GENZ, GENY AND THE SHIFT OF TRUST

By Vero
Table of contents
Introduction What does it mean for brands? 11

Influencers in Vietnam: like ads, but bettter 3 Accept that the game has changed
The reach of TV ads Stay relevant - your business depends on it
...But more effective Above all, be proactive
An UnComfortable Case Study 5 Influence in the North and South 13

It’s a Matter of Trust 6 Interest Levels Vary

You’re not ready for Gen Z 7 So do levels of trust
Gen Z <3 Influencers Conversion Rates Differ Too
But do they trust them? XX vs XY 16

And do they follow their guidance? Women seem to like influencers more than men
A Broader Look at the Generation Gap 10 ...But it’s not the full picture
About Vero 18
Introduction
The dividing line between Generations Y
and Z is not set in stone and can vary from
study to study. One constant is that Gen Z
are seen as the "digital generation," so we
used 1995 as our starting year to reflect
those who began high school as high-speed
internet and mobile phones became
common in Vietnam.
If a representative sample of Vietnamese were to sit
together and start reading these lines, there’s a good
chance that each would have grown up in very
different worlds, despite being part of the same
country and ethnicity and speaking the same
language. As a result, they would interpret everything
they read, watch, and hear quite differently.
People from Generation Y, globally known as
Millennials, were born between 1980 and 1994. They
are followed by Gen Z (1995 onwards), and together
these two groups make up the majority of Vietnam’s
young population and an even larger majority of
consumers and trendsetters. They are the primary
target audiences of most modern marketing
campaigns Both generations are known for being
tech-savvy and globally-minded compared to their
forebears, but the way that they use their knowledge
and perspective can be dramatically different, as are
the ways brands attempt to reach them.
Born after 1980 and before 1995? You’re a Millennial,
and until recently you were among the main societal
trendsetters. Now you’re more likely playing catch-up,
and may be confounded by the younger generation’s
fascination with bubble tea, K-Pop, and documenting
their lives on a never-ending parade of social apps.
About Vero
Born in 1995 or later? Congrats, you’re part of Gen Z,
and it looks like you're the center of attention now. In
the years to come, you and your peers will define the
course of internet culture (which is rapidly becoming
mainstream culture), and you’ll find brands increas-
ingly using that culture to reach you.
Gen Y grew up with an internet where brands and
publishers fought for the eyes and clicks of communi-
ties and followers, while Gen Z grew up with an
internet where direct branded communication has
given way to lifestyle branding via cultural intermedi-
aries. These are the modern influencers: self-made
publishers who leverage the audience-generating
capabilities of social media channels to generate
revenue by trading their influence for product
endorsements (and often selling products
themselves). Independently branded and content-flexi-
ble, yet beholden to the social channels they rely on,
influencers require novel strategies which have
become a key element of modern global marketing.
The concept of influencers isn’t really new - only its
current form is. They have existed for at least as long
as mass communication has, whether as thought
leaders or celebrity spokespersons. But the democra-
tization of markets enabled by the internet has
allowed them to compete on levels never possible
before.
6
2
 INFLUENCERS IN VIETNAM
like ads but better
The reach of TV ads TV tends to build brand personalities, while Equal numbers of respondents mentioned
1 the online world tends to create publishers influencers and TV ads (43 percent each)
Influencers work differently across who shine through their content before as their main sources of brand and product
communication channels. On TV, they tend their own personality (even if their person- information. This does not mean that both
to belong to larger editorial lines: they ality often helps feed their content). channels have the same impact, but rather
participate in talk or reality shows and are that they reach the same amount of people
guided through a structured format of 3 when promoting products. That said,
messaging. In Vietnam, a slight majority of urban Gen Y influencers and TV ads still carry less
& Z (57 percent) tend to first encounter awareness potential than “close friends”
2 influencers on TV, where the influencers (79 percent), “close family members” (64
Online influencers are more independent, share time with TV ads and, as it turns out, percent), and “Facebook and Instagram
as they’re in charge of both the medium create similar levels of awareness. ads” (53 percent).
and the message. They have the freedom
to choose what to talk about and how to
say it. This difference in fundamental in
understanding what audiences are
Awareness carried by communication channels
looking for.

