Gen Alpha is already shaping household spending. Are brands paying attention?

A child asks for a particular snack at the supermarket. Another persuades their parents to buy ingredients for a dish they watched on YouTube. Somewhere else, a group of schoolchildren turns a distinctly Ramadan tradition into an internet sensation, spreading a character far beyond the neighbourhood where its story began.

These moments might seem unrelated, but they point to a growing challenge for marketers: Generation Alpha is already influencing what families buy, watch and talk about, even if its youngest members have little independent purchasing power.

Preliminary research from Merlot, a Redcomm agency, suggests that some Indonesian teenagers are beginning to develop their own sources of income. Its survey of 305 students aged 13 to 18 found that 33% already sell goods or services, while 18% have a side job. Nevertheless, around 95% still rely on their parents' allowance, highlighting the continued importance of household purchasing decisions.

For brands, this means the opportunity is no longer simply about getting in front of the next generation of consumers. It is about understanding how they form preferences, what earns their attention and, perhaps most importantly, what makes them reject a brand's attempt to join their world.

In Indonesia and the Philippines, creative leaders are seeing Gen Alpha emerge as an increasingly distinct audience, although the approaches to reaching them remain a work in progress.

Their observations point to a generation that is digitally immersed but not exclusively defined by digital platforms, receptive to unconventional humour but quick to recognise forced relevance, and influential in household decisions despite parents retaining control of the spending.

Michael Fabian, executive creative director at BBDO Indonesia, describes Gen Alpha as a market that already operates with two currencies: pocket money and influence, pointing to local nuances such as salam tempel (cash gift) during Lebaran.

A brand gets the chance to become part of someone's childhood, and I believe loyalty planted that early pays back for decades.

Angel Roberty, founder and CEO of AdONCE, however, believes most Indonesian brands have yet to approach Gen Alpha as a distinct audience.

"They're reaching them through family briefs, or youth briefs written for someone ten years older," she said.

Snacks, dairy, toys, children's personal care and gaming are among the categories moving first because children already participate in choosing these products. Education is another key battleground, as parents continue to invest heavily in their children's future.

Don't miss: 3 fundamental questions every brand should ask before marketing to Gen Alpha

Roberty describes the generation's current commercial value as "influence now, spending later", arguing that brands cannot afford to overlook the preferences being formed today.

The influence extends beyond Indonesia. In the Philippines, Reginne Cabanban, managing partner at The Tribe, formerly Tribal Worldwide Philippines, has observed how children's interests can shape household consumption without a direct request for a particular brand.

Drawing from her experience raising two boys aged 10 and 12, she pointed to their interest in cooking and food videos, which has translated into a growing list of dishes they want her to prepare at home.

"So even when they're not asking for a particular brand, they're influencing what goes into our grocery basket," she said.

For marketers, this highlights a broader definition of purchase influence. Children do not necessarily need to recognise a brand but they can introduce new interests, products and habits that eventually influence the family's consumption patterns. 

The parent remains the decision-maker

Roberty argues that mothers, in particular, remain central to household purchasing decisions. She believes campaigns should avoid treating children and parents as entirely separate audiences, instead creating one proposition that offers entertainment for the child and reassurance for the parent.

"A child can open the door. The mother decides whether you come in," she said.

Fabian similarly advocates creative ideas that work across generations.

He cited his experience working on the Ultraman collaboration for Ultra Milk, where children recognised the superhero while their fathers connected with a character from their own childhoods.

The campaign gave children a reason to ask for the product while creating a nostalgic connection for parents, making the proposition relevant to both generations.

Cabanban also believes the strongest product propositions should appeal to children and parents for different reasons, rather than relying on entirely separate campaigns. The reassurance might come from demonstrating a product's value and practical benefits.

"Children might create the interest, but parents still have to decide whether something is practical, affordable, appropriate, or worth spending on," she said.

Early familiarity does not guarantee loyalty

While building familiarity early can give brands an advantage, the experts caution against confusing temporary enthusiasm with lasting preference.

Merlot's preliminary findings offer another perspective on what young consumers value. Only 9% of respondents said social media presence made them feel cool, compared with 72% who pointed to personal achievements. This suggests that brands may need to look beyond online popularity to build more meaningful connections with young audiences.

Cabanban has seen her sons repeatedly request the same snack during grocery trips, only to lose interest in it almost overnight.

"No explanation. It just sits in the pantry untouched," she said.

The experience illustrates why a spike in engagement or an initial purchase should not automatically be interpreted as brand loyalty.

"Likes tell me a kid noticed, but a second purchase tells me the request survived mama's judgment," Fabian said.

Roberty proposes a similar test, asking what happens when a brand stops producing content or participating in trends.

If they forget you the week the trend ends, you borrowed attention. If they still ask for you, you built something.

She believes brands should focus on earning a place in everyday family experiences, whether through a familiar snack at birthday parties or a character that becomes part of a child's school bag.

Fabian points to Wipol's Gerakan Masjid Bersih, which brings the Indonesian tradition of gotong royong, or communal cooperation, into Ramadan activities. The initiative has also extended into Roblox through a virtual mosque where children take turns playing the role of a marbot, or mosque caretaker.

For him, the initiative demonstrates how a brand can introduce new experiences while remaining connected to its established values.

"I love it because it's a new door into the same value, and I think that's how a brand stays relevant without losing itself," he said.

Ultimately, Gen Alpha presents marketers with an audience that is already commercially influential, even if it does not yet control the household budget. Winning a child's attention might generate the first request. Earning the family's trust is what gives a brand a chance of becoming part of its routine.

This is a two-part analysis. Click here to explore how brands can rethink their Gen Alpha creative playbook.

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