Despite the surge in online shopping, cash is still king for centennials, also known as Gen Z, in the digital age, who also find it normal to shop on social media platforms.
The concept of a cashless society has also yet to fully take off for centennials in six countries surveyed, according to the new ‘Here Comes the Centennial: Southeast Asia’s New Generation of Shoppers’ study, as 56% of survey respondents still prefer paying cash on delivery for their purchases.
The study, jointly conducted by Dentsu Aegis Network and Econsultancy, also finds the next generation of online shoppers are enjoying having a variety of payment methods, as 43% of centennials will readily abandon their purchases because their preferred payment option is not available.
Centennials are also using social media platforms differently compared to millennials, with social media applications (47%) such as Facebook and Instagram the second most popular place for them to shop in.
Close to half of the survey respondents (49%) also turn to social media when they are researching for more information on their future purchases, rather than asking friends (45%) and family (27%).
When it comes to brand name and image, the study finds they are no longer a priority of centennials, as only 11% of centennials cite having a prestigious or famous brand as one of their top three attributes when choosing where to shop online. This means retailers must pay more attention to end-to-end brand experience.
“All eyes are on Southeast Asia as the world’s next consumer powerhouse, with its young population and increasing purchasing power. Close to 280 million centennials – tomorrow’s consumers – call this region home,” said Nick Waters, the chief executive officer of Dentsu Aegis Network Asia Pacific.
“Enabled more than ever before by technology and data, we are seeing incredible potential for growth in the region and our latest research ‘Here Comes the Centennial: Southeast Asia’s New Generation of Shoppers’, helps us understand what is important for these consumers of the future and how businesses can adapt and position effectively for South East Asia’s future retail landscape.”
Centennials account for about 277 million of South East Asia’s population, with over 50% spending more than USD $30 a month on online shopping, while 9% spend over USD $100 monthly. You can read the rest of the report here.