYTH 1: IT IS TOO EARLY TO CARE ABOUT GEN Z?

It can be late already if you haven▪ ’t engaged with themGen Z will account for ▪ 1/5 of labor force and 1/3 of Connected Spenders in the next 7 yearsThey have strong POV and are active shoppers towards most of ▪purchases so LETS FOLLOW THEM

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MYTH 2: IS GEN Z THE EXTENSION OF MILLENIALS?

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VIETNAM IS CHANGING THE INCUBATING LANDSCAPE

HIGHER SOCIAL MEDIA CONNECTIVITY

55 mil Total number of active

social media users by

Jan’18

HIGHER EDUCATION INVESTMENT

+34%Investment capital of

Education & Training

Ministry in Q1’18 vs. YA

BETTERLIVING CONDITION

33 mil Middle class

by 2020

ABUNDANCE OF CHOICE

Local vs. Imported

E-commerce

Delivery service

On-the-go solutions

MORE PROSPEROUS OPPORTUNITIES

Premium & Prestige

Smart spending

Authenticity

Rise of wellness

Connected Spender

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Q48. When talking about these characteristics, which companies/ brands do you think of? Any other companies/ brands? (N = 210 – Gen Z)

BIG ROOM FOR BRANDS TO BE MORE CONNECTED WITH THIS GENERATION

Brands Association

FMCG 23% 46% 48% 56% 25%

INNOVATIVETIMELESS/

CLASSICVALUE FOR

MONEYREPRESENTATIV

E

PREMIUM HIGH QUALITY

Pioneer in developing new

products

Reflect Vietnamese

values & cultures

Timeless/ Classic(Lâu đơi/Cô điên)

Affordable price

Premium &High Quality

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THEY REQUIRE FUN & ON-DEMAND. THE MOBILE-ECONOMY IS THE FUTURE

ENTERTAINMENT ACTIVITIES THINGS CANNOT LIVE WITHOUT

GO TO CINEMA

(vs. 15% Millennials

& 2% Xennials)

22%

PLAY GAMES ON

MOBILE/ TABLET

(vs. 52% Millennials &

44% Xennials)

57% Mobile 45% (vs. 35% Millennials & 36% Xennials)

Entertainment 20% (Cinema/ Game, etc.)

(vs. 5% Millennials & 0% Xennials)

Internet 21%(vs. 11% Millennials & 10% Xennials)

Q12. Which entertainment activities did you do within the past 1 month? Q46. What are things you cannot live without?

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BUSTEDMYTH 2: IS GEN Z THE EXTENSION OF MILLENIALS?

▪ Gen Z has many things in common with but are not the extension of Millennials

▪ They are global residents who are super connected and do care about society issues such as social responsibility, gender equality, LGBTQ, etc. Criteria of choice for products/ services will be considerably different vs. previous generations

▪ Businesses should be ready for the Mobile-economy

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MYTH 3:GO DIGITAL – THE MUST TO ENGAGE WITH GEN Z?

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HOW IS A AVERAGE DAY OF LIFE DIFFERENT?

XENNIALS (1982 – 1987) MILLENNIALS (1988 – 1995) GEN Z (1996 – 2005)

FIND OUT MORE…

Source: Nielsen’s Qualitative Study - Ethnography

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HOW XENNIALS LIVE A DAY…

NEW DAY

START!

12pm 2pm

7pm

LUNCH WITH COLLEAGUES

OFFICEBREAK

GROCERY SHOPPING FOR

DINNER

6 - 8am

WAKE UP & RUSH TO WORK

Hurry up kids! We have to rush to school! What kind of food do you

want to have for breakfast?

Do you know any product for anti-aging? My skin is getting worse these days!

Anything new today?

5pm

Chị Tám ơi, is there any new delicious fish sauce?

DINNER WITH FAMILY

Anything happy today, kids? How about you, husband?

9pmRELAX

10pm

BEFORE SLEEP

I am going to a wedding this weekend.

Don’t know what to wear! I have to text my close friend to ask for

her advice!

Tran Thanh gameshow is so boring! Let’s search on HBO if there is any

blockbuster today

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HOW MILLENNIALS LIVE A DAY…

NEW DAY

START!

12pm 4pm

7pm

PASS BY CVS

OFFICE BREAK

CHECK IN ATTHE GYM

8am

WAKE UP & MAKE UP

Ha Anh Tuan’s new hit is great! Feeling so refresh to start a new day!

Wow, a new dish promotion!

I’ll try!

Bubble tea time has come! #bubbletea #happytimeofday

6pm

EAT OUT WITH FRIENDS

9pmMEET

PARENTS AT HOME

9-11pm

RELAX

9am

LUNCH WITH COLLEAGUES

Have you seen this new dress of this shop? I plan to check it

out this weekend

Mommy, there is a new BBQ sauce I’ve seen on my friend’s facebook! The dishes

look delicious! I note down the brand name here, you can find it in supermarket

at weekend!

