Global Centennials: The Next Wave of Influencers, Disruptors, and Consumers
Centennials are the youngest generation, and they are a global generation. Born starting in 1997, the oldest will turn 21 years old in 2018. 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.
- 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.
- 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.
- 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.
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.
- 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.
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.
Source
“Global Centennials: The Next Wave of Influencers, Disruptors, and Consumers.” Kantar Media, 2018.