ConsumerLab Generation Z

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Extensive study across 16 cities in India reveals the digital lives of kids (9-11 years), tweens (12-15 years) and teens (16-18 years) in India, a group called Generation Z
Around 30 million of 69 million urban Generation Z consumers own mobile phones, and 3 million of these use mobile broadband on their phones
Kids explore new technology and use the mobile phone in the same way as their older counterparts
Parents using mobile broadband are more likely to introduce their children to the technology. For more reports from the ConsumerLab visit: http://www.ericsson.com/thinkingahead/consumerlab

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ConsumerLab Generation Z

  1. 1. consumerlabGeneration ZUnderstanding the digital livesof India’s young mobile usersAn Ericsson Consumer Insight Summary ReportOctober 2012
  2. 2. METHODOLODY AND COVERAGE chandigarh DELHI LUCKNOW guwahati KOTA ahmedabad PATNA UJJAIN KOLKATA Quantitative module > 7,785 urbanMUMBAI CUTTACK households contacted Qualitative module > 3,421 face-to-face interviews PUNE with 9-18 year old mobile > 24 in-depth interviews phone users across HYDERABAD with 9-18 year old girls 16 cities in IndiaBELGAUM and boys 1,000 face-to-face interviews 4 focus groups with parents with parents CHENNAI Spread across four centers: 2,000 face-to-face interviews Delhi, Mumbai, Bangalore with 9-18 year old mobile bangalore and Hyderabad internet users. Permission of a parent, guardian or other person on whom the parent has conferred responsibility for the child was obtained before the child was approached for an interview. Parents were present during the interviews with 9-11 year olds. Ericsson consumerlab the voice of the consumer Ericsson ConsumerLab has more than 15 years’ experience Both quantitative and qualitative methods are of studying people’s behaviors and values, including the way used, and hundreds of hours are spent with consumers they act and think about ICT products and services. Ericsson from different cultures. ConsumerLab provides unique insights on market and consumer trends. To be close to the market and consumers, Ericsson ConsumerLab has analysts in all regions where Ericsson is Ericsson ConsumerLab gains its knowledge through a present, which gives a thorough global understanding of the global consumer research program based on interviews with ICT market and business models. 100,000 individuals each year, in more than 40 countries and 15 megacities – statistically representing the views of All ConsumerLab reports can be found at: 1.1 billion people. www.ericsson.com/consumerlab2  ERICSSON CONSUMERLAB GENERATION Z
  3. 3. GENERATION ZIndia’s youngdigital nativesAccording to industry estimates, India has roughly200 million children under the age of 18, and 69million of them reside in urban areas. These youngpeople have a very different childhood to the one theirparents experienced. According to this ConsumerLabstudy, 40% of urban children from metropolitan townsregularly dine out at expensive restaurants and 23 percentuse their parents’ credit cards to buy new things.This is Generation Z. Different sources defineGeneration Z according to varying dates, but for thepurpose of this report we will define them as thosewho were born between 1994 and 2004. For many ofthem life is all about shopping, seeking comfort andmaterialism. They are both ambitious and competitivein nature. It is therefore surprising that Generation Z is often overlooked in communications research reports.While Generations X and Y (those born between This report uncovers the very specific needs of this1965 and 1979, and 1980 and 1995, respectively) Generation and finds that most 9-11 year olds arehave watched the digital revolution unfold before their highly likely to explore new technology – in fact by theeyes, Generation Z has never known anything else. time they are 18, it is already a major part of their lives. Key findings onnectivity forms part of C amily dynamics need to be F eneration Z understands G Generation Z’s digital lives considered when it comes to what constitutes a good from an early age – mobile broadband – parents mobile experience – factors mobile phones are using mobile broadband are such as network availability, indispensable among more likely to introduce competitive tariffs, service Generation Z. 30 million their children to the support and mobile internet personally own a handset technology earlier. speeds have a positive effect and 11 million share one with on how they perceive arents wish to have more P other household members. telecom services. control – they would like ids and tweens are K mutually beneficial plans oung people want to be Y beginning to mirror their and services that enable engaged through a social older counterparts’ usage – security, monitoring and form of customer care – 21 percent of kids and control of their children’s Generation Z turns to social tweens show usage patterns communication activities. media first to complain or similar to 16-18 year olds. share a bad experience. ERICSSON CONSUMERLAB GENERATION Z  3
