Friday, January 7 2022

Do you think parents control the household budget? Think again: young people may not make a lot of money yet, but they often determine how, when and what the money is spent on.

Separating reality from perception, the latest GenNext report on youth behavior found that unlike Khalid, Young, Dumb & Broke’s hit, young South Africans have significant economic influence and money in their hands. arrangement. The report asks young people what they care about, why they care about them, where they spend their time, how they engage or interact and who they are.

The youth market, which represents 35% of the population, has considerable purchasing power in cash. In South Africa, it is estimated that young people have around 120 billion rand of their own disposable income, and not simply because of their expenses which result from their influence on parents and caregivers.

Together, this group represents significant purchasing power and will be an even more powerful force in the future, as an impressive number of them (63%) are already actively saving and investing, while 10% of young adults have sought entrepreneurial means to earn an income.

Published by marketing strategy consultancy Yellowwood, GenNext explains how and why young people buy in the market today and in the future. It is the leading annual survey of young people’s brand preferences and consumer behavior in the country.

The results of the study looking at the brand and purchasing priorities of young South Africans were released on October 14.

Now in its 17th year, the GenNext Youth Behavior 2021 report was based on a survey of 7,100 young people and includes a new category – young professionals aged 25 to 30.

The survey, representative of national demographics, was conducted in schools among pre-teens and adolescents, while online surveys were completed by young adults in higher education institutions. (The North Cape is excluded due to its large rural demographics and the sparse distribution of schools.)

The GenNext study includes two reports: a report on brand preferences, which was released early last month, and a report on “youth behavior,” which describes the category and lifestyle factors of the behavior. purchase of young people.

Since traditional approaches to market segmentation and assumptions about consumer behavior, based solely on demographics, only tell part of the story, Yellowwood incorporated knowledge from its comprehensive Ask segmentation study. Y to provide more solid results.

Ask Y is an alternative approach to market opportunity analysis, exploring the relationship between Maslow’s motivational needs and how these internal needs manifest in South Africans taking into account macro-political, economic, social , technological, legal and environmental external of the country (or Pestle) characteristics.

Typically, brands see young people as a homogeneous group, but this approach first gives a more definitive look at their underlying human needs and how they are influenced by a dynamic South African context.

What he reveals is that young people are significantly influenced by the Pestle factors: they have a positive attitude towards technology (above all other factors); the more exposed they are to financial realities, the less positive they are on the key dimensions of economic satisfaction; they don’t believe that everything that comes out in the media is true; and although they care a lot about the environment, they don’t think it is taken care of effectively.

A challenge for political parties ahead of the November 1 elections is that young people feel less positive about South Africa’s political climate, which is heavily influenced by their perception that the government does not represent their interests.

Tellingly, they have the least positive attitude towards the rule of law: they do not trust the police, who are seen as not acting within the framework of the law themselves and therefore do not trust the police. not applying or protecting it.

In terms of meeting needs, young people want more safety and security the most, while their level of self-esteem is higher than other needs.

The family is above all their source of connection, support and care. They are confident and sure of themselves, but their safety and security is a concern, primarily driven by the fact that they do not feel safe outside or where they live.

Although the effects of online immersion are a major concern for parents, the survey found that, far from being purely online, young people live simultaneously in the ‘real world’ and the ‘digital world’, with a diverse mix of attention paid and spent on traditional media, in-person and online engagement.

Refilwe Maluleke, CEO of Yellowwood, says that, contrary to popular belief that young people are self-centered and disengaged, GenNext’s results show that they are knowledgeable and care about issues affecting their communities and the country.

“Young people are demonstrating a surprisingly astute understanding of many macroeconomic issues and are increasingly active in being part of the solution,” she says.

Uncertainty about the future, fueled by macroeconomic issues facing the country, such as unemployment, gender-based violence and Covid-19, is a real concern for young people.

As such, Maluleke asserts that brands have the opportunity to connect with young people by helping them understand the world, navigate chaos, and find safety or pleasure while allowing exploration with physical risk, minimal social, professional, reputational or financial.

Ultimately, the job of marketers is to generate sustainable revenue growth.

“Marketing has the power to change businesses and human behavior for the better,” says Maluleke.

Young people are showing a surprisingly astute understanding of many macro issues and are increasingly active in being part of the solution, says Maluleke. DM168

This story first appeared in our weekly Daily Maverick 168 which is available for R25 at Pick n Pay, Exclusive Books and airport bookstores. For your nearest dealer, please click here.

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