With over 40% of Vietnam‘s population under 30, the youth represent one of the country’s greatest assets for innovation and economic growth. Millennials and Gen Z in Vietnam are not just inheritors of the country’s future—they are active architects of a society valuing sustainability, education, and equitable opportunities. However, systemic barriers, such as limited access to quality education and urban-rural economic disparities, challenge their aspirations.

Our collaborative study with Vero Advocacy highlights two critical areas for Vietnam’s youth: education reform and sustainability-driven entrepreneurship. These issues represent challenges and opportunities, offering a roadmap for stakeholders to invest in Vietnam’s youth and unlock its potential.

Demographic Spotlight: Who Are Vietnam’s Youth?

Millennials (26–41) and Gen Z (10–25) are redefining Vietnam’s cultural, economic, and environmental future.

Millennials: Vietnam’s Stabilizing Force

  • Population Impact: Millennials dominate the workforce, particularly in sectors like technology, finance, and education.
  • Education and Career Priorities: Many are tertiary-educated and value job stability and career growth. However, they often face challenges adapting to the fast-evolving digital economy.
  • Housing Aspirations: Ownership remains a priority for this group, reflecting their desire for stability and long-term security.

Gen Z: The Trailblazers of Change

  • Employment Trends: Gen Z embraces flexibility, creativity, and purpose-driven work, gravitating toward freelancing, entrepreneurship, and social impact roles.
  • Digital Natives: They dominate platforms like TikTok, Instagram, and YouTube, using them not just for self-expression but also for activism and advocacy.
  • Focus on Sustainability: Gen Z in Vietnam is leading the charge for green initiatives, from waste management campaigns to sustainable consumer choices.

Education Reform: Bridging Quality and Accessibility

Education is the cornerstone of Vietnam’s future, but challenges like urban-rural divides, outdated curricula, and inadequate vocational training block progress.

Key Challenges

  • Urban-Rural Disparities:
    • Urban areas like Hanoi and Ho Chi Minh City dominate educational resources, while rural regions lack infrastructure and teacher quality.
    • According to our study, over 45% of rural youth cite limited access to STEM education as a barrier to entering high-demand sectors.
  • Outdated Curricula:
    • Vietnam’s education system remains heavily focused on rote learning, leaving graduates ill-equipped for problem-solving and innovation in the modern economy.
  • Lack of Vocational Training:
    • High-growth industries like renewable energy and technology face talent shortages due to insufficient vocational and technical education.

Example: Vietnam’s “Teach For Vietnam” Program

Teach For Vietnam, inspired by the global Teach For All network, places skilled professionals in underserved areas to improve education and foster student leadership.

Achievements:

  • It has reduced dropout rates and improved STEM education access by impacting over 10,000 students across Quang Nam and Tay Ninh provinces.
  • The program trains local teachers in innovative teaching methods, aligning classroom instruction with the demands of a digital economy.

Broader Implications:
This program demonstrates how grassroots initiatives can close education gaps, particularly in rural regions, setting a foundation for national replication.

Global Inspiration: Germany’s Dual Education Model

Germany’s dual education system combines classroom learning with hands-on apprenticeships, producing a highly skilled workforce.

Key Features:

  • Apprenticeships in High-Demand Sectors: Over 50% of German students participate in apprenticeship programs, gaining skills in engineering, renewable energy, and IT.
  • Industry Partnerships: Companies co-design curricula to ensure graduates are job-ready, reducing skills mismatches.

Implications for Vietnam:
Vietnam can integrate vocational training into secondary education, tailoring programs to local industries like textile manufacturing, tourism, and tech startups.

Sustainability-Driven Entrepreneurship: A Green Future for Vietnam

Vietnam’s youth are not just sustainability consumers—they are change creators. Millennials and Gen Z are at the forefront of sustainability-driven entrepreneurship, turning climate challenges into business opportunities.

Key Trends in Green Entrepreneurship

  1. Eco-Friendly Enterprises:
    • Youth-led startups in sustainable fashion, organic farming, and renewable energy are gaining traction.
    • According to our report, 62% of Gen Z in Vietnam prefer working for companies that align with their environmental values.
  2. Circular Economy Innovation:
    • Young entrepreneurs are adopting circular business models, from waste-to-energy projects to plastic-free consumer goods.
  3. Digital Platforms for Advocacy:
    • Social media platforms enable youth entrepreneurs to amplify their sustainable initiatives and reach broader markets.

Example: Hanoi’s “Plastic Action” Initiative

In Hanoi, Plastic Action, a youth-led grassroots movement, partners with local businesses to combat plastic waste.

Key Activities:

  • Community Engagement: Organizes monthly clean-ups in urban neighborhoods and rural areas, collecting over 20 tons of plastic waste annually.
  • Education Campaigns: Collaborates with schools to teach students about sustainable waste management practices.
  • Eco-Friendly Alternatives: Works with local vendors to introduce biodegradable packaging, reducing single-use plastics.

Impact:
The initiative has raised awareness and created economic opportunities for youth entrepreneurs to produce eco-friendly alternatives.

Global Inspiration: Sweden’s E-Skills for All Program

Sweden’s national initiative equips young entrepreneurs with digital skills to scale their green businesses online.

Key Features:

  • Universal Broadband Access: Sweden has invested heavily in rural connectivity, ensuring equitable access to digital tools.
  • Entrepreneurial Support: The program provides free training in e-commerce, sustainability practices, and business management, enabling youth to scale green initiatives.

Implications for Vietnam:
Vietnam could adopt similar strategies to expand rural broadband infrastructure and provide localized training for sustainable business practices.

The Brand Opportunity

For brands operating in Vietnam, the youth-driven focus on education and sustainability presents a golden opportunity:

  • Align with Purpose-Driven Values: Support youth-led green initiatives and education reforms to build long-term brand loyalty.
  • Invest in Local Talent: Create localized training programs and employment pathways, particularly in underserved regions.
  • Amplify Authentic Voices: Collaborate with youth influencers and entrepreneurs to engage audiences and drive meaningful change.

Final Thoughts

Vietnam’s Millennials and Gen Z are the architects of a brighter, greener future. Addressing systemic barriers in education and fostering sustainability-driven entrepreneurship are not just strategies for progress—they are imperatives for building a resilient economy.

Policymakers and brands must collaborate to empower Vietnam’s youth, leveraging their energy, innovation, and values to create a society rooted in equity and sustainability. Together, they can transform challenges into opportunities, ensuring Vietnam’s next generation leads with purpose and impact.

Download the Full Report

Gain deeper insights into how Vietnam’s youth are reshaping the future of education and sustainability. Download our collaborative report with Vero Advocacy for actionable strategies tailored to Millennials and Gen Z in Southeast Asia. Click here to learn more.

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Millennials and Gen Z, who comprise over half of Indonesia’s population, are leading cultural, economic, and digital transformations in the world’s fourth-largest nation. Yet, significant challenges remain on the path to realizing their potential.

Employment challenges—marked by a persistent skills mismatch and regional inequities—and the struggle for affordable housing remain key barriers. Despite these, Indonesia’s youth continue to innovate, leveraging platforms like TikTok and Instagram to carve out new opportunities through social commerce.

In our collaborative study with Vero Advocacy, we delved into many critical areas, and the two most impactful areas turned out to be employment challenges and social commerce trends. Let’s explore actionable strategies for policymakers and brands to empower this vibrant demographic while unlocking Indonesia’s economic potential.

Demographic Spotlight: Indonesia’s Youth

Millennials (26–41) and Gen Z (10–25) represent over half of Indonesia’s 280 million people. These groups influence societal and economic trends, blending tradition with global modernity.

Millennials: Anchors of the Workforce

  • Employment and Education: As established professionals, Millennials dominate manufacturing, public administration, and services. Many hold tertiary degrees but face challenges adapting to automation and technological advancements.
  • Housing Aspirations: They view homeownership as a marker of success but often struggle with affordability in urban centers.

Gen Z: Digital and Entrepreneurial Pioneers

  • Employment Trends: Gen Z favors flexible, purpose-driven roles, gravitating toward freelancing, digital marketing, and entrepreneurship.
  • Social Media Dominance: Platforms like TikTok and Instagram are integral to their self-expression and income-generation efforts, particularly through social commerce.

Employment Challenges: Bridging Skills and Opportunities

For Indonesia’s youth, employment is more than just a livelihood—it’s a pathway to stability, self-expression, and long-term progress. However, systemic barriers such as skills mismatches, urban-rural employment disparities, and limited entry-level opportunities continue to hinder their professional growth. Addressing these challenges is not just critical for empowering youth but also pivotal for Indonesia’s socio-economic future.

Key Challenges in Employment 

Skills Mismatch
Indonesia’s education system emphasizes theory over practice, leaving many graduates ill-prepared for job market demands. High-growth sectors like technology and renewable energy struggle with talent shortages due to insufficient vocational training. Over 60% of youth report a skills mismatch, fueling underemployment.

Urban-Rural Employment Divide
Job opportunities remain heavily concentrated in urban hubs like Jakarta, Surabaya, and Bandung, leaving rural youth with limited prospects. Many are forced to migrate to cities, often ending up in low-paying informal jobs that fail to provide long-term stability. This urban-rural divide exacerbates economic inequality and hinders rural regions’ ability to retain talent and foster economic growth.

Youth Unemployment
Despite Indonesia’s projected GDP growth of 5% in 2024, youth unemployment remains high. The report highlights that 88% of Gen Z and 89% of Millennials in Indonesia identify employment as a critical issue. Insufficient entry-level roles, inadequate mentorship programs, and limited internship pathways compound this problem.

Opportunities in Regional Hubs

To address the urban-rural employment divide in Indonesia, brands can play a pivotal role in decentralizing job opportunities by leveraging Indonesia’s emerging regional hubs. Cities like Yogyakarta, Medan, and Makassar offer untapped potential for expanding economic activities and creating localized employment opportunities.

Leveraging Regional Hubs

  • E-commerce Fulfillment Centers: Brands like Shopee and Tokopedia can establish logistics hubs in secondary cities to decentralize operations while tapping into local talent pools.
  • Tech and Creative Industries: Regional hubs are ideal for developing support centers for tech startups, creative agencies, and digital content production, providing flexible roles suited for Gen Z’s career aspirations.
  • Government Collaborations: Brands can partner with local governments and universities to co-develop skill-building programs tailored to regional economic needs.

Example: Yogyakarta as a Regional Model
Yogyakarta, often called the cultural heart of Java, is a city where tradition and innovation coexist. It is famous for its historic temples and vibrant arts scene and is home to leading universities and a thriving creative industry. This unique blend has made Yogyakarta a beacon for young talent, offering opportunities that extend beyond its cultural roots. By embracing digital innovation and cultural entrepreneurship, the city has attracted significant public and private investment, proving that regional hubs can play a pivotal role in youth employment. Yogyakarta’s approach to integrating education, skill-building, and job creation is an inspiring model for other regions in Indonesia.

Notable Initiatives by Indonesia’s Government 

The Indonesian government has taken significant steps to address these employment challenges through programs like Prakerja, a vocational training and financial aid initiative that equips participants with skills in digital marketing, entrepreneurship, and technical trades. Since its inception, over 16 million Indonesians have benefitted from Prakerja, showcasing its potential to bridge the skills gap.

Recommendations for Brands in Indonesia

Brands operating in Indonesia have a unique opportunity to play an active role in solving employment challenges by:

  • Investing in Skill Development: Partner with universities and vocational schools to co-design industry-relevant curricula and certifications. Focus on high-demand fields like renewable energy, digital marketing, and software development.
  • Expanding Regional Opportunities: Establish offices or satellite operations in secondary cities to reduce urban migration pressures and create local economic opportunities. Offer remote and hybrid work options to engage rural youth.
  • Supporting Youth Entry into the Workforce: Create structured internship programs and mentorship initiatives to help young professionals transition from education to full-time roles.

The Brand Opportunity

Addressing employment challenges isn’t just a policy imperative—it’s a strategic opportunity for brands to position themselves as champions of youth empowerment. By leveraging regional hubs, investing in skill-building, and creating pathways for employment, brands can foster loyalty and contribute meaningfully to Indonesia’s socio-economic growth.

The Rise of Social Commerce in Indonesia

Indonesia is Southeast Asia’s largest social commerce market, with platforms like TikTok, Instagram, and Shopee playing transformative roles in youth employment and entrepreneurship.

Key Stats and Trends in Social Commerce in Indonesia 

  • Digital Adoption: Over 50% of Indonesian youth use TikTok and Instagram not just for entertainment but as business platforms to sell products and services.
  • Social Commerce Revenue: Social commerce contributes nearly $8 billion annually to Indonesia’s economy, with youth driving this trend.
  • Inclusivity: Platforms enable rural entrepreneurs, particularly women and youth, to reach broader markets, bridging urban-rural gaps.

Example: TikTok Shop Indonesia

  • Launched in 2021, TikTok Shop empowers small businesses and youth entrepreneurs by integrating shopping features into the platform.
  • Success Stories: Thousands of young Indonesians use TikTok to promote and sell handmade crafts, fashion, and beauty products, earning sustainable incomes from their digital storefronts.

Global Inspiration: Sweden’s Digital Inclusion Policies

Sweden’s focus on equitable digital infrastructure offers valuable lessons for Indonesia:

  • Universal Broadband Access: Investments ensure rural areas have high-speed internet, fostering inclusivity in digital commerce.
  • E-Skills for All Program: This program targets young entrepreneurs, equipping them with digital skills to scale businesses online. Indonesia could adopt similar strategies to enhance rural connectivity and expand social commerce opportunities for underserved communities.

Recommendations for Policymakers in Indonesia

  • Bridge the Skills Gap:
    • Expand vocational training programs in high-demand sectors like e-commerce, renewable energy, and tech.
    • Establish regional centers of excellence to reduce dependency on urban hubs.
  • Foster Digital Inclusion:
    • Invest in rural broadband infrastructure to enable wider participation in social commerce.
    • Launch initiatives to combat misinformation and promote responsible digital use.
  • Support Social Commerce:
    • Offer tax incentives and grants for youth-led businesses operating on social platforms.
    • Collaborate with private companies to create scalable training programs for digital entrepreneurs.
genz-consumer-behavior-report

Recommendations for Brands in Indonesia

  1. Engage in Skill Development:
    • Partner with vocational institutions to design industry-specific certification programs.
    • Offer structured internships that provide hands-on digital marketing and e-commerce experience.
  2. Invest in Social Commerce Integration:
    • Build immersive shopping experiences on TikTok and Instagram, tapping into Gen Z’s entrepreneurial spirit.
    • Highlight sustainability in product offerings, aligning with youth values.
  3. Create Purpose-Driven Campaigns:
    • Collaborate with youth influencers to amplify brand initiatives tied to employment and digital empowerment.
    • Use social commerce campaigns to promote locally-made products, fostering community growth.

Final Thoughts

Indonesia’s Millennials and Gen Z are redefining progress through digital innovation and entrepreneurial grit. While challenges like employment gaps and housing inequities persist, the rise of social commerce offers a powerful pathway for youth empowerment.

To foster national growth, policymakers and brands must invest in Indonesia’s youth and align with their aspirations. Bridging gaps and fostering collaboration can transform the nation’s demographic advantage into lasting progress. Download the Full Report

Discover more insights into how Indonesia’s youth are shaping the nation’s future. Download our collaborative report with Vero Advocacy for actionable strategies to empower Millennials and Gen Z. Click here to learn more.

