Generation Myths & Realities 2024

Overpopulation and birth control dominated the conversation about demography during most of the second half of the 20th century. Population decline is set to be the cornerstone of the debate that is shaping up in this century. Vietnam's demographic landscape is undergoing significant transformation, presenting both challenges and opportunities for brands and businesses. 

We need to prepare for population decline

In the next 10-15 years, Vietnam’s demographic dividend will slow down as the country enters a period of aging population, much like many of its Asian peers. The shrinking population growth rates and population decline, set to begin from the middle of the century onwards, will have profound implications for workforce planning, pension systems, and economic growth. Adjusting to aging populations, considering the potentially vast market of older adults who control a significant portion of wealth, will be crucial for marketers and businesses.

Vietnam's Demographic Window of Opportunity: A Fleeting Advantage

Vietnam currently enjoys a period known as the demographic window of opportunity, where the proportion of the working-age population is higher than that of dependents. However, this window is expected to start closing by 2039 as the fertility rate declines and the population aging accelerates. The total fertility rate in Vietnam has decreased significantly over the years, currently standing at 2.0, close to the replacement level. This trend, driven by socio-economic factors like urbanization and changing family dynamics, will eventually lead to a shrinking workforce and increased pressure on social services.

Simultaneously, the median age of the Vietnamese population is rising, with the percentage of those over 60 projected to increase substantially in the coming decades. This aging population presents a unique set of needs and preferences for businesses to address.

Generational Labels: Less Familiar, Still Relevant

While 49% of global respondents have heard of Generation Z, only 34% of Vietnamese are familiar with the term. This trend extends to other generations as well, with lower recognition for Millennials (24% in Vietnam vs. 48% globally), Generation X (33% vs. 46%), and Baby Boomers (29% vs. 39%). Generational labels like ‘Baby Boomers’ or ‘Gen Z’ may not resonate as strongly in Vietnam compared to Western countries, due to cultural and historical contexts that significantly alter the collective experiences of generations.

Decision-makers need to understand the values and behaviors, and tailor their strategies to reflect these nuances, avoiding one-size-fits-all approaches when thinking about different generations and age groups.

The Silver Linings of an Aging Population

Health and wellness are paramount, with 91% of Vietnamese respondents agreeing that they need to do more to look after themselves physically (Ipsos Global Trends 2023). Health enhancement could be an optimistic way of addressing older citizens, without the underlying implications of “something is broken; therefore, it needs to be fixed or prevented” that comes with curative or preventive messages.
In addressing older citizens, focus the communication on their life attitudes and context rather than generation names, which are not familiar to the majority of Vietnamese.

Marketing in the Age of Population Decline

For businesses, demographic trends offer both challenges and opportunities, such as catering to underserved markets like the aging population. There is a mismatch between mature adults’ considerable assets/buying power and the level of marketing attention they get, which often borders on neglect. Strategic planning must now account for these trends to ensure businesses are on a stable and sustainable footing for future growth.
The general idea is that brands aim to serve the underserved to continue growing. However, examples are still primarily limited to products associated with maintaining physical health and wellbeing, rather than addressing other aspects of aging like the need for smaller packaging (both because of weight and because of smaller household sizes), elderly people’s supposed reluctance to change their habits, etc.

To take steps to truly understand the needs and aspirations of seniors:

• Do your brands know enough about the needs, aspirations & barriers of the older citizens in relation to your category?
• How do your brands communicate to them differently?
• What do your brands need to offer them to drive relevance?