Make Way for Generation Z: Marketing to Today’s Tweens and Teens

EXECUTIVE SUMMARY

Key Characteristics

Summary 1 Gen Z Characteristics

Demographic Trends

Chart 1 Populations Aged 8-19 and % Growth 2004-2009

Gen Zers as Consumers

Outlook

INTRODUCTION

Definitions

Summary 2 Consumer Groups 2010

Profile of Generation Z

A diverse group
Materialistic
Tech-savvy
A mind of their own
Desire to succeed
Getting older younger
Au fait with technology
Brand-aware
A sense of fairness
Community-orientated
Going out
Emerging markets lag behind
Chart 2 Generation Z Characteristics 2010

DEMOGRAPHIC TRENDS

Share of Population

Chart 3 Global Population by Generational Breakdown 2009

Regional Trends

Asia-Pacific home to more than half of all 8-19 year-olds
Young populations stagnate in developed regions
Chart 4 Regional Breakdown of 8-19 Year-olds 2009
Chart 5 % Growth in the Number of 8-19 Year-olds by Region 2004/2009
Chart 6 % Share Accounted for by 8-19 Year-olds by Region 2009

Country Trends

China’s one-child policy causes drop in young population
Strongest growth seen in Southeast Asia and Middle East
Table 1 Number of 8-19 Year-olds by Country 2004/2009
Table 2 Gen Zers as % Total Population by Country 2004/2009

MARKET DRIVERS

Purchasing Power

They’ve never had it so good
Tweens exert pester power
Teenagers more independent
Income by country
Table 3 Average Gross Income of Population Aged 15-19 by Country 2004/2009

Attitudes towards Finance

Taking more control
Impact of recession

Teenage Employment

Youth unemployment on the rise
College enrolment rates at an all time high
Table 4 Youth Unemployment 2004/2009

Age Compression

The KGOY phenomenon
Concerns over the sexualisation of tweens
Children under pressure to conform

Parental Influence

Everyone’s a winner
“Helicopter parenting”
Keeping a close rein

Generation Z and the Internet

Forever connected
The net generation
Blogging declines in favour of social networking
Chart 7 Internet Use in the US by Age Group 2009

Social Networking

Facebook rules
Posting comments and sharing content become more popular
Table 5 Social Networking Activities in the US 2006/2007/2009

On-line Gaming

MMORPGs
Social gaming

Mobile Phone Use

Three quarters of American teenagers have mobiles
Chart 8 Teenage Mobile Phone Ownership in the US 2004-2009
Mobile phone usage rises among Asia’s youth
Adapting products to Gen Z
Cheaper smartphones rival iPhone

Leisure and Entertainment Patterns

Staying close to home
Music streaming becomes the new radio
Gaming moves on-line
Table 6 The Global Market for Video Games 2005/2010
Developments in books and magazines
“Hanging out” at the mall

Celebrity Culture

Commercial opportunities
Summary 3 Celebrity Fragrance Launches in 2010

Beauty and Hygiene

Self-conscious about hygiene
Segmentation in skin care
Teen beauty on the rise
Parents have their say
Teen fragrances go upmarket
Table 7 The Global Market for Selected Beauty Products 2005/2010
Beauty services

Teen Fashion

Destination stores attract young shoppers
Department stores fight back
Impact of recession
Surfer brands rule
Summary 4 Teenage Fashion Brand Preferences in the US 2009

Eating and Drinking Habits

Health versus junk food
Childhood obesity on the rise
Fragmented eating benefits snacks market
Savoury snacks become healthier
Backlash against carbonates
Table 8 The Global Market for Selected Food and Drinks 2005/2010
Stricter regulations for children’s food
Fast food remains popular
Table 9 The Global Market for Selected Consumer Foodservice 2005/2010
The problem of underage drinking and smoking

MARKETING TO GEN Z

The power of WOM
Reaction times speed up
Humour and transparency reign
Expert branders
Mobile marketing
Customisation is key
The power of licensing

MARKET SNAPSHOTS

Brazil

Population trends
Chart 9 Brazil: Tweens/Teens Population Sizes and Growth 2004/2009/2014
Generation Z profile
Consumer market trends
Table 10 Brazil: Trends in Selected Categories 2005/2010

China

Population trends
Chart 10 China: Tweens/Teens Population Sizes and Growth 2004/2009/2014
Generation Z profile
Consumer market trends
Table 11 China: Trends in Selected Categories 2005/2010

France

Population trends
Chart 11 France: Tweens/Teens Population Sizes and Growth 2004/2009/2014
Generation Z profile
Consumer market trends
Table 12 France: Trends in Selected Categories 2005/2010

Germany

Population trends
Chart 12 Germany: Tweens/Teens Population Sizes and Growth 2004/2009/2014
Generation Z profile
Consumer market trends
Table 13 Germany: Trends in Selected Categories 2005/2010

India

Population trends
Chart 13 India: Tweens/Teens Population Sizes and Growth 2004/2009/2014
Generation Z profile
Consumer market trends
Table 14 India: Trends in Selected Categories 2005/2010

Japan

Population trends
Chart 14 Japan: Tweens/Teens Population Sizes and Growth 2004/2009/2014
Generation Z profile
Consumer market trends
Table 15 Japan: Trends in Selected Categories 2005/2010

UK

Population trends
Chart 15 UK: Tweens/Teens Population Sizes and Growth 2004/2009/2014
Generation Z profile
Consumer market trends
Table 16 UK: Trends in Selected Categories 2005/2010

US

Population trends
Chart 16 US: Tweens/Teens Population Sizes and Growth 2004/2009/2014
Generation Z profile
Consumer market trends
Table 17 US: Trends in Selected Categories 2005/2010

FUTURE OUTLOOK

Trends to Watch

Entering new life phases
Gen Z in the workplace
The age of frugality
Gen Zers in developing markets will be better off
A generation saddled with debt
A digital future
Computing will become more mobile
Changing the way we communicate
Social networking
Gaming will move on-line
The shift towards on-line shopping
The future of marketing to Gen Z
The emergence of Generation Alpha

Forecast Demographic Trends

Table 18 Forecast Number of 8-19 Year-olds by Country 2009/2014
Table 19 Share of 8-19 Year-olds by Country 2009/2014

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