youth consumer behaviour Archives - GeoPoll https://www.geopoll.com/blog/tag/youth-consumer-behaviour/ High quality research from emerging markets Mon, 08 Apr 2019 17:46:14 +0000 en-US hourly 1 https://wordpress.org/?v=6.7.1 African Millennials; Mobile Usage and Media Consumption https://www.geopoll.com/blog/african-millennials-mobile-usage-and-media-consumption/ Mon, 27 Feb 2017 23:26:00 +0000 https://wp.geopoll.com/2017/12/16/african-millennials-mobile-usage-and-media-consumption/ Increased dependency on technology and a mobile-first approach is being driven by African Millennials, this is according to a recent GeoPoll rapid […]

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Increased dependency on technology and a mobile-first approach is being driven by African Millennials, this is according to a recent GeoPoll rapid survey carried out among youth in five Sub-Sahara African countries between the ages of 18-35.

As detailed in our earlier reports on the African Millennials series, Africa has the highest youth population in the world with 200 million people aged between the ages of 15-24. The current trend indicates that this figure will double by 2045, according to the 2012 African Economic Outlook report prepared by experts from the African Development Bank (AfDB)

Millennials across the world are defined by their uptake of technology. Affinity to technology by millennials world-wide and specifically so in the west is a study that is currently ongoing and continues to be a fascinating undertaking especially in regards to the African Millennials.

In our continuing series on Sub Sahara African Millennials, we sought to understand this affinity towards technology and more specifically, mobile technology among African Millennials.

Despite lack of access to smartphones and reliable internet connectivity, the level of uptake and penetration in Africa has hit major milestones in the last 5 years.  According to a report published by GSMA on Africa’s mobile economy in 2016, smartphone adoption in Africa has doubled in two years. Among Sub-Sahara African countries, South Africa has the highest number of smartphone subscribers at 34% followed by Nigeria, Senegal and Kenya.

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Media Consumption

Like their global counterparts, African millennials are increasingly using download sites to access video entertainment and social media sites as tools for communication and a source of news and information. Mobile data continues to be the most used means through which African millennials access the internet. Social network platforms such as Facebook, WhatsApp and twitter have become an integral part of everyday life with over 60% using social media as their primary source of information. Television comes a distant 2nd at 25% with newspapers being the least important source 6%.

The second screen phenomenon though not highly prevalent among African Millennials, is one that might change with time. 57% of African Millennials say they sometimes use their smartphone while watching TV, 35% said they are always on their phone. This can be attributed to data costs which are still relatively high in many African countries compared to the rest of the world as well as changing preference among this group on choice of entertainment.

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Access to video entertainment among African Millennials is undergoing a significant shift.  There is decreased demand for bootleg DVDs generally across the countries that took part in the survey except in Ghana. According to the survey, more millennials in Africa are accessing their movies and TV series entertainment through online downloads. They spend the least time in the cinemas compared to the other ways of accessing video entertainment selected for the survey. Subscriptions to online video streaming services such as Netflix, Amazon, Apple and Showmax are still relatively low with a majority indicating that they do not use these services. Out of those who indicated that they are using it, Netflix is the most popular.

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Usage Habits

When it comes to the most preferred mode of communication among millennials, Kenyan and Tanzanian Millennials prefer texting (62%) & (54%) whilst Nigerians and Ghanaians prefer calling through the mobile operator (58%) & (51%). Mobile data calls through WhatsApp and Facebook messenger are still not as widely used.

The use of social media platforms such as has become second nature to African Millennials’ lives; WhatsApp and Facebook rank among the platforms with the most usage. 56% have created and are most active on WhatsApp  , while 31% are active on Facebook. Not only do African millennials spend more time on their smartphones than on any other gadget on a daily basis, but they are also more likely to be on WhatsApp chatting. A majority (46%) are actively engaged daily in at least 1-3 WhatsApp groups.

Part of this study was to determine whether or not Sub-Sahara African millennials are addicted to their phones with typical signs of addiction being how often they use their phones, if they took their phones with them to the bathroom, where they placed their phones while sleeping, and if they walk around with a power bank. Whilst this survey does not serve as a psychiatric evaluation, 81% said they place their phone next to their bed while sleeping, 48% carry their phones with them to the washroom and 31% walk around with a power bank incase their phone runs out of battery power.