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Thailand’s millennials and Gen Z stand at the forefront of transformative change. Together, they constitute nearly half the population and redefine the nation’s priorities in employment, education, housing, and environmental sustainability. Their voices, once whispers, now resonate as catalysts for action and reform.

Despite their optimism—more than 85% expect a better quality of life within five years. However, systemic challenges temper this enthusiasm. Rising living costs, unaffordable housing, and job market mismatches jeopardize their aspirations. Policymakers face a pressing challenge: How can governance evolve to meet the ambitions of a generation poised to drive progress?

Reimagining Governance for Youth Priorities

Thailand’s governance system, a constitutional monarchy, shapes how policies are crafted and implemented. National strategies fall under the purview of the Parliament and Prime Minister, while local governance manages essential services such as housing and education. However, this centralized approach often limits grassroots engagement, a challenge as millennials and Gen Z push for greater inclusivity in decision-making.

These younger generations are leveraging digital platforms like TikTok and Facebook to amplify their demands for transparency, sustainability, and equity. This shift presents both a challenge and an opportunity for Thailand’s leadership: the challenge of responding to an informed and vocal demographic and the opportunity to harness their energy for nation-building.

Trust remains a key issue.

According to our recent research in collaboration with Vero Advocacy, about half of Thais trust the government to act in the public’s best interest and feel safe expressing their opinions on youth policies. Gen Zs demonstrate greater trust in the government compared to Millennials.

Policies such as the 15-year free education initiative and the One Family One Soft Power program signal responsiveness, but gaps remain in addressing youth priorities comprehensively. Bridging this divide requires a governance model that values youth participation and collaboration, ensuring policies reflect their evolving needs.

Demographic Insights: The Generational Divide

United in their influence, Thai millennials and Gen Z diverge in needs and aspirations, creating distinct challenges for policymakers.

Millennials (Ages 26–41): Stability Seekers

  • Population Size: 15.4 million (23% of the country’s population)
  • Employment: Primarily employed in stable, mid-career roles across industries like manufacturing, technology, and finance. They prioritize job security and upskilling opportunities.
  • Housing Preferences: Driven by a desire for homeownership as a marker of financial stability. Rising urban property costs, however, often delay these goals.
  • Digital Engagement: Active on platforms like Facebook and Line for professional networking and advocacy.

Gen Z (Ages 10–25): Digital Innovators

  • Population Size: 13.4 million (20% of Thailand’s population)
  • Employment: Entering the workforce with a preference for gig economy roles, startups, and creative industries. Flexibility and purpose are key drivers.
  • Housing Preferences: Favor renting for its adaptability and alignment with urban mobility needs.
  • Digital Engagement: Dominates TikTok and Instagram, using these platforms for self-expression, activism, and innovation.
CategorymillennialsGen Z
Primary ConcernsHousing affordability, job securityMental health, flexible work
HousingOwnership-focusedFlexibility-driven, prefer renting
Digital PresenceBalanced use of older platformsHighly active on emerging platforms

Shifting Priorities and Socioeconomic Influences of Thai’s Young Population

Thailand’s economic landscape profoundly shapes the priorities of these generations. millennials, having experienced economic instability, lean toward stability and long-term financial planning. Gen Z, however, emerges in a world of rapid digital transformation, emphasizing adaptability and innovation in their career and lifestyle choices.

Both groups share a common concern for affordable housing and quality education, but they diverge in how they approach these challenges. millennials, who often take on family responsibilities, advocate for government policies that support ownership and economic security. Gen Z, on the other hand, leverages their digital fluency to challenge norms and demand forward-looking solutions, such as accessible education that aligns with technological trends.

Implications for Policymakers

These demographic insights highlight the urgent need for tailored policies that address the unique needs of each generation. millennials need housing support and upskilling programs, while Gen Z needs flexible education models and digital-first career opportunities.

Key Policy Concerns of Thai Youth

1. Employment and Economic Opportunities

  • Our Study Findings: Over 68% of millennials and 72% of Gen Z highlight job creation as a critical government responsibility. While millennials prioritize career stability, Gen Z seeks flexibility and creative outlets.
  • Government Response: The One Family One Soft Power program has created millions of jobs in cultural industries and free reskilling courses for high-growth sectors like tourism and digital marketing.
  • Recommendations: Policymakers must address skills mismatches by integrating vocational training with industry needs, particularly in the tech and green sectors.

2. Affordable and Quality Education

  • Our Study Findings: Rising tuition costs and outdated curricula hinder over 54% of millennials and 60% of Gen Z from accessing the education they need.
  • Government Response: The 15-year free education policy has improved enrollment rates, particularly in rural areas, narrowing the education gap.
  • Recommendations: Modernize curricula to emphasize STEM and digital literacy and expand access to international exchange programs to equip students for global opportunities.

3. Housing Affordability

  • Our Study Findings: While 53% of youth express satisfaction with current housing policies, high urban property costs remain a significant barrier for millennials, while Gen Z prefers affordable rental options.
  • Government Response: Tax incentives and reduced transfer fees aim to ease financial burdens for homebuyers.
  • Recommendations: Strengthen public-private partnerships to expand affordable housing and prioritize developments near employment hubs.

4. Environmental Sustainability

  • Our Study Findings: Our study also found over 70% of Thai youth demand stronger environmental policies, including waste management and renewable energy initiatives.
  • Government Response: The Green Growth Strategy addresses climate challenges but lacks youth engagement.
  • Recommendations: Foster youth-led initiatives and provide incentives for green entrepreneurship to empower the next generation of sustainability advocates.

5. Mental Health and Healthcare

  • Our Study Findings: More than six in four millennials and Gen Z identify mental health as a key concern, citing cost and stigma as major barriers.
  • Government Response: Subsidized mental health services and community programs have improved accessibility.
  • Recommendations: Expand funding for mental health initiatives and launch nationwide campaigns to normalize conversations around mental well-being.

Collaborative Governance

Thailand’s youth are not bystanders; they are architects of the nation’s evolving future. They demand transparency, inclusivity, and meaningful engagement with policymakers in government.

Policymakers must:

  1. Strengthen Vocational Training: Align programs with emerging industries to address job market mismatches.
  2. Modernize Education: Focus on STEM, digital literacy, and global exposure opportunities.
  3. Promote Affordable Housing: Expand urban planning initiatives integrating housing with essential services.
  4. Champion Environmental Policies: Support youth-led sustainability efforts and green innovation.
  5. Invest in Mental Health: Increase accessibility and reduce stigma through targeted programs.

A Future Defined by Youth In Thailand

Thailand’s millennials and Gen Z are charting a bold vision for the future—one rooted in opportunity, equity, and sustainability. Their collective voice is a roadmap for progress, challenging policymakers to rethink traditional approaches and embrace youth-centered governance.

The journey ahead requires collaboration. By aligning policies with the aspirations of these generations and fostering genuine partnerships, Thailand can build a nation that reflects the values and ambitions of its future leaders. Download the Full Report
Gain deeper insights into how millennials and Gen Z across Southeast Asia, including Thailand, influence public policy and shape the future. Click here to download the full report and explore actionable data and recommendations.

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With over 30% of the Philippines‘ population under the age of 15 and a total population exceeding 113 million, the country is positioned as a global powerhouse. 

Forecasted to be among eight nations contributing to half of all global population growth by 2050, the Philippines’ youth are not just the face of tomorrow—they are the architects of today’s transformative changes. Millennials and Gen Z are steering conversations around economic resilience, social equity, and innovation, envisioning a nation that fosters equitable opportunities for all.

Yet, systemic barriers threaten to stifle their potential. Rising housing costs and employment challenges, such as skills mismatches and high youth unemployment—reported by 88% of Gen Z and 89% of millennials as critical issues in our study—present stark realities. Despite these hurdles, Filipino youth remain optimistic, leveraging digital platforms to amplify their voices, champion policy reforms, and reshape industries like business process outsourcing (BPO) 

and creative arts.

Drawing from our comprehensive study on Southeast Asian youth, conducted in collaboration with Vero Advocacy, Filipino youth have two pressing issues: affordable housing and employment opportunities. These challenges also represent opportunities for stakeholders to empower a generation central to the Philippines’ future.

Demographic Snapshot of Filipino Youth

Millennials: Guardians of Family-Centric Progress

  • Economic Context: Millennials in the Philippines often serve as financial pillars for their families, adhering to the deep-rooted cultural value of utang na loob (debt of gratitude). They prioritize stable employment to support not just themselves but also extended family members.
  • Career Aspirations: While many hold traditional jobs in healthcare, education, and government, there’s a growing migration trend to tech-driven industries due to the Philippines’ increasing role in the global BPO (Business Process Outsourcing) market.
  • Housing Dreams: Millennials aspire to homeownership but face challenges from soaring property prices, particularly in Metro Manila. Government programs like Pag-IBIG Fund housing loans offer some relief, yet urban sprawl often pushes them to suburban developments.

Gen Z: Trailblazers of Digital and Social Movements

  • Digital First-Movers: Gen Z Filipinos are not just consumers of digital content; they are creators, using platforms like TikTok to launch small businesses or raise awareness about social causes, from environmental sustainability to mental health.
  • Housing Preferences: Renting remains the preferred option for Gen Z, reflecting their desire for flexibility and reduced financial burdens. Co-living spaces, a growing trend in Metro Manila, appeal to their communal and budget-conscious lifestyle.
  • Gig Economy Pioneers: Many young Filipinos are pursuing freelance opportunities in content creation, graphic design, and virtual assistance, capitalizing on the global demand for remote workers.
CategoryMillennialsGen Z
Cultural ValuesFamily-centric, stability-drivenPurpose-driven, entrepreneurial
EmploymentTraditional sectors with a tech shiftGig economy and creative industries
HousingSuburban homeownership aspirationsCo-living and urban renting
Digital PresenceProfessional networking and advocacySocial entrepreneurship and activism

What does this mean for policymakers and brands?

  • Localized Insights: Focusing on unique Filipino cultural values like utang na loob and bayanihan (community spirit) roots the discussion in the Philippines’ specific context.
  • Emerging Trends: Highlighting trends like co-living spaces and the rise of the BPO sector adds contemporary relevance.
  • Brand Opportunities: These cultural and economic insights can guide brands to design solutions that resonate deeply with Filipino youth, such as flexible financial products or community-focused marketing campaigns.

Affordable Housing: Bridging Aspirations with Accessibility

For Filipino youth, housing is more than shelter; it represents stability, independence, and an investment in their future. However, rising property prices, a limited rental market, and urban congestion push housing aspirations further out of reach for millennials and Gen Z.

Challenges in Affordable Housing

Skyrocketing Urban Property Costs
In Metro Manila, property prices have surged by over 25% in the past five years, making homeownership unattainable for many millennials. Even with government programs like the Pag-IBIG Fund, which offers low-interest housing loans, affordable properties near economic centers remain scarce.

Rental Market Gaps
Gen Z, who predominantly prefer renting, have limited market options. Quality rental properties within city centers are either too expensive or lack amenities that appeal to young renters, such as high-speed internet or co-living arrangements.

Urban Sprawl and Accessibility
Affordable housing developments are often located far from employment hubs, increasing commute times and expenses for young professionals. This challenge disproportionately affects millennials, who prioritize stable family lives and access to essential services.

Example: Co-Living Spaces in Metro Manila

Image Courtesy: MyTown

The rise of co-living spaces like MyTown in Makati and Bonifacio Global City offers a glimpse into how housing solutions can cater to young professionals. These spaces provide affordable, fully-furnished accommodations with shared amenities like gyms and workspaces, targeting Gen Z’s preference for flexibility and millennials’ need for convenience. Their vision is to be the preferred accommodation provider for young professionals in the Philippines.

Impact: Since its launch, MyTown has won several awards and housed thousands of young professionals, enabling them to live closer to their workplaces while fostering a sense of community. 

Global Inspiration: Singapore’s Public-Private Housing Model

Singapore’s Housing & Development Board (HDB) offers a globally admired approach to affordable urban housing. Combining public funding with private sector efficiency, the model has provided Singaporeans with subsidized housing, ensuring accessibility and quality. As of 2022, around 90% of HDB residents owned their flats. To help married couples purchase their first HDB flat, HDB gives a housing grant to subsidize their purchase from the resale market and an additional grant for those who choose to live near their parents.

Key Features:

  • Subsidized Homeownership: First-time buyers receive grants covering a significant portion of housing costs, allowing them to afford properties in prime urban areas.
  • Integrated Communities: HDB developments include mixed-use spaces, such as retail outlets, parks, and schools, fostering a holistic living experience.
  • Innovation in Design: Recent initiatives include smart homes with energy-efficient technologies and urban farming solutions.

Implications for the Philippines: The Philippines can adopt a similar approach by integrating affordable housing projects with urban amenities and green infrastructure, particularly in high-demand areas like Metro Manila and Cebu.

Recommendations for Stakeholders

  • Incentivize Transit-Oriented Development (TOD): Encourage mixed-use developments near transportation hubs, which will reduce commute times and improve access to city centers.
  • Expand Rental Support Programs: Introduce subsidies or tax incentives for landlords offering affordable rental units tailored to youth needs.
  • Promote Co-Living Innovations: Partner with private developers to scale co-living solutions across Metro Manila and secondary cities.

Stable housing is more than a personal milestone for Filipino youth—it is a foundation for economic productivity. Without access to affordable, well-located housing, Millennials and Gen Z face increased commuting costs and reduced job opportunities, particularly in key growth sectors like technology and renewable energy. This interdependence highlights the need for housing and employment reforms to work hand in hand.

Employment Opportunities: Bridging Skills and Expanding Horizons

For Filipino youth, meaningful employment is more than a paycheck—it’s a means of achieving stability, self-fulfillment, and societal contribution. However, systemic barriers such as skills mismatches, limited entry-level opportunities, and urban-rural disparities continue to hinder their professional growth.

Employment Challenges

Skills Mismatch Despite the Philippines’ high literacy rate, many graduates lack the practical skills for high-growth sectors like technology and renewable energy. Our report highlights that over 60% of youth feel their education does not align with job market requirements, leading to underemployment.

Urban-Rural Employment Divide
Job opportunities remain concentrated in urban hubs like Metro Manila and Cebu City. Rural youth face limited career prospects, pushing many to migrate to cities, where they often accept informal or low-paying jobs.

Youth Unemployment
The report reveals that over 85% of Filipino millennials and Gen Z view unemployment as a critical issue. While the Philippines’ BPO sector provides opportunities, the demand for skilled talent continues to outpace supply.

Example: BPO Sector as a Game-Changer

The Philippines’ BPO sector employs over 1.4 million workers, with millennials and Gen Z dominating the workforce. Companies like Accenture Philippines and TaskUs have introduced upskilling programs focusing on digital literacy and AI-driven processes, enabling employees to transition into higher-paying roles.

Impact: These programs have increased employee retention rates and enhanced productivity, setting a benchmark for skills-focused employment models.

Global Inspiration: Canada’s Youth Employment Strategy (YES)

Canada’s Youth Employment Strategy (YES) provides targeted programs to help young people gain employment skills, transition into the workforce, and pursue entrepreneurship.

Key Features:

  • Skills Link Program: Designed for youth facing employment barriers, this initiative offers hands-on training, mentorship, and access to resources in high-demand sectors.
  • Career Focus Program: Provides internships and job placements aligned with emerging industries, such as technology and green energy.
  • Summer Work Experience Program: This program helps students gain valuable work experience during summer breaks, building practical skills early in their careers.

Implications for the Philippines: The Philippines could establish a similar framework by offering tailored employment programs for youth in secondary cities, focusing on key growth sectors like renewable energy, e-commerce, and digital content creation.

