For long, the consumer cycles have been defined around the millennial generation. Now, Generation Z is coming to the fore, including in the Asia- Pacific region. They will make up a quarter of the region’s population by the year 2025. It will be wrong to consider them merely as junior millennials, as although the two generations do share a lot, there are significant differences as well. Growing up during a global pandemic will also shape the Gen Z in a certain way. Some key consumer trends have emerged. Digital marketing experts will need to work them out, as Generation Z-ers do engage with social media, but more carefully than do the millennials. They want brands that reflect their uniqueness and personality. This is something that marketers can gauge more of using business analytics tools. Video content really hooks them on. While they do wish to be seen as environmentally conscious, sadly as yet they have shown no appetite for wanting to pay for the same.

Source:https://www.mckinsey.com/business-functions/marketing-and-sales/our-insights/what-makes-asia-pacifics-generation-z-different

Uploaded Date:17 July 2020

For long, the consumer cycles have been defined around the millennial generation. Now, Generation Z is coming to the fore, at least in the USA. Those belonging to this gen, were born sometime between the years 1996 and 2012, and are now becoming vocal about their choices. They so far seem to be enjoying the brick- and- mortar store experience. Brands are less important for them. They care a lot about experiences and spend money on hobbies, in contrast to the millennials’ travel splurges. Social media is of great importance to them, so digital marketing is one effective way of reaching them. Within the gen too there are some sub- segments. One is of those between the ages of thirteen and seventeen, while the other is for those between eighteen and twenty- three. The importance of online reviews seems declining for the Generation Z, but referrals’ significance rising. Experts, celebrities and influencers are now garnering even greater sway on buying trends.

Source:https://www.mckinsey.com/industries/retail/our-insights/the-young-and-the-restless-generation-z-in-america

Uploaded Date:17 July 2020

Consumption habits do not change in an instant. Not even the ongoing COVID- 19 induced lockdowns could do much about it. In fact US grocery stores reported a massive seventy- seven percent hike in their sales in comparison to the same time last year. While restaurants’ sales plummeted by forty- eight percent during the same period, grocery stores’ digital marketing campaigns have been so successful, that till end of April they reported an eight percent rise in sales. This is in spite of lower levels of cash flow circulating in the economy. Thus, instead of spending patterns, customers’ behavioural trends will need to alter in the post- COVID world. To start off, more amount of work from home will need to be encouraged. As single- person households have increased in frequency, cooking as an activity had also declined, with many single diners preferring to eat out or order online. This trend will need to be reversed. Density too will need to be reduced. Economies of scale will need to give way to social distancing. Smart shopping will be the need of the hour as for instance, small restaurants could also double up to be mini- grocers.

Source:https://hbr.org/2020/05/3-behavioral-trends-that-will-reshape-our-post-covid-world?utm_medium=email&utm_source=newsletter_daily&utm_campaign=dailyalert_not_activesubs&referral=00563&deliveryName=DM81754

Uploaded Date:29 May 2020

As most of the world’s population is now under conditions of lockdown of some form or the other, the restaurant industry has taken a huge hit. Quick Service Restaurants (QSRs) are trying to fill in this vacuum. Home deliveries are being somewhat encouraged by various governments, in lieu of dining- out. Many QSRs are also struggling, especially the smaller ones. But the large pizza chains, or fast- food outlets, are thriving. Some have even raised their talent recruitment efforts, by hiring thousands, due to a spike in the orders placed by those forced to be at home now. Consumer behaviour is undergoing much change in both Europe as well as in the USA. QSRs have now realized that protecting their employees and their customers’ lives and livelihoods is most crucial right now. The top line too needs to be safe guarded. The supply chain must be kept stable at all cost. Cash too needs prudent management. Brands need to model their future cash flows amidst a range of possible scenarios. The comeback has to be cleverly planned. That has to be the medium- term strategy. For this, existing strengths will need further honing.

Source:https://www.mckinsey.com/industries/retail/our-insights/delivering-when-it-matters-quick-service-restaurants-in-coronavirus-times?cid=other-eml-alt-mip-mck&hlkid=fdc584cd776c4b12a6b89efb8628e87d&hctky=2657824&hdpid=3f20cd2d-b0b2-447e-8340-0a6c31f50406

Uploaded Date:30 April 2020