The 'Digital Native' Generation Familiar with Digital Devices from Birth
Accustomed to YouTube and Smartphones... Concerns Over Declining Social Skills and Literacy
[Asia Economy Reporter Han Seung-gon] "Even the MZ generation doesn't really know... and now the Alpha generation has appeared?"
Recently, following the MZ generation (born from the early 1980s to the early 2000s), attention is turning to the 'Alpha generation.' The Alpha generation refers to children born after 2010. When generations are categorized by the alphabet, they follow Generation X (born in the 1970s to 1980s), Generation Y (Millennials), and Generation Z. Since there is no letter after Z, the sequence restarts at A, which is why this group is often called the 'Alpha generation.'
According to Australian sociologist Mark McCrindle's definition, the Alpha generation, currently infants and toddlers aged 0 to 8, are familiar with technological advances including artificial intelligence (AI) and robots. The biggest characteristic of this generation is that they are the first to have grown up with digital devices such as smartphones from birth, and they have better digital literacy than their parents' generation.
They are so-called 'digital natives.' Especially with declining birth rates, this generation is also described by new terms like '8-pocket' and 'gold kids,' meaning that family consumption is concentrated on a single child.
According to data from the Seoul Institute and others, the kids industry targeting the Alpha generation grew more than twice in the past decade, from 19 trillion won in 2007 to 40 trillion won in 2017. Additionally, according to Hana Financial Management Research Institute, the global Alpha generation population is expected to reach 2.2 billion by 2025. This number surpasses that of their grandparents, the Baby Boomer generation.
"Capturing the Alpha Generation" Finance, Telecommunications, and Distribution Focus Marketing
As a result, the market is responding quickly. It is being designated as the 'future growth engine' and related marketing is underway. The financial sector is focusing on the Alpha generation as future customers. KB Kookmin Card launched the 'KB Kookmin Live Next Card,' a prepaid card exclusively for teenagers, in August this year. This card is designed for teenagers aged 14 to 18 and features online and offline affiliated services preferred by youth. NH Nonghyup Bank also launched new products, NH1418 preferential savings account and swing savings, for teenage customers last October.
Hana Bank partnered with LG Uplus last month to help children customers establish proper digital financial habits. By linking LG Uplus's telecommunications services, they will provide exclusive financial services to LG Uplus's child customers and jointly plan and develop media financial education content that combines finance and telecommunications services. Hana Financial Management Research Institute stated, "Although competition to capture the Alpha generation is underway domestically, financial education still dominates, so expanding financial services and marketing that reflect the characteristics of the Alpha generation is necessary."
The telecommunications industry is in a similar situation. The strategy is to capture not only the Alpha generation, the future consumers, but also their parent generation at once. SK Telecom, SK Broadband, and LG Uplus participated last month in the 50th Seoul International Early Childhood Education & Kids Fair, a domestic infant and toddler education exhibition. LG Uplus introduced 'Idulnara,' an OTT (over-the-top) service revamped exclusively for kids, and KT revamped its IPTV 'Olleh TV' to 'Genie TV,' enhancing the convenience and accessibility of 'Kids Land.'
The distribution industry plans to capture the Alpha generation by forming understanding and brand affinity for convenience stores through digital marketing. According to the industry, Emart24 opened its own mobile application 'E-verse (Emart24+Universe)' on the 1st, based on the 'Play-to-Earn (P2E)' concept, which provides benefits through gaming. GS25 launched a convenience store simulation game 'Gather GS25' on the metaverse platform Roblox on the 24th of last month, and Seven Eleven opened 'Seven Eleven Kaia Island Store' in the mobile casual social networking service (SNS) game 'Play Together' in February.
'Digital Natives' Are Great, But... Children's Empathy Should Also Be Considered
Although the Alpha generation is rapidly emerging following the MZ generation, some express concerns that while familiarity with digital devices and machines is increasing, children's social skills might be declining. The content industry suggests that since one-sided communication with machines may negatively affect emotional and social development, in-depth discussions on education for the Alpha generation are necessary.
Additionally, literacy, the ability to read and understand text, is similarly important. The Alpha generation, accustomed to using digital devices, watches various videos daily, but for this reason, reading and properly understanding text is more difficult for them than for any previous generation. A social welfare worker involved in children's character-related social welfare projects emphasized, "To prevent the so-called YouTube generation Alpha from becoming a social problem, parents' attention is absolutely necessary to prevent indiscriminate use of digital devices."
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