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copyright 2004 TongMedia 1

The boomingyouth marketArthur Tong


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A little bit about me

Marketing & Communications Strategist, Asia PacificRegion Specialist (TongMedia)

Current tenure with Westpac Banking Corporation

Multi-industry experience, marketing and mediaplanning consultation Starbucks, Honda, Diesel

Footwear, Visa InternationalFormer editor-in-chief of Faan, Australias first Asianlifestyle magazine

Spokesperson on Asian consumer markets

interviewed by Bulletin/Newsweek, BBC World, SBSCo-author, Ingenious- Emerging Youth Cultures inUrban Australia, Pluto Press.


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Faan covers


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Todays discussion

A new definition of the youth market

Size (global demographics)

Beliefs & attitudes: educated, smart & savvy

$$ Market value.

The Asia Pacific- nerve centre of youth cultureCultural fusion; Eastern values, western dreams

Impact on global consumer trends: food, fashion, finance

Impact on youth marketing and the bottom line.

Howto tap into their mindset Preferred communication channels

New language.


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What is the youth market?

Size and global demographics

Traditional definition: 15-24 (UN)

Comparison by world regions

51% of 15-24 live in Asia


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What is the youth market?Size and global demographics

Country Youth

Population

Median Age

US 39,237,000 35.8

Canada 4,114,000 36.9

Argentina 6,658,000 27.8

Columbia 8,008,000 24.2UK 7,136,000 36.8

Germany 9,155,000 39.4

France 7,721,000 37.8

Italy 6,687,000 39.9Russia 22,745,000 36.9

South Africa 9,111,000 22

Nigeria 22,899,000 17.4

Egypt 13,911,000 22.2

Statistical breakdown- global


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What is the youth market?Size and global demographics

Country Youth

Population

Median Age

Australia 2,703,000 35.1

China 200,010,000 30

Rep. Korea 3,397,000 28.9

India 189,356,000 24Indonesia 42,272,000 24.7

Japan 16,100,000 40.8

Laos 1,024,000 17.3

Malaysia 4,327,000 22.5Philippines 15,414,000 21.5

Singapore 501,000 34.3

Thailand 11,670,000 28.1

Vietnam 15,843,000 22.6

Statistical breakdown- Asia





(UN stats)2030, there will be a decline in thesize of the 15-24 age group as a %

of total national populations: -3.5%in Asia, -0.6%US, -1.5% UK





Misconception #1:

aging population = decline in youth market

Reality: prolongation of youthClosing the attitudinal and behavioural

gap between the 15-35sGreat news for marketers and

communicators!




Beliefs of a new generation

Shaped by education In the West, tertiary education rates,

traditionally high

The growth now is in the East

Disenfranchisement of the old boys inpolitics and business (examples)

Soft depression of the world economyand levels of freedom





Tertiary education, US and Asia (UN stats projected2003)

US 14 million, China 12 million, India 9.5 millionenrolments

Comparatively, the Asian region, regardless of levels of

development, value education highly Although enrolment statistics in China are proportionately

low, it is mainly due to the developing infrastructure (16%of youth place education as MOST important aspect oflife)

Asians continue investing in overseas education,developing intelligence enclaves around the world e.g.US, leading to a more worldly and socially awarepopulace





Youth political trendsGlobal loss of faith: US, Europe, Africa, Asia Pacific (case

examples)

Activism vs Apathy

Political disenfranchisement: the commonality amongstpolar-opposites

Youth attitude: wary and cynical

What does this mean? According to AC Nielson, McCann

Erickson, Time magazine, a common outlet for politicaldisenfranchisement amongst youth is material escapism

What should marketers and communicators do?

?



What is the youth market?$$ Market value(US Census Bureau)

US youth purchasing power: $350 billionBreakdowns by minority groups in the US: acrystal ball of where the $value lies

One third, Hispanics, African-Americans and 26% Asian

Americans under 18! Hispanics $580.5 billion, 38.8m, 57.9% growth (90-00)

African Americans, $645.9billion, 36m, 15.6% growth (90-00)

Asian Americans, $344 billion, 11.5 million, 46.3% growth

(90-00)Youth technological consumption rates:identifying the global hotspots

Wh t i th th k t?




$$ Market value

Mobile phones (year ending 2003, eMarketer,Time Asia)

Saturated Western markets:EU 75% (323m)

US 47% (141m)

China: 200 million subscribersFalling growth rate due to older generationsunwillingness to adopt (only 15% of population)

Saturated in terms of network subscription but stillhandset-crazy (holds 25% of all phone sales)

India- hottest market, annual subscriber growthrate 80% (2003)

A i P ifi t f th



Asia-Pacific: nerve centre of youth

Cultural fusion Eastern values, Western dreams

Consumption, adaptation, innovationMoving from industry to strategy, (case examples): Korea,

Philippines, India

Young Asians and their global networkResidence in the West and connected to the East, (case

examples): Hawaii and California


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A i P ifi t f th



Asia-Pacific: nerve centre of youth

Cultural fusion Eastern values, Western dreams

Impact on global marketing and the bottom line Inclusion and engagementCross-industry case-studies

Starbucks: stealth marketing, getting it right with the youth

Westpac Multi-cultural Sales and Youth Marketing: segmentingand making your customers feel importantDiesel Footwear: regional licensing, its okay to leave it to theexperts.

H t t i t th i i d t



Howto tap into their mindsets

Preferred communication channels

Boring processes can be livened up by clever use oftechnology and popular forums: youth voting

SMS crazy Philippines Russell Simmons- stirs youth political interest by way of hip hop

Quick & painless SMS/MMS Online communities

WOM & Print still reign supreme Importance of friendship networks (Dr. Melissa Butcher, Institute of

Cultural Research) Importance of tangibility in a cynical generation

When to use which channel





Preferred communication channels

Online communities and statistics Technically savvy, educated escapists

Interest based virtual communities

Over 205 million internet users in Asia-Pacific region(year ending 2003, eMarketer)

Worlds largest internet market, ahead of both

Europe and North America

2005 Estimate: approx 230 million (Morgan Stanley)

75% of the regions usage comes from Japan, China andSouth Korea.





Language of the time poor

Communicating with earnestnessMisconception #2: you have to dumb downwhen talking to the youth

Industry-speak acceptable within context not when usedto confuse or deceive (Dr. Butcher)

Simplicity not simplistic

Speaking for themselvesW. Chea, president of MSA student society, UNSWD. Torres, Youth Leader, IABC PhilippinesFindings from Faan magazine opinion poll

K t !



Key messages to go!

Mental/attitudinal age is more important than

physical age when it comes to communicationsThe youth market remains a valuable andsizeable market for years to come despiteaging populationThe physical growth, the connectedness andcultural popularity of Asians makes the Asia-Pacific region the youth hub of the new

millenniumGenuine inclusion and engagement is the mosteffective way to communicate with the young

C t t


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Contact

For sources and contacts to help youcommunicate with the youth, please contact:

Arthur Tong

+61 416 148 [email protected]@yahoo.com

www.tongmedia.com

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