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HOW GEN Z LIVE A DAY…

NEW DAY

START!

10am

12pm

6pm

8am

2pm

8pm

10pm

9am

WAKE UP

*grab mobile phone*Any new message for me?

BUYBREAKFAST

The bakery is so cute! #checkin #vintage #bakery

Any interesting new news?

LUNCH

Wait! Don’t eat! Let me take a photo to “cúng” Instagram #nicelunch #yummy

This class is so boring. Guys let’s take a selfie! Which frame you would like to put in? #snapchat

#wefie

ON THE WAY HOME4pm

OMG! My crush has posted something!

FREE TIME Oh! Is cleansing oil is that important

for skin care?

7pm

DINNER WITH

FAMILY

Mom! Dad! I gonna register for university selection. Can you give me your advice?

HOMEWORKRELAX

How many likes I have received today?

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SOCIAL MEDIA IS MORE IMPORTANT WITH GEN Z THAN MILLENNIALS & XENNIALS

GEN Z12 – 21 Yo

(1996 – 2005)

Millennials22 - 29 Yo

(1988 - 1995)

Xennials30 - 35 Yo

(1982 - 1987)

Q24. You use Social Media for which purposes?

SOCIAL MEDIA IS AN ESSENTIAL PART OF MY LIFE

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PURPOSE OF USING SOCIAL MEDIA

73%UPDATE NEWS AND CURRENT AFFAIRS

93%CONNECT WITH

FRIENDS/ FAMILY/ COLLEAGUES

55%EXPRESS YOUR

OPINIONS & BELIEF

42%SHOW OFF YOUR DAILY ACTIVITIES/ PRODUCTS

(vs. 49% Millennials & 41% Xennials)

(vs. 35% Millennials & 33% Xennials)

Q24. You use Social Media for which purposes?

GEN Z SHARE THE SAME TOP 2 YET DIFFERENCES CAN ALSO BE SEEN

GEN Z WILL NOT BE HESITANT TO EXPRESS THEIR OPINIONSAND BELIEF ON SOCIAL MEDIA. BUSINESSES HAVE NO CHOICEBUT ENSURE STRONG ONLINE BRAND EQUITY

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Q42A. Which social media do you have an account?

BESIDES TOP 3 SOCIAL MEDIA, CONSIDER INSTAGRAMTO ENGAGE WITH GEN Z AS 1 OVER 4 HAS AN ACCOUNT.GEN Z IS NOT LOYAL TO ONE, THEY ARE LOYAL TO MANY…

YOUTUBEFACEBOOK ZALO

SOCIAL MEDIA GEN Z HAS AN ACCOUNT

24% GEN Z HAS AN

INSTAGRAM ACCOUNT

(vs. 9% Millennials & 10%

Xennials)

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BUSTEDMYTH 3: GO DIGITAL – THE MUST TO ENGAGE WITH GEN

Z?

Virtual life and real life are equally important to Gen Z▪Gen Z is super connected and the most social but do expect the ▪‘Real’ More touch points are emerging, making the Reach easier but ▪challenging the Resonate and ReactYour brand health is no longer limited to the offline. What is the ▪status of your online Brand Equity?

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MYTH 4:WILL BUSINESSES NEED TO SPEND MORE $$$

TO REACH – RESONATE – REACT?

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GEN Z ARE LESS LOYAL TO A BRAND & OPEN FOR TRIAL

I am quite open to switching brands, as long as it has products suitable for my needs

I have my frequently used brands but I will switch after some time of using

I have my frequently used brands but are open to consider or trial new brands if I find it interesting

I usually choose the brands very carefully before purchasing and am unlikely to switch

Q19. Which statement best describes you with regards to product brands chosen?

LEVEL OF BRAND LOYALTY

Gen Z Millennials Xennials

ESSENTIAL TO REACH GEN Z VIA DIFFERENT TOUCH POINTS

90% Gen Z watched television everyday in P1M

TELEVISION

46% Gen Z agree that social media is an essential part of their lives.

SOCIAL MEDIA

Game/ Movie/ Music

ENTERTAINMENT

Supermarket/ CVS Shopping mall

PHYSICAL STORES

95% Gen Z cannot live without family while 56% without friends

FRIENDS & FAMILY

CinemaMilk-tea/ Coffee shops

OUT-OF-HOME ENTERTAINMENT

GEN Z(12 – 21 Yo)

26

IS CONVENTIONAL MARKETING ENOUGH?

