REACHING THE WE, MORE, NOW GENERATION THE RISE OF MILLENNIALS ( ) ACROSS ASIA
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1 REACHING THE WE, MORE, NOW GENERATION THE RISE OF MILLENNIALS ( ) ACROSS ASIA Eva Ng Vice President, Nielsen Greater China August 25, 2016
2 MILLENNIALS REPRESENT ¼ WORLD POPULATION AND WILL DOMINATE SPENDING POWER World population are Millennials 24% =over 1.7 Billion global consumers North America 25% Europe 25% Asia 29% Own Over 10% Global Private Personal Wealth And occupy 16% in 2020 by 16% CAGR (vs. 6% global average) Note Age range of Millennials: Data Source: US Census Bureau, International Data Programs; 2
3 ABOVE 50% OF THE WORLD S MILLENNIALS ARE IN ASIA Millennials Population Importance (vs. total population) 36% 29% 28% 28% 28% 28% 26% 25% 20% Singapore India Indonesia China Malaysia Taiwan South Korea Hong Kong Japan 50% Global Millennials (870million consumers) Note: Age range of Millennials: Data Source: US Census Bureau, International Data Programs 3
4 MILLENNIALS WE MORE NOW 4
5 THE WE GENERATION SELF-EXPRESSIVE BUT WANT TO BE CONNECTED I HAVE SOMETHING TO SAY 62% 36% I AM A MEMBER OF A COMMUNITY 35% 7% I keep up with shows so I can join the conversation on social media MILLENNIALS BABY BOOMERS I likely to utilize/rent products or services from a share community Note: Age range of Millennials: ; Age range of Baby Boomers: Data Source: Nielsen Global Digital Landscape; Nielsen Global Survey of Share Communities Q3,
6 THE MORE GENERATION I NEED MORE AND I WANT TO IMPACT MORE I M WILLING TO PAY FOR MORE BENEFITS I PREFER TO LEAVE MORE IMPACT 49% 13% 81% Millennials willing to pay more for foods with health benefits (vs. 67% of Baby Boomers) I prefer to work for a company committed to positive social/environment impact Note: Age range of Millennials: Data Source: Nielsen Global Survey of Corporate Social Responsibility, Q MILLENNIALS BABY BOOMERS 6
7 THE NOW GENERATION WANT TO BE CONNECTED ON EVERYTHING EVERYWHERE 81% MILLENNIALS ENJOY THE FREEDOM OF BEING CONNECTED ANYWHERE ANYTIME (VS. 66% OF BABY BOOMERS) 83% MILLENNIALS SAY THEY SLEEP WITH SMARTPHONE (VS. 50% OF BABY BOOMERS) MILLENNIALS* CHECK THEIR PHONE 43 TIMES/DAY Note: Age range of Millennials: ; *Age range of Millennials: Data Source: Nielsen Global Digital Landscape, Q3 2014; Understanding Global Millennials: Summary of Research Findings,
8 ASIAN MILLENNIALS ARE MORE ONLINE SAVVY AND SOCIAL MEDIA ENGAGED % MILLENNIALS RANK READ & POST IN SOCIAL MEDIA AS THE TOP ACTIVITIES IN SPARE TIME % MILLENNIALS USE NEWS SITES TO GET UP-TO-DATE NEWS % MILLENNIALS PUT STAY FIT AND HEALTHY AS THE TOP ASPIRATION IN THE FUTURE 9% 22% 24% 20% 25% 31% 50% 42% 32% 37% 43% 39% North America Europe Asia Pacific Global North America Europe Asia Pacific Global North America Europe Asia Pacific Global Note: Age range of Millennials: Data Source: Nielsen Global Generation Lifestyle Report,
9 ASIAN CONSUMERS TEND TO SPEND MORE SPARE MONEY ON HOLIDAY % CONSUMER UTILIZE SPARE CASH FOR HOLIDAYS/VACATIONS AFTER COVERING ESSENTIAL LIVING EXPENSES Global Asia Pacific Europe North America Latin America Africa & Middle East Data Source: Nielsen Consumer Confidence Survey 2016 Q2 9
10 TRAVELING IS MORE POPULAR IN CHINA AND INDIA % CONSUMER UTILIZE SPARE CASH FOR HOLIDAYS/VACATIONS AFTER COVERING ESSENTIAL LIVING EXPENSES 62% 52% 47% 43% 38% CHINA INDIA SINGAPORE INDONESIA MALAYSIA 29% 29% 29% 26% JAPAN SOUTH KOREA TAIWAN HONGKONG Data Source: Nielsen Consumer Confidence Survey 2016 Q2 10
11 ASIAN ONLINE SHOPPERS ARE MORE IN FAVOR OF BUYING TRAVEL RELATED PRODUCTS ONLINE Online Buyers Asia Pacific Europe Africa Middle East Latin America North America Clothing, accessories and shoes 57% 34% 26% 28% 42% Electronic equipment 41% 25% 26% 29% 30% Tours and hotel reservations 53% 33% 35% 32% 43% Airline tickets and reservations 59% 34% 39% 36% 43% Mobile phones 44% 22% 28% 27% 22% Event tickets 50% 33% 28% 31% 35% Computer hardware 36% 23% 25% 20% 29% Hardcopy books 50% 30% 22% 24% 31% Computer software 33% 19% 27% 18% 27% E-books 43% 22% 29% 23% 35% Sporting goods 42% 19% 20% 19% 21% Music (not downloaded) 33% 19% 21% 19% 30% Videos, DVDs and games 32% 21% 23% 21% 33% Cosmetics 43% 21% 19% 20% 21% Personal care 43% 17% 18% 14% 16% Data Source: Nielsen Future of Grocery Report 11
12 ASIAN MILLENNIALS WELCOME SHARE ECONOMY % CONSUMERS WILLING TO SHARE OR RENT PERSONAL RESOURCES % CONSUMERS LIKELY TO ENGAGE WITH SHARE ECONOMY BUSINESSES (UBER/AirBnB) 78% 68% 81% 66% Asia Pacific Global Asia Pacific Global Note: Age range of Millennials: ; Age range of Baby Boomers: Data Source: Nielsen Global Survey of Share Communities Q3,