Recommendations for Stakeholders

  • Invest in Vocational Training: Partner with academic institutions to create programs aligned with high-growth tech and renewable energy sectors.
  • Promote Regional Hubs: Establish economic centers in secondary cities like Davao and Iloilo to decentralize job opportunities and reduce urban migration pressures.
  • Strengthen Internship Programs: Design structured pathways for students to transition seamlessly from education to employment.

Beyond traditional employment pathways, Filipino youth are leveraging digital platforms to create entrepreneurial ventures and drive social impact. These initiatives reflect a shift toward a more self-reliant and sustainability-focused future, where economic growth aligns with environmental and social equity.

Youth as Catalysts for Digital Transformation and Sustainability

Many Filipino youth have recently started using platforms like TikTok, Instagram, and Lazada to launch small businesses and advocate for sustainable practices.

Digital Transformation

Social Commerce Boom: Platforms like TikTok Shop have enabled young entrepreneurs to monetize their creativity, from selling handcrafted goods to offering online consultations.

Example: Manila’s Plastic-Free Market
The Plastic-Free Market initiative, driven by youth entrepreneurs, promotes zero-waste practices through eco-friendly products. Located in Quezon City, it collaborates with local vendors to replace single-use plastics with biodegradable alternatives.

Sustainability Initiatives

Filipino youth are at the forefront of climate advocacy, with initiatives like Youth for Climate Action Philippines, which organizes workshops and campaigns to educate communities on renewable energy and sustainable living.

Global Inspiration: Sweden’s E-Skills for All Program

Sweden’s national program equips young entrepreneurs with digital tools to scale their green businesses, emphasizing rural inclusivity and sustainability.

Recommendations for Brands

  • Support Digital Entrepreneurs: Launch workshops and grants for youth-led online businesses.
  • Promote Green Campaigns: Collaborate with eco-friendly initiatives to highlight sustainable practices.
  • Leverage Social Media Advocacy: Partner with influencers driving meaningful conversations around climate action and equity.

Final Thoughts: What Do the Youth Want?

Filipino youth envision a future of equity, innovation, and sustainability. They demand systemic reforms in housing and employment while championing digital transformation and green entrepreneurship.

Policymakers and brands must act decisively to address these priorities. By collaborating with youth to co-create solutions, they can turn challenges into opportunities and ensure a resilient, inclusive Philippines.

Read our full report for actionable insights tailored to empowering Filipino youth. [Click here to explore the full study.]

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In 2024, the world turned to Google not just for answers but for a glimpse into the collective zeitgeist. The search engine’s annual trending report reveals key topics that dominated global attention. From Liam Payne’s reemergence in pop culture to the aesthetic allure of “Coastal Granddaughter” lifestyles, the year’s top searches reveal more than fleeting curiosities—they’re a barometer for consumer desires, anxieties, and cultural touchpoints.

Consider this: According to Google Trends, searches for “Coastal Granddaughter” spiked by 320% globally in the second half of 2024, coinciding with a broader cultural embrace of slow living and minimalist aesthetics popularized on platforms like TikTok and Instagram. Meanwhile, celebrity names dominated the charts, with Liam Payne topping entertainment searches, reflecting a wave of millennial nostalgia for the early 2010s boyband era.

“We’re seeing a clear fusion of nostalgia and aspiration,” says Sarah Thompson, a digital culture analyst at TrendLab. “Consumers are not just revisiting the past; they’re reshaping it to align with modern values like mindfulness and individuality.” This interplay between the past and present underscores a larger trend in consumer behavior—one that marketers, product developers, and cultural commentators should not overlook.

But it’s not all about aesthetics and nostalgia. Searches for “AI fitness coach” and “mental health support apps” also surged, reflecting growing consumer interest in self-optimization through technology. In a year where artificial intelligence became ubiquitous, consumers sought practical ways to integrate these tools into their lives, driving a 150% year-over-year increase in searches for AI-related personal wellness solutions.

As we unpack these trends, it’s clear that 2024 was a year of looking inward and outward—balancing self-improvement with a longing for simpler, more familiar times. This interplay offers a rich field of insights for understanding the priorities and emotions driving consumer behavior in an increasingly complex world.

The Year in Searches: A Snapshot

Google’s 2024 trending searches paint a vivid picture of what captured the world’s attention this year, with three themes standing out: celebrity culture, aspirational aesthetics, and the intersection of technology and self-improvement. Each category offers a unique lens into the year’s defining societal events and cultural moments.

Celebrity Culture: Nostalgia Meets Revival

From Liam Payne’s resurgence to Beyoncé’s record-breaking “Renaissance Tour,” celebrity names dominated search queries. Payne’s return to the spotlight, particularly after his health revelations and viral moments on social media, drove his name to the top of the entertainment category. Searches for “Liam Payne recovery” and “One Direction reunion rumors” surged by 270% in the weeks following his heartfelt interviews, underscoring the enduring pull of millennial-era pop icons.

Beyoncé’s Renaissance Tour sparked widespread digital engagement, with ‘Beyoncé tour dates’ among the most-searched phrases globally. Live Nation reported a 22% increase in concert ticket sales compared to 2023, a statistic mirrored in the search data.

Aspirational Aesthetics: From Coastal Granddaughter to Cottagecore 2.0

The phrase “Coastal Granddaughter” encapsulated the year’s fixation with aspirational living, leading to a 320% spike in global searches. The aesthetic, characterized by linen dresses, muted tones, and breezy seaside settings, gained traction on TikTok and Instagram, particularly among Gen Z and millennials. Its popularity can be tied to larger cultural movements emphasizing simplicity, mindfulness, and the escapism of a slower-paced life—a direct counterbalance to the chaos of modern digital culture.

Other aesthetics like Cottagecore, rebranded with an eco-conscious twist, and the ever-popular Barbiecore also made waves. The latter enjoyed a resurgence thanks to the continued cultural momentum of Greta Gerwig’s Barbie film, with searches for “Barbie outfits” and “Barbie-themed parties” peaking around Halloween.

Technology and Self-Improvement: AI Goes Personal

If 2023 was the year AI went mainstream, 2024 was the year it got personal. Queries like “best AI fitness coach” and “AI personal assistant reviews” reflected a growing reliance on technology for day-to-day improvement. Searches for AI mental health tools doubled year-over-year, fueled by high-profile endorsements from wellness influencers and tech companies pivoting toward health-focused applications. Notably, apps like MindMate and CoachAI experienced a 150% uptick in downloads, according to app analytics firm Sensor Tower.

The rise in AI-driven solutions highlights a pivotal shift: consumers are looking for tools that don’t just inform but actively enhance their lives. In a fast-paced, tech-saturated world, the demand for AI to be a partner in wellness, creativity, and productivity reflects a deeper yearning for balance and control.

Each of these trends—be it the romanticism of past eras, the pursuit of aesthetic perfection, or the integration of AI into personal growth—offers a revealing glimpse into the cultural forces shaping 2024. Together, they form a mosaic of consumer aspirations and anxieties, one that brands and analysts alike should study closely.

Decoding Consumer Behavior

Each trending search in 2024 reflects a deeper insight into consumer values, aspirations, and anxieties. By examining the data more closely, we can uncover the emotional and cultural drivers behind these trends—offering a roadmap for understanding where consumer priorities lie.

1. Liam Payne: Nostalgia for the Early 2010s

The resurgence of Liam Payne as a top-searched celebrity points to a yearning for the simplicity and optimism of the early 2010s. As millennials—many of whom came of age during One Direction’s peak—face the pressures of midlife, this nostalgia for their formative years has manifested in renewed interest in boyband culture. This trend aligns with a broader pattern of pop culture revivals, seen also in the resurgence of early 2000s fashion trends like cargo pants and butterfly clips.

2. Coastal Granddaughter: Aesthetic Minimalism Takes Center Stage

The rise of ‘Coastal Granddaughter’ reflects a broader shift toward simplicity and aspirational minimalism. The aesthetic’s muted colors, airy linens, and tranquil imagery symbolize an escape from the frenetic pace of digital life. It also suggests a growing appreciation for aspirational but attainable lifestyles—ones that blend minimalism with a touch of indulgence. Brands tapping into this trend, such as lifestyle influencers and boutique fashion labels, have seen a measurable boost in engagement, with TikTok videos tagged #CoastalGranddaughter garnering over 1 billion views in 2024.

3. AI Fitness and Wellness Tools: A Desire for Efficiency

Searches for “AI fitness coach” and “mental health apps” underscore a practical consumer desire: the ability to improve well-being through technology. These tools not only offer convenience but also provide the personalized insights consumers increasingly expect. The surge in such searches suggests that people are seeking efficiency in their self-improvement journeys, mirroring a larger societal emphasis on productivity—even in personal health.

4. Barbiecore: The Intersection of Fun and Feminism

The continued momentum of Barbiecore speaks to a layered cultural narrative. On the surface, it’s about vibrant colors and nostalgia, fueled by the success of Greta Gerwig’s Barbie. But it also reflects a deeper societal conversation about femininity, empowerment, and the reclaiming of traditionally “girly” aesthetics. Search data shows spikes in queries related to Barbie-themed events, with a significant portion coming from millennials and Gen Z women, illustrating how the trend resonates across generations.

5. Climate-Conscious Aesthetics: Cottagecore Evolves

With “eco-Cottagecore” becoming a trending phrase, consumers are blending aesthetic preferences with environmental consciousness. This evolution of Cottagecore emphasizes sustainable practices, from upcycled fashion to eco-friendly home decor. It highlights a shift in values where consumers want their lifestyle choices to reflect their ethical beliefs—an expectation increasingly directed at brands as well.

6. Wellness Through Nature: Forest Bathing and Outdoor Retreats

Searches for “forest bathing benefits” and “nature retreats near me” saw a 180% increase, signaling a rising interest in wellness practices tied to the outdoors. This trend reflects anxiety about over-reliance on technology and a desire to reconnect with the physical world. It also mirrors the broader cultural interest in mindfulness, creating opportunities for brands in travel, wellness, and even tech to innovate with nature-focused experiences.

7. Live Experiences: The Beyoncé Effect

The massive search volume for “Beyoncé tour dates” highlights a strong consumer desire for in-person experiences, even as digital entertainment options proliferate. The record-breaking attendance for her Renaissance Tour is emblematic of a broader trend: people seeking moments of collective joy and escapism in a world still recovering from the isolation of the pandemic.

From nostalgia to sustainability, the top search trends of 2024 reveal a complex but cohesive narrative: consumers are seeking balance—between the past and the present, between convenience and mindfulness, and between digital tools and real-world connections. These insights not only explain the year’s cultural fascinations but also offer brands a roadmap for meeting consumers where they are.

Trends Shaping Industries

The top Google searches of 2024 are more than just curiosities; they serve as leading indicators of industry shifts. From fashion to entertainment to wellness, these searches reveal emerging consumer demands that are already reshaping markets.

Fashion and Beauty: Lifestyle Aesthetics Drive Purchasing Decisions

The meteoric rise of “Coastal Granddaughter” and other aesthetics such as “Barbiecore” has had a measurable impact on the fashion and beauty industries. According to Lyst’s 2024 Fashion Report, searches for linen dresses and oversized cardigans—hallmarks of the Coastal Granddaughter style—increased by 40% year-over-year, driving a surge in demand for minimalist, high-quality wardrobe staples. Brands like Everlane and Reformation, which align with these aesthetic principles, reported double-digit growth in online sales during the third quarter.

Similarly, “Barbiecore” fueled a 22% spike in searches for pink apparel and accessories, with major retailers like Zara and H&M introducing Barbie-inspired collections. The beauty industry has also capitalized on these trends; data from NPD Group shows that pink-toned makeup products saw a 35% increase in sales following the success of Greta Gerwig’s Barbie film.

Entertainment: Nostalgia and Star Power Drive Demand

Consumer search trends have reaffirmed the entertainment industry’s reliance on nostalgia and star power to generate engagement. Google reported that “Liam Payne” was among the top 10 most-searched names in 2024, signaling a revival of interest in early 2010s pop icons. This trend aligns with streaming platforms capitalizing on nostalgia, such as Netflix’s acquisition of early One Direction documentaries, which saw a 15% increase in viewership in November alone.

Meanwhile, Beyoncé’s Renaissance Tour demonstrated the power of live experiences. Ticketmaster’s data revealed a 28% increase in average ticket prices for her shows compared to 2019, reflecting not only the demand for in-person events but also the willingness of consumers to pay for premium, once-in-a-lifetime experiences.

Wellness: Technology Meets Self-Care

The wellness industry continues to adapt to growing consumer interest in mental health and fitness technologies. Searches for “AI fitness coach” and “mental health support apps” increased by 150% and 90%, respectively, according to Google Trends. Companies like Peloton and Calm have benefited from this surge, with Peloton reporting a 25% uptick in subscriptions tied to its AI-integrated training programs.

At the same time, the demand for personalized nutrition solutions has reshaped the diet industry. Searches for “DNA-based diets” and “customized meal plans” jumped by 70% compared to 2023, indicating a shift toward bespoke health solutions. This trend aligns with data from MarketWatch, which predicts the personalized wellness market will exceed $9 billion by 2025.

Convergence Across Industries

What’s striking about these trends is how they often intersect. The Coastal Granddaughter aesthetic, for example, not only influences fashion but also wellness, with consumers searching for “beachside yoga retreats” and “mindful coastal living.” Similarly, the resurgence of nostalgic entertainment has driven increased sales in merchandise, from concert memorabilia to limited-edition collectibles.

These trends underscore a broader consumer desire for experiences and products that feel personal, meaningful, and rooted in larger cultural narratives. For businesses, the message is clear: the key to staying relevant lies in understanding not just what consumers are searching for but why those searches matter.

What This Means for Brands

For businesses, the 2024 search trends are more than a summary of consumer curiosities—they’re a playbook for anticipating and meeting evolving demands. Leveraging search data isn’t just about understanding what consumers want today; it’s about predicting what they’ll desire tomorrow and adapting accordingly.

Leveraging Search Data for Consumer Alignment

Search data provides a direct line to consumer interests, values, and behaviors. Brands that monitor these trends can develop marketing campaigns and products that resonate with real-time needs. For instance, fashion brands that embraced the “Coastal Granddaughter” aesthetic early on reaped significant rewards. Searches for linen trousers and oversized sweaters rose by 320%, signaling a shift in consumer demand for minimalist designs.

Similarly, the surge in queries for AI wellness tools highlights a ripe opportunity for tech and wellness companies to collaborate on user-centric solutions. Companies like Calm, which incorporated AI-driven sleep coaching tools, have already capitalized on this demand, achieving a 22% growth in app downloads this year.

Staying Attuned to Micro-Trends

While macro-trends like nostalgia and sustainability provide a broad framework, the real value lies in tapping into micro-trends—specific niches that are gaining traction within larger movements. Consider the evolution of Cottagecore into eco-Cottagecore. This micro-trend combines aesthetic appeal with sustainability, signaling a dual priority for consumers: lifestyle and ethical responsibility.

By acting on these smaller but significant shifts, brands can position themselves as pioneers in emerging markets. For example, home decor companies that introduced upcycled furniture styled in eco-Cottagecore designs saw a 30% increase in sales on platforms like Etsy and Wayfair.

Agility in Marketing and Product Development

Search trends also emphasize the need for businesses to remain agile. Consumer interests evolve quickly, and brands that fail to keep up risk losing relevance. For example, in entertainment, the resurgence of Liam Payne as a search trend wasn’t just about his fame; it reflected a broader millennial desire for nostalgia. Streaming platforms that immediately highlighted content related to Payne, like old One Direction concerts or documentaries, gained significant traction compared to competitors who were slower to adapt.

