According to new research by Mintel, living through uncertainty has impacted Gen Z’s spending habits, causing them to become more financially savvy and discerning with how they spend their money.
Following the Covid-19 pandemic, the economic downturn, inflation and the ongoing climate crisis, Thai consumers under 25 are less willing to part with their cash, with three-quarters (75 percent) choosing to save for the future rather than spend on material things.
When the youngest generation does spend, they do so with consideration; more than four in five (86 percent) read product reviews before making a purchase. They are also more willing to spend on products that offer health benefits (53 percent), are certified by credible sources (39 percent), and are eco-friendly (36 percent).
Whilst two-thirds (60 percent) of Gen Z express contentment with their overall life in the past year through June 2022, Mintel research shows that young consumers are stressed and lonely, with holistic health and well-being becoming a critical factor in purchase decision-making.
Gen Zs seek high-value and affordable health solutions, but over two-thirds (38) will only be swayed when they can verify a product’s authenticity and credibility. This is especially true for food and beverage products, which Thai Gen Zs prioritise most of their spending (65 percent).
Despite the many challenges Gen Z has experienced, their commitment to sustainability and social purpose remains unchanged, and they expect to see its values reflected in their chosen brands. More than three-quarters (76 percent) of Gen Z in Thailand agree that they put more effort into their routine to sustain the environment, and 25 percent think that it’s worth paying more for sustainable products.
Online channel is still utilised most frequently by younger Thais, with more than three in five (65 percent) saying they would rather shop online than offline and a similar percentage (64 percent) stating they browse social media to relax.
Wilasinee (Kaimook) Siriboonpipattana, PhD, Senior Lifestyle Research Analyst, Mintel Reports Thailand, said that 18 to 25-year-olds make up a fifth of Thailand’s consumers, and they represent the future, so it’s essential for brands to understand how to reach this group and build brand loyalty early on.
“However, this is not without challenges. Not only are the majority more likely to spend than save, but many still rely on their parents for financial support, so they may not have complete freedom to make all their purchasing decisions.”
She continued that brands can win by using digital channels to demonstrate authenticity, transparency and alignment to the causes Gen Zs care most about. There’s also an opportunity for brands that can help alleviate financial anxiety by giving young consumers more value for their purchases and enabling them to put more money away for the future.
