FUTURE PERSPECTIVE

GLOBAL CENTENNIALS

THE NEXT WAVE OF INFLUENCERS, DISRUPTORS

AND CONSUMERS

2 © 2017 KANTAR FUTURES. SOME RIGHTS RESERVED.

Future Perspectives are thought pieces

with concise, focused insights

into important issues of interest

to marketing and business strategists.

GLOBAL CENTENNIALSTHE NEXT WAVE OF INFLUENCERS, DISRUPTORS AND CONSUMERS

3GLOBAL CENTENNIALS

Centennials are the youngest generation, and they are a global generation. Born starting in 1997, the oldest will turn 21 years old in 2018. Centennials have already eclipsed Millennials as the global cohort driving trends and pushing industries forward, and they’ll soon be a core consumer group across a variety of categories.

Growing up in a time of resource scarcity and disruption has shaped Centennials’ approach to the marketplace and their broader world. It’s critical for brands to keep pace with their values, beliefs and expectations to avoid being left behind. Below, we explore 4 ways in which Centennials will change consumption habits and expectations of brands.

Mobile Natives

The oldest was 10 years old when the iPhone

was released

Formative years shaped by:

Slow growth, resource scarcity, connectivity,

disruptionBorn starting in 1997

21 years old in 2018

CENTENNIAL FACTS

35% of the global population

Higher concentration of Centennials in:

Africa, Middle East, South East Asia, Latin America

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1. New Sources of Youthful Energy

The global population is overall aging, with higher proportions of aging populations in North America, Europe and Developed Asia. Markets in Africa, Latin America, the Middle East and Developing Asia, conversely, are youth-driven, with young people often making up over 40% of the population. Thanks to constant connectivity, these youthful markets will play an increased role

in defining and developing global trends. Expect these regions to be a source for fresh inspiration and rising influencers that shape the global marketplace.

Additionally, these markets offer white space for brands looking to reach young people. Traditionally youth-focused brands will need to look beyond established or traditional markets in order to achieve growth.

DARIN AL BAYED

A young Lebanese woman living in Saudi Arabia, Darin has amassed followers on Instagram and YouTube. She focuses on comedy, but also tackles women’s rights and clichés about Middle Eastern life.

THE NEW INFLUENCERS

JEAN BOSCO NZEYIMANA

Jean is the 23 year-old founder of Rwandan company Habona, which uses waste products to produce affordable and environmentally-friendly biofuels.

WILLIAM TAN

William is a Singaporean lifestyle blogger who focuses on food, travel, fashion and technology.

5GLOBAL CENTENNIALS

2. Tech-Savviness Drives Increased Influence Across Categories

Centennials may be young, but often their technological skills outstrip their parents’. Many families look to their youngest members to gather product information, compare reviews and advise on the purchase process. This carries over into categories that young people historically have not been consulted on, including household goods and furniture.

Additionally, Global Centennials are passionate about keeping up with what’s going on in the world, and their beliefs drive

their purchase decisions. Centennials often influence family decisions on products and retailers by informing their parents about brands that align with their values, and those that haven’t kept up with their expectations.

Because of this involvement, Centennials are thinking about and developing opinions on a variety of categories earlier than previous generations. By the time they age into young adulthood, expect Centennials to have preconceived notions of your brand or category, and to remember good or bad experiences with it from a young age.

55% 60%52% 41%52% 20%

50% 30%48% 48%

43% 55%42% 61%42% 63%

37% 37%31% 47%

26% 77%26% 66%

18% 73%16% 76%

Clothes and shoesSpend their own money In�uence family spending

Apps

Toys and games

Event and outings

Personal care

Electonic goods

Eating out

Digital streaming

Sports equipment

Food and beverages

Travel

Household goods

Furniture

Books and music (physical copies)

Centennials Influence Family Spend

Question: On which of the following categories do you spend your own money or influence how your parents spend their money?

Source: IBM

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3. The Privacy Paradox

As Centennials grow up with the concept of social media and sharing, many aspects of their lives are simply open to the world. Centennials expect to share and see others sharing what they did at school, or their thoughts on the latest entertainment. But privacy concerns are real. Despite their young age, Centennials worry about their data being stolen, and about others posting without their permission. While open to sharing, Centennials want explicit control over access to their data, images and opinions.

Global Total

Latin America

Developing Asia

Africa

Eastern Europe

Developed Asia

North America

Western Europe

75%80%

79%

77%75%

72%

69%

68%

Percent of Centennials who are“concerned about data protection

and privacy on the internet”

(top 2-box, Kantar Futures 2017 Global MONITOR)

7GLOBAL CENTENNIALS

It will be critical for brands to walk the line between convenience and customer anonymity. We expect to see Global Centennials being willing to pay a premium

for brands that gain their trust through creating zones of privacy, and that differentiate their offers based on how much data Centennials are willing to volunteer.

KOVR

Dutch brand KOVR weaves metallic fibers into their clothes which block incoming and outgoing digital signals. The clothing protects phones, cards and other personal items with digital information from unwanted intrusion.

MICROSEC

MicroSec from Singapore has developed software that encrypts transmissions within IoT networks. IoT-enabled devices are already a key target of many cyber attacks, and tend to be more vulnerable than desktop computers or smartphones because they aren’t built with security in mind. MicroSec is working with the Singaporean government on a prototype, and has found interest from a few IoT companies.

43% OF GLOBAL CENTENNIALS AGREE

"When making product decisions, I prefer to seek advice from social

networks or forums"(top 3-box, Kantar Futures 2017 Global MONITOR)

PRIVACY IN ACTION

4. Shopping is Social, Social is Shopping

For many, shopping has always been a social experience. It’s a time to connect with friends and family, and interact with the community. Centennials are expanding the definition of social to include their digital networks. People they have never met often have as much influence over their product choices as a trusted friend or family member.

8 © 2017 KANTAR FUTURES. SOME RIGHTS RESERVED.

But Centennial shopping isn’t just about following influencers and taking their recommendations. This generation is taking advantage of instant input and shopping opportunities on their social networks. A recent study from Accenture shows that over two-thirds of global Centennials are interested in purchasing products directly from social media. Chinese social network Weibo has accelerated social shopping in China, allowing users to buy from both brands and individuals, with other users’ providing opinions on potential purchases. This phenomenon isn’t restricted to traditional social networks either. U.S. based makeup artist Pat McGrath recently launched a new collection of cosmetics that are available to purchase on music streaming app Spotify.

As Centennials continue to build their social networks and expect inspiration to strike anywhere, at any time, brands will need to explore new distribution channels and ensure a seamless journey from “I want to learn more about that” to “I want that” to “I bought that.”

As Centennials age into young adulthood, they will reshape categories and upend industries. Brands that know where to look can begin to read the signs, and make predictions about how Centennials will influence their future. Understanding this generation's values and motivations is a key first step in setting yourself up for success as Centennials take the reins and drive global markets.

9GLOBAL CENTENNIALS

To find out more, please contactJ. Walker Smith, Executive Chairman

T: +1 (919) 932 8858jwalker.smith@kantarfutures.comwww.twitter.com/@kantarfutures

www.kantarfutures.com/the-future-of-consumption

Kantar Futures is the leading global foresight and futures consultancy. We are a team

of consultants, researchers and futures experts who use futures techniques and

cultural foresight to help our clients shape innovation and growth.

Global Centennials was developed by Kantar Futures.

It was written by Kate Turkcan, Head of Youth Insights, and Andrew Curry, Director. Production was by John Catlett and design by Emmanuel Davis.