Marketers Brace for Generation Z Consumers
By Jane Han
Staff Reporter
Registered to a social networking site even before birth and gripping their first electronic gadget while toddling, the tech-savvy youngster Generation Z has emerged, just when marketers thought they've got the previous X and Y crowds in good hands.
Commonly referred to those born after 1996, Generation Z are the offspring of 1965-1985 born Generation X. And compared to the newest group, Generation Y from 1977-1997 falls a little behind in terms of early exposure to consumerism.
Though it may seem minor, latest research says this fact matters.
A Swiss study has found that when sufficiently exposed to child-friendly brand jingles, tunes and spoken messages during pregnancy, up to 77 percent of all newborns recognize these brand markers and develop a preference that could last until puberty, according to a global consumer trend firm trendwatching.com.
Also, more than 20 percent of infant participants were able to indicate at least nine out of 12 favorite brands using rudimentary hand signals, which demonstrates that babies also want their pick in product.
The trend watching agency's March 2007 survey of 3,000 marketing executives in 12 countries, including South Korea, Spain, Canada, South Africa, France and Dubai, said that although 87 percent of respondents showed interest in allotting significant portions of their advertising budgets to target unborn children and toddlers, only 4 percent were doing so because they didn't know where to start.
But this lackluster figure is soon expected to hike, as more and more companies worldwide have been exploring the Generation Z consumers.
Toyota's Scion, which takes pride in securing the youngest of consumers, goes for an even younger bunch, as it recently partnered with toy manufacturer Ridemakerz to introduce Scion scale models that kids can customize themselves.
What does the carmaker get out of selling the $22 apiece toy? A decade or two later when the time comes for youngsters to buy their first cars, the childhood play will hopefully convince them to want a ``real ride.''
In cyberspace, Belgian-based social networking site Foops! has already secured more than 12,000 members, both new born and unborn. Soon-to-be parents can post pictures of sonograms for their babies, along with details of their maturing process.
The growing site plans to hire up to 40 bilingual marketing experts, so that the new generation of social networking can be enjoyed by users worldwide.
Locally, Sharp Electronics recently put out a digital dictionary for toddles, which can also play MP3s and games. The new gadget is equipped with oversized keypads and other kid-friendly features, say company officials.
``This is only the beginning of many more innovations to come just for Generation Z,'' said Lee Hwa-jun, a brand strategist at Cheil Communications, adding that in tech-savvy Korea, the consumer demand is likely to be stronger. ``Companies need to carefully research and understand this rising crowd.''