FUTURE PERSPECTIVE GLOBAL CENTENNIALS THE NEXT WAVE OF INFLUENCERS, DISRUPTORS AND CONSUMERS
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1 FUTURE PERSPECTIVE GLOBAL CENTENNIALS THE NEXT WAVE OF INFLUENCERS, DISRUPTORS AND CONSUMERS
2 Future Perspectives are thought pieces with concise, focused insights into important issues of interest to marketing and business strategists. GLOBAL CENTENNIALS THE NEXT WAVE OF INFLUENCERS, DISRUPTORS AND CONSUMERS KANTAR FUTURES. SOME RIGHTS RESERVED.
3 CENTENNIAL FACTS Born starting in years old in % of the global population Higher concentration of Centennials in: Africa, Middle East, South East Asia, Latin America Mobile Natives The oldest was 10 years old when the iphone was released Formative years shaped by: Slow growth, resource scarcity, connectivity, disruption Centennials are the youngest generation, and they are a global generation. Born starting in 1997, the oldest will turn 21 years old in Centennials have already eclipsed Millennials as the global cohort driving trends and pushing industries forward, and they ll soon be a core consumer group across a variety of categories. Growing up in a time of resource scarcity and disruption has shaped Centennials approach to the marketplace and their broader world. It s critical for brands to keep pace with their values, beliefs and expectations to avoid being left behind. Below, we explore 4 ways in which Centennials will change consumption habits and expectations of brands. GLOBAL CENTENNIALS 3
4 1. New Sources of Youthful Energy The global population is overall aging, with higher proportions of aging populations in North America, Europe and Developed Asia. Markets in Africa, Latin America, the Middle East and Developing Asia, conversely, are youth-driven, with young people often making up over 40% of the population. Thanks to constant connectivity, these youthful markets will play an increased role in defining and developing global trends. Expect these regions to be a source for fresh inspiration and rising influencers that shape the global marketplace. Additionally, these markets offer white space for brands looking to reach young people. Traditionally youth-focused brands will need to look beyond established or traditional markets in order to achieve growth. THE NEW INFLUENCERS DARIN AL BAYED A young Lebanese woman living in Saudi Arabia, Darin has amassed followers on Instagram and YouTube. She focuses on comedy, but also tackles women s rights and clichés about Middle Eastern life. JEAN BOSCO NZEYIMANA Jean is the 23 year-old founder of Rwandan company Habona, which uses waste products to produce affordable and environmentally-friendly biofuels. WILLIAM TAN William is a Singaporean lifestyle blogger who focuses on food, travel, fashion and technology KANTAR FUTURES. SOME RIGHTS RESERVED.
5 2. Tech-Savviness Drives Increased Influence Across Categories Centennials may be young, but often their technological skills outstrip their parents. Many families look to their youngest members to gather product information, compare reviews and advise on the purchase process. This carries over into categories that young people historically have not been consulted on, including household goods and furniture. Additionally, Global Centennials are passionate about keeping up with what s going on in the world, and their beliefs drive their purchase decisions. Centennials often influence family decisions on products and retailers by informing their parents about brands that align with their values, and those that haven t kept up with their expectations. Because of this involvement, Centennials are thinking about and developing opinions on a variety of categories earlier than previous generations. By the time they age into young adulthood, expect Centennials to have preconceived notions of your brand or category, and to remember good or bad experiences with it from a young age. Centennials Influence Family Spend Clothes and shoes Books and music (physical copies) Apps Toys and games Event and outings Personal care Electonic goods Eating out Digital streaming Sports equipment Food and beverages Travel Household goods Furniture Spend their own money Influence family spending 55% 60% 52% 41% 52% 20% 50% 30% 48% 48% 43% 55% 42% 61% 42% 63% 37% 37% 31% 47% 26% 77% 26% 66% 18% 73% 16% 76% Question: On which of the following categories do you spend your own money or influence how your parents spend their money? Source: IBM GLOBAL CENTENNIALS 5
6 3. The Privacy Paradox As Centennials grow up with the concept of social media and sharing, many aspects of their lives are simply open to the world. Centennials expect to share and see others sharing what they did at school, or their thoughts on the latest entertainment. But privacy concerns are real. Despite their young age, Centennials worry about their data being stolen, and about others posting without their permission. While open to sharing, Centennials want explicit control over access to their data, images and opinions. Percent of Centennials who are concerned about data protection and privacy on the internet (top 2-box, Kantar Futures 2017 Global MONITOR) Global Total Latin America Developing Asia Africa Eastern Europe Developed Asia North America Western Europe 69% 68% 72% 75% 75% 77% 80% 79% KANTAR FUTURES. SOME RIGHTS RESERVED.
7 It will be critical for brands to walk the line between convenience and customer anonymity. We expect to see Global Centennials being willing to pay a premium for brands that gain their trust through creating zones of privacy, and that differentiate their offers based on how much data Centennials are willing to volunteer. PRIVACY IN ACTION KOVR Dutch brand KOVR weaves metallic fibers into their clothes which block incoming and outgoing digital signals. The clothing protects phones, cards and other personal items with digital information from unwanted intrusion. MICROSEC MicroSec from Singapore has developed software that encrypts transmissions within IoT networks. IoT-enabled devices are already a key target of many cyber attacks, and tend to be more vulnerable than desktop computers or smartphones because they aren t built with security in mind. MicroSec is working with the Singaporean government on a prototype, and has found interest from a few IoT companies. 4. Shopping is Social, Social is Shopping For many, shopping has always been a social experience. It s a time to connect with friends and family, and interact with the community. Centennials are expanding the definition of social to include their digital networks. People they have never met often have as much influence over their product choices as a trusted friend or family member. 43% OF GLOBAL CENTENNIALS AGREE "When making product decisions, I prefer to seek advice from social networks or forums" (top 3-box, Kantar Futures 2017 Global MONITOR) GLOBAL CENTENNIALS 7
8 But Centennial shopping isn t just about following influencers and taking their recommendations. This generation is taking advantage of instant input and shopping opportunities on their social networks. A recent study from Accenture shows that over two-thirds of global Centennials are interested in purchasing products directly from social media. Chinese social network Weibo has accelerated social shopping in China, allowing users to buy from both brands and individuals, with other users providing opinions on potential purchases. This phenomenon isn t restricted to traditional social networks either. U.S. based makeup artist Pat McGrath recently launched a new collection of cosmetics that are available to purchase on music streaming app Spotify. As Centennials continue to build their social networks and expect inspiration to strike anywhere, at any time, brands will need to explore new distribution channels and ensure a seamless journey from I want to learn more about that to I want that to I bought that. As Centennials age into young adulthood, they will reshape categories and upend industries. Brands that know where to look can begin to read the signs, and make predictions about how Centennials will influence their future. Understanding this generation's values and motivations is a key first step in setting yourself up for success as Centennials take the reins and drive global markets KANTAR FUTURES. SOME RIGHTS RESERVED.
9 Kantar Futures is the leading global foresight and futures consultancy. We are a team of consultants, researchers and futures experts who use futures techniques and cultural foresight to help our clients shape innovation and growth. To find out more, please contact J. Walker Smith, Executive Chairman T: +1 (919) jwalker.smith@kantarfutures.com Global Centennials was developed by Kantar Futures. It was written by Kate Turkcan, Head of Youth Insights, and Andrew Curry, Director. Production was by John Catlett and design by Emmanuel Davis. GLOBAL CENTENNIALS 9
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