Study: Millennials the biggest spenders during CNY

With Chinese New Year right around the corner and many households ramping up their preparations for one of Southeast Asia’s largest festive occasions, brands should be targeting the biggest spenders of the season, millennials.

In fact, the average Grab order value of Millennials in Singapore is 6% higher than that of Gen Z users and 11% higher than that of users aged 35 and above.

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These were the results of the advertising arm of Southeast Asia’s superapp Grab GrabAds’s Lunar New Year report that aims to provide insights for brands to effectively connect with the festive crowd during season.

The report also revealed that brands should be targeting consumers no later than two weeks before Chinese New Year as many households begin stocking up as early as two weeks before a festive period. More specifically, 69% of Singaporeans and 63% of Malaysians stock up on food and beverage items two weeks ahead of time.

Brands should be mindful of the key demographics in each market that they need to cater to when it comes to satisfying Lunar New Year shopping needs as in Vietnam, Gen Z are the main spenders who spend 14% more than Millennials and 11% more than users ages 35 and above.

Targeting Chief Family Officers

It is no surprise that consumers usually dig deeper into their pockets during festive seasons, marketers can leverage on how family needs motivate spending during the Lunar New Year.

This means that within the millennial demographic marketers need to reach the people who shop on behalf of their families, known as chief family officers, this festive season.

In fact, 94% of respondents in Malaysia are willing to spend more on the best products for their families and homes. This translates to double the monthly spend and 1.8 times the delivery frequency compared to that of the average Grab user.

Similarly in Singapore, 89% of respondents are willing to spend more to get the best for their families. Singaporeans are also likely to spend 1.4 times the monthly spend of the average Grab user and 1.3 times the delivery frequency.

However, as to-do lists for the season hit the floor, about 80% of respondents will also consider using on-demand services such as Grab and Deliveroo to order food during the festive season as they look for convenience.

When it comes to buying groceries, 64% of Malaysians and 69% of Singaporeans will do so through on-demand services. The report also revealed that when given a choice, 70% of users prefer to shop both online and offline which emphasises the importance of a brand’s omnichannel strategy in effectively reaching their target audience.

What are people buying?

Interestingly, Grab data showed that users prefer healthier cuisines in the two weeks leading up to the Lunar New Year. To capitalise on this trend, brands offering healthier cuisines should prepare and market festive sets or bundles.

On the other hand, consumers also lean towards the indulgent with top food and beverage keywords including cake, beer, durian and Yusheng before the new year. In fact, the average value of alcohol increased by 5% in the two weeks before the Lunar New Year as compared to the preceding period.

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