  4. 4. Phone or no phone? Figure 1: Ownership of mobile phones among 9-18 year olds a handset at all. The remaining 11 million do Source: Ericsson ConsumerLab Generation Z 2012. have access, but share mobile phones owned Study Base: 9-18 year old children in urban India. by parents or older siblings. 28 million Today, the age at which children in India own a mobile phone is dropping, with some now acquiring have no access to mobile phones handsets as young as aged 6. Over half of parents in urban metropolitan cities say that they are open 30 million to providing children aged 9-11 with a mobile phone, and more say they could not stop them from getting own mobile phones one whether they allowed it or not. 11 million Pocket money in India is increasing and the average monthly allowance for children aged 9-18 in urban areas is INR 2,253. However, some teenagers get share mobile phones significantly more, with 1 in 4 of the upper quartile Figure 1 shows mobile phone ownership amongst receiving up to INR 4,000. Of this allowance, eight the 69 million 9-18 year olds in Indian urban areas. percent is spent on mobile phone-related costs, It shows that 39 million do not yet personally own a while four percent goes on gadgets. mobile phone. Of these, 28 million have no access toGeneration Z owns more gadgets than an entire The amount of time which Generation Z spends usingfamily would have a generation ago, with 2 in 5 of mobile phones per day has already begun to overtakethose studied having more than five devices in their the amount of time they spend watching TV. In fact,bedroom. What’s more, kids today are spending a children are more likely to use mobile phones beforegreater amount of time on these devices. Figure 2 school than watch TV. 58 percent of Generation Z shows that Generation Z spends half of its waking is now willing to give up watching TV to use internetlife using mobile phones, watching TV and gaming. on a mobile phone. Adoption of smartphones is also increasing withinFigure 2: Average time spent on this age group, with 7 percent of Generation Zactivities daily (hours, minutes) owning a smartphone today. Of these, 20 percent are under 11 years of age. CONSOLE GAMES 1:31 1:32 26% MOBILE PHONEs Spend 90-100% of their internet time INTERNET (MOBILE PHONE/PC) 2:18 on mobile phones WATCH TV 2:20 Figure 3: Share of total internet time spent on mobile phones OUTDOOR PLAY 1:09 over other devices 100% on my mobile OUTSIDE WITH FRIENDS 1:32 90% phone and 0% on other devices 80% INDOOR PLAY 1:36 70% 60% STUDY/HOMEWORK 2:13 50% on my mobile phone and 50% 40% on other devices TUITIONS/CLASSES 2:20 30% 20% TIME WITH FAMILY 3:20 10% Source: Ericsson ConsumerLab Generation Z 2012. Source: Ericsson ConsumerLab Generation Z 2012. Base: 9-18 year old mobile phone users in urban India. Base: 9-18 year old mobile phone users in urban India.4  ERICSSON CONSUMERLAB GENERATION Z
  5. 5. Figure 3 shows the amount of internet time Generation Mobile devices have become an important utility for parents,Z spends across all devices. For 26 percent, almost all who have started to use their phones to entertain theirof their internet time is on the mobile phone. While it’s children. A growing number of parents are exposing kidsbelieved that small towns will drive mobile-only internet to apps at an early age. 26 percent of those studied wereusage, Figure 4 indicates that megacities such as Delhi, downloading a phone app for their kids at least weekly.Bangalore and Mumbai collectively share 45 percent Younger parents are more likely to display such behavior.of all Generation Z mobile-only internet users. Childrenare acquiring phones quicker than they are getting PCs When it comes to chat and social media, those membersor laptops – while 79 percent of children in the survey of Generation Z who hail from small towns are nowpersonally own mobile phones, only 10 percent have PCs starting to catch up with the mobile internet usage seenat home. With PCs often located in a common room, the in