c3621 millenium-gen-z-report-260411
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Gen Z in Vietnam
The craving guiltless generation
2011
Gen Z Report – Readers Notice
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Agenda
Reminder on the approach
Snapshot of a generation
Glance at 6 major consumption trends
Zooming in at Gen Z relationships with brands
Summing 'up on Gen Z insights
Approach
In-depth interviews and hang-out sessions with
teens (15 to 18yo)
UrbaneQualitative Online Youth
Communitywith teenagers aged 15 to
19 yo
Snapshot of a generation
Gen Z - rapid change, affluence and multiple choice
Shifts in ‘life paradigms’
BEFORE NOW
Controlled information Greater access to information- More avenues for learning- More sources of influence
Frugal living Abundant living- Overt show of wealth- Optimism about the future- Changing values
Focus on duty to the family Shifting focus to self-definition
Pressure to conform Pressure to succeed
Over controlled from family Need of caring and sharing from parents
Pre-teen Gen Z – all about ME!
Identify and
understand
Impatient
Indulgent
Include
Individual
Impress (notice)
Older Gen Z– all about MORE
ChallengingMORE
MaximizeMY Youth
Develop and learnMORE
InspireMORE
Opposing pressures
“I feel confident when I know I look good.”
“I am me. I don’t want to be mistaken for someone
else.”
“I should be recognized
for my talents.”
Hyper-individualism Insecurity
“Who will help me?”
“My parents have no time
for me.”
“What will I do in the future?”
4 key need states
• Stimulation/ guidance or encouragement
• Inspirational idols/persons
• Freedom from parents’ control
• Private spaces: study abroad, internet, friend crews…
• Have capable/successful image in other’s eye
• Expression/ Entrepreneur
• Being a part of something,
• Differences/ self identity
• Mimic/ imitate others
Integration Recognition
InspirationIndependence
•Lack of communication & guidance from parents
•Unhappy family•Overwhelming work load
•Over-controlling teachers
Progression but disorientation, study pressure, lack of family support
Confusion over life direction
Family
Study
Which major should I choose?
What is my career direction?
What are my goals?
How will I achieve them?
How do I become an adult?
Friends & Internet are Teen’s resort
“I am curious, and active. Want to have as many friends as possible that why I joined many clubs/ extra-curriculum activities” - Young adult males 19, HCM
“I just want to have an easy life, find a stable job” – Teen Male Hanoi
“My biggest dream is to have a happy family. It’s not only for me but also for other members as well.” Teen Female 17, HN
I hope that our family will back again. So that we can all stay together my dad, mom and me, but it’s impossible – Teen girl 16, Hanoi
“Be true to your self, you can cry when you sad even if you are a boy” – Teen Male 18, HCM
From “we” to “me”, family to global village, duty to indulgence
Hyper digitalization Self definition
Search for role models
Novelty addictedGuiltless self-
indulgence
Experience seeking
6 major trends
Hyper digitalization
1st major trend
95% of urban Gen Z are online
Cimigo NetCitizens 2011, download at www.cimigo.vn
Key sites
Cimigo NetCitizens 2011, download at www.cimigo.vn
Websites visited most often by 15 -24 year olds %
Zing 55Google 53Facebook 24Yahoo 21kenh14.vn 16dantri.com.vn 16nhaccuatui.com 15vnexpress.net 12youtube.com 924h.com.vn 8ngoisao.net 7
Enormous opportunities for brand engagement
“Online buying together” for super cheap price wins young Vietnamese hearts
Consumers’ initiatives Retail brands
A number retail brands focusing on digital products have been successful by raising their professionalism and credibility
Implications
Encourage consumer participation through digital means!
Implications
Danone builds a community on 2 fronts. Through the Facebook Causes application.
Pharmaceutical companies are using branded channels in YouTube to communicate directly with consumers.
Build an online community around the brand.
Pepsi’s Refresh invests the brand in community-building
projects.
Disseminate information. Be there where they can find you.
20
Engage you consumer in co-creation activities
All united under a central platform
Co-creation Labs
Crowd sourcing.
Encourage user-generated content: inviting customers to share their stories is a way of eliciting a WOM endorsement
Taking off from its association with storytelling among mothers and young children, it launched a storytelling telling competition online.
