Industry survey reveals new insights into SE Asia’s Next-Gen mobile consumers
Bangkok, Thailand – Tech Industry experts, brand executives and media guests from the ASEAN region, gathered at the W Bangkok for the POCO Partners Southeast Asia Forum 2023. The forum shed light on some groundbreaking insights into the evolving behaviors and preferences of the Gen Z mobile users in Southeast Asia. This highly anticipated event marked a significant opportunity for tech enthusiasts to delve into the ever-changing landscape of consumer habits and trends driven by the region’s “mobile-first” generation.
Mr. Quanxin Wang, the General Manager of Xiaomi Southeast Asia, Ms. Anne Wang, Head of Marketing at POCO Global and Mr. Angus Ng, Head of Product Marketing at POCO Global joined with top executives from Lazada, MediaTek, PUBG, Shopee and TikTok Shop, to debate the evolving tech trends and data-driven insights in e-commerce, gaming, chipset and smartphone markets in Southeast Asian countries.
Gen Z’s Changing Landscape
As the centerpiece of discussions, Gen Z took the spotlight for radically transforming mobile phone usage habits and preferences in the last five years. A recent survey conducted by global public opinion and data company YouGov on behalf of consumer technology company POCO revealed compelling insights. Surveying the usage habits of 18-40-year-olds across Southeast Asia, the study demonstrated the integral role smartphones play in their lives, with approximately 50% of respondents reporting a significant increase in time spent on various mobile-related activities.
POCO’s Strategic Pivot
Angus Ng, POCO’s Head of Global Product Marketing, unveiled a strategic pivot during the forum, highlighting the brand’s commitment to cater to the younger generation’s evolving needs. With a keen eye on the burgeoning trend of mobile gaming in Southeast Asia, POCO aims to strike the perfect balance between price and performance. This pivotal approach is set to focus on the core elements of gaming, aiming to capture the unique preferences of the region’s younger demographic.
Mobile: The New Entertainment Hub
A comprehensive survey was done targeting 2,500 Gen Z and Millennial consumers across five Southeast Asian markets– Malaysia, Indonesia, Philippines, Thailand and Vietnam– who play games on their mobile devices at least once a month. Fueled by the impact of the pandemic, mobile devices have emerged as central entertainment hubs, driving significant increases in mobile gaming (53%), online shopping (51%), and video streaming (48%) activities. Entertainment-centric pursuits, such as watching videos (81%) and engaging in online gaming (60%), dominate daily mobile activities. Notably, the survey also highlighted a surge in gaming and multimedia creation activities during the week.
Angus Ng, Head of Product Marketing at POCO Global expressed enthusiasm about the opportunities this presents for POCO, particularly in positioning the brand to focus on specific market needs and working closely with partners to adapt their product offerings. “POCO’s intention is to steer in a new direction”, he explained, “the company aims to concentrate on the essential elements of gaming, a rising trend in Southeast Asia. By focusing on the roots and fundamentals of mobile gaming, POCO aims to perfect each segment between price and product, targeting the unique needs and preferences of the younger generation in the region.”
Gen-Z: Embracing the Mobile-First Lifestyle
Gen Z, characterized as the “mobile-first” generation, has solidified its status by engaging in a diverse array of mobile activities for more hours per week than their Millennial counterparts. The survey indicated a strong inclination among Gen Z users to increase their daily mobile-based activities, with an emphasis on social media interactions (53%), internet browsing (56%), and work-related tasks (59%). As flexible working gains traction post-pandemic, mobile devices are projected to play a pivotal role in work and business-related activities.
In the immediate future, around four in every ten also say they are likely to actually increase the amount of time spent each day on mobile-based activity, with social media (53%), browsing the internet (56%) and, interestingly, work-related tasks registering as the high-growth usage activities. Indeed, with changes in flexible working post-pandemic, utilizing mobile devices for work and business use is seen as the significant area of highest future growth (59%). The growth in entertainment activities is set to continue, with some four in ten respondents anticipating to spend even more time gaming, streaming video and shopping online.
Speaking at the forum, Mr. Liang Shuang, Head of Shopee Regional Electronic Cluster said, “For smartphones that are designed for Gen Z, I’d say they’re all about being seamless. Gen Z is used to using mobile devices and they want phones that make everything online easy. This includes things like having engaging interactions with one another, sharing fun moments or playing exciting games within their community, or keeping track of their health and knowing ways to improve their lifestyle.”
Mr. Tony Yuan, Senior Vice President at POCO partner Lazada, one of the largest e-commerce operators in Southeast Asia, noted that the young generation’s online surfing habits, including increased interaction and reliance on online reviews and comments, present exciting opportunities and intricate challenges. “While this behavior offers new avenues for engagement, it also complicates the creation and measurement of consumer experience,” he explained. “Lazada recognizes the importance of staying ahead in this dynamic environment, acknowledging the younger generation’s preferences and needs, and employing technology to connect with them more effectively.”
Rise of Mid-Range Phones
The shifting landscape of mobile usage has led consumers to reevaluate their smartphone preferences. A resounding majority (76%) expressed a preference for mid-range brand phones over established industry giants, signaling a shift in consumer confidence. This shift is propelled by factors such as budget-friendly affordability (57%), the optimal balance of price and performance (57%), and the need for essential features without excessive frills (50%).
This surge in confidence is underpinned by drivers such as enhanced affordability, stronger performance with faster processors, extended battery life, and increased storage capacity – all characteristics that mid-range mobile devices are known for. The growing importance of gaming capabilities and performance in purchasing decisions is evident, with 44% of respondents considering it a “very important” factor.
Mr. Chunyan See, Country Sales Manager, Thailand, MediaTek, explained that designing, studying, manufacturing, and integrating a chip takes three years, involving extensive research, development, and collaboration. “The company ensures the design’s power efficiency and performance align with customer desire and the ongoing commitment to innovation means MediaTek is involved in a continuous process that requires releasing a new chip every year, reflecting modern consumers’ evolving needs and expectations,” he said.
Gaming capability and performance is a key factor in this next new phone purchase decision, with 44% of those surveyed stating it as a “very important” factor and an additional 36% as “somewhat important” with the emphasis on long battery life, high-performance processors and larger storage capacity largely driven by gaming considerations. “The overall conclusion of today’s Forum is that clearly a phone’s gaming capability, balanced by affordable price-points is setting the agenda, led by the next generation of young consumers to change the consumer game-play in widening the brand playing field,” explained Mr. Ng. “This is presenting exciting new opportunities for POCO and the world of mid-range phone brands.”
