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25/10/2018 – News / Retail / Vietnam / Generation Z / FMCG / Nielsen

Nielsen offers tips on how to engage with Vietnam’s Generation Z


Research giant Nielsen says now is the time for FMCG players that are active in Vietnam to shift their focus to Gen Z consumers (12 to 21 years old), given they are set to account for around 25 per cent of the country’s labourforce – translating into 15 million potential consumers – by 2025.

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


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


Getting through to the youth


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


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


A more demanding generation


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


Open to new experiences


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


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

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