Implications
2nd major trend
Search for role models
Look for life skills
Communication courses at Life and Culture HouseJohn Robert Powers Vietnam: learn to build your ‘brand’ image
Inform yourself on key topics
(entertainment places, sex,
fashion)
• Look to for emotional & moral support
• Nurturing & Love (mom, brother/sister, close friends)
• Innovation• New
experiences• Opinions (Gao,
hot blogger)
• Defining success
• Status• Future
aspirations (Ly Quy Trung, Pho 24 CEO)
• Lifestyle• Aesthetics• Defining
beauty• Cosmetics
(Uyen Linh, Vietnam Idol) Media
CrowdBusiness
Crowd
Family & Friends
Tech Crowd
Rise of new influencers
Hot blogger – self identities and personal brand building
More than 9,000 friends in Facebook
RobeyGao Meo Ac
Food specialized
Busy schedule -enjoyed
Wise Open minded
Connect with showbiz and entertainment celebrities
Write controversial commentaries
Brand oriented
Lifestyle focus Strongly aspire
for material life Promote inner
strength Appearance
driven Aim to become
super woman
Literary Lifeexperience
s
Notorious foody
Target audience of those hot blogger are TEEN & YOUNG ADULT which lead to several personal care & high-tech brands consider them as a
channel to reach their target consumers
Implications
In terms of identity, brands expected to be “understanding adults”– Experts (older teens)– Cool partners (pre-teems)
In terms of message:– Gen Z needs to be enabled to dare, to enact their
dreams– They need expertise and for them it is established
by a mix of both offline and online ‘news’ about a role model’s ‘success’ (think PR and 360 degree communication).
Surf of the rise of new local influencers– Choose the right brand ambassadors– Develop advocacy amongst well-chosen bloggers– Identify, measure and track the action of the
influencers amongst your target audience.
3rd major trend
Self definition
27
Today’s medium for self expression
Cimigo NetCitizens 2011, download at www.cimigo.vn
Online activities of 15-24 year olds %
- Visiting forum 56
- Visiting a social network 55
- Visiting blogs 48
- Writing blogs 32
- Posting in forum 25
Breaking away from the culture of conformity - softly
Definition of personal spaces
Online blogging and You Tube
Define you personal spaces (places to hang
out)
Fashion accessorizes
Mobile phones and code Linto
Develop personal creativity
Localize foreign entertainment platform
Upgrade traditional art standard
Look for hyper recognition
Look at being famous and successful
Participate in public competition
Attend new talent competition. Make up to
look alike some celebrities and post it online
Brands as enablers of self-expression and personal talent
Phaner Pie: “Express yourself
without limitations.”
More Yamaha 2010: colors show your personality
Samsung Monte –You the original
Pepsi “path to success”, Karaoke Online, Pepsi Talent
Show 2009
Implications
Huge room for NDP across categories in a playful and stylish way;– Ephemeral/easy to wash hair coloring– Hair and make-up accessories– Make-up and coloring kits as per occasion of use
In terms of message, story-telling with consumer at the center: – I invent, create, test and myself continuously.
Emulate the spirit of competition and contest.
4th major trend
Experience seeking
THRILLS & SPILLS(Younger Z)
- Exciting moments that give them a ‘high’
- Shared with a group- Susceptible to fads /
anything newE.g. 3D movies, theme park rides
ADVENTURE & DISCOVERY
(Older Z)- Experiences that will
enhance their life- Looking for meaning- More discerning
about choices- Prioritize applicable
to career & success- E.g. Travel, Study
Abroad
Vietnamese youth:56% like challenges39% like adventurous things58% exercise regularly for fitness
The conventional education system and family living style in Vietnam bring a thirst for more real-life, out of the book, out of home experiences.
Open to trying new, out-of-the-ordinary and out-of-the-category experiences
It’s all about maximized experiences
Experiential products
Website - Lively (3D effect) and user-friendly lay-out
Unique – allow consumer to create party online
Connection – can share with friends
Experiential brands
Implications
Innovations which offer new experiences .This discourages lapsing because of messaging fatigue.
Testing new product ideas through actual consumer experience is also a good application of the experience seeking trend.
Develop product stories and experiential marketing;– Viral marketing and internet animation– 3D product mix– Recreational distribution and activation
And for the younger, media planning incorporating 3D movie theaters.
5th major trend
Novelty addicted
Vietnamese youth look for the latest technology
This brings Vietnam as top position on Google Trends’ list of the countries that have the strongest interest in 3G.
Net suppliers are fighting to get Teenager segment by offering new network options– Vinaphone, Mobiphone opened Teen
Gate, Q Teen, Q Student providing teen games, teen media and using teen image to polish brand.
– Viettel: many new competitions to which teenagers are the most enthusiastic.
– 47% of 15-24 year olds access the internet form their mobile phone. (Cimigo NetCitizens 2011).
Catching up with trends is an obsession
Due to the limitation of parents’ allowance and permission as well as low infrastructure of the country, Vietnamese youth are struggling to :– Catch up with global youth– Fill the lack of playgrounds – Fill the lack of art– Make dream of fame and success come true– Satisfy curiosity and the drive for discovery
Implications
Innovation and newness from brands seen as a key KPIs by youth.
Reinvigorate brand benefits; new trial is inevitable!
Key brands that have the Gen Z as their core target will start evolving more complex product portfolios.
Shorter innovation cycle-times will affect NPD processes. This will necessitate planning for fast adoption as well as fast drop-off.
In terms of communication, ‘New news’ must constantly feed Gen Z’s short attention spans.
