In our white paper, A Youth Lost in Translation, we explored this market and its implications for marketers by delving deep into the views of 5400 urban and peri-urban youth in South Africa. The paper is based on the findings of HDI Youth Marketeers’ research, comprised predominantly of its 2015 Sunday Times Generation Next Study, which looks into and analyses the psyche of South African youth. Now in its 12th year, the survey also provides current and historical data for advertisers and marketers.
The Generation Next Study divides the youth market into three groups: kids (3 to 12 years); teens (13 to 18 years) and young adults (19 to 23 years). Within these groups, you’ll find the Millennials (aged 15 and older) and Generation Z (aged 14 and younger). Both groups are tech-savvy and influential, so to market to them effectively, we need to understand their concerns, points of view and the challenges that they face. Marketers who can’t do that will quickly lose the youth’s attention and loyalty.
Ray de Villiers, a TomorrowToday consultant on the future world of work comments: “In Africa, while the Millennial and Generation Z wallet may be smaller from a volume perspective, it is worth so much more than anywhere else. Their influence will be disproportionate to their spend. A decade ago, we spoke about Millennials, when they were kids, as having an influence over R6bn – today it is much, much more.”
The hunt for affordability
As mentioned above, this year’s Sunday Times Generation Next data puts SA’s youth spend at more than R130bn per annum. However, affordability remains a key consideration. Notably, freebies and discounts have become a major trend for savvy brands looking to charm the young, price-sensitive shoppers. According to the study, the demand for value, discounts and out-and-out free stuff is intensifying. In hard times, teens and young adults in particular really know the value of money.
The lesson here? Brands that offer quality at unexpectedly good prices now become the winners - H&M and Huawei are cases in point. So while direct youth spend is big, the youth are savvy about their money, and are very conscious of how they part with it.
The study revealed that 11% of the youth want more clothes, 11.4% want more skills and talents, while 25.7% want more money.
Rise of the SIP (Socially Important Person)
Given the phenomenal power and influence of digital channels and larger than life personal brands, the traditional celeb ‘wow factor’ is fading. Simultaneously, there is a clear rise in the influence of the ‘socially important person.’ Indeed, the democratisation of fame and star power through social media channels has created new career opportunities, from blogging to YouTubers doing product punts for big brands. Then, of course, there are the Instapreneurs: dynamic young people who are creating their own personal brands on Instagram.
Instagram continues to outperform other social media platforms: it has more than doubled its number of users in SA, from 1.1 million in 2014 to 2.68 million in 2015. 90% of users are under 35, with Snapchat following closely. While film and music personalities are still popular with young people, they no longer have that all-important clout. The youth now seek more authentic, relevant and personal inspiration from the emerging SIPs.
The evolution of pester power
While marketers have long recognised the influence of kids over their parents’ purchasing decisions (the term ‘pester power’ was coined as long ago as the 1970s), de Villiers notes that this influence is lasting well past early childhood as economic pressures send young adults back to the nest. While the image of a small child screaming for an attractively-marketed plastic toy in a supermarket aisle might be what springs to mind when you hear ‘pester power’, de Villiers says Millennials hold much influence over their parents too.
Increasingly, given the tough economic environment and rising cost of living, it is common for young adults to be staying at home with parents. Often, this is the only way for them to save enough money to eventually buy a home or fund further studies.
This is a key insight for marketers, who can build campaigns around the knowledge that pester power has taken on a new form, in that young adults are cocooning at home for far longer than in previous years. Importantly, however, they are likely to be more cautious about spending the money they are saving, and far more strategic about every purchase.
For more information contact Yellowwood on 011 268 5211. To read the white paper report, visit www.ywood.co.za.
