What marketers can learn from Gen Z cultures across Asia

Ylab, a Chinese branding consulting agency, has collaborated with Hakuhodo Consulting APAC to launch a report on Gen Z culture across eight markets: China, Japan, Singapore, Vietnam, Indonesia, Thailand, Philippines and Malaysia.

The timing of this research is critical as global youth consumption patterns undergo unprecedented shifts. Gen Z, born between 1997 and 2012, wields an estimated $450 billion in spending power worldwide, a figure that continues to grow as more of this generation enters adulthood. Their influence on the global economy is rapidly expanding, making them a key demographic for brands to understand and engage with.

Inspired by psychologist Urie Bronfenbrenner's ecological systems theory, Ylab developed the 'Growth Ecological Model'—a first-of-its-kind framework in Asia's marketing landscape—which aims to integrate psychological theoretical frameworks with sociological models and immersive field research methods from anthropology. 

• Microsocial: Immediate and intimate environments, such as parents, classmates, and close friends.
• Mesosocial: Indirect influences, including communities, parents' occupations, social class, and media consumption (both social and mainstream).
• Macrosocial: Broader societal influences, such as ideologies, cultural norms, economic conditions, and global worldviews.

This layered framework provides a nuanced understanding of Gen Z’s motivations, aspirations, and challenges across these diverse environment.

Research indicates that the eight Asian countries exhibit differing macro environments, yet rapid economic growth has instilled an optimistic outlook for Gen Z.

In ASEAN countries that have attained a certain standard of living, Gen Z is embracing new trends and cultures. This is especially evident in the digital realm, where a unique youth culture is emerging.

When examining their worldviews, Gen Z in these eight Asian countries can be characterised along two axes: upward ambition versus leisure and self-orientation versus social orientation. Gen Z is skilled at employing smart strategies to integrate into society while also safeguarding their own interests.

At the micro-social level, parent-child relationships are generally positive, with parents respecting their children's wishes and supporting them in reaching their full potential.

The values of Gen Z vary by country due to different cultural backgrounds. Observations from Ylab have identified various personas within this generation, including The Invisibles, Hungry Climbers, First to Crave, My Life and My Way, Doing Well, Doing Good, Stable Roots, My Family and My World. The Invisibles is the biggest cluster of Gen Zs across countries.

Before the report’s official release, Campaign Asia-Pacific conducted an exclusive interview with Yuhong Li, CEO of Ylab and a prominent figure in the branding industry. Li, who founded Ylab in 2019, was named one of Campaign’s Women to Watch the same year and led the agency to win a bronze for Greater China Consultancy of the Year in 2022.

In response to why she began to work on overseas markets research, Li highlighted the trend of Chinese enterprises seeking global business opportunities outside of the saturated domestic market. “The primary destination for Chinese brands looking to expand internationally is often Asia, particularly Southeast Asia,” she explained. 

On the other hand, she believes that Chinese companies are eager to learn from Japan and gain insights into its development, especially given that China’s economy is experiencing a slowdown. She noted that there are some parallels between China’s current situation and Japan's past challenges during its lost decades of economic stagnation.

Li discussed her new research findings comparing different generations in Japan and the valuable lessons that could be beneficial for Chinese brands. The generation known as the ‘lost decades’ tends to be described as "depressed, laid-back, and hardworking", often with relatively low self-esteem. However, this perception does not hold true for the younger generations in Japan. While young people in Japan are certainly hardworking, they prioritise "cultural life satisfaction" and emphasise the importance of happiness and enjoyment in their lives. Additionally, one thing that has not changed is that Japanese Gen Z still places a significant focus on their appearance, like the previous generations.

Chinese and Japanese Gen Z are quite different in their experiences and perspectives. Japanese Gen Z grew up in an affluent environment following the economic bubble burst. They tend to focus on self-reflection, personal appearance, socialising with friends, and fitting into their communities. They also typically have active interactions with their mothers, who generally stay home to take care of the children. In contrast, Chinese Gen Z, having grown up during a period of rapid economic growth in China, often exhibit more individualistic and progressive attitudes.

Li’s study also offers insights into why Florasis (or 花西子in Chinese), a Chinese cosmetic brand, thrived in Japan's competitive and mature beauty market. According to Li, “Chinese products are now learning from Japan and integrating various innovations that have completely reshaped the perception of how cosmetics can be created” in the Japanese market. This transformation is evident in products tailored for Eastern Asia, which align closely with Japanese aesthetics.

Another market that caught Li’s attention is Vietnam, which she believes is particularly similar to China. Ylab’s approach focuses on religion, politics, and the economy in a macro sense. Japan is a post-boom economy that has remained stagnant for decades. China is also in a post-boom state, while Vietnam is a market that is just beginning to experience growth.

She observed that “young people in Vietnam are quite similar to those in China who were born in the 1980s”. They are driven and passionate about their future, which aligns with Confucian culture. “This culture emphasises the importance of progress and encourages individuals to improve their status through self-improvement, learning, and hard work. In contrast, the younger generation in Thailand, as a Buddhist country, tends to have a more laid-back attitude,” she added.

According to Li, "Young people in Vietnam today have developed their own Vietnamese expression (Nghiện việc) that translates to 'workaholic' in English. All their efforts are focused on improving their social status and striving for material success, which is reminiscent of the experiences of people born in China during the 1980s.

“Young Chinese consumers (Gen Y, born 1981−1994, and Gen X , born 1965−1980) used to value premium brands, buying products to display status and success, similar to the current Gen Z mentality in Vietnam.”

Li also believes that Chinese brands expanding globally are excelling in their branding efforts: "If they can strengthen their brand image and make Vietnamese consumers feel proud to showcase these brands, it can be a significant advantage.”

Li shared her experiences regarding the branding case of A2 Milk Company from Australia as it entered the Chinese market. Despite entering the market relatively late, this premium brand quickly broke into the top ten and soon moved into the top five and will aim to eventually reach the top three in a short period of time.

Back in 2021, while Li was developing her branding strategy, she noted, “When you consider the generational perspective and the passage of time, it becomes clear that there is a distinct lineage in the evolution of parenting philosophy among Chinese mothers.” This insight will shape the brand’s focus on the preferences of future mothers when it comes to purchasing milk powder.

Chinese mothers from Gen Y to Gen Z have undergone a evolution in parenting philosophies. In the face of overwhelming “arms race” over added ingredients, Li’s team introduced the concept of the Smart Mom, encouraging a return to the basics that truly matter such as nutrition.

Leveraging Ylab’s tailored development strategies, Li’s team not only transformed its market perception but achieved extraordinary results. By 2024, the brand surged into the Top 5 in China’s competitive milk powder category.