6th major trend
Guiltless self-indulgence
Guiltless self-indulgence
Need to diffuse
pressureAccess (Money)
Freedom to
Indulge
Performance pressure (from parents & school)
Peer pressure (keep up with friends)
Increased affluence of the family
No hesitation on spending for themselves
Due to limited income, looks mainly for small pleasures
Yoghurt bars
Premium coffee shops
Design and qualityin fresh dairy
Personal care andaccessories
Implications
Sensorial consumer experience might be the basis for segmenting certain markets, developing portfolios and growing brands.
In terms of communication, sensorial cues for key categories such as personal care will evolve to include indulgence symbols.
In terms of trade and distribution, retail channels will start to become more concept-oriented, evolving from being a mere shop with shelves where one buys products to representing a current contemporary idea in support of the Gen Z-ers.
Zooming in at Gen Z brands
Popularity
Trendy
Quality
My own self but still part of the bunch
Confident
Stylish
Innovation
Available
Efficient
The older fringe of Gen Z relates to experiential and iconic brands that will allow them to gain identity and status
Trendy
One of the crowd
Leadership
Contemporary
Popular
Outstanding
In progress
Enables self expression
Experiential
The younger fringe of Gen Z focus on approachability and emotional bonding
Contemporary
Popular
Stylish
One of crowd
Acceptable quality
StylishCool
ActiveYouthful
Be part of group
Entertaining
ApproachableDynamic
EnergeticFriendly
FunPassionate
InspiringLively
Colorful
Modern
Enjoyable
Experiential
Approachable
Key Gen Z insights and implications for brands
Gen Z summary
4 key need states to remember:– Integration– Inspiration– Independence– Recognition
6 consumption trends that open venues for consumer-dialogue and innovation
– Hyper digitalization– Search for role models– Self-assertion and self-definition– Experience seeking– Novelty addiction– Guiltless self-indulgence
What implications for Hyper Digitalization?
Portfolio/Brand Development: Encourage co-creation and develop products/services aligned to Gen Z
expectations. Collaborative programs will make them feel they have a stake in your brand.
Communications: Strong, active, relevant presence online. Incorporating digital content (viral videos, songs, etc.) into marketing efforts
may help fast-track brands into mainstream consciousness, creating more frequent points of contact.
Trade/Distribution: Support store presence with a linked online presence that they can consult
BEFORE they go to your store. Give them a reason keep connected even when they are not in your retail location.
What implications for the search for Role Models?
There is opportunity for new brands to influence and redefine behaviors and attitudes.
Gen Z will expect new information, best practices and a lot of how-to communications relating to proper product use. These may sound like basic educational communication, except that talking to Gen Z must always be at their level. Adult experts talking down to them does not establish the connection needed to influence attitudes and subsequent behavior.
Expertise to the Gen Z-ers is established by a mix of both offline and online ‘news’ about a role model’s ‘success’. Therefore, PR, especially when involving 360 communication is a must when building credibility with the Gen Z.
There might evolve a clear delineation between current, accessible, friendly brands that the younger ones consume now and aspirational brands that older Gen Z-ers use to assure them of their progress towards success.
What implications for Self-Assertion and Self-Definition?
Portfolio– Brands that are currently enablers of self-definition will have to keep
evolving with their consumers. This may mean new product introductions through variants or new brands.
Communications– Brand communications must make use of specific relevant insights that
connect with Gen Z’s experiences. Generic global executions will not cut through unless these sharply address Gen Z insights.
– There is much opportunity to develop emotional messaging on claiming and defining their own ‘spaces’, in both the physical and virtual worlds.
What implications for Experience Seeking?
Portfolio– Innovations which offer new experiences .This discourages lapsing because of
messaging fatigue.– Testing new product ideas through actual consumer experience is also a good
application of the experience seeking trend.
Communications– Integrated marketing communications will get bigger as brands continue to expand
their communication touch points beyond the Activations and ATL.
Trade/Distribution– Understanding purchase triggers within experiential hotspots for our the Gen Z
target can link closely with mobile applications that are geo-sensitive. We can remind / induce purchase where it is most relevant.
What implications for Novelty Addiction?
Portfolio– Key brands that have the Gen Z as their core target will start evolving
more complex product portfolios. – These portfolios will be designed to offer something new to an every
increasing number of niche values. Once these niche values become mainstream similar ones will merge and create general values.
Communications– ‘New news’ must constantly feed Gen Z’s short attention spans. However
these news must support (and build up to) a core essence, otherwise these will not carve out a significant for the brand.
Trade/Distribution– Restaurant and retail chains that are not linked to heritage values will
require refurbishing of either the concept or the location every few years.
What implications Guiltless self-indulgence?
Portfolio– Sensorial consumer experience might be the basis for segmenting certain
markets, developing portfolios and growing brands.
Communications– Sensorial cues for key categories such as personal care will evolve to
include indulgence symbols.
Trade/Distribution– Retail channels will start to become more concept-oriented, evolving from
being a mere shop with shelves where one buys products to representing a current contemporary idea in support of the Gen Z-ers.
