Innovative startup businesses in the Asia-Pacific region have emerged at a rapid pace, reshaping global market trends. While the United States has long led the startup ecosystem, the Asia-Pacific region is demonstrating excellent success.
Reports have indicated 462 unicorns in Asian markets during the first quarter of 2022 — unicorns are private startups valued at over US$1 billion.
To ensure ongoing success, startups must market their brands to leading consumers, for many, this is Generation Z. Of course, Gen Z is an essential subset of consumers with high expectations for companies.
Here’s what Asia-Pacific startups should know about marketing their businesses to this particular demographic.
Getting to know Gen Z consumers in Asia
Every seasoned marketing professional knows the importance of pinpointing the target audience. In Asia, startups must pay close attention to Gen Z’s demands.
A 2020 McKinsey study examined the Gen Z consumer across various Asian countries with intriguing results, including the following:
- The demographic is more thoughtful about social media engagement.
- They like unique brands that are also recognizable.
- Video content is highly influential in their purchasing habits.
- They expect eco-friendly products at zero cost to them.
Also Read: How to orient your brand to Gen Z values
They are also generally more used to receiving things they want instantly. For example, 66 per cent of Gen Z consumers in Australia search for discounts before purchasing something — about 50 per cent of Gen Z in China do the same. This is likely due to them working part-time and having less money. However, quality products still matter significantly.
Four tips to make your startup appeal to Gen Z
Once you know more about your Gen Z audience, you must modify your marketing strategy to appeal to them. Of course, that isn’t always as straightforward as it sounds. Here are four tips to strategically market your startup to Gen Z.
Make a difference
Around the world, particular issues are front and centre for Gen Z. Whether it’s climate change or social equity, Gen Z looks for brands whose missions align with their values, some might even consider brands an extension of themselves.
The Asia-Pacific Gen Z demographic has a heightened interest in sustainability. In the climate change era, many Gen Z consumers expect eco-friendliness from startups and believe it isn’t something they should have to pay extra for.
Young consumers are also more apt to change their purchasing, eating and lifestyle behaviours to improve their carbon footprint. If startups want to reach Gen Z, they must reexamine how they make a difference in the world.
Transparency matters
A recent study found that Asia’s Gen Z values transparent brands. To better understand transparency, it’s important to remember that Gen Z grew up in the digital era and is often more sceptical about conspiracies and misinformation.
About 96 per cent of Gen Z would pay more for brands prioritizing transparency. However, over-transparency could hurt your business, too — especially if you don’t live up to your promises, such as achieving net-zero operations.
If you’re too open, consumers may perceive it as mere performative advertising. Meanwhile, Gen Z is one consumer base that isn’t afraid to swiftly cancel a brand for being unethical in its practices or marketing.
Also Read: Its time to embrace Gen Zs at work – Here are 10 ways to start
This goes for startups with a toxic working environment or those making false claims about a product. A prime example is Elizabeth Holmes from consumer health tech startup Theranos, who committed several types of fraud by deceiving investors and consumers with a defective product.
Nurture consumer relationships
Gen Z is interested in startup brands that engage effectively and nurture consumer relationships. In fact, because Gen Z is so well-connected, brands must build upon personal connections and unique interactions.
Start viewing the relationship between your business and Gen Z consumers as a partnership — the first step is understanding who they are and what they value most.
You can personalize conversations through social media, the company website and email campaigns. However, watch your tone. Gen Z consumers won’t be able to relate if you’re too formal.
Additionally, three in five young consumers purchase goods from personalized online advertisements, delivering another avenue for your startup marketing strategy.
Create engaging content
Naturally, unique content is vital to Gen Z — of course, it is for a generation that grew up with the internet. As previously mentioned, video content can be highly influential, so you should step up your marketing game with engaging video and social media posts that target your audience.
Uncover which platform works best for your startup, which means deciding which channel generates the broadest reach among Gen Z. For example, 40 per cent of young consumers prefer using TikTok and Instagram to search for content, brands and information.
Kotex Malaysia is an excellent example of a successful ad campaign on Instagram. Using Instagram Reels, Kotex Malaysia has experienced a 9.8-point higher ad recall from consumers between 25 and 34 years old using Reels — this was followed by a 5.6-point higher intent of purchasing products.
Some consider Gen Z a challenging demographic to market to, yet they’ll be your most crucial buyer age bracket for a successful business. Start by acquainting yourself with your target audience, then cater your marketing strategy to their expectations. You’ll reap the rewards if executed correctly.
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