UnaCash, a rapidly expanding provider of Buy Now, Pay Later (BNPL) and point-of-sale services, recognizes the role that Generation Z (Gen Z) will play in shaping the e-commerce landscape of Southeast Asia (SEA).
With a population of 221 million in the region, UnaCash anticipates that Gen Z will be pivotal in driving e-commerce growth.
Based on available data, UnaCash said that Gen Z, born between 1996 and 2010, constitutes 32% of SEA’s total population, with an additional 57 million young adults projected to enter the regional economy over the next five years.
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Shopping dominates Gen Z’s expenditure, with figures indicating that in the Philippines, shopping accounts for nearly a quarter (24%) of their total spending, while in Vietnam, it comprises 20%, surpassing expenditures on entertainment, events, and dining out.
Omni-channel
“Already, Gen Zs are not only fundamentally changing and restructuring the sector for themselves, but also setting trends,” UnaCash said. “The further maturation of the Zoomer segment and an increase in their share in the target audience of e-commerce will lead to the spread of values and ideals to brands.
Projections suggest a staggering 132% growth in e-commerce trade volume, with the market poised to reach $186 billion by 2025. This optimism stems from Gen Z’s heavy reliance on smartphones and social media platforms, offering brands valuable insights into target markets and optimization opportunities.
With 66% of Gen Z being digital natives who prefer online shopping, UnaCash emphasizes the popularity of BNPL services, enabling them to leverage their purchasing power effectively.
Despite the continued success of brick-and-mortar stores, omni-channel shopping is gaining traction. UnaCash underscores the importance of understanding the interconnected nature of consumer demands, with a blend of digital and physical platforms remaining vital for businesses.