Dentsu Aegis Network, in collaboration with Econsultancy, today launched Here Comes the Centennial: Southeast Asia’s New Generation of Shoppers.
Here Comes the Centennial is a white paper investigating the online buying behaviour of centennials – consumers of the future – in the region.
Launched on the sidelines of FUTR Asia 2018 Summit, the study finds that, despite the surge in online shopping, cash is still king for centennials in the digital age, and shopping on social media platforms is the new norm.
Despite being digital natives, the concept of a cashless society has yet to fully take off for centennials in six countries surveyed, as 56 per cent of survey respondents still prefer paying cash on delivery for their purchases.
The next generation of online shoppers also enjoy having a variety of payment methods, as 43 per cent of centennials will readily abandon their purchases because their preferred payment option is not available.
Having grown up in the smartphone era, centennials are also using social media platforms differently compared to previous generations in their buying journey.
Social media applications (47 per cent) such as Facebook and Instagram are the second most popular place for centennials to shop in.
Close to half of the survey respondents (49 per cent) also turn to social media when they are researching for more information on their future purchases, rather than asking friends (45 per cent) and family (27 per cent).
Dentsu Aegis Network Asia Pacific CEO Nick Waters said: “All eyes are on Southeast Asia as the world’s next consumer powerhouse, with its young population and increasing purchasing power.
“Close to 280 million centennials – tomorrow’s consumers – call this region home.
“Enabled more than ever before by technology and data, we are seeing incredible potential for growth in the region and our latest research ‘Here Comes the Centennial: Southeast Asia’s New Generation of Shoppers’, helps us understand what is important for these consumers of the future and how businesses can adapt and position effectively for Southeast Asia’s future retail landscape.”
Brand name and image is no longer a priority of centennials, making the end-to-end brand experience more important than ever for retailers.
Only 11 per cent cite having a prestigious or famous brand as one of their top three attributes when choosing where to shop.
This means retailers need to work harder to get their brand experience perfect in order to capture the attention of tomorrow’s consumers.
Who are the Centennials & why are they important?
Centennials – also known as Generation Z – are those who are born between now and 1995.
Accounting for about 277 million of Southeast Asia’s population, 50 per cent of centennials spend more than USD30 a month on online shopping, while 9 per cent spend over USD100 monthly.
The size of this new generation alone makes them attractive for retailers, but the behaviours of this group make them lucrative in terms of its online shopping and ecommerce potential.
This new generation will also soon be one of the world’s most demanding consumers who have high standards and expectations of the online shopping experience.
Technology should be an integral part of this experience, as 82 per cent of centennials are excited about futuristic shopping technology such as virtual reality.
Personalisation is key as well, as 76 per cent of respondents are happy to share data with websites, if it makes more relevant recommendations.
Econsultancy Asia Pacific managing director Jefrey Gomez said: “Centennials are coming of age in an era when high speed internet is always available, and they expect technology and brand experiences that are fast, responsive, and seamless.
“The survey showed that 86 per cent of centennials will not use an app or website that takes too long to load and 82 per cent will not use an app or website that is difficult to navigate.
“This means that retailers can therefore no longer just provide well-designed stores or rely solely on brand campaigns to drive sales. Instead they need to focus on the utility of their online offering to make the purchasing journey easy to complete.”
About Here Comes the Centennial: Southeast Asia’s New Generation of Shoppers
The white paper was developed by leading global research agency Econsultancy, in collaboration with Dentsu Aegis Network and surveyed over 3,000 online shoppers aged 16 to 23 years old in Indonesia, Malaysia, Philippines, Singapore, Thailand, and Vietnam. The full report is available here.
Medallia has appointed Heather Paterson as its new ANZ country manager to drive further growth across Australia and New Zealand. With a strong sales performance and leadership background, Paterson joins Medallia as ANZ country manager following more than seven years with leading SaaS financial technology provider, Intralinks, where she was most recently director for Asia […]
Spikes Asia today announces that the 2021 awards will take place in February, bringing them forward to the first quarter of the year. Judging for the Spikes Asia Awards, the region’s most prestigious creative branded communications accolade, as well as the Tangrams Awards and Young Spikes competitions will all take place in February 2021. In […]
Following a rigorous round of online judging by 133 industry experts, The Communications Council today announced that 88 finalists from 24 agencies on behalf of 36 clients have made it into Round Two of the Australian Effie Awards. Finalists will now compete for Effies, Australia’s only awards based on proven advertising effectiveness – across 26 […]
Integral Ad Science (IAS) today announced the launch of “Channel Science”, an industry-leading partnership between Channel Factory and IAS. The Channel Science solution helps advertisers to leverage both companies’ technologies through a single product to ensure their YouTube campaigns are brand-safe, brand-suitable, and performance-optimized. More than ever before, advertisers are searching for ways to streamline their media buying and improve […]
WPP AUNZ has launched its inaugural podcast series, led by WPP AUNZ Chief Strategy Officer, Rose Herceg (pictured). The podcast series will focus on the company’s recent thought leadership study: Secrets & Lies Chapter 4, Humanity & the Machine. Aired over the next few weeks, each discussion will take a deep dive into exploring the role […]
Westpac Group today announced it has partnered with Verizon Media’s Omnichannel DSP across its entire brand portfolio including Westpac Bank, St George Bank, Bank of Melbourne and Bank of South Australia. The new partnership gives Westpac Group access to Verizon Media’s end-to-end strategic marketing and planning capabilities including: first-party data based audience insights; full-service omnichannel […]
Network 10 is set to undergo a massive restructure, leaving a number of high-profile journalists out of a job, including Kerri-Anne Kennerley, Natarsha Belling and Tim Bailey, B&T understands. As first reported on The Sydney Morning Herald, the restructure was announced to staff on Tuesday. As part of the restructuring, the presentation of the weekday […]