Agility also extends to marketing strategies. Real-time monitoring of search trends allows marketers to craft campaigns that meet consumers where they are. Social media platforms, particularly TikTok, have become hotspots for leveraging trending aesthetics and concepts like Barbiecore. Brands that incorporated these trends in their advertising campaigns reported engagement rates that were 50% higher than standard industry benchmarks.

A Competitive Edge Through Data-Driven Insights

Ultimately, search trends offer brands a way to stay ahead of the curve, but the key is actionable insight. It’s not enough to know that consumers are searching for “mental health apps” or “AI fitness tools.” The next step is understanding the why behind the search—what emotional or practical need the consumer is trying to fulfill—and aligning your offerings accordingly.

In a rapidly evolving marketplace, the brands that succeed will be those that not only track consumer behavior but also adapt their strategies and innovations in real-time. Search trends are no longer just data points—they’re a direct reflection of the consumer psyche, and for savvy businesses, they’re a roadmap to staying relevant.

The Bigger Picture: Human Curiosity in the Digital Age

Search behavior in 2024 offers a unique lens through which to view the complexities of modern society. At its core, these trends reveal an enduring truth about human nature: our unrelenting curiosity and desire for connection. From the nostalgic resurgence of Liam Payne to the tech-driven pursuit of personalized wellness, the intersection of past and future defines how we navigate an increasingly digital world.

The Fusion of Nostalgia and Innovation

This year’s top searches reflect a striking balance between looking back and moving forward. The popularity of searches tied to early 2010s icons like One Direction signals a collective longing for a simpler time—a yearning amplified by the uncertainty of recent years. Yet, this nostalgia is being reshaped by innovation. Platforms like Spotify and YouTube have not only made revisiting these moments effortless but have also introduced new layers of interactivity, from curated playlists to AR-enhanced concert experiences.

In the same vein, trends like Barbiecore and Coastal Granddaughter aren’t just about reliving the past; they represent a reimagining of it. These aesthetics are elevated by modern narratives around empowerment, sustainability, and mindfulness. Nostalgia may fuel the initial spark, but innovation ensures its relevance to today’s consumers.

Individuality in a Collective Context

Another defining characteristic of 2024’s search trends is the blend of individuality with collective experiences. The surge in searches for AI fitness tools and mental health apps reflects a deeply personal journey toward self-improvement, yet these tools are shared widely within digital communities. TikTok challenges centered around these technologies or lifestyle trends exemplify how deeply individual pursuits often become collective movements.

Even entertainment choices, such as the overwhelming demand for Beyoncé’s Renaissance Tour, reflect this duality. While each attendee may connect with the music in their own way, the act of participating in a global cultural moment ties them to a broader community. It’s a reminder that even in an age of hyper-personalization, humans still seek shared experiences that transcend borders.

The Role of Digital Ecosystems

Search trends emphasize how digital platforms influence both consumer behavior and cultural identity. Whether it’s the rise of eco-Cottagecore or the embrace of AI wellness tools, platforms like Instagram, TikTok, and Reddit serve as incubators for these movements. Algorithms surface trends, while users refine and amplify them, creating a feedback loop that drives societal shifts at unprecedented speed.

This dynamic has made search data a powerful tool—not just for marketers and brands, but for sociologists and futurists attempting to understand where society is headed. Each search is a tiny piece of a larger puzzle, reflecting how individuals make sense of an increasingly complex world.

Curiosity as a Constant

At its heart, the data reveals something timeless: humans are, above all else, curious. Whether we’re searching for practical solutions, exploring our identity, or reconnecting with the past, the act of searching is a reflection of our desire to learn, adapt, and connect. In 2024, that curiosity has taken on new forms, fueled by technology but grounded in universal emotions.

As we look ahead, it’s clear that search behavior will continue to evolve, offering even deeper insights into how society balances individuality with collective identity, and nostalgia with innovation. For those paying attention, it’s not just a reflection of where we are—it’s a guide to where we’re going.

Beyond the Keywords

The top Google searches of 2024 are more than a curiosity—they’re a window into the evolving cultural zeitgeist. They capture the hopes, fears, and aspirations that define our time, offering insights that go beyond marketing or product development. For anyone seeking to understand society, search trends provide a valuable tool for decoding how people engage with the world around them.

But this data also invites a challenge: to think critically about the searches we conduct and the trends we follow. What does our collective behavior say about us? How do the answers we seek shape the world we live in?

As technology continues to influence every aspect of our lives, understanding search behavior is not just a task for marketers or data analysts—it’s an opportunity for anyone curious about the intersection of culture, innovation, and identity.

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Millennials and Gen Z in Singapore are a growing force reshaping the nation’s political and social priorities. As Singapore’s younger generations mature, their views on housing affordability, job security, education quality, and environmental issues are placing new demands on policymakers. These groups, representing a significant portion of the voting public, hold nuanced perspectives on government transparency, social support, and economic stability that challenge traditional governance.

Understanding these perspectives isn’t just essential for keeping pace with shifting demographics; it’s crucial in shaping policy that resonates with Singapore’s existing and future voters.

Overview of Singapore’s Political and Governmental Structure

Singapore operates under a parliamentary republic system, a framework that combines a powerful central government with a clear separation of roles among its governing bodies.

At the national level, executive power resides with the President, a largely ceremonial figure elected to safeguard Singapore’s reserves and approve key appointments, and the Parliament, which wields legislative power. Parliament is responsible for crafting policies that drive the nation’s development and manage pressing societal needs.

Local governance, while limited compared to some other nations, includes municipal councils that oversee housing, public spaces, and community-level programs. This reflects Singapore’s emphasis on centralized policy with localized service delivery. Most policies, particularly those impacting housing, economic stability, and social services, originate at the national level, undergoing thorough debate, planning, and implementation.

In this context, the demands of Millennials and Gen Z intersect with a system designed for top-down policy control. Yet, as these generations raise issues ranging from environmental sustainability to housing affordability, they bring fresh scrutiny to the traditional paths of policy development. This dynamic invites questions about how a centralized system can accommodate Singapore’s youth’s increasingly vocal and distinct priorities.

Demographic Snapshot of Millennials and Gen Z in Singapore

Millennials (Ages 26–41)Gen Z (Ages 10–25)
Population SizeApproximately 1.2 millionApproximately 1.4 million
Educational AttainmentHigh percentage with tertiary education; a significant number of university graduatesThe majority are students, increasing enrollment in tertiary education
Employment StatusPredominantly employed; active in various industriesMany are students; those of working age are entering the job market
Home OwnershipHigher rates of home ownership; many own HDB flats or private propertiesLower rates; many live with parents or in rental accommodations
Housing PreferencesPreference for stability; investment in propertyGrowing interest in flexible living arrangements; some prefer renting
Digital EngagementActive on social media; use digital platforms for work and leisureHighly active; digital natives with a strong presence on emerging platforms

Note: The population sizes are approximate estimates based on available data. Specific figures for educational attainment, employment status, and housing preferences are generalized trends observed within these age cohorts.

Youth Trust and Engagement with the Government

Millennials and Gen Z in Singapore are redefining what it means to trust and engage with their government. Both generations represent a complex relationship with authority: one shaped by high expectations for transparency, safety in expression, and a desire for responsive governance.

While Millennials tend to carry a cautious skepticism rooted in years of rapid societal change, Gen Z approaches government with a fresh perspective, primarily shaped by digital engagement and an openness to new policies that address their unique challenges and aspirations.

In Singapore, trust levels in government among youth are moderate but reflect distinct generational attitudes. According to the Vero Advocacy and Kadence International study, 55% of Millennials and Gen Z Singaporeans report “full trust” or “a fair amount of trust” in the government’s commitment to acting in the public’s best interest.

This mirrors a trend seen across Southeast Asia, where about half of young people feel a similar level of trust toward their respective governments. The data suggests that while Singaporean youth do recognize the stability their government provides, they also demand greater transparency and action on issues they prioritize, such as economic opportunities, housing, and environmental policy.

These generations’ perceptions of safety vary notably when expressing opinions on government issues. Our study shows that around 60% of youth in Singapore feel “safe” or “very safe” discussing political or social issues publicly, with Gen Z displaying a slightly higher comfort level in this area than Millennials. This difference in perception could be attributed to how each generation has learned to navigate digital spaces. Gen Z, as digital natives, are particularly comfortable using social media as a tool for discourse and activism, creating an environment where sharing and advocating for change online is normalized. Millennials, in contrast, engage with a degree of caution; while they are digitally active, they often weigh the potential risks of public expression, especially on sensitive issues.

The methods of engagement these generations employ further underscore their contrasting approaches to political discourse. Gen Z’s preference for social media as a primary outlet for civic engagement reflects their inclination toward immediate and public discourse. They are likely to voice concerns on platforms enabling real-time conversations, directly addressing policies on climate action, mental health, and economic reforms to their peers and broader networks. This tendency not only amplifies their voice but also places pressure on policymakers to address these topics with transparency and responsiveness.

Millennials, on the other hand, while equally invested in these issues, tend to adopt a hybrid approach that includes both digital and offline channels. Many participate in community forums, policy discussions, or volunteer-driven initiatives where they can engage in a more structured, in-depth dialogue about government policies. This blend of engagement styles among Millennials represents a cautious yet committed approach to advocacy.

As Singapore’s younger generations continue to advocate for more open and responsive governance, their differing approaches to trust and engagement highlight the need for the government to adapt to these new dynamics. With half of Singapore’s youth seeking greater transparency and safe spaces for discourse, there is a clear call for a government that listens and reflects their diverse voices and values. This shift is not only reshaping the nature of youth engagement in Singapore but is also challenging traditional structures, pushing the government to evolve in response to a generation that seeks a partnership in governance, not just representation.

Key Policy Concerns for Singapore’s Youth

Singapore’s Millennials and Gen Z are vocal about the issues that impact their lives most directly, with economic security, housing affordability, healthcare, and environmental sustainability at the top of their agenda. These priorities reflect a growing push for policies that go beyond traditional measures and address the lived realities and future aspirations of these generations.

Employment and Economic Opportunities

For Millennials and Gen Z, stable employment and fair economic opportunities are fundamental expectations. The Vero Advocacy and Kadence International study shows that job security is a top concern, with over 70% of youth respondents prioritizing policies that provide stable employment and career growth opportunities.

As automation and globalization reshape industries, Millennials in mid-career stages seek policies supporting upskilling and job retention. Gen Z, entering a workforce already influenced by the gig economy, values policies that ensure fair compensation and secure work conditions in both traditional and freelance sectors. Together, these generations call for a government approach emphasizing economic resilience and adaptability, preparing youth for a rapidly changing job market.

Affordable Housing

Housing affordability remains a significant issue, particularly for Millennials, who are more likely to seek permanent residences. The study reveals that a substantial portion of Millennials feel priced out of Singapore’s competitive housing market and express a need for government intervention to curb rising costs.

About 65% of Millennials report that the high cost of home ownership is a major barrier, pushing them to delay property purchases or consider alternatives, such as long-term renting. While younger and less likely to be immediate buyers, Gen Z is acutely aware of these challenges and supports policies prioritizing affordable housing options. This cross-generational concern highlights a shared expectation for the government to address housing inequality and implement policies that make homeownership attainable for future generations.

Healthcare Accessibility

Millennials and Gen Z view affordable healthcare as essential, with a particular emphasis on mental health support. The Vero Advocacy and Kadence study indicates that more than 60% of young Singaporeans feel that current healthcare costs are prohibitive, especially regarding mental health services, which are increasingly seen as crucial for overall well-being.

Gen Z, in particular, emphasizes mental health resources, likely due to growing awareness and reduced stigma around these issues. Millennials, balancing work and family responsibilities, are similarly concerned with healthcare costs and seek greater government support to ensure that quality care is accessible to all income levels. This shared priority points to a need for healthcare policies that are both comprehensive and responsive to the unique mental and physical health needs of today’s youth.

Environmental Protection

Environmental sustainability is another critical issue for Singapore’s youth, who are increasingly vocal about climate action and pollution control. Our study shows over 75% of respondents believe the government should strengthen environmental policies to address pressing issues such as waste management, air quality, and sustainable urban planning.

Gen Z, in particular, leads this charge, with many advocating for stricter regulations on waste disposal and a shift toward renewable energy sources. Millennials, too, are invested in sustainability, pushing for policies that balance economic growth with environmental responsibility. This unified stance on environmental protection underscores an urgent call for government action, as both generations recognize the long-term impact of current environmental challenges on their future.

Together, these concerns illustrate a clear demand from Singapore’s youth for policies prioritizing economic stability, housing affordability, accessible healthcare, and environmental responsibility. For policymakers, addressing these issues means not only meeting immediate needs but also establishing a foundation for sustainable growth that resonates with the values of Millennials and Gen Z. These generations are not just advocating for change—they are urging the government to craft a future that aligns with their vision for a fair, healthy, and resilient society.

How Youth Perspectives Are Reshaping Government Policy in Singapore

The perspectives of Millennials and Gen Z are gradually transforming Singapore’s policy landscape as the government adapts to address their concerns on economic opportunities, housing, healthcare, and environmental protection. In recent years, several policy initiatives have emerged that reflect the priorities of these younger generations, underscoring a shift in governmental focus toward issues relevant to youth.

Housing Initiatives and Affordability Programs

Recognizing the growing demand for affordable housing, the government has introduced a series of subsidies and grants to assist first-time homebuyers, particularly young adults, navigating a high-cost market.

Programs such as the Enhanced CPF Housing Grant, which offers increased financial support based on income levels, aim to make homeownership more accessible to Singaporeans. These initiatives directly respond to Millennials’ concerns about housing affordability and demonstrate a willingness to support younger buyers in achieving long-term stability. Additionally, recent efforts to expand the supply of public housing and accelerate the development of Build-to-Order flats illustrate the government’s acknowledgment of the housing needs expressed by Millennials and Gen Z.

Environmental Programs and Sustainability Goals

Singapore’s youth-led advocacy for stronger environmental policies has influenced the government’s commitment to sustainability, visible in initiatives such as the Singapore Green Plan 2030. This comprehensive plan outlines goals across several domains, including energy, waste management, and biodiversity, with milestones to reduce the country’s carbon footprint.

To tackle plastic pollution, a significant concern among Gen Z, the government has introduced mandatory recycling programs and is moving toward a plastic bag charge in supermarkets. These policy changes reflect a responsiveness to youth advocacy for climate action and a more sustainable Singapore, acknowledging the urgency of environmental protection emphasized by young citizens.

Healthcare and Mental Health Support

In response to heightened mental health awareness among Millennials and Gen Z, the government has expanded mental health services and introduced funding to make counseling and support more affordable. The Community Health Assist Scheme (CHAS), which provides subsidies for mental health treatments, has been expanded to increase accessibility for those in need.

Programs like MindSG, an online mental health resource, provide youth with tools and support options, recognizing mental health’s significant role in their overall well-being. These initiatives reflect a progressive shift toward addressing the mental and emotional health priorities outlined by Singapore’s younger generations.

Engagement Platforms and Youth-Targeted Dialogues

Singapore has developed several platforms designed specifically for young citizens to voice their perspectives on policy issues to strengthen youth engagement in governance.