13 CHINA BECOMES THE BIGGEST TRAVEL MARKET, CHINESE MILLENNIALS CONTRIBUTE 50% In 2015, China s outbound tourists reached a new record of 120 million and grew by 12%, became the biggest market since Top 5 destination: Thailand, S.Korea, Japan, HK, Taiwan China remains the top global spender in tourism expenditure, tourism consumption increased by 28% and total market size is beyond 1,039billion RMB. 50% of China s outbound travelers are Millennials. They spend approximately 27% of their income on travel. China s Millennials take 4 trips outside of the country per year, 2X as many as their peers from the rest of Asia. Data Source: China National Tourism Administration, China Tourism Academy & Ctrip, SMCP, The Economist, CNBC, Business Insider 13
14 ONLINE IS AN ESSENTIAL TOOL FOR REACHING CHINESE CONSUMERS ENSURE YOUR BRAND HAS A POSITIVE ONLINE PRESENCE HELP INDIVIDUAL TRAVELERS PLAN THEIR CUSTOMISED TRIP 93% of Chinese consumer use online to get travel related information In 2015, 64% outbound travelers are individuals 48% individual travelers use Mobile to book travel arrangements (27% in 2014) 71% seek for onestop-shop solution for travel planning, including information searching, tickets booking, online forum sharing of travel experience etc. Data Source: Nielsen Chinese Outbound Tourists 0714_generic report, 2015; Mafengfwo Global Individual Traveler Report,
15 ENSURE YOUR BRAND HAS A POSITIVE ONLINE PRESENCE IN VARIOUS PLATFORMS Popular Travel Portal Website Popular Travel APP Ctrip Alitrip Qyer Tuniu Mafeng wo Lvmama Ctrip 15
16 HELP INDIVIDUAL TRAVELERS PLAN THEIR CUSTOMISED TRIP LEVERAGING PLATFORM BIG DATA Pre-recommend travel destinations based on search, repost, comment history USERS PROFILING Select hotels and air tickets by analyzing consumption habits Plan routes based on personal preference, budget, local seasonal weather etc. Automatically push shopping, dining information according to geolocation in destination 16
17 ENCOURAGE TRAVELERS TO PARTICIPATE, COLLABORATE AND CO-CREATE IN PROMOTING DESTINATION 40% 29% Actively share their experiences on social networking sites Post purchase comment on Internet forum from online travel products shoppers Data Source: Nielsen Chinese Outbound Tourists 0714_generic report,
18 ENCOURAGE TRAVELERS TO PARTICIPATE, COLLABORATE AND CO-CREATE IN PROMOTING DESTINATION Discussion Forum Best Experience Sharing Tourist Attraction Ranking Q & A Picture Source: Ctrip, Mafengwo, Qyer APP 18
19 LEVERAGE OFFLINE SHARING SESSION TO BRING VIRTUAL COMMUNITY TO REALITY Arrange offline seminar to gather travel buffs together Peers sharing makes a memorable trip more vivid and convincing Picture Source: 19
20 TALK TO MILLENNIALS IN THEIR LANGUAGE AND TRENDS Leverage Post 90s Language Tag on Hot Trend: Pokemon 40% Chinese Post 90s prefer ads with clear brand identity and are in line with their attitude Data Source: Nielsen on-line survey, August 2015; Post 90 Study by Market and media research center of Peking University, 20
21 WHAT S QUEENSLAND'S IDENTITY? Reasons why Chinese consumers choose a particular destination Japan A good place to shop 32% Top 5 aspirations amongst Chinese travelers for traveling Take a break to recharge myself, relax Obtain a wider perspective Have fun, enjoy myself USA A good place to relax 29% France Offers exotic sensation 46% Share a unique experience with my friends and family Learn new things, develop my cultural knowledge Data Source: Chinese outbound Tourism Nielsen Syndicated Survey 2015 ; Q9- General Travel aspirations 21
22 SEEKING OUT AND ENGAGING COMMUNITIES OF INTERESTS WITHIN MILLENNIALS TO CONNECT Picture Source: ; 22
23 REACHING THE WE, MORE, NOW GENERATION Pre-Travel Post-Travel Leverage online, social media, virtual and real community to engage with Millennials 24/7 Identify Queensland s key identity to connect Promote Queensland by Millennials language and tagging on hot topics Use big data to analyze preference, propose customized travel plan In-Travel Create campaign to encourage travelers to share travel experience throughout the journey via Social Media, APP, Online Provide consumer travel convenience by offering valueadded service, e.g. push notification of travel plan, shopping coupons, dining recommendations, etc. Post-travel campaign for travelers to share and comment travel experience to create buzz Leverage online to offline for potential travelers engagement 23
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