[Jihye Choi's Trend 2023] Millennial Kids: The Alpha Generation Is Coming

Distinct Tastes of Children with Millennial Parents
Consumers Born After 2010
Reflecting Children’s Own Preferences and Judgments
Emphasis on Cultural Life and Experiential Activities
Tech Kids Who Converse with AI Speakers
Digital-Only Generation with No Analog Experience
Creators and Kidfluencers
A Generation Where Play Leads to Earning
Korean Alpha Generation Market Estimated at 10 Trillion KRW
Preparing to Embrace the Wave of Change

Recently, I heard an interesting story during a meal with an acquaintance. After switching the set-top box from KT to SKT, the AI speaker also changed from ‘Genie’ to ‘Nugu,’ and their six-year-old son was deeply distressed about saying goodbye to Genie. When his mother told him he had to let Genie go, the child spent the whole day shedding tears and held a proper farewell ceremony for Genie.

The full-fledged emergence of a new generation, the Alpha Generation, is coming. The Alpha Generation refers to consumers born after 2010. As of 2023, those born in 2010 have just become middle school students, so you can roughly think of them as elementary school students. Philip Kotler pointed out in ‘Marketing 5.0’ that marketers worldwide face the challenge of simultaneously dealing with Baby Boomers, X, Y, and Z generations, and now the Alpha Generation is also gaining attention as a major consumer group in the market.

The first characteristic of the Alpha Generation is that they are Millennial kids. Millennials have different parenting styles and values compared to previous generations. Millennial parents, who emphasize individualism, work-life balance, and distinct preferences, want ‘choices’ rather than standardized parenting methods. When selecting content or services for their children, they place great importance on whether the child likes it. Although parents make the payments, the actual consumption reflects the child’s preferences. Growing up in this environment, the Alpha Generation tends to have clear opinions. As consumers, they often decide for themselves which products to use.

Another important trait of Millennial parents raising the Alpha Generation is their emphasis on cultural life and experiences. According to the ‘Exploring the Alpha Generation’ report published by the Seoul Institute, 51.7% of respondents use private indoor play facilities once or twice a month, with an average usage fee of 23,001 KRW per visit. The average travel time by car to these play facilities is 23 minutes, indicating that Alpha Generation parents invest considerable time and money in their children’s play and cultural activities. Recently, large-scale kids’ theme parks or playgrounds with children’s pools, beyond indoor kids’ cafes, have been gaining popularity among Alpha Generation parents. Popular places often have fierce reservation competition, sometimes requiring waiting for several months.

Next, the Alpha Generation stands out as tech kids who converse with AI speakers and even exchange emotions. While the MZ Generation grew up with PCs and smartphones, the Alpha Generation has been exposed to smart devices since birth and has never experienced analog methods. They are not Digital-First but Digital-Only. Particularly, technology adoption is active in parenting and education markets. For example, the math problem-solving app ‘Qanda’ has secured 13 million monthly active users globally by utilizing AI for problem-solving.

Importantly, the expansion of tech kids does not stop at education or parenting. Having received non-face-to-face education from a young age and grown up with platform-based parenting, the Alpha Generation’s attitude toward technology is likely to be distinctly different from older generations. They will become accustomed to AI by experiencing and accepting robot toys that respond to commands and express emotions, assembly blocks that can be coded to move, and various augmented reality games from an early age.

Finally, it is important to note that the Alpha Generation is a generation where play leads to earning. Especially by naturally engaging with YouTube, TikTok, and the like, they become creators or subjects who earn money directly. On social media, many kidfluencers (a compound of Kid and Influencer) with substantial subscribers are actively operating. Shopify, which supports the establishment and operation of online shopping malls, offers an interesting service. It publishes a ‘Business Starter Kit’ for children aged 9 to 12 who want to run their own online stores. This approach treats the Alpha Generation not simply as children but seriously considers their ideas and provides know-how to connect them to actual businesses.

‘Business Starter Kit’ [Photo by Shopify website]

The Alpha Generation is reshaping the market landscape. Forbes in the U.S. estimates the size of the parenting, service, and app economy targeting the Alpha Generation at about 55 trillion KRW, naming it ‘The new MoM Economy.’ In Korea, the parent generation population of the Alpha Generation is estimated at about 3 million, with a market size of approximately 10 trillion KRW. Historically, the Alpha Generation is growing up receiving high-quality education amid unprecedented technological prowess and cultural abundance. The market changes they will bring about will be even greater than now. To find new opportunities amid this wave of change, preparations must be made in advance to welcome the Alpha Generation.

Jihye Choi, Research Fellow, Consumer Trend Analysis Center, Seoul National University