Photo credit: National Youth Council

The Youth Conversations platform, organized by the Ministry of Culture, Community, and Youth, facilitates dialogues between government officials and youth on topics such as jobs, sustainability, and social inclusion. Similarly, Our Singapore Fund offers grants encouraging youth-led projects focused on social issues, empowering young Singaporeans to actively participate in community improvement initiatives. These platforms foster direct communication between policymakers and young people, allowing the government to better understand and respond to the evolving needs of these influential demographics.

Shifts in Governmental Rhetoric and Policy Prioritization

Youth advocacy has also influenced a shift in the government’s tone and language when addressing issues of concern to Millennials and Gen Z. Recently, government statements have increasingly included references to sustainable growth, equitable access, and mental health, aligning with the values and priorities of Singapore’s youth.

Photo credit: National Youth Council

Initiatives such as the National Youth Council’s expanded focus on civic responsibility and social innovation reflect a broader governmental commitment to integrating youth voices into policy development. This shift demonstrates how youth engagement is prompting the government to adopt a more inclusive and responsive approach, ensuring that policies not only address immediate concerns but also resonate with the aspirations of Singapore’s future generations.

As Singapore continues to evolve, the influence of Millennials and Gen Z on public policy is undeniable. Through targeted programs, open dialogues, and responsiveness to youth-driven issues, the government is gradually reshaping its approach to governance, adapting to the demands of a new generation actively shaping Singapore’s future.

Implications for Policymakers

With Millennials and Gen Z stepping into the spotlight, Singapore’s policymakers face an urgent call to action. These generations aren’t merely seeking change—they’re driving it, setting a bold agenda that includes economic opportunity, affordable housing, accessible healthcare, and environmental responsibility. And they expect a government that will work with them, not just for them, to bring this vision to life.

For leaders, this means creating policies that truly resonate, backed by ongoing engagement to track and respond to shifting youth values. With today’s youth shaped by rapid technological shifts and global awareness, staying attuned to their evolving expectations is essential. Leveraging insights from studies, such as those by Vero Advocacy and Kadence International, can give policymakers a window into these dynamic perspectives.

To foster lasting trust, it’s time to formally embed youth voices into the policy process. Dedicated channels—digital platforms, targeted surveys, and youth forums—can make young people feel valued and influential in shaping Singapore’s future. This collaborative approach will empower the next generation and strengthen the connection between youth and government in a way that truly counts.

A Call for Youth-Centered Governance

Millennials and Gen Z are steering Singapore’s policy landscape with a clear agenda—sustainability, affordable housing, and equitable healthcare. They’re not just voicing concerns; they’re reshaping governance, demanding responsiveness, transparency, and genuine engagement from leaders.

For policymakers, this is a call to action: adapt or risk losing the trust of a new generation. Governance that listens, evolves, and truly connects with the values of young Singaporeans is no longer optional—it’s essential for securing the nation’s future. This moment is pivotal. The current government is making great efforts to ensure youth participation, and if they are successful, they will build a legacy of trust and shared vision that will ensure a vibrant, forward-looking Singapore for generations to come.

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[Research] Youth Attitudes toward Governance in South East Asia
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In recent years, Singapore has witnessed a notable paradox in financial behaviors. While credit card billings have declined, credit card and other unsecured debts continue to rise. According to recent studies, this trend is particularly pronounced among the younger generations, signaling a shift in their financial attitudes and practices. This juxtaposition of reduced spending alongside increased borrowing poses intriguing questions about the underlying motivations and future implications for financial management among Millennials and Gen Z.

So, how do you decode these financial attitudes thoroughly? 

This phenomenon is particularly interesting when we consider two other spending-related observations that are unique to two specific generations: ‘doom spending,’ or the fatalistic approach to consumption that reflects youth’s pessimistic outlook on their financial future, versus ‘YOLO,’ where a generation of spenders justifies their purchases with a more optimistic /momentous orientation to self-gratification. 

This ‘alphabet soup’ of financial attitudes is further complicated by the ‘FIRE’ movement, where desires to be ‘Financially Independent’ and ‘Retiring Early’ are contrary to spending on whimsical wants.”

Understanding the Financial Landscape in Singapore

The financial landscape in Singapore has undergone significant transformations, especially when observed through the lens of credit card usage and unsecured debt among Millennials and Gen Z. 

Recent data highlights a concerning trend: even as overall credit card billings decline, unsecured debt continues to climb.

A report from The Straits Times points out that total credit card billings fell by 2% last year, yet unsecured debt for the same demographic rose by 5.7%. 

This indicates a deeper issue than mere spending habits; it suggests a shift toward more substantial financial obligations or possibly an increased reliance on credit for essential spending rather than discretionary purchases.

This shift becomes even more pronounced compared to previous generations’ financial behaviors. Historically, credit was used to leverage bigger, often asset-building purchases. However, today’s younger generations increasingly use credit for everyday expenses, highlighting a shift from capital investment to operational spending. The rise in ‘buy now, pay later’ services and their popularity among these age groups supports this trend, offering immediate gratification or necessity fulfillment but at the cost of future financial freedom.

Furthermore, the attitudes toward debt have evolved. 

Previously, debt was often viewed as something to be avoided unless significant assets like homes or cars were purchased. Today, data suggests that Millennials and Gen Z in Singapore are more comfortable with accruing debt, often viewing it as a necessary evil to manage cash flow or as an integral part of modern financial life. This comfort with debt is contrasted with a high level of financial literacy that these generations reportedly possess, which presents a paradox in their financial behavior patterns.

So, while previous generations may have used credit as a stepping stone to build assets, current trends among Millennials and Gen Z in Singapore show a shift toward using credit for immediate needs and lifestyle sustainability. This evolution in financial behavior underlines the complexities of modern economic environments and the changing values regarding money, debt, and future planning.

Also, watch my video on The Culture Market-Paradox: Understanding and Serving Singapore’s Diverse Consumer Base.

‘Doom Spending’ vs. ‘YOLO’ – A Generational Shift

‘Doom spending’ refers to the trend where individuals, particularly from Gen Z, spend money with a sense of inevitability or fatalism about the future. Unlike discretionary or luxury spending, doom spending is often motivated by a desire to experience pleasure or satisfaction in the short term, driven by a bleak outlook on long-term prospects.

This trend is becoming prevalent among younger consumers who are facing global crises like climate change, economic instability, and political uncertainty, which are significantly shaping their worldview.

In contrast, we see the YOLO spending trend among millennials.

The Millennials’ ‘YOLO’ spending was characterized by an optimistic, seize-the-day attitude. It emerged from a period of relative economic prosperity and stability, encouraging spending on travel, experiences, and luxury goods as a form of self-expression and living life to the fullest.

Brands that capitalized on this trend, like Airbnb and Grab, promoted experiences over possessions, resonating deeply with Millennials’ desire for adventure and convenience.

Psychological and Cultural Shifts in Financial Habits 

Shift from Hope to Dread

This shift represents more than just a change in spending habits; it indicates a deeper, more pervasive psychological and cultural transformation among younger generations. 

Key aspects include:

  • Economic Context: Previous generations, like the Millennials during their formative years, experienced periods of relative economic growth and stability, which fostered a sense of optimism. They adopted a ‘YOLO’ (You Only Live Once) mentality, encouraging spending on experiences and luxuries to capitalize on the perceived stability and opportunities available. In contrast, Gen Z has come of age during times of significant global uncertainty—economic volatility, climate crises, and political unrest- contributing to a more pessimistic outlook.
  • Perception of Future Stability: There’s a growing sentiment among Gen Z that the traditional milestones of financial security, such as owning a home or having a stable, lifelong career, are out of reach. This uncertainty fosters a mindset where long-term planning feels less feasible or rewarding, pushing them toward ‘doom spending’—spending driven by a sense of enjoying the present because the future is too uncertain.
  • Cultural Reflections: This shift is also reflected in culture and media that resonate with Gen Z, which often portray themes of dystopia, existential threats, and social decay. Such cultural products reflect and reinforce their anxieties, creating a feedback loop that influences personal and financial decisions.

Impact of Social Media

Social media platforms play a significant role in shaping the financial attitudes and behaviors of Gen Z, with specific impacts including:

  • Instant Access to Global Crises: Platforms like Twitter and Instagram provide real-time updates on global and local crises, from climate change impacts to economic downturns and social justice issues. This constant stream of information can exacerbate feelings of anxiety and powerlessness, which can lead to spending money as a coping mechanism for immediate emotional relief.
  • Comparison and Expectations: Social media also fosters a culture of comparison, where users are continually exposed to curated lifestyles that may seem unattainably perfect. This can lead to increased spending as young people attempt to mimic online lifestyles and experiences, which they perceive as markers of success or happiness.
  • Marketing Strategies Targeting Vulnerabilities: Marketers can leverage these platforms to target young consumers with personalized advertising that taps into their fears and aspirations. The omnipresence of such targeted ads can influence spending habits, making it difficult for young individuals to resist impulse buys, especially when these purchases are framed as solutions to their anxieties or ways to boost their social standing.

Understanding these deeper shifts provides critical insight into why younger generations may behave differently from their predecessors regarding financial decisions. It also highlights the complex interplay between individual choices and societal and technological influences.

The FIRE Movement and Its Resonance in Singapore

What is the FIRE Movement?

The FIRE (Financially Independent, Retire Early) movement advocates for extreme savings and investment to allow individuals to retire far earlier than traditional models suggest. 

Its core principles involve:

  • High Savings Rates: Adherents typically aim to save and invest 50% to 70% of their income.
  • Frugal Living: Reducing everyday expenses to the bare minimum to maximize the amount that can be diverted toward savings.
  • Strategic Investments: Investing in stocks, bonds, and other assets to create income streams that support early retirement.
  • Income Optimization: Seeking additional income sources or higher-paying employment to further boost savings rates.

Uptake and Adaptation of FIRE Among Singaporean Youths:

In Singapore, the FIRE movement has seen a unique adaptation. Singaporean youths are increasingly drawn to financial independence, viewing it as a way to escape the high-pressure work environments common in the city-state.

However, the intersection of ‘doom spending’ complicates their financial strategies. While some youths strive for the frugality required by FIRE, others oscillate between strict budgeting and sporadic episodes of doom spending, driven by a desire to find immediate joy amidst uncertain prospects.

This behavioral pattern suggests a hybrid approach to financial independence, where long-term savings goals coexist with short-term indulgences.

Realism and Motivation of Early Retirement Goals

  • Challenges: Achieving early retirement in a high-cost city like Singapore poses significant challenges. The high cost of living, coupled with the need for a substantial financial cushion to manage healthcare and housing, makes the strict saving thresholds of FIRE daunting.
  • Motivational Aspects: Despite these challenges, the motivation for pursuing early retirement is strong. Many young Singaporeans view financial independence as a form of security against economic volatility and job insecurities, making the sacrifices associated with FIRE seem worthwhile.
  • Cultural Influence: Singapore’s strong societal emphasis on financial success and stability motivates youths toward FIRE. It aligns with cultural values that prize foresight, planning, and financial prudence.
  • Educational and Support Systems: The rise of financial literacy programs, online forums, and community groups supporting FIRE principles helps sustain motivation and provides the necessary education and peer support to navigate the complexities of such financial planning.

While striving for early retirement through the FIRE movement presents a robust set of challenges in Singapore, it also offers a compelling framework for financial security that resonates with the youth. The movement’s principles counterbalance the uncertainties that fuel doom spending and align with broader cultural and personal aspirations for autonomy and stability in an unpredictable world.

Case Study

DBS Bank – Digital Engagement with Millennials and Gen Z

Image credit: DBS Bank 

Background

DBS Bank, one of Asia’s leading financial institutions, recognized the shift in banking habits among younger generations, who prefer online interactions over traditional branch visits. Millennials and Gen Z in Singapore are tech-savvy consumers who demand convenience, speed, and personalization in their banking services.

Approach/Strategy 

DBS responded by enhancing its digital banking platform, DBS Digibank, to include features tailored specifically to these demographics. They introduced biometric login methods, an AI-driven financial and investment advisor named “Digibot,” and a user-friendly interface that simplifies the process of financial transactions. DBS also launched a social media campaign to connect with these generations, using platforms like Instagram and TikTok to educate them about financial literacy in a relatable and engaging way.

Outcomes/Results 

The enhancements to DBS Digibank led to a significant increase in user engagement, with a reported rise in young customers who started using DBS for their primary banking needs. The bank also saw improvements in customer satisfaction scores, demonstrating the effectiveness of its digital-first approach. The social media campaigns further reinforced their brand presence among younger consumers, making DBS a popular choice for Millennials and Gen Z in Singapore.

Case Study

Grab – Flexibility and Financial Services for the Gig Economy

Images credit: Seedly

Background 

Grab, a Singapore-based technology company that offers ride-hailing, food delivery, and payment solutions, has a significant user base among Millennials and Gen Z. These generations are heavily involved in the gig economy, either as consumers or service providers.

Approach/Strategy 

To cater to the financial needs of this demographic, Grab expanded its services to include “GrabPay,” a digital wallet that offers a seamless payment solution across its various platforms. They also introduced “GrabInvest,” an investment platform that allows users to invest small, manageable amounts of money directly from their GrabPay balance into various funds, aligning with the FIRE movement principles.

Outcomes/Results 

Grab’s financial services quickly gained traction. “GrabPay” became a popular method for transactions on the Grab platform and across other retail and online stores in Singapore. “GrabInvest” appealed to young investors by offering a flexible and less intimidating entry point into investing, leading to increased participation rates among Millennials and Gen Z. The success of these initiatives has helped reinforce Grab’s position as a fintech innovator while providing young consumers with tools to manage their finances effectively.

Market Research Insights: Complexities and Nuances of Financial Attitudes

Market research insights suggest that while both generations are acutely aware of their financial environments, their responses and strategies differ markedly due to their unique priorities and anxieties. By understanding these nuances, financial institutions can tailor their products and marketing strategies to effectively meet the distinct needs of Millennials and Gen Z. This tailored approach addresses current financial tendencies and anticipates future trends as these generations evolve.

Uncovering Underlying Attitudes and Emotions

  • Qualitative Insights: Deep dives into qualitative data from interviews, focus groups, and surveys with Millennials and Gen Z in Singapore reveal complex emotions and attitudes toward money. Common themes include a sense of urgency about the future, concerns over economic stability, and a desire for a balanced life that includes enjoyment now and security later.
  • Emotional Drivers: Both generations exhibit a heightened emotional response to financial planning, influenced by global economic uncertainties and societal pressures. Gen Z, in particular, shows prevalent anxiety toward long-term financial commitments and a stronger inclination toward immediate gratification—hence, the rise in ‘doom spending.’

Differences in Financial Priorities and Anxieties

  • Millennials: Generally, Millennials are more focused on long-term financial security. They are concerned with building assets, such as purchasing property and retirement savings. This group is also more likely to engage in financial planning services and seek investment advice to secure their future.
  • Gen Z: In contrast, Gen Z prioritizes flexibility and lifestyle sustainability over asset accumulation. Their financial anxieties are more about maintaining a lifestyle in the face of job insecurity and economic fluctuations, which drives their engagement in flexible financial solutions like gig work and freelance opportunities.

Tailoring Financial Products and Marketing Strategies

For Millennials:

  • Product Development: Financial institutions should consider offering products that promote asset building, such as favorable mortgage rates or retirement savings plans with competitive interests.
  • Marketing Strategies: Communication should emphasize stability, long-term gains, and financial wellness. Tools like webinars, blogs, and financial planning apps can engage Millennials looking for education and guidance in their financial decisions.

