It is clear that Generation Z, born between 1998 and 2010, has a significant impact on the consumer market, a recent report released by global measurement and data analytics company Nielsen said.
Generation Z has a significant impact on the consumer market. — Photo news.zing.vn
“Generation Z in Viet Nam” polled 370 people in Ha Noi and HCM City, with 210 of them belonging to generation Z and the rest being Millennials born between 1988 and 1999.
The report looks at the growing impacts of Generation Z, their connection with other generations, how important social media is in their lives, and the effectiveness of brand loyalty and endorsements.
Seventy per cent of Generation Z respondents said they influence the decisions to purchase furniture, household goods, food, and beverages.
But their power to influence purchases is not just limited to these categories: They indicated they are the key decision makers when it comes also to outdoor entertainment activities, outdoor dining activities and buying gadgets such as smartphones, tablets, laptops, and smart watches.
Nguyen Huong Quynh, managing director of Nielsen Viet Nam, said: “It cannot be denied that today’s children have a remarkable influence on adults’ purchase decisions. 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 Viet Nam has empowered these young people in a big way so that 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 future.”
Like Millennials, this generation spends a significant amount of time on social media sites and video platforms such as Instagram, Facebook and YouTube. However, the approach is more multifaceted.
Ninety nine per cent of Generation Z respondents have Facebook accounts while 77 per cent are on Zalo and 64 per cent on Youtube.
Around 90 per cent of our Generation Z respondents say they watch television every day within the last one month.
As social media becomes an essential part of their lives, they use these platforms for various purposes such as connecting with friends and family (93 per cent) and updating what is going on (73 per cent).
They use social media channels especially to express their voices and beliefs (55 per cent) and show off their daily activities (42 per cent).
However, leisure activities such as going to tea/ coffee shops, cinemas, supermarkets, and convenience stores are also things they love doing.
"When engaging with this generation, the multi-channel approach is the ideal one," Quynh said.
Generation Z is keen on trying new brands, with 40 per cent of respondents being open to interesting trials even if they have frequently used brands.
Furthermore, the loyalty this generation has towards a brand is low due to their curiosity and impulsiveness. Only a quarter of this demographic said they are likely to consider a brand carefully before purchasing and unlikely to switch.
Generation Z is estimated to number around 15 million by 2025, representing approximately 25 per cent of the country’s workforce, according to the report. — VNS