Phone addiction is starting to manifest itself among African Millennials as 48% use their smartphones while in the bathroom.

Mobile Apps

Not only do African millennials spend more time on social media sites, but they also spend as much time gaming. The most downloaded app by category are social networking, gaming, instant messaging, banking/finance, education, health & fitness.  Ugandan, Ghanaian and Kenyan millennials have more game apps downloaded on their smartphone than any other application. The use of power banks though evident is not yet prevalent.

African Millennials are vanguards of a future Africa and technology is becoming an integral part of it all. As younger millennials continue to make their impact felt in almost every sector, a mobile first approach is crucial for any company that seeks to reach this culture-rich group of image-conscious, educated and opinionated individuals.

This GeoPoll rapid survey was conducted in February 2017 among 2,861 respondents between the ages of 18- 34 in Kenya, Uganda, Tanzania, Ghana and Nigeria using the GeoPoll App.

Download a copy of this report with more detailed graphs.

Read our other reports on this series on African Millennials on spending habits and on side businesses.

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Sub-Sahara African Millennials prefer bank loans to finance their side businesses https://www.geopoll.com/blog/sub-sahara-african-millennials-prefer-bank-loans-to-finance-their-side-businesses/ Wed, 15 Feb 2017 23:26:01 +0000 https://wp.geopoll.com/2017/12/16/sub-sahara-african-millennials-prefer-bank-loans-to-finance-their-side-businesses/ Millennials in East Africa are turning to Agriculture as a side business, a majority have attempted to turn their side hustle into […]

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Millennials in East Africa are turning to Agriculture as a side business, a majority have attempted to turn their side hustle into their main focus borrowing starting capital from banks and relatives. This is according to a recent GeoPoll rapid survey among the youth In 6 African countries; Kenya, Uganda, South Africa, Ghana, Nigeria and Tanzania

As seen our 2nd report on this series on SSA millennials, image and how the youth are perceived is very important. There is an opportunity to instill an entrepreneurial mindset among those in college or working.  As noted in our 2nd report on spending habits of youth consumers in SSA, there are knowledge gaps among African millennials on areas such as effective saving plans, wise investments and financial management. As noted in the report, when asked, many would like to better understand asset financing, entrepreneurship and investment opportunities available in their respective countries. The preference towards commercial loans by many, underscores these needs.

In a continuing series on Sub Sahara African Millennials, we sought to find out the percentage of youth Africans with side business running as they study or work day jobs. This is the third rapid survey in a series on what makes the African Millennials tick, their aspirations, hopes, affinity, and habits as well as get their thoughts on leadership, governance and their future in a digital age in the best way that they know how to communicate; using their mobile phones.

Agriculture tops ICT, entertainment, online business and logistics as the most popular form of side hustle for millennials in the East African Countries; Kenya, Uganda and Tanzania. In West Africa countries; Nigeria & Ghana, the youth are into less conventional sectors than those mostly associated with the youth such as ICT, entertainment and online businesses. In South Africa, Food & Beverage is the more popular side hustle for many youth.

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Apart from Uganda that has the highest number of youth whose day jobs conflict with their side hustles, millennials in other SSA countries don’t experience this dilemma with many choosing either Agriculture, food & Beverage or less conventional side jobs. Interestingly, it is in Uganda where ICT is the next most popular line for side business, a very close second (20%) to Agribusiness (24.4%) among the youth.

Despite popular belief, not many young Africans have side hustles (37%). According to our survey, Nigeria has the highest number of millennials with side hustles (44.4%) followed by Kenya (40.8%). South Africa has the least with only 30%.

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Out of those who indicated that they have side hustles, the main sources of their capital is in form of loans from  banks, relatives, mobile money and micro-finances in that order. Despite their more friendly repayment terms, Savings Cooperatives or Saccos as they are locally known, are the least popular among the youth and rank lower than mobile money loans, micro-finance loans or even bank loans.

Despite the known high interest rates charged by most commercial banks, young millennials in SSA still prefer borrowing from commercial banks (30%) then relatives (23%) before looking at other available options. This can be explained by the renewed focus and targeted marketing at millennials by most commercial banks in SSA. A good number of local and multinational banks have rebranded to have a more youthful look and feel with many introducing mobile banking, customized products and services targeted at millennials. Unfortunately, the same has not happened with many Savings co-operatives which are still viewed as old, boring, traditional, strict entities run by an older generation that does not ‘get’ the youth.