For Gen Z:

  • Product Development: Products should cater to flexibility and short-term benefits, such as easy-access savings accounts, credit cards with lifestyle rewards, and investment options with liquidity. Innovative financial solutions like micro-investing platforms or ‘buy now, pay later’ services are particularly appealing
  • Marketing Strategies: Marketers reaching Gen Z should heavily leverage digital media, using platforms where they are most active, like Instagram and TikTok. Messaging should focus on financial empowerment and independence, with a tone that resonates with their desire for authenticity and immediate value.

Final Thoughts

The financial behaviors of Millennials and Gen Z in Singapore exhibit a complex interplay of traditional values and modern influences. Millennials are primarily focused on asset building and long-term security. In contrast, Gen Z navigates an uncertain landscape with a strategy that includes immediate enjoyment and cautious planning. The nuances of ‘doom spending’ alongside the aspirational goals of the FIRE movement illustrate a generational pivot that underscores a broader range of financial attitudes and needs.

The diverse financial attitudes of these generations suggest broader implications for the financial sector and policymakers. Financial institutions are directed to innovate to address immediate consumer behaviors and long-term financial health. Products and services must be adaptable, reflecting the fluidity of modern financial environments. On the other hand, policymakers are called to consider these behaviors in their regulatory and fiscal policies to ensure a stable yet flexible economic environment that can support diverse financial needs and aspirations.

Stakeholders across the financial ecosystem must engage with these insights actively and thoughtfully. Financial institutions should consider how they can more effectively meet the evolving needs of younger consumers, not just as a business opportunity but as a part of broader societal support. Marketers and product developers are encouraged to innovate with empathy, understanding that financial products can significantly impact people’s lives. For policymakers, integrating these insights into policy development can help create frameworks that support financial health and stability, fostering an environment where young people can thrive economically.

By embracing these detailed insights into Millennial and Gen Z financial behaviors, stakeholders can better align their strategies with their clientele’s actual needs and desires, paving the way for a more inclusive and adaptable financial landscape in Singapore.

China’s retail sector emerged as a key driver of economic recovery post-Covid and has surpassed even the most optimistic forecasts. Based on the latest news, retail sales, which is an indicator of consumption, increased by 5.5%. Although it slowed down from a 7.4% rise in December, it still beat the expected 5.2% gain.

During the eight-day Lunar New Year holiday in February 2024, there was a significant increase in travel, which supported the revenue of the tourism and hospitality sectors. As a result, there was a 3% growth in oil refinery throughput to meet the high demand for transport fuels.

Amidst this economic surge, China’s Gen Z—born between 1995 and 2009—are reshaping retail and consumerism in the country. Representing 19% of the national population, this demographic is significant in size and profound in influence. They effortlessly bridge the digital and physical worlds, champion a new wave of ethical consumerism, and exhibit spending behaviors that set them apart from prior generations. As revealed by a joint study from the Tsinghua-Nikkei Institute of Media Studies, their impact on the economy and culture is multifaceted.

Gen Z in China experiences unique challenges, including economic uncertainty and pressures from an aging society. Although the year’s first quarter saw a better-than-expected growth of 5.3% in GDP, experts predict a slowdown in the coming years. The jobless rate among those aged between 16 and 24 is 15.3%, significantly higher than the national average. This economic environment shapes their consumption habits and lifestyle choices, leading to trends such as “reverse consumption” and the “stingy economy” in 2024. In these times, value for money and prudent spending are paramount.

Understanding and engaging with China’s Gen Z is imperative for brands looking to thrive in this dynamic market. Their unique consumer habits and technological savvy fuel China’s retail growth and are poised to redefine global market trends. Gen Z is essential for any forward-looking strategy, especially for brands aiming to secure a foothold in the world’s largest consumer economy.

Understanding Gen Z in China

Demographic Overview

  • Size and Economic Influence: China’s Generation Z comprises individuals born between 1995 and 2009, making up about 19% of the nation’s population. This translates to roughly 265 million people, forming a significant consumer force within the world’s second-largest economy.
  • Key Statistics:
    • Age Range: Currently, ages 14 to 28.
    • Urban vs. Rural Distribution: A significant majority reside in urban areas, mirroring China’s overall urbanization trends. Urban Gen Zers are likelier to have higher disposable incomes and access to digital technologies than their rural counterparts.

Cultural Characteristics

  • Core Values and Attitudes:
    • Individualism and Self-expression: Unlike the collectivist orientation of previous generations, Chinese Gen Z values individuality and self-expression, influenced by global cultural exchanges via the internet.
    • Sustainability and Ethics: They show a heightened responsibility toward the environment and social issues, favoring eco-friendly and ethical brands.
  • Influence of Cultural, Socio-Economic, and Technological Factors:
    • Global Influence: Exposure to global cultures through digital platforms has cultivated a more cosmopolitan outlook among Gen Z.
    • Economic Context: Growing up during China’s rapid economic growth has fostered high expectations for living standards and personal wealth.
    • Educational Opportunities: Improved education systems and resources have led to a more informed and competitive generation.

Technological Integration

  • Role of Digital Technology in Daily Lives:
    • Connectivity: Nearly ubiquitous smartphone usage facilitates constant connectivity to social networks and e-commerce platforms.
    • E-commerce Habits: Gen Z in China is highly comfortable with online shopping, and they often prefer online retail platforms to traditional stores for both research and purchasing.
  • Popular Platforms Among Chinese Gen Z:
    • WeChat: A multi-purpose platform used for messaging, social media, marketing, and payments.
    • Douyin (TikTok): The leading platform for short video content, highly popular for its entertainment value and as a source of trends and products.
    • Bilibili: Known for its focus on anime, comics, and games (ACG) content, it’s a hub for niche communities and deeper fan engagement.
    • Impact on Consumer Behavior: These platforms shape how Gen Z spends their time and influence their consumption patterns, from fashion and entertainment to food and technology.

Case Study: Soul – A Digital Ecosystem Tailored to Gen Z

Background:

Soul, a social media platform with about 80% of its user base from Gen Z, has become a barometer for the shifting preferences and lifestyles of this demographic in China. The platform’s data provides insights into how these young consumers navigate their economic realities with innovative social and shopping behaviors.

Image credit: Soul app website

Key Insights:

  • Strategic Shopping: During major shopping festivals like Singles Day, a significant portion of Gen Z users on Soul meticulously plan their purchases, prioritizing value and quality over impulsive buying.
  • Engagement Trends: The platform has noted a rise in “narcissism” among its users, which is seen not as selfishness but as a form of positive self-care and acceptance. This reflects a broader trend in which mental and personal well-being are as important as physical health.

These insights underscore how digital platforms are retail channels and communities where Gen Z finds support and affirmation for their values and choices. It highlights the critical role of digital ecosystems in shaping young consumers’ purchasing habits and lifestyle choices in today’s economy.

Marketing and Product Strategies for Engaging Gen Z

Product Innovation and Adaptation

Importance of Innovation and Customization:

  • Adapting to Preferences: Gen Z in China values products that serve functional purposes and reflect their personal identity and ethos. Innovation and customization are crucial for products to resonate with this demographic, which prizes uniqueness and personalization.
  • Speed to Market: Rapid prototyping and quick iteration are essential to keep pace with Gen Z’s changing tastes and trends.

Examples of Successful Products Tailored for Gen Z in China:

  • Tech Gadgets: Smartphones and wearables with customizable features (e.g., skins, interfaces) that allow personal expression.
  • Fashion and Beauty: Brands like Perfect Diary offer cosmetics that appeal through limited-edition collaborations with pop culture icons and localized trends, driving online and in-store engagement.
  • Food and Beverage: Snack brands offering exotic flavors or health-oriented products tailored to young consumers’ desire for novelty and wellness.

Branding and Communication

Strategies for Building a Brand That Resonates:

  • Authenticity: Transparency in production processes and business practices, as Gen Z consumers are more likely to scrutinize the authenticity and ethics behind a brand.
  • Sustainability: Emphasizing eco-friendly practices and products, supporting social causes, and engaging in community initiatives that reflect their values and desire for ethical consumption.
  • Community Building: To foster a sense of community, creating spaces for engagement and dialogue, whether through brand-sponsored events or online forums.

Effective Communication Strategies:

  • Language and Tone: Utilizing a relatable and conversational tone in marketing communications that speaks directly to Gen Z’s values and lifestyle.
  • Aesthetics and Design: Visually appealing, bold, and distinctive styles that stand out in the crowded digital landscape.
  • Media Channels: Focusing on digital-first platforms like social media, influencer collaborations, and content marketing on platforms popular among Gen Z, such as Douyin and Bilibili.

Leveraging Technology

Using AI, AR, VR, and Other Technologies:

  • AI: Personalized shopping experiences through AI recommendations based on browsing and purchase history, enhancing user engagement and satisfaction.
  • AR and VR: Offering virtual try-ons for items like clothing and makeup or immersive experiences that allow consumers to engage with a brand or product in innovative ways.
  • Gamification: Integrating game mechanics into apps and campaigns to increase participation and loyalty.

Importance of Mobile-First and Omnichannel Experiences:

  • Mobile-First: Designing campaigns and content with a mobile-first approach, considering most of Gen Z’s interactions and transactions occur on smartphones.
  • Seamless Omnichannel Experiences: Ensuring a consistent brand experience across various online, mobile, and in-store channels to meet Gen Z’s expectations for a fluid shopping experience. 

Case Studies and Examples

Success Stories

Case Study 1: Perfect Diary

Background: Perfect Diary is a Chinese cosmetics brand that has skyrocketed in popularity among Gen Z consumers through savvy digital marketing strategies and collaborations with pop culture phenomena.

Image Credit: YouTube

Strategies:

  • Influencer Partnerships: Leveraging partnerships with major celebrities and micro-influencers to build trust and authenticity.
  • Limited Edition Releases: Creating time-limited products in collaboration with popular TV shows, celebrities, and even national museums, sparking buying frenzies.

Analysis: Perfect Diary’s success reveals Gen Z’s affinity for brands that offer unique, personalized experiences and demonstrate a deep understanding of cultural trends. The brand’s approach illustrates the power of community-driven marketing and the importance of adapting quickly to emerging trends.

Case Study 2: HeyTea

Background: HeyTea, initially founded in 2012 in the second-tier cities of Guangdong, has emerged as a trailblazer in the tea industry by introducing cheese tea, a novel beverage that combines freshly brewed tea with a creamy cheese topping. Originally a small tea shop, HeyTea gained national fame by reinventing traditional Chinese tea culture for a younger audience with new flavors and an Instagram-worthy aesthetic. This innovation has revolutionized the way young consumers in China enjoy tea, particularly in affluent eastern cities.

Image Credit: The Economist

Strategies:

  • Product Innovation: HeyTea redefined traditional tea by introducing cheese tea, served at a 45-degree tilt as recommended by the brand’s ‘tea-ristas’ to perfectly blend the bitter tang of tea with the salty cream cheese cap. This unique product offering captured the imagination and taste buds of a young, urban clientele.
  • Exclusivity and Demand Generation: In its early days, HeyTea created a buzz by limiting purchases and maintaining exclusivity. The long queues at their outlets, sometimes extending up to three hours, were managed by security guards, and the brand had to impose a limit of two cups per person to deter scalpers. This strategy, often referred to as “thirst marketing,” although contested by HeyTea, effectively built a sense of urgency and exclusivity around the brand.
  • Selective Distribution: Initially, HeyTea chose to stay off major food-delivery apps to focus on crafting a high-quality experience that couldn’t be rushed or commoditized. This approach emphasized the artisanal aspect of their offerings, differentiating them from other tea chains that relied on pre-made or powdered ingredients.

The phenomenon of HeyTea speaks volumes about modern consumer behavior in China. The willingness of customers to hire others to stand in line or the implementation of purchase limits illustrates the high value placed on trendy and exclusive products. By offering a product that needed careful preparation and was served in a specific way, HeyTea not only set a new trend but also raised the bar for quality and customer experience in the beverage industry.

HeyTea’s strategy also reveals several crucial insights into broader market trends and consumer preferences:

  • Experience over Convenience: Despite the convenience culture prevalent among Gen Z, the success of HeyTea underscores a contrasting willingness to seek out and wait for unique, quality experiences.
  • Quality as a Differentiator: In a market saturated with quick-service options, HeyTea’s focus on high-quality, freshly brewed, and uniquely presented products helped it stand out, demonstrating that consumers are ready to prioritize quality over speed.
  • Cultural Resonance and Innovation: The introduction of cheese tea not only leveraged traditional Chinese tea culture but also innovated upon it, showcasing that blending tradition with creative modern twists can resonate deeply with young consumers.

HeyTea’s journey from a small tea shop to a national phenomenon encapsulates the dynamic interplay of innovation, marketing savvy, and a deep understanding of consumer desires, setting a benchmark for others in the beverage industry and beyond.

Lessons from Failures

Case Study: Dolce & Gabbana’s PR Crisis

Background: In 2018, Dolce & Gabbana planned a major fashion show in Shanghai. However, promotional videos and comments made by the founders were perceived as racially insensitive by many in China, including Gen Z, leading to a massive backlash and cancellation of the event.

Image Credit: The New York Times

This failure highlights the critical importance of cultural sensitivity and awareness. Brands targeting Gen Z must understand and respect their audience’s cultural contexts and values, as Gen Z consumers are particularly attuned to social issues and brand ethics.

Future Trends and Predictions

Emerging Trends

  • Sustainability and Eco-Friendliness: Gen Z’s preference for sustainable and eco-friendly brands will deepen as environmental concerns continue to rise. Brands that invest in sustainable practices and transparently communicate their environmental impact will gain favor.
  • Enhanced Personalization through AI: Artificial intelligence will play an increasingly significant role in offering personalized shopping experiences. From AI-curated shopping lists to virtual fitting rooms, these tools will tailor the consumer journey to individual preferences and behaviors.
  • Virtual and Augmented Reality Shopping: With advancements in VR and AR, immersive shopping experiences will become more mainstream, allowing Gen Z to explore products and environments virtually before making purchases.
  • The Rise of Social Commerce: Social media platforms will evolve beyond branding channels to become integral shopping venues, leveraging live streams, social storefronts, and peer recommendations.
  • Health and Wellness: Health-conscious products, including wellness apps, fitness gear, and healthy food options, will see increased demand as Gen Z continues to prioritize mental and physical well-being.

Economic Influences on Gen Z Consumer Behavior

As we look to the future, the economic landscape will continue influencing Gen Z’s consumer behavior significantly. The rise of what has been termed the “stingy economy” reflects a shift toward more economically cautious spending habits. This trend is not merely about spending less but seeking greater value and efficiency in expenditures. Platforms like Xiaohongshu and Douyin have become crucial in this shift, allowing Gen Z consumers to meticulously research and compare prices before purchasing.

Emerging Lifestyle Trends:

  • Value-for-Money Lifestyle: Increasingly popular among Gen Z, this trend focuses on maximizing the value received from purchases and experiences, driven by a pragmatic approach to spending.
  • Lazy Health: This trend signifies a growing preference for low-effort, high-impact health and wellness activities, such as ensuring adequate sleep and engaging in stress-free physical activities.
  • City Walks and Special Forces Travel: These trends reflect a desire for experiences that require minimal investment but offer maximum enjoyment and relaxation, aligning with the broader shift toward economic leisure activities.

Predictions on how these trends will shape future marketing and product strategies:

  • Brands must integrate sustainability into their core operations to attract eco-conscious consumers.
  • Marketing strategies must increasingly rely on data analytics and AI to deliver hyper-personalized communications.
  • Companies should invest in AR and VR to create compelling, interactive marketing campaigns and shopping experiences.
  • Social commerce will necessitate strategies that effectively engage influencers and leverage user-generated content to drive sales.

