Industry survey reveals new insights into SE Asia’s Next-Gen mobile consumers
Industry experts from various POCO business partners gathered in Bangkok to share their insights into the evolving habits and preferences of Gen Z mobile users in Southeast Asia. The POCO Partners Southeast Asia Forum 2023 provided a valuable opportunity to delve into the rapidly changing consumer landscape driven by the evolving behaviors and preferences of the region’s “mobile-first” Gen Z generation.
Distinguished speakers at the event included 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. They were joined by top executives from Lazada, MediaTek, PUBG, Shopee, and TikTok Shop to discuss the evolving tech trends and data-driven insights in e-commerce, gaming, chipset, and smartphone markets in Southeast Asian countries.
A new survey released during the Forum event highlighted how Gen Z is reshaping consumer mobile phone usage habits and preferences, with significant changes observed in the past five years. The study, conducted by global public opinion and data company YouGov on behalf of consumer technology company POCO, revealed that smartphones have become even more integral in the lives of 18-40-year-olds across Southeast Asia. Approximately 50% of respondents reported a notable increase in the time they spend on all mobile-related activities.
Mobile the new “hub” of entertainment
The survey encompassed 2,500 consumers in five Southeast Asian markets—Malaysia, Indonesia, Philippines, Thailand, and Vietnam—primarily comprising Gen Z and Millennials who engage in mobile gaming at least once a month. The study illuminated that, driven by the recent pandemic, mobile phones have evolved into central entertainment hubs. Younger Southeast Asians have substantially increased their mobile activities over the past three years, with significant surges in mobile gaming (53%), online shopping (51%), and video streaming (48%).
Entertainment-driven activities such as watching videos (81%) and playing online games (60%) hold the top spots in daily mobile activities. Daily voice calls are used by just over half (56%), and less than half (47%) utilize their phones for daily photo and video capture. In weekly mobile activities, nearly nine in ten respondents engage in gaming (87%), with photo and video capture seeing increased activity (80%).
Mr. Angus Ng, Head of Product Marketing at POCO Global, expressed enthusiasm regarding the opportunities presented by these findings. He emphasized POCO’s intention to take a new direction, focusing on catering to specific market needs and collaborating closely with partners to adapt their product offerings. Ng explained that POCO aims to concentrate on the fundamental aspects of gaming, a growing trend in Southeast Asia, by perfecting the balance between price and product in each segment. This approach is geared toward meeting the unique preferences and needs of the region’s younger generation.
Gen-Z the Mobile-First Generation
Gen Z, being a “mobile-first” generation, dedicates more time to mobile activities compared to Millennials. They surpass their Millennial counterparts in weekly hours spent on all online leisure activities, encompassing messaging, social media interactions, and express intentions to increase their mobile usage in the future.
In the near term, approximately four out of every ten respondents express their likelihood to augment their daily mobile-based activity. Notably, high-growth usage activities include social media (53%), internet browsing (56%), and surprisingly, work-related tasks, reflecting the changes in flexible work arrangements post-pandemic (59%). Furthermore, the trajectory of growth in entertainment activities remains upward, with roughly four in ten respondents anticipating increased time spent on gaming, video streaming, and online shopping.
Mr. Liang Shuang, Head of Shopee Regional Electronic Cluster, emphasized that smartphones designed for Gen Z should prioritize seamlessness. Gen Z seeks mobile devices that simplify online interactions, enabling engaging community interactions, sharing enjoyable moments, and playing exciting games. Additionally, keeping track of health and lifestyle improvements is crucial for this generation.
Mr. Tony Yuan, Senior Vice President at POCO partner Lazada, one of Southeast Asia’s major e-commerce platforms, acknowledged that the online habits of the younger generation, including their increased interaction and reliance on reviews and comments, present both opportunities and intricate challenges. Yuan highlighted the significance of staying ahead in this dynamic landscape by catering to the preferences and needs of the younger generation and leveraging technology for more effective engagement.
Mid-range Phones on the Rise
Amid these evolving usage trends, consumers are reevaluating their mobile device preferences. An overwhelming majority now favor mid-range brand phones over larger, more established brands compared to five years ago. A significant 76% of respondents either strongly or somewhat agree with this shift, with 37% strongly agreeing. This preference stems from increased confidence in mid-range brands, as 79% of respondents feel much more or somewhat more confident in mid-range phones than they did five years ago.
This growing confidence is fueled by factors such as budget-friendly affordability (57%), a well-balanced combination of price and performance (57%), and the ability to meet mobile needs without excessive features (50%). With nearly half (46%) of respondents planning to replace their current mobile phones by the end of 2024 in Southeast Asia, affordability is a primary motivator driving young consumers toward mid-range brands, with enhanced performance attributes like faster processors, longer battery life, and larger storage capacity being key considerations for both Gen Z and Millennial consumers—attributes that align well with mid-range mobile devices.
Mr. Chunyan See, Country Sales Manager, Thailand, MediaTek, highlighted the extensive research, development, and collaboration involved in chip design, emphasizing MediaTek’s commitment to innovation to meet evolving consumer needs and expectations.
Gaming capability and performance play a pivotal role in consumers’ decisions regarding their next phone purchase. For 44% of respondents, gaming capability is a “very important” factor, with an additional 36% considering it “somewhat important.” These considerations focus on extended battery life, high-performance processors, and expanded storage capacity, primarily driven by gaming needs.
In summary, today’s Forum underscores the increasing importance of gaming capability and affordability in consumers’ phone preferences, driven by the next generation of young consumers. This shift is creating exciting opportunities for POCO and the world of mid-range phone brands.