metropolitan cities. However, usage of more advancedneed for personal connectivity away from the watchful services such as apps, maps and navigation, Twitter andeyes of parents is what makes mobile phones the online shopping is being driven by Generation Z mobilepreferred means to access the internet. internet users from the bigger cities.Younger kids mirror teens Mobile broadband take-up influenced by familyEven the youngest members of Generation Z show Broadband usage behavior develops at a young ageadvanced behavior in their internet use. Teens are and is influenced by family members. Those children inmost likely to explore new services and use them more households where parents use mobile broadband arefrequently. However, a growing number of kids and more likely to use it themselves from a young age.tweens are setting the trend amongst their peers and 3 million Indian mobile broadband users are under 18.mirroring their older counterparts’ usage. In fact, kids A further 3 million of Generation Z in urban areas ownand tweens are more likely than teens to stream videos 3G-capable handsets but have not activated the service.on YouTube at least once a week. However, there is strong interest in mobile broadband, with 35 percent of those that do not have the technologyThese explorative kids are now getting onto Facebook at claiming that they will switch to it in the next 3 months.an earlier age. 80 percent of 9-11 year olds involved in this Of these, most are likely to be teens from the top fourstudy are already on social networking sites, whereas many cities across India.teenagers said that they had signed up to social media later,at around 12 years of age. A majority of these kids were noteven aware of any age limitations to sign up on Facebook. 3 million Indian mobile broadband9-11 year old kids now spend 1 hour 7 minutes daily on users are under 18. A further 3 millionFacebook, of which 40 minutes are spent on a mobile of Generation Z in urban areas ownphone. They are also moving beyond social media and 3G-capable handsets but have notchat, with some downloading apps and using maps andnavigation. A small number have even begun to check activated the service.out shopping deals via mobile phones. 23% Figure 4: Share of mobile-only internet users among 9-18 year olds 12% 10% 7% 7% 6% 6% 6% 5% 5% 4% 3% 3% 1% 1% 1% ng i M re i ta Lu ck w ne ai Be in m Ko d a nd d h G tna i Ba elh ba at H lkat ar a a no nn jja o Ko Ah lgau ta ah Pu ab ab um Pa al ig D U he ck ut uw ed er C C yd ha m C Source: Ericsson ConsumerLab Generation Z 2012. Base: 9-18 year old urban mobile-only internet users in India. ERICSSON CONSUMERLAB GENERATION Z  5
  6. 6. PARENTS WISH TOSEEK MORE CONTROLMany parents set ground rules for their children’s Generation Z from big metropolitan cities weredevice usage, such as a mobile phone curfew, more against such monitoring.allowing themselves access to their kid’s phonesand ensuring that factors such as sleep and Figure 5 shows which services parents require inhomework come before online socialization. order to manage and monitor their children’s mobile and internet usage.However, in this new digital age, ensuring adherenceto these ground rules is a challenge, especially as In order to keep up with the generation gap, parentsparents simply do not have time to monitor and are becoming more savvy in mobile media. Nearlyengage with kids across all communication mediums. half of parents interviewed said that they follow new products on the market, so they understand theOnly one third of parents are able to keep track of their technology their children use.children’s communications activities. Even fewer claimto regularly check browser history. To further compound The needs of Generation Zthis lack of control, many children know how to hide In the qualitative part of the study, children highlightedtheir online activities from their parents. signal bars as a way of understanding what they could and could not do. They understood, for example, thatA growing number of parents monitor their children’s signal bars are related to dropped calls or the abilitySMS conversations but 30 percent of 9-18 year olds to send SMS. Other factors that influence how theyuse a privacy screen to prevent others from seeing perceive telecom services include competitive tariffs,their phone. When asked whether they would be willing service and support and mobile internet speeds, ratherto have their mobile usage monitored, half of kids than branding and advertising or freebies. Figure 6agreed that they would be willing to install a mobile app