Thailand's dynamic market is witnessing significant shifts as Gen Z consumers, aged 18 to 27, redefine purchasing behaviors and preferences, driven by rapid changes in technology and the economy.
According to Mindshare Thailand, the urgency for brands to evolve is palpable. Companies must navigate these shifts not only to attract new clients but also to retain existing ones. Warawil Sunjareon, Director of Strategic Planning at Mindshare, summarized four compelling consumer trends influencing Gen Z, each providing brands with invaluable insight.
The first trend, dubbed "Volume Up Value," showcases Gen Z's heightened focus on value. Recent analysis reveals 80% of these consumers have adjusted their spending habits due to economic pressures. Yet, they're still willing to purchase, opting for choices grounded in practicality and overall value. This notion transcends price alone; it also encapsulates quality and service. For example, the popularity of 'Dupe' products—affordable alternatives mirroring high-end items—has surged. Brands like Shein and Zara provide budget-friendly options for fashion and fragrances previously deemed exclusive.
Such preferences highlight consumer intelligence, leading brands to rethink their offerings. Mindshare recommends enhancing customer experiences across all touchpoints, ensuring transparency and consistent quality. The emergence of platforms like Shop Back, which enhances deals via affiliate marketing, showcases how brands can cater to this demographic's savviness.
The second trend, "AI and Then What?" emphasizes how artificial intelligence is reshaping consumer engagement. An impressive 74% of Gen Z now uses TikTok not just for leisure but also for product discovery—outpacing traditional search engines like Google. Sunjareon points out this shift indicates Gen Z's expectation for efficiency and creativity: "The preference for platforms like TikTok reflects their desire for inspiration and authentic engagement." Coupled with this, over 43% of the demographic also enjoy searching through images and videos, shifting the paradigm from text-based searches.
Yet, as brands adopt AI technologies, they face challenges. While these innovations can streamline processes, they lack the human touch. Criticism has arisen, particularly when brands fail to connect emotionally with consumers, as seen with Google's Gemini ad campaign, which faced backlash for being out of touch.
Trend three, "COM 'ME' NITY," focuses on marketing centered around individual identity. The popularity of personalized content—where customers see themselves reflected—has grown dramatically. Brands now capitalize on this trend with campaigns like Spotify's Wrapped, allowing users to engage with the brand on a personal level.
This trend taps deeply rooted emotions, as consumers increasingly seek recognition from brands. The potent combination of identity and marketing fuels brand loyalty, as consumers feel understood and appreciated.
The final trend, "Short n Bitter," highlights how brevity reigns supreme on social media. Gen Z exhibits shorter attention spans, leading brands to create concise and impactful content. Despite this, there's also demand for longer-form content; about 50% of TikTok users watch videos over one minute, indicating diversity in preferences.
To address this multifaceted demand, brands must thoughtfully curate their messaging and storytelling. Engagement through personalized narratives remains key, as this generation craves meaningful interactions more than anything else.
Andrew Smith, Senior Vice President of Agoda, noted, "Gen Z is defining the future of travel with their unique blend of digital inspiration and adventure spirit," emphasizing how their preferences are reshaping travel dynamics. The excitement of spontaneous travel, often arranged with minimal planning, demonstrates their adaptable and adventurous spirit.
Despite variations among generations—Gen Z prefers last-minute bookings compared to Millennials' more structured approaches—both display similarities, emphasizing value without compromising experiences. Accordingly, roughly 50% of both age groups plan to travel at least 1-3 times this year, with aspirations for even more excursions.
From exploring personalized marketing to inviting emotional connections, brands failing to adapt to these trends may find themselves losing relevance. Understanding what drives Gen Z's purchasing decisions can provide the necessary framework for developing competitive strategies, as they continue to shape the future of the marketplace.
The continuous evolution of Gen Z consumer lifestyles underscored by Mindshare's analysis serves as both challenge and opportunity for brands. Adapting to these trends with innovation and authenticity will be key to thriving amid the fast-changing consumer behaviors of 2025.