Tapping into the Millennial generation
In recent years, the importance of Taiwan’s young single/couple family has grown considerably, this in turn also helped open up new opportunities for the consumer goods industry. Kantar Worldpanel Taiwan (Kantar Worldpanel) pointed out that for the FMCG market in 2016, young single/couple with no children that age 20-35 was able to achieve an impressive 16.5% growth, a performance that clearly outshined the other family stages, and also exceeded the market average of 4.6%. In order to tap into the growing Millennial opportunity, here Kantar Worldpanel propose four trends that brands and retailers must understand in order to woo the younger generation:
Trend 1: Healthy start, start young
According to Kantar Worldpanel’s latest research, now more than ever, young people are growing more conscious about leading a healthy lifestyle, and this behaviour can be observed from the choices they make when shopping for consumer goods, with one example being the breakfast phenomenon; compare to eating out everyday, making your own breakfast is no doubt healthier, and the source of ingredient relatively safer. Research has shown that investment by young single/couple in breakfast related products have been on a growing trend for the past few years, with products that are both convenient and nutritious being the most purchased. Examples include cheese and jam, which grew gained +30% buyer penetration in 2016, breakfast cereal are also a favourable choice. Dairy drinks, which are breakfast’s best friend, are also immensely popular with the young consumers, with fresh milk (+6/1%) and soy drink (+19.4%) gaining the most, and yoghurt drinks grew 15% in buyer penetration for the past year.
Trend 2: First hand experience carry a lot of weight
In 2016, young single/couple’s investment in snacks increased by 20%, an impressive performance compared to the total market’s growth of 4%. What this growing trend reflects is personal experience that comes with the product purchase, that mattered to the millennial consumers. Learning from Potato chips industry, it was the fastest growing snack in 2016, other than growth in penetration, overall sales also enjoyed double digit growth for two consecutive years; Leading brand Lay’s was also to take charge of the market’s growth, through releasing several new products, coupled with a wide range of creative activities, where by inviting consumers to experience their real life form lottery and crane machine, which in turn stimulated intense discussions about the brand both online/offline, and also demonstrated how young consumers interest in not just buying the brand, but also experiencing it. The candy industry is another interesting example, where the market’s 15% growth was mostly contributed by brands that communicated both product and ‘fun’, such as the Japanese UHA gummies, with emphasis on its unique texture and appearance, made it the most purchased overseas product for Taiwan’s young consumers.
Trend 3: value and trend matters, pampering yourself is a way of life
While they may not be the most well-off consumer group, young consumers are not afraid in self-investment either. Kantar Worldpanel observed that over the years, young consumers’ spending on high-end hair care, makeup and skincare have been on a continuous growth, showing their willingness to invest in more expensive goods if they feel the product can help solve their problem For this generation, innovation and trend is also an important driving force, starting 2014, the hair care market blossomed with various new and creative brands, makeup market was also driven by the release of cutting-edge facial and lip products, including cushion foundation, lip stain, two tone lip bar etc., and further fuelled by the Korean drama boom, sparked the sales of ladies age
Trend 4: digital natives, identify with young generation through social media
For the past few years, the FMCG’s performance had been less than satisfactory, except for online shopping, and to the digital savvy millennial generation, it is no doubt one of their most preferred shopping channel. In 2016, young single/couple’s investment online increased by 59%, far above the market average of 35%. The rise of online shopping, other than convenience, the various social media that can cater to individual’s different needs is also in sync with the young generation’s preference in shopping that comes with fun personal experience. Such as PTT, Instagram, Youtube, even digital media, where through encouraging and authentic conversations, communicated experiences that helped in boosting the brand’s performance. Hence when managing the young consumers, other than successful sales, it is also important to create fun, interesting interactive experiences that identify with their needs, and mostly importantly, not be afraid to try out different forms of social media if the brand sees the need.
The millennial generation take pride in their individuality, they value experiences that will cater to their personal need and are willing to spend in items that helps provide solution for them. Hence for for modern day merchants, it is important to take into account how to provide that experience in order for the young consumers to identify with the product, and most importantly ‘solve’ their problem if one wish pocket young consumer’s purchase . Furthermore with the spreading of trend and information now ever more immediate and internationalised, investing in the right social channel and engage consumers in the right conversation will help brands in elevating their performance.