3
 INFLUENCERS IN VIETNAM - like ads but better

Influencers are followed across platforms:

95 percent of Vietnamese followers
consume influencer content on Facebook,
72 percent also use Youtube, and 15
percent expand to Instagram to engage
with their favorite influencers. Followers
proactively seek to consume influencer
content on a regular basis: 76 percent seek
it out at least several times a week, includ-
ing 33 percent who do so daily.

This proactive approach to influencer

content also shows how they feel about
BUT MORE EFFECTIVE

influencers promoting products: almost

half say that they like it, and 66 percent
say they are more likely to trust a product
or a brand after seeing an influencer post
about it.

4
 INFLUENCERS IN VIETNAM - like ads but better

The second, Lien Anh Nguyen, is a fashion and beauty
writer with about 40k followers on Facebook. She is
seen as a mature, independent woman, a positive role
model, and source of advice for the young women who
compose most of her fanbase. She engages her
followers with well-written and appealing fashion
advice, naturally featuring her own image.
Nguyen’s post didn't get huge engagement numbers,
which makes sense considering her smaller following,
but most comments were related to the product.
People asked whether it’s suitable for all types of
skin, how they can attend the launch party, and
Nguyen’s choice of softener fragrance. Her fans,
accustomed to seeing her promote products,
responded as they normally would. This is, after all,
why they come to her.
With this fan behavior in mind, it’s not unreasonable
to think that smaller, targeted influencers like Lien
Anh Nguyen can be a more effective use of a
company’s marketing budget.

An UnComfortable Case Study

Comfort, an international fabric softener brand, used
influencers of two different kinds to introduce their
latest product and invite fans to its launch event. In
both cases they used Facebook, which is the
dominant platform for influencers in Vietnam.
One was actress Ninh Duong Lan Ngoc, a TV-made
influencer. She has more than 700K followers on
Facebook and counts fans male and female, young
and old, who admire her beauty and acting skills. To
promote the product, she conducted a livestream and
a minigame on her Facebook page.

5
 IT’S A MATTER OF TRUST

It’s a Matter of Trust

The takeaway from these examples is
that followers do not equate influencers
with traditional advertising channels. Our
data shows that only 30% of Hanoi and
HCM Gen Y & Z consider influencer
endorsements to be similar to advertising.
Influencers are seen as sources of
information, relatable individuals with
which is likely why people actively seek Quality (the content looks professional and entertaining)
out influencer content rather than Education (the content teaches them something)
passively take them in, as we are used to
with ads. When asked what type of Values (the content promotes Vietnamese culture)
content they expect from influencers,
respondents told us that they prioritized
quality, education, and values.
6 7

genuine and relevant stories to share, This different attitude affects the way
people relate to influencers and ultimately
impacts the influencers’ trust capital. We
asked interviewees to rank their trust in
different communication channels from 1
to 10, then weighted their answers to
determine “trust ratings”. As it turns out,
IT’S A MATTER OF TRUST
The large majority of respondents (70
percent) trust that influencers believe in
the products they endorse even if they
likely get paid (78 percent believe they do)
or gifted (64 percent) in exchange for their
endorsements. This is likely because
fanbases are able to hold influencers

influencers rated higher than any other responsible more directly than they can
advertising channel on our list. In other with corporations. An influencer’s trustwor-
words, an influencer endorsing a product thiness is the foundation of their livelihood,
will tend to have more impact than a TV and a breach in it could be ruinous.
commercial, a print or online ad, or a
prominent billboard.
8

All in all, influencers occupy a unique space in Vietnam’s media ecosystem: they share a
number of characteristics with traditional ads, but they are also considered distinct from
advertising, which grants them a lot of power among market segments that will only
become more vital in the years to come.

