‘Millennials’ is arguably one of the most used or overused words in a marketer’s vocabulary globally, but do characteristics like ‘tech-savvy,’ ‘self-absorbed’, and ‘woke’ ring true in our local context?
To distinguish fact from fiction when it comes to our millennials, M&C Saatchi Group South Africa conducted a data-led analysis titled Millennials: Fact or Fiction. This report offers key insights for leaders and marketers as they look to connect with this generation, which is undoubtedly one of, if not the, most important audience for marketers to understand.
In South Africa over 50% of adults are under 40. In fact, millennials (if we follow the most commonly accepted definition being those born between 1981 and 1999) are the largest market segment, making up 45% of our adult population (those older than 15).
“In the local market, where the median age is 27 and more than 70% of the population is younger than 40 years old, millennials are an important audience in the growth conversation. We cannot forget about our millennials. Localised insights matter, and as economically active citizens in the country with ages currently ranging from 23 to 41 years, millennials are market makers and shapers. Gaining this knowledge is particularly urgent during economically constrained conditions when consumer disposable income is under significant pressure,” comments Diana Springer, Chief Data and Intelligence Officer at M&C Saatchi Group South Africa.
The research filters fact from fiction in four quadrants; Family, Money, Environment, and Politics, and offers some of their key motivators:
Family
The report finds that most South African millennials (76%) are single, reflecting the narrative that millennials are less inclined to settle down in their 20s and 30s than previous generations. Yet, it states that while they might not have settled down, our SA millennials are certainly not footloose and fancy free. In fact, as many as 64% are parents of young or unmarried children, and 17% are guardians of children that aren’t their own.
Family and collective responsibility are hugely important to this segment, but the definition of what constitutes family is not necessarily traditional, with 75% of our audience agreeing that families can be loving and supportive without a typical family structure, and 84% believing that you don’t need to be blood to be family. Therefore, this audience is absolutely family-first, but the standout distinction is that their understanding of family extends beyond blood relatives to lifelong bonds.
A key takeout here is for brands to find ways to authentically tap into the multiple-family needs, and to broaden the definition of family.
Money
Despite the real-life pressures of living in the South African economy, with only a small
proportion of the audience considered to be ‘affluent’, 51% consider themselves to be good at managing their money (higher than the global norm). Although though this could be due to how far millennials need to stretch their monthly income and their tenacity and resourcefulness in making this happen.
A significant 69% of local millennials describe themselves as ‘ambitious’ and ‘confident’, and 62% are willing to take on risk in their finances to get ahead.
The majority of our audience claims to have a retail bank account and 33% make use of tax-free savings accounts, amongst other financial and investment-related findings in the report. There is currently an equal share of millennials claiming to invest in stocks and stokvels – a brilliant representation of the modern versus traditional tension we see at play in this segment’s choices.
One of the most striking attributes of local millennials is their association with the idea of entrepreneurship, with 55% of the segment claiming entrepreneurship as a personal interest, which is way above the global norm. Interestingly, Nigeria and Brazil reflect a similar attitude with 60% and 52% respectively. And 84% of our audience agree that they’d like to start their own business.
The interest in self-enrichment extends into technology and information. Almost half of the South African audience say they follow the latest technology trends and news. This is approximately double the interest shown by millennials in developed markets in the analysis (UK and Australia). Millennials display high levels of curiosity and inquisitiveness –even more so in South Africa, where 85% claim to use the internet to find information, and 73% say they use the internet to find new ideas and inspiration.
Environment
Environmentalism resonates as a positive image association for this cohort, with 60% agreeing that they try to buy from socially and environmentally responsible companies.
But this passion to engage with environmental and social issues is outweighed by immediate responsibilities. While 40% claim to be interested in environmental issues, it is important to note that this is far less relevant to low-income millennials (38%) versus 48% of those in the highest income segment. As close to 60% also agrees that it ‘costs too much to be green all the time’.
A key takeout here is that brands that meaningfully incorporate environmental credentials into their current and new offerings, without expecting consumers to pay a premium for this, will win.
Politics
We have seen a significant global trend reflecting disengagement from politics by younger audiences. In South Africa, despite our politically fuelled context, as much as 60% of our audience feel disengaged from politics and politicians.
As our audience is proudly South African (78%), this disengagement is not an indication of a lack of passion, but rather a lack of faith in the leaders of today. Though voter apathy may seem apparent, interest in political discourse and current affairs remains consistent. This was evident in the Rhodes Must Fall/Fees Must Fall neo-revolutions which took off and gained momentum in mid-2015.
“In the lead up to the forthcoming National Elections, the political stance of the country’s millennials provides food for thought. Our millennials are observers on this front – not apathetic – but quite disengaged from the status quo of politics in South Africa. And though voter apathy may seem apparent, interest in political discourse and current affairs are ever prevalent,” says the report.
Our political parties and social movements need to find new ways of connecting people’s desire for change to the political system. There is an opportunity for a party or platform to offer a more modern take on the current conventions.
Fact or fiction?
- Our millennials are woke, but many are broke. SA millennials resonate with purpose driven brands, but want that purpose to enable their progress to make it relevant, make it tangible, and most importantly, to make it accessible.
- They use technology as an enabler of growth, education and self-enrichment, not just an entertainment or social tool.
- They are self-motivated, but not self-centred. The pressures and demands on South African millennials don’t afford them the luxury to focus on the ‘me, me, me’. While they are very engaged when it comes to personal ambitions, they don’t seem to suffer as much from the same inward looking worries as their global peers.
Conclusion
Millennials in South Africa are seeking products and services that deliver to their ambitions and needs in the most relevant way. Their sense of self is not one of entitlement so much as it is one of motivation, and a strong self-appreciation that they need to do it for themselves.
While many of the millennial marketing generalisations seem to be more fact than fiction for South African millennials, the way these characteristics manifest locally is, in many ways, different from the global cohort. The big opportunity here for brands is to demonstrate how they are solving the complex set of socio-economic challenges being faced, with positive and ambitious attitudes to support the quest for growth and betterment.
Winning brands will be the ones that meet the needs of our tenacious and resilient millennials who crave information, insight and connection to better equip themselves on their journeys of progress.
Millennials: Fact or Fiction was generated in participation with Fluency, M&C Saatchi’s global data consultancy and South Africa’s leading customer analytics company Eighty20 with whom M&C Saatchi have formed an official partnership to bring more data fluent strategies and decisions to Clients. Further insights and full report can be found here.
