Demographic has major say in purchasing decisions.
Generation Z, born between 1998 and 2010, is estimated to number around 15 million by 2025, representing approximately 25 per cent of Vietnam’s workforce, according to the “Generation Z in Vietnam” report released recently by global information and measurement company Nielsen.
The report also looks at the growing impact of Generation Z, their connection to other generations, how important digital is in their lives, and the effectiveness of brand loyalty and endorsements.
While they are years away from fully establishing themselves, they are already having a marked impact on the consumer landscape. Seventy per cent of Generation Z respondents said they influence the purchase decisions made by their parents for furniture, household goods, and indulgent food and beverages.
According to Retail Measurement Service data, indulgent food and beverages had a market size of $6.6 billion in 2017. And their influencing power on their parent’s purchases is not just limited to these categories above; they also indicated they are the key decision makers for outdoor entertainment, outdoor dining, or technological gadgets such as smartphones, tablets, laptops and smart watches. It is clear that Generation Z has a significant impact on the consumer market in general and on some categories in particular.
“It can’t be denied that today’s children have a remarkable influence on adults’ purchasing decisions,” said Ms. Nguyen Huong Quynh, Managing Director of Nielsen Vietnam. “These youngsters can observe, demand and select goods with permission while shopping with their parents or when shopping on their own.”
“The rise of dual-income households in Vietnam has empowered these young people in a big way, so they can participate more in the decision-making process of the family from an early age. As the purchasing power of these young people continues to grow, marketers and advertisers should pay more attention to developing more effective campaigns to approach these consumers in the future.”
“These traits show that Generation Z is approaching and interacting with brands via various channels or at different touch-points,” Ms. Quynh went on. “Therefore, when engaging with this generation, the multi-channel approach is the most ideal and appropriate. Businesses should not just pay attention to online/digital platforms and overlook traditional media and bricks-and-mortar stores. Getting the right message via the right platform at the right time is of the utmost importance.”
Nearly four out of ten Generation Z respondents in the study said they were open to interesting trials even though they have frequently used brands. Only a quarter of this demographic said they would consider a brand carefully before purchasing and were unlikely to switch the brand.
Khanh Chi report on Vneconomictimes
