Macromill Group

■Topline Survey Findings:

■Background of Implementation:

It is expected that by 2025, Gen Z - consumers born between the mid-1990s and the late 2000s - will account for one quarter of the population of Asia. Globally, they already represent an even higher percentage, 32%, as of 2019. As Gen Z will be driving the economy and leading consumer trends in the near future, companies around the world are paying increasing attention to them.

However, when companies conduct a survey among consumers in target markets in Asia, they often get faced with the problem of interpreting the scores to understand the cause of different trends. There are social and cultural factors that influence consumer attitudes and that are unique to each country, and this is important to consider when analyzing survey data from different countries.

In response, Macromill has planned and conducted surveys that accommodate for the social and cultural backgrounds of the four Asian countries (China, Thailand, Vietnam, and Indonesia). This means the results can be used by our clients as a base for analyzing their overseas research data. In 2019, we conducted a survey on the definition of generations of consumers and each generation’s values and lifestyles*. Our latest survey focuses purely on Gen Z.

*For the 2019 survey information, see: https://www.macromill.com/press/release/20191115.html

■Details of Survey Topics and Findings

1. Gen Z in four Asian countries hold individualistic values. They express themselves on SNS and the values influence their consumption behaviors

Gen Z consumers in the four Asian countries were born during the rapid economic development and expansion of consumption. As the economy grew, urbanization progressed, and the nuclear family became the norm, they grew up with daily essentials and goods in abundance. This generation is characterized by individualistic values, with increased communication on the internet via cell phones, smartphones, tablets, etc., and the ability to access information of interest on their own. They also have a strong sense of wanting to stand out on SNS and tend to post and communicate about their own experiences and personalities on social networking services rather than objects and products, which characterizes their actual consumption behaviors.

2. In Indonesia and China, they do not want to pay more money to buy SDGs/environmentally-friendly products

An increasing number of companies are now paying attention to consumer awareness of social issues as part of their efforts to address the SDGs. On the other hand, Gen Z's awareness of environmental issues varies greatly depending on their social and cultural background. Their awareness is high in Thailand and Vietnam, and this group do not support companies and brands that are environmentally unfriendly and sometimes refrain from buying their products. In Indonesia and China, Gen Z consumers are interested in the issues, but do not want to pay extra money to buy environmentally-friendly products and brands. One of the probable reasons why there is such a big difference in the awareness of environmental issues between Gen Z in Vietnam and China, which have similar political systems, is that the Vietnamese government is actively encouraging the purchase of environmentally-friendly products.

3. In Thailand and Vietnam, traditional values remain, but Gen Z is more tolerant of gender issues

With respect to gender issues, Thailand and Vietnam still have traditional values, but Gen Z in the two countries is more tolerant of gender issues. In Indonesia, for religious reasons, even the experts who conducted interviews did not touch on this topic. In China, although interviewees anticipate potential equality, there is a view that people cannot be open about the issue because they are concerned about how others perceive them.

4. Gen Z research for information and shop via mobile devices. They are willing to share their personal information to gain benefits

Gen Z in these four countries are characterized by the fact that they are digital natives as well as mobile natives, with their society having leapfrogged straight to the mobile internet era rather than migrating from the wired internet infrastructure. This is a generation that prefers to use smartphones and other mobile devices for both information and shopping and is willing to risk entering personal information in order to obtain new information and shop with added benefits.

5. Gen Z uses vast array of apps and other resources, and companies need to make significant digital investments to reach them

Furthermore, unlike the US and other countries, the digital ecosystem(*) in these four Asian countries (especially China) is dispersed. For example, many apps are available for e-commerce, and Gen Z takes full advantage of them. However, companies need to be on multiple touchpoints to reach Gen Z, which requires significant digital investment.

*A structure that creates greater revenue through collaboration, such as developing services and creating new value through collaboration among companies

6. Attitudes toward products and brands: China emphasizes domestic production; Vietnam prioritizes new functions; Indonesia emphasizes balance; and in Thailand, authenticity resonates

Finally, with respect to Gen Z's brand loyalty (i.e., continuing to buy a particular brand despite the availability of alternative brands), the characteristics of each country are clearly distinct.

■Survey Summary

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