6
YOU ARE NOT READY
FOR GEN
9

Generation Z is the first cohort to come of age with social media,

which has been globally shown to have shaped how they use the
internet and their approach to communication channels. In
Vietnam, we looked at how Gen Y and Gen Z related to influencer
content, as well as how it compared to their approach to other
channels.

7

Gen Z love Influencers
Across metrics gathered from our research, it seems
that Vietnam’s urban Gen Z is a lot more open to
influencer content than its Gen Y. Here are some of
those ways:
GEN Z LOVE INFLUENCERS
10
They follow more topics than Gen Y and
display higher interest rates for most types
of influencer content.
11
They tend to follow more influencers than
Gen Y. Close to 20 percent of them follow
more than 4 influencers on a regular basis,
which is three times more than those in
Gen Y.
12
They consume a lot more influencer
content as well. 42 percent of Gen Z say
they check in on influencers daily, and 88
percent do so at least several times per
week - against 14 percent and 19 percent
respectively for Gen Y.
13
They expect frequent updates. 86 percent
of Gen Z told us influencers should post
several times per week, against 64
percent Gen Y.
YOU ARE NOT READY FOR GEN Z
14
They also follow more online-made influ-
encers than Gen Y (+8 points). While a
majority still become aware of influencers
via TV, Gen Z are less dependent on it.
15
They use more platforms to consume
influencer content. On top of Facebook,
Gen Z will also turn to Youtube (+3 points)
and Instagram (+11.6 points) to follow
influencers.
16
They like to be part of the conversation,
ranking higher in all types of engagement
(comment, like, read comments, share,
click, search for info).
17
They tend to prioritise content over fame.
When asked why they follow a specific
influencer, both generations will cite quality
of content as the main reason. However,
this seems to be more important to Gen Z,
as the older generation places greater
importance on the number of followers.
8
 YOU ARE NOT READY FOR GEN Z

18 19

But do they trust them? Across age groups, close friends and Trust is an equally important distinction.
family members tend to carry the stron- Gen Y tend to trust owned brand content
gest awareness potential. However, the more (facebook/IG page, in-store recom-
second biggest awareness channel divides mendations, product websites), while Gen Z
generations: Gen Y turns to TV ads and prefer the advice of influencers (both
Gen Z to influencers. In other words, a on/offline) and professional experts. Close
brand looking to effectively engage both family members and colleagues remain the
generations should look to different most trusted recommendation channels for
channels. both generations, but Gen Z trust influenc-
ers nearly as much.

Level of trust by communication channel 20

8
This finding translates to higher levels of
Gen Y trust in influencer-endorsed products and
BUT DO THEY TRUST THEM?

Gen Z
7
brands among Vietnam’s Gen Z. 56 percent
of the younger generation say that they are
6
a lot more likely to trust a brand or a
product if it is endorsed by an influencer,
5
compared to 38 percent of millennials.

4
y r er t rt rt
ds rs ue
s
rit an ge ve
r
si
te
ve ity ve er
ts
er
ts
an
d
te
s
or
e
si
te 21
en be eb
ci og ur al br si st
fri em ag iti ct ad eb ad son ad dv dv eb
lle ce
l
Po
l Bl rl
e w r a a r w e w 57 percent of Gen Z respondents also say
os
e m co e TV in e
pe
r di
o
IG na
l t o evie in th ny
ily TV lin o ap Ra or uc
Cl ol s e
lin wsp orts io r
on pa
fa
m ho On b os n o k sst r od line
r s m they like when influencers endorse a
se
c ur
o ne Sp bo of
e
of
p
On s pe Co
rs Yo rt
s
or ce
Cl
o
k
o
ve ne rit
y
Fa Pr ge le brand, which is 16 points higher than Gen
or A d i le
b p a S a
W az
ag Ce /I
G
M FB
Y.