Adapting to Change

Strategies for Staying Relevant:

  • Continuous Innovation: Regularly updating product lines and experimenting with new marketing tactics to keep pace with Gen Z’s evolving tastes.
  • Feedback Loops: Implementing real-time feedback mechanisms to gather insights directly from Gen Z consumers and quickly adapt products and campaigns.
  • Collaborative Engagements: Partnering with Gen Z influencers and thought leaders to co-create content and products that resonate authentically with the demographic.

Importance of Agility and Continuous Learning:

  • Agility in Business Practices: Being agile means more than reacting to trends; it’s about anticipating changes and being prepared to pivot strategies swiftly and efficiently.
  • Emphasis on Continuous Learning: Staying informed about technological advancements, cultural shifts, and consumer behavior patterns is crucial. This includes ongoing education and training for teams to remain adept and responsive.

Understanding and adapting to emerging trends is vital in a world where change is the only constant. For marketers and product managers targeting Gen Z in China, staying ahead means embracing a culture of innovation, maintaining agility in strategic planning, and committing to continuous learning. By doing so, they can ensure their brands remain relevant and appealing to this dynamic and influential consumer segment.

guide-to-gen-z

The Imperative of Understanding and Adapting to Gen Z Consumers in China

Gen Z consumers’ dynamic and ever-evolving characteristics in China underscore a pivotal challenge and opportunity for brands aiming to thrive in the modern marketplace. This demographic defines their consumption patterns and setting trends that influence the global economy. 

For brands, understanding and engaging with Gen Z is not merely about tapping into a new customer base but about aligning with the future of commerce itself.

Gen Z’s unique blend of digital savviness, ethical consumerism, and preference for personalized and immersive experiences demands a rethinking of traditional marketing and product strategies. The brands that successfully captivate this audience demonstrate authenticity, innovate continually, and leverage the latest technologies to create engaging and meaningful interactions. Moreover, the responsiveness to environmental concerns and the integration of sustainability into core business operations are becoming non-negotiable aspects that can significantly sway Gen Z’s loyalty and advocacy.

Therefore, brands that anticipate and adapt to Gen Z’s needs position themselves for increased market share in the present and set the groundwork for sustained relevance and success as this demographic matures. 

The stakes are high, and the brands that effectively decode the preferences and values of Gen Z will likely lead the charge in shaping the future economic terrain.

To deepen your understanding of Gen Z’s impact on global markets and to refine your strategies accordingly, we invite you to download our exhaustive global Gen Z report. Gain detailed insights and practical guidance to harness the potential of this crucial demographic. 

Access the report now at The Definitive Guide to Gen Z.

This comprehensive report is invaluable for any business leader or marketer aiming to make informed decisions that resonate with Gen Z and propel their company toward long-term success.

Along the coast of Laguna in the Philippines, Anna, a 17-year-old student, begins her day long before sunrise to work on her small online business, a venture that started as a hobby but has grown into something promising. 

Anna’s family has been farmers for generations. Still, with access to the internet,  digital tools, and e-commerce platforms. She has started what was unimaginable to her parents at her age. She represents the new generation of Southeast Asians: ambitious, connected, and eager to make their mark.

In a region where more than a third of the population is aged between 15 and 34, as highlighted in the ASEAN Youth Development Index, Anna is not an outlier. She is part of a growing demographic wave shaping the future of Southeast Asia. This youth population is large, increasingly educated, and tech-savvy, with characteristics that reshape consumer markets and create new business opportunities in the region.

Anna’s small business, which started by selling handmade crafts from local artisans online, has now expanded to a broader market beyond her village, thanks to digital platforms. Her success shows the changing dynamics in the region and the untapped potential that lies within its young population.

Anna’s story mirrors the potential and aspirations of the youth in the Southeast Asian region.

Understanding and engaging with this young demographic is critical to unlocking new opportunities in this diverse and rapidly evolving region.

Understanding the Southeast Asian Youth Demographic

Anna’s story represents a significant and influential demographic shift across Southeast Asia. This shift presents many untapped opportunities for brands looking to expand or establish their presence in this market.

The Southeast Asian region, home to a diverse range of countries with varying cultures, languages, and economic stages, is witnessing a rapid increase in its youth population. According to the ASEAN Youth Development Index (YDI), individuals aged between 15 and 34 constitute a substantial portion of the region’s population. The median age in the Philippines is 26. This young demographic is growing in numbers and is characteristically different from the previous generations in many vital aspects.

The ASEAN Youth Development Index provides a comprehensive picture of the youth demographic in the Southeast Asian region. In several ASEAN nations, this age group constitutes a substantial percentage of the population, indicating a large market size and a pivotal role in shaping the future socio-economic landscape of these countries.

Characteristics of the Youth Demographic

The growing appeal of next-generation consumers in urban areas is influenced by increasing affluence, a mobile-first mindset, and an eagerness to embrace lifestyle innovations. The influence of popular culture, design, and fashion trends from China, Japan, and Korea is becoming increasingly evident across the region. These trends are often adapted to suit local tastes and preferences.

Savvy brands recognize that young Southeast Asian consumers are not uniform; their browsing and buying habits vary across different markets. 

Rising middle class with higher education levels 

There has been a significant increase in access to education among the youth in these countries. Higher education levels have resulted in a more knowledgeable and skilled workforce ready to engage in more complex and diverse economic activities.

This youth population is increasingly aware of global issues, including sustainability and social responsibility. Brands and campaigns that resonate with these values are finding a receptive audience among Southeast Asian youth. For instance, we have seen from our studies that young consumers have a growing preference for sustainable and ethical brands, highlighting the importance of corporate social responsibility (CSR) in business strategies.

Technological Adeptness

Asia’s consumption market is significantly influenced by a new generation of digital natives —individuals born between 1980 and 2012, encompassing Generation Z and Millennials. This group, which forms over a third of Asia’s population in terms of consumption, is poised to be a key driver in the region’s economic activity in the upcoming years.

This group is adept at using digital tools and platforms, influencing their consumption patterns, communication styles, and lifestyle choices. 

Research by McKinsey on Generation Z in Asia highlights some defining traits of these digital natives. 

They actively seek unique experiences and are more inclined than Generation X to purchase brands that distinguish them. 

A striking feature of this generation is their financial optimism, with more than 70% expressing confidence in achieving their financial goals.

This optimistic outlook translates into increased consumption, facilitated by easy access to digital platforms and a willingness to use credit facilities. In China, for instance, digital natives are leading the consumer loan segment, with this age group constituting half of the indebted consumers. This borrowing trend fuels additional online spending, particularly in apparel and durable goods.

Technology has become a part of everyday life for the region’s youth. This affects their consumption patterns, career aspirations, and overall lifestyle choices. Brands looking to engage with this demographic must understand their affinity for digital platforms and their expectations for technology integration in products and services.

According to the latest Digital 2023 report of DataReportal, Filipinos spend an average of nearly 11 hours online daily. Most phones are used for gaming and social media. 

In another recent study of Telenor Asia, 8 out of 10 Filipinos have become more engaged online than in real life. This makes them one of the most virtually social across the globe. As a result, the gaming industry has transformed to accommodate more game apps focusing on socialization as another type of online entertainment.

We launched Project Helmet in partnership with Kadence US to study mobile players who engage or intend to engage in social games in the Philippines. We utilized various qualitative methodologies to explore gamers’ experiences and feedback on social gaming apps —home usage gameplay test, online diary, and in-depth interviews. 

Through these studies, we found that customization of in-game avatars resonates with most gamers who wish to have their unique and creative digital persona. Social games, for them, are an avenue to express themselves freely and with more confidence as if they are communicating with others in real life. Other features, such as various activities, spaces, and games, help them to start and continue socializing to a certain degree.

In a recent study of digital behaviors across 47 leading economies, the Philippines stands out for its internet usage. Filipinos report spending almost 60% more online time than the global average.

The economies of Southeast Asian countries have also grown massively in recent years. With the growing role of the middle class in the consumer market, it is essential to understand their lifestyle, values, consumption behavior, and brand preferences. A Japanese Management Consulting firm partnered with us at Kadence Philippines to conduct multiple home visits with Filipinos classified as emerging affluent (EA) to learn more about their opinions and preferences. 

Our interviews showed that emerging affluent Filipino consumers greatly value building connections and broadening their network. Our study was insightful for brands and marketers as they learned how to focus on people first and the product second to appeal to this growing consumer base of emerging affluents in the country.

Similar trends are noticeable in countries like Thailand and Singapore. The sustainability of this spending pattern by digital natives is contingent on their ability to balance debts with rising incomes and the continued availability of credit.

Entrepreneurial Spirit 

The entrepreneurial spirit seen in individuals like Anna is widespread. Fueled by increased access to technology and information, many young individuals are starting businesses, often in the digital and technology sectors. This entrepreneurial mindset creates a solid ecosystem for new business ideas, models, and collaborations.

The region’s youth population will peak at over 220 million by 2038. 

The growing youth population in Southeast Asia presents opportunities for brands that range from digital marketing and e-commerce to sustainable products and youth-centric services. When engaging with this demographic, brands must understand their aspirations, values, and the unique cultural context of this region.

Consumption Patterns and Preferences of Southeast Asian Youth. 

The Southeast Asian youth demographic, characterized by diverse and evolving consumption patterns, represents a significant market force in the region. 

Our insights from market expansion work and market research with clients spanning various industries involving online gaming, vaping, and multi-generational families shed light on this demographic’s unique preferences and behaviors.

The consumption patterns of Southeast Asian youth are not only diverse but also guided by distinct trends that reflect their values and lifestyle choices. Four key trends stand out in shaping consumer behavior: digital engagement, sustainability, ethical consumption, and the desire for speed and convenience. 

Digital Engagement

  • Online Shopping and E-Commerce: Southeast Asian youth are driving e-commerce growth, favoring the convenience and variety of online shopping. This shift is part of a broader trend of ‘Digital leapfrogging,’ where retail markets are moving directly from traditional formats to e-commerce, creating a unique digital shopping experience in the region.
  • Social Media Influence: These platforms play a crucial role in the lives of young consumers in this region. Brands that engage effectively through personalized storytelling, influencer partnerships, and interactive content can capture attention. This aligns with the “Segment of one” trend, where personalization in digital advertising is increasingly important.
  • Digital Payments and Fintech: The youth lead the adoption of digital payment methods and fintech services. The emergence of “Super Apps,” which consolidate various services, including financial, into a single platform, further accelerates this trend. GCash, a mobile wallet and digital payment platform, has seen massive adoption among the youth in the Philippines, offering convenient cashless transactions by emphasizing ease of use, security, and a wide range of financial services, from money transfers to online shopping, appealing to tech-savvy youth who value convenience. WeChat, AliPay, Grab, Gojek, and Kakao are other popular super apps in the region. 

Sustainability

  • Eco-Friendly Products and Practices: There’s a growing preference for sustainable products among Southeast Asian youth. This conscious shift aligns with a regional trend toward responsible consumerism, where consumers are willing to pay more for sustainable alternatives.
  • Support for Green Initiatives: Young consumers favor brands that participate in green initiatives and sustainable practices. Brands that can effectively bridge the gap between consumer willingness to pay and the pricing of sustainable products will find success in this market.

Ethical Consumption

  • Social Responsibility: The youth are increasingly aware of social issues and ethical consumption. This includes a preference for transparent brands with responsible supply chains and contributions to social causes.
  • Health and Wellness Focus: This demographic values products that promote health and well-being, reflecting a broader trend toward personalization in consumer products.
  • Cultural Sensitivity and Inclusivity: There is a demand for products and services that respect cultural diversity. This ties into the increasing popularity of local and regional brands that understand and cater to these cultural nuances.

Speed, Convenience, and Quality

  • Brand Consciousness and Quality Awareness: Southeast Asian youth value quality and authenticity. The rise of Asian brands, which align with these expectations, demonstrates a shift in brand preferences.
  • Demand for Convenience and Speed: The youth’s fast-paced lifestyle has demanded quick and efficient services. Digital technologies enable faster and more convenient consumer experiences.

Emerging Business Models for Southeast Asian Youth

Due to the changes and shifts in consumption patterns of Southeast Asian youth, we are seeing many emerging business models in the region. 

  • Subscription Services: A growing trend in Southeast Asia is the rise of subscription-based models, particularly in entertainment, food delivery, and even fashion. These services cater to the youth’s desire for convenience and variety. Subscription models offer the flexibility and novelty that young consumers seek, providing them with regular updates or access to products and services without the need for constant decision-making.
  • Customizable Products: The demand for personalization is shaping the market for customizable products. This trend is evident in sectors ranging from technology and fashion to health and wellness products. Southeast Asian youth, with their high value on individuality and personal expression, are drawn to products they can tailor to their specific needs and preferences. Brands offering customization options in tech gadgets, apparel, or even personalized skincare routines will resonate strongly with this demographic.
  • Integrated Digital Platforms: The advent of super apps is transforming the digital ecosystem in Southeast Asia. These platforms integrate services like social media, e-commerce, financial transactions, and even healthcare into a single, user-friendly interface. For the youth, who value efficiency and interconnectedness, these platforms offer a seamless digital experience. Brands that can integrate their services with these platforms or develop complementary digital solutions stand to gain significantly from the widespread adoption and user engagement these platforms enjoy.

Strategies for Engaging with Young Consumers

Successfully engaging with the young consumer market in Southeast Asia involves adapting strategies that resonate with their values, preferences, and lifestyles. Here are key strategies that businesses can adopt:

Digital Marketing

  • Leverage Social Media: Utilize platforms like Instagram, Facebook, TikTok, and YouTube to engage with young consumers. Create content that is relatable, engaging, and shareable.
  • Influencer Partnerships: Collaborate with social media influencers who resonate with the youth. Influencers can help in building brand trust and authenticity.
  • Interactive and Personalized Content: Develop marketing campaigns that are interactive and personalized. Utilize data analytics to understand consumer preferences and tailor content accordingly.
  • Mobile-First Approach: Ensure all digital content is optimized for mobile devices, considering the high usage of smartphones among the youth.

Sustainable Practices

  • Eco-friendly Products and Services: Develop and promote products or services that are environmentally friendly, highlighting the sustainability aspect in marketing campaigns.
  • Transparency: Be transparent about production processes, sourcing, and corporate practices. Young consumers value honesty and integrity.
  • Sustainability Campaigns: Participate in or initiate sustainability campaigns or events, demonstrating a commitment to environmental stewardship.

Community Involvement

  • Support Local Initiatives: Engage with local communities and support initiatives that resonate with the youth, such as cultural events, environmental conservation, or social causes.
  • Create a Sense of Community: Build a community around your brand by encouraging user-generated content, hosting events, or creating forums for discussion and interaction.
  • Corporate Social Responsibility (CSR): Implement CSR programs that align with the interests and values of young consumers. Focus on areas like education, health, and community development.

Additional Considerations

  • Adapt to Technological Trends: Stay updated with the latest technology trends, such as augmented reality (AR), virtual reality (VR), or AI, to create unique and immersive experiences.
  • Ethical Business Practices: Ensure your business practices align with social responsibility and fairness values.
  • Feedback and Engagement: Actively seek input from young consumers and engage with them on various platforms to better understand their needs and preferences.

Preparing and Adapting to Changing Demographics and Consumer Behaviors in Southeast Asia

As the Southeast Asian market continues to evolve, mainly driven by its forward-looking youth population, brands must adapt and prepare for the shifting trends. Here are strategies for brands to remain competitive and responsive:

Invest in Market Research:

Continuously gather and analyze data on changing consumer trends, preferences, and behaviors in the region. Understand the nuances and diversity within the youth demographic. This will enable brands to anticipate market shifts and adapt their products, services, and marketing strategies accordingly.

