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How to engage with Generation Z in Vietnam

Demographics | 11-10-2018

Each generation comes with a unique set of behaviors and presents a unique set of opportunities for those looking to reach, engage and turn them to their loyal consumers. For the last decade or so, Millennials have been the generation for brands to engage because their spending power has gradually grown. However, now is the time for fast moving consumer goods (FMCG) brands to shift their focus to the succeeding generation, Generation Z or Gen Z (12 to 21 years old). Why? In Vietnam, by 2025, Gen Z will account for around 25% of the country labor work-forces, which translates into 15 million potential consumers.

If your brands want to engage this population, you need to pay great attention to the following traits. These insights are pulled out from the latest Generation Z study which looks at the distinctive and similar characteristics of Generation Z versus Millennials (22 to 35 years old).

Social media becomes an essential part of their lives, so do traditional media forms like television

Like Millennials, this generation spends significant amounts of time on social media sites and video sources platforms such as Instagram, Facebook and YouTube. However, the approach is more multifaceted. On Instagram, they show their aspirational or funny selves and daily activities or products that they use. On Zalo, they send messages to friends and families. On Facebook, they glean information, share real-life moments or to express their opinions and beliefs.  On YouTube, they search for engaging and entertaining content. In other words, they share a certain type of content on particular social channels. All of this is possibly done via quick touches or micro-interactions that might happen only a few seconds via their smartphone, which is the thing that they cannot live without.

However, Gen Z cannot only be reached on social media platforms. With 90% of generation Z watching television every day, advertisements on traditional media can be used as effectively as distributing content via social media channels. So, getting the right message on the right platform at the right time is important.

90% of our Gen Z respondents say they watch television every day.

They are a more demanding generation

Generation Z is the most optimistic and the least cautious demographic, which is likely due to their upbringing. Gen Z grew up in a time of country’s financial prosperity. But, they demand more. Nearly half of respondents favor brands that can reflect Vietnamese values and cultures and have timeless or classic brand associations. In addition, they do care about various societal issues including social responsibility, environmental matters and gender equality.  For those who want to attract this group, be ready to create an authentic brand with unique values they can get behind.

50% of Gen Z favors brands that reflect Vietnamese values & cultures and have timeless or classic brand associations

Gen Z is open to new experiences

Generation Z is keen on experiencing new brands. With 40% of Generation Z in the study being open to interesting trials even they have frequently used brands, there is a huge opportunity for brands to attract them with exciting customer experiences, product or service offerings. Furthermore, the loyalty this generation has towards a brand is low due to their curiosity and impulsivity. Only a quarter of this demographic said they are likely to consider a brand carefully before purchasing and unlikely to switch the brand.

40% of Generation Z respondents are open to interesting trials although they have frequently used brands

The future is already here. Millennials have already conquered the workforce. And shortly, Generation Z is expected to make an equally significant impact.

Do you have a lot of Generation Z consumers to target? Do you want to win over the newbies on the block? Do you want to build an effective strategy for brand loyalty and endorsements? Please feel free to contact your Nielsen representatives to obtain a copy of The Generation Z report.

METHODOLOGY

The insights in this article were derived from the following sources: 

  • Nielsen Retail Audit Data
  • Nielsen Qualitative Ethnography
  • Nielsen Quantitative Research with a sample size of 370 respondents who are Generation Z (210 respondents) and Millenials (160 respondents)
  • Nielsen Qualitative IDIs with Teen Influencers
Tagged:  DEMOGRAPHICS  |  CONSUMER  |  GENERATION  |  APAC

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