9
 YOU ARE NOT READY FOR GEN Z

22

And do they follow their guidance? Many members of Vietnam’s Gen Z are
students or in entry-level positions, making
their purchasing power much lower than
Gen Y’s. Our research told us that 90% of
Vietnam’s urban Gen Z earned less than
VND 7 million per month, compared to 35%
of Gen Y in this low bracket. Despite this
Gen Y
Gen Z income disparity, Gen Z is the biggest
80 purchaser of influencer products: 38%
of Gen Z respondents told us they had
purchased an influencer endorsed product
AND DO THEY FOLLOW THEIR GUIDANCE?
A Broader Look
at the
Generation Gap
Mr. Nguyen Dinh Thanh
Co-Founder of Elite PR School
“Behavioral differences between generations
are the result of deeper, underlying shifts in the
structure of society. Vietnam opened itself to

60 the world in the 1980s and saw its social fabric

at least once, against 35% of Gen Y.
40
23
Overall, Gen Z seems to have high expecta-
20 tions when it comes to influencers’
endorsement tactics (that is, their sales
change drastically in the decades that followed.
Back then, blue-collar workers, the armed
forces, and farmers were the bloodline of
society. But after 1990, business professionals
and government officials rose to become
examples of modern progress. People from Gen

0 pitch). Our research shows that Gen Z X began holding key roles in society, and Gen Y
respondents pay more attention to these
A photo I like to I want to I need to I prefer I like to I need to Any I like I would If i’m I
of the see the see be sure to see a read see product when like interest- normally was born.
product blogger him/her that video of his/her blogger featured bloggers bloggers ed, I find buy the
only to and the using the he’she him/her detailed with it on should offer to give it easy to product tactics than Gen Y does. They expect an
make me product product really and the review of more be very prized me more find and online if
Gen Y grew up with the arrival of the internet in
aware is together
fine in a
uses the
product
product the
product
than one relevant
occasion to the
and
promo-
informa-
tion
buy the
products
i’ve seen
a
influencer to convince them they are
Vietnam and started consuming media digitally.
actually using a given product, and they
photo blogger’s tions for about that a blogger
life and a products blogger showing
passion product that they shows some- Gen Z, in turn, born as the internet had become
show me thing want to see them do so. They expect
that i
the norm, don’t differentiate between
Expected endorsement tactics by generation
want to
buy
comprehensive information on the product,
mainstream media and KOLs - among them
and they believe that the product should be
there is no concept of official, traditional
relevant to the influencer’s presentation of
media.”
the lifestyle.

10
 YOU ARE NOT READY FOR GEN Z

What does it mean for brands?

27

As the old saying goes, “To know where you want to This obstacle created a void that has been filled by influencers, who have taken over from
go, you must first know where you come from.” brand channels in the race for organic engagement. Today, brands hire influencers because of
their access to highly-targeted communities, among whom they are able to boast engage-
ment levels beyond what the brands could do alone.

24

Modern advertising was born in the 1960s, as the expansion of mass media enabled
brands to reach beyond the physical confines of stores. In what we now think of as the

WHAT DOES IT MEAN FOR BRANDS?

“Mad Men era,” advertising and PR companies began placing branded messages in media
and reaching out to customers at all times of the day through billboards, print, radio, and
TV ads. These developments came to Vietnam in part due to foreign presence here.

25 26

With the development of social media and
digital communities, brands saw an
opportunity to change the rules. Instead
of buying media space, they could
become media creators themselves. They
developed communities and hoped to
convert followers into customers through
engaging content.
But for the sake of large social platforms’
business models, brands don’t make the
best publishers. In 2018, Facebook started
limiting brands’ organic social reach in
favor of publishers and users, and today the
platform tells brands that they should
exclusively work within their array of
advertising tools rather than through
publishing tools.

