The study sheds light on the consumer buying behavior of Generation Alpha, which is driving today's digital economy. With Gen Z taking a backseat, it's Gen Alpha's turn to shine in the digital realm.
A global study by Checkout.com, a prominent digital payments provider, reveals that 75% of eight-year-olds and 92% of 15-year-olds in the UAE handle their own payments, bypassing adults. This study underscores the consumer behavior of Generation Alpha, fueling the current digital economy. Conducted across the UAE, UK, US, and China, the research identifies and contrasts various trends linked to the rising spending power of this consumer group.
The findings indicate that while 54% of millennials shop on direct-to-consumer websites, Gen Z leans towards social media, with 51% preferring to shop via social platforms, highlighting the increasing trend of social commerce. Additionally, Generation Alpha in the UAE leads in e-gaming services, spending 47% of their allowance on games, compared to 28% in other countries.
The study also notes a surge in consumer spending intentions for luxury and high-ticket items, with a 46% rise in luxury goods, a 30% increase in white goods, and a 25% hike in planned flight purchases, signaling a rebound in travel and tourism spending. Moreover, the trend of 'buy now, pay later' (BNPL) is gaining traction among UAE's Generation Alpha over 13, with 11% favoring this payment method.
Globally, Generation Alpha accounts for 27% of their household's monthly spend, rising to nearly a third for digital purchases. This is evident as 29% of Millennial parents regularly buy digital products for their children. Digital products and services constitute over 21% of the average global household spend. Generation Alpha's influence is most pronounced in online educational resources, purchased by 47% of parents, followed by entertainment streaming, bought by 30% of parents worldwide.
Social commerce is a pivotal shopping channel for Generation Alpha across all studied countries. Children worldwide use social media to discover deals, with minimal regional variation in preference. Additionally, social commerce is the dominant shopping channel for Gen Z globally, with only 35% regularly shopping in physical stores.
"It's evident that Generation Alpha is a significant player in the digital economy," stated Rory O'Neill, Chief Marketing Officer at Checkout.com. "The younger generation is not just discovering products on social channels but also purchasing through them. This trend is particularly pronounced in China, setting a blueprint for future commerce. Furthermore, businesses must closely monitor payment preferences across all generations to foster growth and loyalty in this dynamic and competitive market."
Source link: https://www.khaleejtimes.com