The most popular sources of loans among millennials for their side hustles are commercial banks, relatives, micro-finance, mobile money and Savings Cooperatives (Saccos) in that order.

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From the survey, this trend of side hustles is fairly new among young millennials with a majority still in school and a few probably in their first job. Over 73% indicated that they have run the side hustle for less than 2 years. The earnings for many who engage in side hustles is below 200USD per month with over 30% of the extra income going towards  savings while 25% goes towards school fees and a further 20% going towards utility bills.

This GeoPoll Rapid survey was conducted in February 2017 among 1,762 young Africans in Kenya, Uganda, South Africa, Ghana, Nigeria and Tanzania using the GeoPoll App.

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The spending habits of Youth consumers in Sub Sahara Africa https://www.geopoll.com/blog/the-spending-habits-of-youth-consumers-in-sub-sahara-africa/ Wed, 08 Feb 2017 23:26:01 +0000 https://wp.geopoll.com/2017/12/16/the-spending-habits-of-youth-consumers-in-sub-sahara-africa/ Youth consumers in Sub-Sahara Africa (SSA) are very image conscious and are spending over 50% of their earnings on personal care items, […]

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Youth consumers in Sub-Sahara Africa (SSA) are very image conscious and are spending over 50% of their earnings on personal care items, this is according to a recent GeoPoll rapid survey carried out among youth between the ages of 18 to 35 in Kenya, South Africa, Nigeria, Ghana and Uganda. In an article appearing on Africa.com on top ten trends in Africa in 2016 and beyond, beauty is listed as the number one trend with the hair industry estimated to be worth US$6 Billion.

This is the second survey in a series on African Millennials in which GeoPoll seeks to understand just what makes the African Millennials tick, their aspirations, hopes, affinity, habits as well as get their thoughts on leadership, governance and their future in a digital age in the best way that they know how , using their mobile phones.

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Close to 70 percent of Africa’s population now comprises of Millennials according to a 2011 Africa Development Bank report. Africans aged 16-34 account for 65 percent of the continent’s consumer spending (McKinsey 2013 report). The African millennials are vibrant, on the move, tech savvy and image conscious. They are upping their levels of education and are extremely optimistic about their future.

Although the youth unemployment hovers around 12 percent in SSA, young Africans with jobs are taking charge of their future by saving towards education with over 34% of their monthly spend being set aside for this. Among the countries that were part of this survey, Ghana has the highest rate of youth saving towards education at 46%.

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Many young Africans in SSA who took part in the survey have jobs (51%), however, a good number still depend on their parents for their upkeep at 32%.

On the commercial side, mobile and e-commerce exists but they have not become part of everyday life for youth consumers in SSA. In East African countries where mobile payments are popular, youth consumers consider mobile payments as cash and  still  prefer it to other modes of payment (71 percent) for daily purchases. It is only in South Africa where credit cards are popular but only second to cash payments.

In a GeoPoll survey conducted in 2016 just after Black Friday online sale on ecommerce in SSA, mobile payments and cash on delivery were still the most popular among youth consumers. Read the full report from the survey here.

Although personal care takes up 56 percent of expenditure among the millennials, the youth in Kenya, Nigeria and Ghana set aside a significant amount of their earnings for an investment in education. Advancing in education is one of the most important pursuits for millennials with many saying that they save up to 10% of their monthly earnings towards it. This is in comparison to buying a car, a house or travelling.

Interestingly, gambling is becoming popular among male African Millennials in SSA due to their high affinity to sports and the proliferation of local sports betting players. This is still a very nascent industry. 3 percent of Youth consumers in SSA indicated that they spend part of their income on gambling.

There are knowledge gaps among African millennials on areas such as effective saving plans, wise investments and financial management. When asked, many would like to better understand asset financing, entrepreneurship and investment opportunities available in their respective countries. This is proof that young Africans are striving for financial independence, prosperity and believe in their own ability to charter their own course with a strong belief in the adage “Education is the Key”.
This GeoPoll survey was conducted in January 2017 among 2,726 young Africans in Kenya, Uganda, South Africa, Ghana and Nigeria using the GeoPoll App.

 

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