11

28
Now that influencers have become the media, brands must
adapt to the times. Here are some of the new rules for brands:
the game has
Accept that
changed
Influencers are different from ads, but they are
not exactly publishers either. They’re something
in between. It has therefore become less
important to generate owned and earned
publicity, but rather to treat influencers as
publishers who make decisions about endorse-
ments based on their personal branding rather
than just the money offered to them. Even when
they are sponsored, the appeal of influencers
lies in how they create the content around the
endorsement. To harness this appeal, brands
should find ways to make their messages
adaptable to each influencer’s style.
29
proactive
Above all, be
In an age when content and communities rule,
brands have the opportunity to originate stories
that will live outside them, as well as inspire
communities and influencers to spread positive
word about them rather than doing so directly.
Brands therefore ought to take action through
specific messages designed for specific commu-
nities, to take stands that get noticed, and above
all to get people talking. Spark a conversation
that is meaningful to your audience, and much of
the remaining work will be done for you.
30
YOU ARE NOT READY FOR GEN Z
Stay relevant your business depends on it
Messages should be more clearly targeted than
ever, designed to reach specific communities via
specific influencers. For followers, the quality and
relevance of content depends on the influencers
themselves. That’s especially true for Gen Z, who
turn to self-publishing online-made influencers
more than anyone else, and who don’t demand that
an influencer be a superstar with a large following
before they’ll enjoy his or her content.
31
12

INFLUENCE
IN THE
NORTH
& SOUTH
Our study polled residents of Vietnam's
two largest cities, Hanoi in the north and
Ho Chi Minh City in the south. We found
some notably different responses
between the two which may stem from
different cultural attitudes.
INFLUENCER IN THE NORTH AND SOUTH
Interest Levels Vary
32
Overall, people in Hanoi tend to take more
interest in influencers of various content
categories. The exceptions are travel and food,
where HCMC took the top spots. Hanoians are
more inclined to follow online-made celebri-
ties, and they use Youtube more than
Saigonese (+16 points) but Instagram less (-7
points).
33
Hanoians also consume influencer content
more often: 90 percent expect their influencers
to post several times per week, against 66
percent of Saigonese who say the same.
Across the board, they react a lot more to
influencer content - they are more inclined to
comment, click like, share the post, click the
link, search for more info, read the comments,
and purchase the endorsed product.
13
 INFLUENCER IN THE NORTH AND SOUTH

So do levels of trust
34 35

Although family and friends still rank as The only channels that seems to be more
the biggest channels of influence in both potent in HCMC are family and friends (+0.1
cities, Hanoians will in general give a lot pt) - all other channels are ranked higher in
more trust to other channels as well. Our Hanoi. The biggest deltas are seen in TV
study revealed that in Hanoi, Facebook adverts, website adverts, sports celebrities,
and IG adverts, sales people in stores, and product and company websites (+0.8
and online influencers carry as much pts for Hanoi). All in all, they give more
influence as work or school colleagues do credit to influencers and brands. Profes-
in HCMC. sional experts, online review sites, and
company websites are tied for the 3rd
biggest sources of influence in Hanoi, far
above their ranking in Ho Chi Minh City.
300

255.8
Content followed by city Hanoi
224.5
214.2
231.7 HCMC
202.4
195.5 197.6
196.2 194.2
200 177.4 178.5
181.6 186.1
173.2
159.1 169
153.5 144.7 133.5 121
132.6 138.9 134.3 142.2
126 124 103.1
114.5 105.1 124
102.7 107.2
100
60.7

0
s on or el nt
s
ic
s es ke
s th IY es ng ity or
t
ity ity
s
tip hi s av on su bi al /D ni br br br
es
t y s er Tr ra
tr Is he ga
m
ar le Sp le le
in
au Fa in
g t au c l n d d f ts
o l e e s e e e us
s e ta a an
a
de
C e c c b
Be e
s
re El en to
cr
Vi ag
e e
am sia
n n d
es d Au es
s
an
d es er an
an nm n gu m tn A st al
am r o
Fi
t ie
s
La
n n a i e e i c
et
n od vi bb et
V W lit
Vi Fo En Vi Po
Ho

