Gen Z in VietnamThe craving guiltless generation2011
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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 UrbaneQualitative Online Youth In-depth interviews and Community hang-out sessions withwith teenagers aged 15 to teens (15 to 18yo) 19 yo
Snapshot of a generationGen 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! Indulgent Identify Impress and (notice) understand Impatient Individual Include
Older Gen Z– all about MORE Maximize MY Youth Challenging Inspire MORE MORE Develop and learn MORE
Opposing pressures Hyper- Insecurity individualism “I feel confident “Who will help when I know I me?” look good.” “I am me. I “I should be don’t want to “What will I “My parents recognized be mistaken do in the have no time for my for someone future?” for me.” talents.” else.”
4 key need states• Being a part of • Have something, capable/successful• Differences/ self image in other’s identity eye• Mimic/ imitate • Expression/ others Entrepreneur Integration Recognition • Freedom from Independence Inspiration parents’ control • Stimulation/ guidance or • Private spaces: encouragement study abroad, internet, friend • Inspirational crews… idols/persons
Progression but disorientation, study pressure, lack of family support What are my goals? Which major should I choose? Confusion over life How do I become an What is my career direction? adult? direction How will I achieve them? Family• Lack of Study communication & guidance from parents • Overwhelming• Unhappy family work load • Over-controlling teachers Friends & Internet are Teen’s resort
From “we” to “me”, family to global village, duty to indulgence “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
6 major trends Hyper Search for roledigitalization models Self definitionExperience Guiltless self- seeking Novelty addicted indulgence
95% of urban Gen Z are online Cimigo NetCitizens 2011, download at www.cimigo.vn
Key sites Websites visited most often by 15 -24 year olds % Zing 55 Google 53 Facebook 24 Yahoo 21 kenh14.vn 16 dantri.com.vn 16 nhaccuatui.com 15 vnexpress.net 12 youtube.com 9 24h.com.vn 8 Cimigo NetCitizens 2011, ngoisao.net 7 download at www.cimigo.vn
Enormous opportunities for brand engagement Consumers’ initiatives Retail brands “Online buying together” for super cheap price wins young Vietnamese hearts A number retail brands focusing on digital products have been successful by raising their professionalism and credibility
Implications Encourage consumer participation through digital means!
ImplicationsDisseminate information. Be there where they can find you. 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.
Implications 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. Engage you consumer in co-creation activities All united under a central platform Crowd sourcing. 20 Co-creation Labs
Look for life skills Communication Inform yourself on courses at Life key topics and Culture (entertainment House places, sex, John Robert fashion) Powers Vietnam: learn to build your ‘brand’ image
Rise of new influencers • Lifestyle • Defining • Aesthetics success • Defining • Status beauty • Future • Cosmetics aspirations (Ly (Uyen Linh, Quy Trung, Pho 24 Vietnam Idol) Media Business CEO) Crowd Crowd Tech Family & Crowd Friends • Innovation • Look to for • New emotional & experiences moral support • Opinions (Gao, • Nurturing & hot blogger) Love (mom, brother/sister, close friends)
Hot blogger – self identities and personal brand building Gao Robey Meo Ac NotoriousLiterary Life foody experience sTarget audience of those hot blogger are TEEN & YOUNG ADULT which lead to several personal careConnect with Lifestyle focus & high-tech brands consider them as a Food channel to reach their target consumers specialized Strongly aspire showbiz and for material life entertainment Busy schedule Promote inner celebrities -enjoyed strength Write Wise Appearance controversial Open minded driven commentaries Aim to become Brand oriented super woman More than 9,000 friends in Facebook
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.
Today’s medium for self expression Online activities of 15-24 year olds % - Visiting forum 56 - Visiting a social network 55 - Visiting blogs 48 - Writing blogs 32 Cimigo NetCitizens 2011, - Posting in forum 25 download at www.cimigo.vn27
Breaking away from the culture of conformity - softly Definition of Develop personal Look for hyper personal spaces creativity recognition Online blogging and You Tube Look at being famous and successful Localize foreign entertainment platform Define you personal spaces (places to hang out) Participate in public competition Fashion accessorizes Upgrade traditional art standard Attend new talent competition. Make up to Mobile phones and code look alike some celebrities Linto and post it online
Brands as enablers of self-expression and personal talent Pepsi “path to success”, Karaoke Online, Pepsi Talent Show 2009 Samsung Monte – More Yamaha 2010: You the original colors show your personality Phaner Pie: “Express yourself without limitations.”
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.
Open to trying new, out-of-the-ordinary and out-of-the-category experiencesVietnamese youth:56% like challenges39% like adventurous things58% exercise regularly for fitness THRILLS & SPILLS ADVENTURE & (Younger Z) DISCOVERY - Exciting moments (Older Z) that give them a - Experiences that will ‘high’ enhance their life The conventional education - Shared with a group - Looking for meaning system and family living style in Vietnam bring a thirst for more - Susceptible to fads / - More discerning real-life, out of the book, out of anything new about choices home experiences. E.g. 3D movies, - Prioritize applicable theme park rides to career & success - E.g. Travel, Study Abroad
It’s all about maximized experiences Experiential products Experiential brands Website - Lively (3D effect) and user-friendly lay-out Unique – allow consumer to create party online Connection – can share with friends
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.
Vietnamese youth look for the latest technology 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. (CimigoThis brings Vietnam as top position on Google NetCitizens 2011).Trends’ list of the countries that have thestrongest interest in 3G.
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.
Guiltless self-indulgence Need to Freedom Access diffuse to (Money) pressure Indulge Performance pressure Increased affluence (from parents & school) of the family Peer pressure (keep up No hesitation on with friends) spending for themselves
Due to limited income, looks mainly for small pleasuresYoghurt bars Design and quality in fresh dairy Premium coffee shops Personal care and accessories
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.
The older fringe of Gen Z relates to experiential and iconic brands that willallow them to gain identity and status Popularity Efficient Quality Available Innovation Experiential Popular Leadership Stylish Enables self expression Contemporary Trendy My own self but still part of the bunch Trendy Outstanding Confident One of the crowd In progress
The younger fringe of Gen Z focus on approachability and emotional bonding Enjoyable Popular Acceptable Approachable quality Youthful Active Colorful Stylish Experiential Fun Lively Inspiring Passionate Modern Contemporary Friendly Energetic Be part of group Stylish Entertaining Cool Dynamic Approachable One of crowd
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.
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