Embrace Technological Advancements:

Leverage new technologies like AI, big data, and blockchain to enhance customer experiences, optimize operations, and create innovative products or services. Staying ahead in technology adoption can help businesses cater to a tech-savvy youth market and streamline processes for efficiency and cost-effectiveness.

Foster Agility and Flexibility:

Develop an agile business model that can quickly respond to market changes. This includes pivoting strategies, exploring new markets, and adjusting product lines. An agile company can capitalize on emerging trends and address challenges promptly.

Prioritize Digital and Mobile Marketing:

Focus on digital and mobile-first marketing strategies, using social media, influencer collaborations, and personalized online content to engage young consumers. This approach aligns with the digital habits of the youth, enhancing brand visibility and engagement.

Commit to Sustainability and Social Responsibility:

Integrate sustainable practices into business operations and support social causes that resonate with the youth demographic. This builds brand loyalty and trust among young consumers who value ethical and eco-friendly practices.

Cultivate a Strong Online Presence:

Establish and maintain a strong, interactive online presence. This includes having an engaging website, active social media channels, and a robust e-commerce platform. An effective online presence is critical to connecting with the digitally connected youth market.

Offer Personalized Experiences:

Utilize data analytics to provide personalized products, services, and customer experiences. Personalization increases customer satisfaction and loyalty, resonating more with individual preferences and needs. Take, for instance, LINE, a popular messaging app that has become integral to daily communication in Thailand. It offers various services beyond messaging, including payment and social media features, through customization to local preferences, such as providing locally relevant stickers and integrating services that cater to the Thai market’s specific needs. Other popular apps in the region include Viber, Telegram, and WhatsApp.

Build a Collaborative Ecosystem:

Collaborate with other businesses, local communities, and stakeholders to explore new opportunities. Collaboration can lead to innovative solutions, expanded markets, and shared resources.

Develop a Culturally Sensitive Approach:

Be mindful of the cultural diversity in Southeast Asia. Develop marketing and business strategies that are culturally sensitive and locally relevant. This enhances the brand appeal and avoids cultural missteps.

Focus on Talent Development:

Invest in training and development to equip the workforce with skills relevant to the evolving market, such as digital literacy, cultural competency, and innovation. A skilled and adaptable workforce is crucial for businesses to navigate and capitalize on the changing market dynamics effectively.

Gen Z and Alphas, born between the mid-1990s and the early 2010s, are wielding unprecedented influence over market trends, challenging legacy beauty brands to rethink their strategies and embrace a new era of authenticity and purpose.

Latest findings spotlight Gen Z as a powerhouse in the US economy, pouring a whopping $143 billion into the market. What sets this generation apart? Their strong preference for brands that resonate with their core values. A striking 62% of Gen Zers are willing to open their wallets wider for products from brands dedicated to making a positive impact on the environment and society. This generation isn’t just shopping; they’re voting for change with every purchase.

Legacy beauty brands are riding the wave of change, shifting gears from old-school marketing to crafting stories with purpose that click with the younger crowd. It’s all about what makes Gen Z tick: a deep sense of purpose and championing causes that matter to them. This isn’t just a change in strategy; it’s a whole new marketing playbook designed to capture the hearts of Gen Z and Alpha consumers, who crave fresh, innovative approaches. These brands are not just selling beauty anymore; they’re selling a vision that resonates with the values and aspirations of a new generation.

With Gen Z’s projected spending power set to surpass millennials by 2031, the beauty industry has witnessed a surge in spending among younger consumers, particularly in makeup, which grew 32% year-over-year. 

E.l.f. Cosmetics is leading the pack with Gen Z, winning them over with high-quality, wallet-friendly products and catchy marketing. Their rise to the top shows how being genuine and engaging with customers at the right moment pays off, especially when teaming up with popular TikTok stars and launching creative online series.

Maybelline is also hitting the mark with younger audiences by making social media its battlefield, especially on TikTok, where its Sky High mascara line has become a sensation thanks to clever promotions and a mix of different online activities.

Clinique is also getting in on the action, focusing on both online and in-person experiences to draw in Gen Z. Their “Protect Your Glow” campaign, and the virtual Clinique Lab are perfect examples of mixing tech and real-world connections to keep up with what younger customers want.

Source: Clinique

The lesson from these brands? Being authentic and truly connecting with Gen Z and Alphas is key. As beauty brands navigate the shifting sands of the industry, staying genuine and engaging meaningfully with the younger crowd is essential for success.

Understanding the Preferences of Gen Z and Alphas

Characteristics and Values of Gen Z and Alphas:

Digital Natives:

Gen Z and Alphas are born into a digital world where technology is seamlessly integrated into every aspect of their lives. They are adept at navigating online platforms and consume a significant portion of their content through digital channels such as social media, streaming services, and e-commerce platforms.

Authenticity:

Authenticity reigns supreme for Gen Z and Alphas. They value genuine connections and transparency from brands, seeking authenticity in the products they purchase and the companies they support. This generation is quick to discern between sincere efforts and mere marketing ploys, gravitating toward brands that demonstrate sincerity and integrity in their actions.

For instance, Fenty Beauty, celebrated for its inclusive shade range and bold marketing campaigns, has resonated with consumers seeking diversity and representation in the beauty industry. Similarly, R.e.m. Beauty’s recent funding success highlights the allure of celebrity endorsements and the potential for these brands to captivate younger audiences.

beauty-personas

Socially Conscious:

Gen Z and Alphas are socially conscious consumers prioritizing ethical and sustainable practices. They are deeply concerned about climate change, social justice, and diversity and expect the brands they engage with to share and uphold their values. 

Rare Beauty, founded by Selena Gomez, has emerged as a trailblazer in capturing the attention of Gen Z and Alphas. Rare Beauty’s emphasis on inclusivity and mental health advocacy resonates deeply with younger consumers, reflecting their desire for brands that champion authenticity and social responsibility. 

According to a study by Deloitte, 63% of Gen Z consumers prefer to buy from sustainable brands.

Individuality and Self-Expression:

Individuality and self-expression are core values for Gen Z and Alphas. They celebrate diversity and seek products and brands that empower them to express their unique identities. This generation is drawn to brands that embrace inclusivity and champion diversity, allowing them to see themselves represented in advertising and marketing campaigns.

Glossier, known for its minimalist aesthetic and community-driven approach, has cultivated a loyal following among Gen Z and Alphas through its relatable marketing and product offerings tailored to their preferences. These brands’ success underscores the importance of understanding and engaging with the values and aspirations of younger consumers.

Purpose-Driven:

Gen Z and Alphas are drawn to brands with a clear purpose and mission. They are more likely to support companies that stand for something meaningful and actively contribute to societal or environmental causes. 

As indicated in our report, “The Definitive Guide to Gen Z,” globally, 74% of Gen Zers believe they have the power to influence a brand’s actions for the better. In Asia-Pacific, this is held by 89% of respondents. Singapore and Indonesia top the list at 91% and 95%, respectively.”

To learn more about how Gen Z’s are similar and different across ten countries, download our full report here.

The growing demand for sustainability in the Beauty Industry and how brands can tap into it. 

Understanding Gen Z and Alphas’ key characteristics and values is paramount for legacy beauty brands seeking to engage and resonate with this influential demographic. By aligning their strategies and messaging with these preferences, brands can position themselves as authentic, socially responsible, and purpose-driven, thereby forging meaningful connections with younger consumers and securing their loyalty in the long term.

Consumer Awareness:

There has been a significant rise in consumer awareness regarding environmental and social issues, prompting a shift toward sustainability in the beauty industry. Consumers, especially Gen Z and Alphas, are increasingly mindful of the environmental impact of their purchasing decisions and seek out products and brands that align with their values.

Market Demand:

The demand for sustainable beauty products is rising, with consumers seeking brands prioritizing eco-friendly ingredients, packaging, and manufacturing processes. 

According to a recent report, the global market for sustainable cosmetics is projected to reach $9.75 billion by 2025, driven by growing consumer consciousness and demand for natural and organic products.

Regulatory Pressures:

Regulatory pressures and government initiatives to promote sustainability and reduce environmental impact drive change within the beauty industry. Legislation such as bans on single-use plastics and microplastics and regulations governing ingredient transparency and animal testing are pushing brands to adopt more sustainable practices.

Brand Differentiation:

Sustainability has become a key differentiator for beauty brands, offering a competitive edge in an increasingly crowded market. Brands that prioritize sustainability appeal to environmentally conscious consumers and position themselves as ethical and socially responsible, fostering stronger brand loyalty and trust among consumers.

Beauty brands recognize the importance of corporate responsibility, take proactive steps to reduce their environmental footprint, and promote ethical practices throughout their supply chains. Initiatives such as sourcing ethically sourced ingredients, reducing waste, and investing in renewable energy are becoming standard practices for forward-thinking beauty companies.

In light of these trends, sustainability has emerged as a critical consideration for legacy beauty brands seeking to remain relevant and competitive in today’s market. 

How Brands Can Communicate Their Commitment to Ethical Sourcing and Environmental Responsibility:

Transparency and Traceability:

Brands can communicate their commitment to ethical sourcing and environmental responsibility by providing transparent information about their supply chain practices. This includes detailing where ingredients are sourced, how they are harvested or produced, and the steps taken to ensure fair labor practices and environmental sustainability throughout the supply chain. By offering traceability and transparency, brands can build trust with consumers who value ethical sourcing.

Certifications and Labels:

Brands can demonstrate their commitment to ethical sourcing and environmental responsibility by obtaining certifications and labels that verify their sustainability credentials. Certifications such as Fair Trade, Cruelty-Free, Organic, and Vegan assure consumers that products meet specific standards for ethical and sustainable production. Incorporating these certifications into product packaging and marketing materials can signal to consumers that the brand prioritizes ethical and environmentally friendly practices.

For information about sustainability and eco-labels in ten countries, including the US, UK, Singapore, Indonesia, Japan, India, China, Thailand, Vietnam, and the Philippines, download our report: “The Green Brand — – A Comprehensive Report for Sustainable Trends Reshaping Brands.”

Storytelling and Brand Narratives:

Brands can use storytelling and brand narratives to communicate their commitment to ethical sourcing and environmental responsibility in a compelling and relatable way. By sharing stories about the people behind the products, the communities they support, and the environmental initiatives they champion, brands can humanize their sustainability efforts and create emotional connections with consumers. Authentic storytelling that highlights the brand’s values and mission can resonate with consumers on a deeper level, fostering loyalty and advocacy.

The Body Shop has long been a pioneer in ethical and sustainable beauty. Since its inception, the brand has been committed to cruelty-free products and sustainable sourcing. The Body Shop’s brand narrative emphasizes its dedication to environmental activism, fair trade practices, and community empowerment. Through initiatives such as the Community Trade program, which sources ingredients from marginalized communities worldwide, and campaigns advocating for biodiversity protection and against animal testing, The Body Shop seamlessly integrates sustainability into its brand narrative.

Corporate Social Responsibility (CSR) Initiatives:

Brands can showcase their commitment to ethical sourcing and environmental responsibility through corporate social responsibility (CSR) initiatives. This includes philanthropic efforts, community engagement programs, and sustainability projects that align with the brand’s values and contribute to positive social and environmental impact. By actively participating in CSR initiatives and communicating these efforts to consumers, brands can demonstrate their dedication to making a difference beyond profit-driven motives.

L’Oréal Paris has incorporated environmental and social responsibility into its brand narrative. The brand’s “Sharing Beauty with All” sustainability program outlines ambitious goals to reduce its environmental footprint, improve the sustainability of its products, and empower communities. L’Oréal Paris communicates its commitment to sustainability through transparent reporting, partnerships with sustainability organizations, and initiatives such as the L’Oréal Foundation’s “For Women in Science” program, which supports women in STEM fields.

Collaboration and Partnerships:

Brands can collaborate with like-minded organizations, NGOs, and industry partners to amplify their commitment to ethical sourcing and environmental responsibility. Collaborative projects and partnerships can leverage collective expertise and resources to drive positive change across the industry. By aligning with reputable organizations and engaging in collaborative initiatives, brands can strengthen their credibility and impact on sustainability and ethical sourcing.

Digital Adaptation Strategies to Reach and Engage with Gen Z

Legacy beauty brands are swiftly adapting their digital strategies to effectively engage with Gen Z, leveraging various platforms and technologies to meet this generation where they are most active.

Social Media Engagement

TikTok Dominance: Gen Z’s affinity for TikTok has propelled it to the forefront of digital marketing strategies for beauty brands. By creating engaging and authentic content that resonates with TikTok’s user base, brands can cultivate a loyal following and drive product awareness. For example, brands like Fenty Beauty and Maybelline have capitalized on TikTok trends and challenges to showcase their products in creative and relatable ways, resulting in viral campaigns and increased brand visibility.

Instagram Relevance: Instagram remains a powerhouse platform for beauty brands to showcase their products and connect with Gen Z consumers. Using features like Stories and Reels, brands can deliver visually compelling content and immersive experiences that captivate younger audiences. By collaborating with influencers and micro-influencers with a strong presence on Instagram, brands can amplify their reach and credibility within the Gen Z community.

E-Commerce Innovation

Direct-to-Consumer Channels: Legacy beauty brands increasingly invest in direct-to-consumer (DTC) channels to streamline the shopping experience for Gen Z consumers. By offering seamless online platforms and mobile apps, brands can provide personalized product recommendations, virtual try-on experiences, and easy checkout options, catering to the digital-first preferences of Gen Z shoppers.

Augmented Reality (AR) Integration: AR technology has become a game-changer for beauty brands looking to enhance the online shopping experience. By implementing AR try-on tools and virtual makeup simulations, brands can empower Gen Z consumers to experiment with different products and ‘looks’ before making a purchase decision. This interactive and immersive approach drives engagement and reduces the barrier to online shopping for beauty products.

Influencer Collaboration

Micro-Influencer Partnerships: Recognizing the influence of micro-influencers within niche communities, legacy beauty brands are forging partnerships with these content creators to reach Gen Z audiences authentically. Micro-influencers often have a highly engaged and loyal following, making them valuable brand advocates for driving product awareness and user-generated content.

User-Generated Content (UGC): Encouraging user-generated content through branded hashtags and challenges is another effective strategy for engaging Gen Z consumers. By empowering users to share their experiences and beauty routines, brands can foster a sense of community and authenticity that resonates with younger audiences.

Is your beauty brand trending?

A quest for authenticity and value characterizes Gen Z’s consumption and purchasing habits on platforms like TikTok. 

Trends such as the “no makeup makeup look,” boasting over 200 million views, showcase the generation’s preference for minimalist beauty routines and honest content. This trend emphasizes the importance of authenticity in both appearance and approach, highlighting the value Gen Z places on transparency. 

The pursuit of dupes, with the hashtag #Dupes amassing 3.5 billion views, is another example of Gen Z’s desire for quality products at affordable prices. Brands can capitalize on these trends by offering value-driven propositions and authentic messaging, resonating with Gen Z’s priorities and preferences in content consumption and product purchases.

The beauty industry’s future hinges on brands’ ability to embrace change, authenticity, and purpose-driven storytelling. Those prioritizing sustainability, authenticity, and inclusivity are poised to thrive as they connect with the values and aspirations of Gen Z and Alphas. Ultimately, beauty brands adapting to evolving consumer preferences and embracing purpose-driven messaging will secure long-term success.

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