What do Gen Zers in Asia want?

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Share this email Share this email on LinkedIn   Share this email on Twitter   Share this email on Facebook   CURATED READS FOR GEN Z—AND THEIR Z-CURIOUS COLLEAGUES Subscribe Click to get this newsletter weekly first up Welcome back! This week, we're looking at the buying, digital, and digital buying practices of Gen Z in Asia.  Have you heard of China's "moonlight clan"?  They're a group of Gen Zers who consciously spend their entire monthly salary over the course of a lunar cycle. So, they're effectively living paycheck to paycheck—willingly.  These consumers tend to be more impulsive, choosing to splurge rather than save because they're confident that more money is on the way. And they're not exactly wrong: China's Gen Z grew up during a period of massive growth—the fastest sustained expansion of a major economy in history. And while China's growth may be slowing, it's far from screeching to a halt.  It's a similar story for other countries in the region. They have not quite matched China's manufacturing-based boom, but rapid economic growth has helped shape their Gen Z's culture and tastes. Asia–Pacific Gen Zers often care about:   • Personalization. This means one-of-a-kind products as well as tailored services. Personalization applies to social content too: Asia's Gen Z voraciously consumes video content on their unique feeds, averaging six hours of phone time per day.  • Spontaneity. Spenders might use buy-now-pay-later services to splurge, indicating a relaxed attitude toward racking up some debt.  • Sustainability. Consumption is on the mind—China's secondhand market has doubled since 2016 to $145 billion—but so is deal hunting. While Gen Z wants ecoconscious products, those products might not beat out a lower tag at the till.   • Brand power. Individual style remains vital—but not at the expense of the clout that comes from recognizable logos.  • Ease of use. "Superapps," which blend lots of functions into one, are huge across South Korea, India, and other countries in the region. And services with a metaverse mindset—like Indonesia's by.U, a wing of telecom giant Telkomsel that reinvented itself for Gen Z—have seen big success. • Connectivity. Word of mouth from friends, family, and online reviewers—especially via product recommendation videos—plays a big part in purchasing.  And yet … Gen Z also wants privacy. Seventy-five percent of Japanese Gen Zers in our 2020 survey said they felt that others overshared online, and 49 percent said they were worried about their personal data. That's part of why their social media is carefully cultivated.   In just three more years, Gen Z will make up a quarter of the Asia–Pacific region's population, and by 2030, one out of every two transactions in the world will take place in Asia. Of course, there's variation by country, region, and more, but all told, Asia's Gen Z is often on the upswing of economic mobility as the area expands. Who knows what else will change as our generation grows? (Probably not our screen times.)   VISUALIZE IT  While pandemic shortages were the biggest reason why customers in Thailand and the Philippines tried new brands of goods, readiness to swap is a growing Gen Z trait as well. Keeping options open Wait, don't scroll  K-pop and containers. Asia is key to the future of commerce—explore our glossy feature on the history behind its economy and where it's headed in the coming years (music snippets included).   Get versed in meta. Metaverse-related companies raised $10 billion last year, and the total industry could be worth trillions. Don't miss a primer on how meta is changing marketing, the Gen Z gaming tailwind, and some great elements that (at least help) answer "What is the metaverse?"  Not us; still great  Looking inward. Growing nationalism in China has led young people to ditch major Western retailers that come under controversy in favor of buying in-country. That trend can be seen in clothing, sneakers, cosmetics, and more. [Bloomberg] Art of the deal. China's Gen Z art collectors are making a big splash, dropping hundreds of thousands of dollars on items like sneakers and skateboard decks, and challenging the art world's status quo. [WSJ] May the likes be with you. One Gen Z influencer's essay on monetizing her Baby Yoda TikTok account provides a fascinating look into the online influencer economy. Even if you go viral, can you keep the views coming? [WIRED] PUZZLE FOR YOUR THOUGHTS? The McKinsey Crossword: Rhymes With H 7-Down: Completely disordered. Can you solve it Play now  — Edited by Sarah Skinner, Gen Z curation editor, New York Subscribe Click to get this newsletter weekly BACKTALK Have feedback or other ideas? We'd love to hear from you.  Tell us what you think Follow our thinking McKinsey Insights - Get our latest thinking on your iPhone, iPad, or Android. This email contains information about McKinsey’s research, insights, services, or events. By opening our emails or clicking on links, you agree to our use of cookies and web tracking technology. For more information on how we use and protect your information, please review our privacy policy. You received this email because you subscribed to our Consumer & Retail alert list. Manage subscriptions | Unsubscribe Copyright © 2022 | McKinsey & Company, 3 World Trade Center, 175 Greenwich Street, New York, NY 10007