shows the importance of some of these factors.enabling their parents to do this. Those members ofFigure 5: Services that parents expect from service providers Figure 6: What Generation Z considers important Device with mobile learning material 58% Relatively more important Mobile internet webguard app 63% Enable/disable mobile internet 62% Network AVAILABILITY Remote phone locking 59% competitive Tariffs Spend control 56% Faster Mobile Internet Speeds Customer Service Call/message log details 76% Usage time tracker 60% New contacts viewer 60% Free SMS bundles or app downloads Phone locator 66% Rewards and Loyalty programs Premium handset insurance 71% Branding and Advertising Safe driving app 59% Smartphone antivirus package 55% Relatively less important Source: Ericsson ConsumerLab Generation Z 2012. Source: Ericsson ConsumerLab Generation Z 2012. Base: Urban Indian parents of 9-18 year olds. Base: 9-18 year old mobile phone users in urban India.6  ERICSSON CONSUMERLAB GENERATION Z
  7. 7. Figure 7: The needs of Generation Z by age group 9Yrs 10yrs 11yrs 12yrs 13yrs 14yrs 15yrs 16yrs 17yrs 18yrs KIDS TWEENS TEENS Generation Z WANTS Network availability Stable and reliable Responsive and Customized info on new mobile internet connection competent customer care plans and services via Innovative talk time plans Transparent billing/charging SMS or calls Easy activation/deactivation Network coverage/quality Easy access to of services customer serviceSource: Ericsson ConsumerLab Generation Z 2012.Base: 9-18 year old mobile phone users in urban India.Only one in five of Generation Z has changed operator As part of social customer care, Generation Zsince they first got a mobile phone. This suggests high would like to be able to use social media to:brand loyalty in the group. 64 percent say they wouldrecommend their service provider. However, this leaves Track grievances and receive prompt32 percent that are indifferent and the remainder are customer servicejust not satisfied with their operators. Give feedback and suggestions on servicesFigure 7 breaks Generation Z down into life stages Gain loyalty rewardsand shows that each group has very specific needs. Find out about new services and plansGeneration Z wants social media to evolve Preparing for the futureThere is a growing demand among Generation Z Generation Z’s needs cannot be ignoredfor greater integration of customer care with social – these people are tomorrow’s adults andnetworks. Doing this will require a new type of their communication patterns are indicativeservice – a kind of social customer care. Most already of future demands.go online to seek recommendations beforebuying a new service or plan. As Generation Z grow up and their behavior becomes commonplace, new technologies willA majority go online to voice their opinions, while 77 emerge that will further advance social interactionpercent use social networking specifically for venting and enable our lives to be connected in newtheir frustration about poor service. This leads them to and exciting ways. By studying their behavior, weexpect an instant resolution of their issues and queries not only understand the needs of this generation,and constant feedback via social media. but also the needs of tomorrow. ERICSSON CONSUMERLAB GENERATION Z  7
  8. 8. Ericsson is the world’s leading provider of communicationstechnology and services. We are enabling the Networked Societywith efficient real-time solutions that allow us all to study, work andlive our lives more freely, in sustainable societies around the world.Our offering comprises services, software and infrastructure withinInformation and Communications Technology for telecom operatorsand other industries. Today more than 40 percent of the world’smobile traffic goes through Ericsson networks and we supportcustomers’ networks servicing more than 2.5 billion subscribers.We operate in 180 countries and employ more than 100,000 people.Founded in 1876, Ericsson is headquartered in Stockholm, Sweden.In 2011 the company had revenues of SEK 226.9 billion (USD35.0 billion). Ericsson is listed on NASDAQ OMX, Stockholm andNASDAQ, New York stock exchanges.The content of this document is subject to revision withoutnotice due to continued progress in methodology, design andmanufacturing. Ericsson shall have no liability for any error ordamage of any kind resulting from the use of this document.EricssonSE-126 25 Stockholm, SwedenTelephone +46 10 719 00 00Fax +46 8 18 40 85 EAB-12:059690 Uenwww.ericsson.com © Ericsson AB 2012

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