GEN Z WANTS TO EXPRESS

OPINIONS/ BELIEF AND

SHOW OFF DAILY

ACTIVITIES/ PRODUCTS

ON SOCIAL MEDIA

3 OVER 5

GEN Z TENDS TO DO

THINGS SPONTANEOUSLY

WITHOUT PLAN

Q10. On scale from 1-7, in which 1 is Totally disagree and 7 is Totally agree, To what extent do you agree with this statement

‘I tend to do things spontaneously without plan’ (Tôi thường hành động bất chợt, không dự định)

‘I am always willing to try/ experience new things’ (Tôi luôn săn sàng thư nhưng thư mơi la)

3 OVER 5

GEN Z ALWAYS WANT TO

TRY/EXPERIENCE NEW

THINGS

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TOP CHECK-IN PLACES

TOP POPULAR BRAND PAGES TOP POPULAR CELEBRITY PAGES

THE RISING TREND OF CHECK-INS AND COMMUNITITIES REVEALS A WHOLE NEW SPECTRUM OF BRAND TOUCHPOINTS

Phố đi bộ Nguyễn Huệ Tiệm bánh Cối Xay Gió Đà Lạt

Những bức tường vàngHội An

Quảng trường Lâm ViênĐà Lạt

Đèo đá trắng (Ngọn đồi Bắc Âu) - Hòa Bình

Phố đi bộ Hồ GươmHà Nội

Source: https://www.socialbakers.com/statistics/facebook/pages/total/vietnam/celebrities

https://dulich.vnexpress.net/photo/anh-video/5-dia-diem-duoc-gioi-tre-check-in-nhieu-trong-nam-2017-3679231.html

GENERATE BUZZ AND ENHANCE LOYALTY BY ADDING TOUCHES OF PERSONALIZATION & FUN VIA TANGIBLE KEEPSAKES

Photo ticketsCGV Cinemas

Instant photo boothKiehl’s, Takashimaya

Interactive samplingmachine - Lifebuoy

CREATE IN-STORE DISRUPTIONS FOR CHECK-INS AND THEY WILL BE YOUR BRAND AMBASSADORS

Japanese Pop Art Shiseido Takashimaya

TWG TeaTakashimaya

Photo wall CGV Cinemas

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NEW EXPERIENCE FOR CURRENT OFFERING PRODUCTS/ SERVICES

Bel Cheese Recipes Ideas MILO Recipes L’amour CGV Hoang Van Thu

31

PRE-STORE

IN-STOREE-COMMERCE

M-COMMERCE

POST-PURCHASE

CAPTURE GEN Z IN THE WHOLE JOURNEY.MAKE IT A CO-CREATION JOURNEY

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BUSTED

MYTH 4: WILL BUSINESSES NEED TO SPEND MORE $$$

TO REACH – RESONATE – REACT?

NOT SPEND MORE BUT SPEND SMART by:▪ Be DISRUPTIVE and Re-imagine your MKT Mix plan.

There are always some touchpoints/ activities more efficient than the rest

▪ POS -> POC/ Influencer MKT/ Co-creation▪ Position your product as a service as customer

experience will be the key differentiation

33Copyright © 2017 The Nielsen Company (US), LLC. Confidential and proprietary. Do not distribute.

WHAT’S NEXT?

TARGETING GEN Z – EASY OR DIFFICULT?

IMPACT MEASUREMENT

Measure impact ofyour investment ondigital – How Gen Zperceive and bondwith your brandsonline

INVOLVEMENT

Get Gen Z involve inyour business fromidea generation,service/ productofferings to evenmarketing

ENGAGEMENT

Leverage differenttouch points to engagewith Gen Z in pre,during & post-purchase

UNDERSTANDING

Behavior, lifestyle, usageand attitude as well astrend Gen Z is following

GEN Z MARKETING IMPLICATIONS

GET YOURSELF READY TO WIN THE NEXT GEN Z OVER

BUSINESS IMPLICATION

Authenticity – Empathy – Connect more emotionally

▪ Keep innovating is a must (New categories, packaging,

experience, etc.). With customization & differentiated

values.

▪ Opportunity for luxury/ premium & smaller pack sizes

▪ Opportunity to lengthen customer journey & create co-

creation journey

Ethical marketing▪

Environment, gender & emotionally sensitive▪

Promote social cause, CSR, etc.▪

▪ Impulse and indulgence,

▪ Convenience products, On-the-go solutions

▪ Focus on e-commerce, payment platforms development

Identify efficient touchpoints ▪ for your brand

Short & crisp communication▪ …constantly

GEN Z CHARACTERISTICS

Virtual vs. Real

Look for inspiration, experience & personalization

▪ Super connected – Informed -Active

Fast-pace life & Time poor

Many vs. More▪