14
 INFLUENCER IN THE NORTH AND SOUTH

Conversion Rates Differ Too

36 37

Not one Hanoian reported disliking when influencers endorse products. On the contrary, That said, while influencers help sales in
over half said they actually liked it. This seems to translate to a higher likelihood of a Hanoi they don’t usually account for the
Hanoian making an influencer-based purchase. 53 percent say they did so at least once, entire consumer journey. 82 percent of
against 26 percent of Saigonese. Likewise 45 percent of the Saigonese interviewees had influencer-endorsed products purchasers
never purchased a product endorsed by an influencer, against only 26 percent in Hanoi. told us they had already learned of the
product from other channels before buying,
against 44 percent in HCMC. Saigonese are
more often aware of a product they bought
thanks to the influencer.

Hanoi
35
HCMC
38

It’s also interesting to note that an influ-

Close friends
members
encer’s number of followers is a lot more
Close family
ho ol co lleagues important to a Saigonese follower than to a
Work or sc
TV celebrity Hanoian: 62 percent of Saigonese say that
Politician
Online Blog
ger the number of followers testifies to the
bo ss or le cturer seriousness of the influencer, versus only
Your
TV advert
in websites
23 percent of Hanoians.
lin e
Adverts on
advert
newspaper
Magazine or
Celebrity
Radio advert
IG adverts
Facebook or
the product
l experts in
Professiona the product
ge of
FB/IG pa
w sites
Online revie
rs on in th e store 8
Sale pe 6
we bsite
Company 2
4
0

15
XXXY
XX vs XY

Women seem to like

influencers more
than men.

39

Across the board, women tend to rate

influencer content categories higher than
men. The only content categories preferred
by men are electronics, automobiles and
bikes, and video games. Women react to
posts more than men and tend to trust
communication channels more. The only
source of influence that seems to be more
effective on men is sports celebrities, who
rank relatively low among both genders.
Women are generally more positive about
seeing influencers promote products (50
percent say they like it, against 46 percent
of men).

16
 XX vs XY

40
But It’s not the 41

Different genders also have different Men seem more inclined to purchase
approaches to how they consume content. influencer-endorsed products. 40 percent
Although Facebook and Youtube remain of them told us they had already done so, 5

PIC
dominant platforms for both genders, points higher than women.
women are almost twice as likely to use
Instagram (20 percent versus 11 percent). 42

And when we looked at the type of content Women also seem to be demanding
women valued in influencers, “Promotion of customers who expect a lot more involve-
Vietnam Culture” came out as the most ment in the sales process. For them, a
important. Men, conversely, place enter- photo of the product is not enough; 60
tainment above all else. percent prefer to see a video of the influ-
encer using the product (+10 points
compared to men), 64 percent expect to
see the product on multiple occasions on
Channels used to follow influencers the influencer’s page (also +10 points
40
by gender compared to men), and 70 percent of
women expect the influencer to give more
40
info on the product (+14 points compared to
men).
30 43
Hanoi
HCMC For these reasons, influencers who cater to
20 primarily male or female followers are
likely to behave differently, and marketers
10
should adjust their expectations according-
ly. After all, the influencers know what their
audiences want better than any outsider.
0

Facebook Youtube Instagram Zalo TikTok Twitter

17
About

Vero is a Brand Strategy innovator and

ranks among the leading agency
networks in Southeast Asia. Independent,
employee-owned and managed, Vero
operates offices in Myanmar, Thailand,
Vietnam and Indonesia and manages
campaigns in every major market in South
East Asia. Vero employs close to 100
professionals in the ASEAN region,
including Strategic planners, PR experts,
social community managers, paid digital
advertising consultants, creative profes-
sionals and media relations specialists.

For more information, visit us at www.vero-asean.com