The emerging millennial is boosting the convenience, health, and gaming industries
With above-average wages and influential online consumption preferences, millennials in emerging markets are playing a powerful role in disruption.
Technology developments and access to the internet are changing our lives professionally, personally, and economically. A major driver of these developments is a fervent online end-user segment: the Millennials. Aged between 18 to 29 years old, these young consumers are actively shifting economies and their demographics by influencing the implementation of these technologies through their behaviors, interests, and outlook.
The Emerging Consumer Survey 2019, published by our Credit Suisse Research Institute (CSRI), consolidates actual market data and the results of 13,285 detailed face-to-face interviews conducted in India, Brazil, China, Mexico, Indonesia, Thailand, Russia, and Turkey. This year we focus on the millennials in these emerging markets, a consumer group growing in importance due to their above-average wages compared to peers in other regions and to local older consumers.
Established companies either evolve with consumer needs or fail
The millennials in most markets reviewed for the survey have a pronounced intention to lead a convenient and physically active lifestyle – impacting the various industries catering to these growing demands.
As the desire for convenience is accelerated by online mobile access, success for companies – even if globally established – is at risk if they do not provide effective mobile services for their product consumption. The result has led to the disruption of big players which were perceived as shatterproof by previous generations and to the creation of new business opportunities for investors.
The emerging millennial primarily chooses convenience and experiences over high-ticket items. The young consumer:
- Prefers to rent instead of buy, for instance cars, strongly affecting the mobility industry
- Eats healthier delivered food instead of fast food from global chains
- Is physically active and is a member of gyms and health centers, preferably purchasing branded sportswear
- Supports local travel and flies on regionally focused low-cost airlines, challenging the endurance of international carriers
- Increasingly consumes online services, such as entertainment, music streaming, and e-commerce
The tremendous gaming world still has growth outlook
A big winner of the growing internet accessibility and the improving online mobile technology is the gaming industry. There is a strong shift toward mobile-based gaming, massively growing in popularity amongst the millennials and depleting console use in the surveyed countries.
- There are 600 million active gamers in China
- 60% of e-sports enthusiasts live in the Asia-Pacific region
- 50% of revenues related to global video gaming are generated in emerging markets
- Close to 400 million people globally watch competitive video gaming, either live in stadiums or online
- Prize pool money for the participants of a single 2018 final competition reached a total of 25.5 million USD
Although governments are starting to regulate the gaming industry due to health concerns of its vigorous consumers, it continues to have a strong growth outlook and compelling investment interest due to its vastly growing revenues.
Download the Emerging Consumer Survey 2019 to learn more about this growing and significant end-consumer segment: The emerging millennials.