A global study released by Checkout.com, a leading global digital payments provider, highlights the consumer buying behaviour of Generation Alpha, which is powering today’s digital economy. The research, conducted across the UAE, UK, US and China, reveals and compares a number of trends, related to the growing spending power of this consumer category.
The study highlighted several key trends related to Generation Alpha, (children aged eight to 15) in the UAE, offering a snapshot of how technology and social platforms are influencing purchasing decisions locally.
The findings reveal that while 54% of Millennials shop on direct-to-consumer websites, Gen Z turns to social media, with51% of them preferring to shop via social media platforms, underlining the growing preference for social commerce.
Furthermore, the study also indicates that Generation Alpha in the UAE is leading the way in e-gaming services, compared to the UK, China and the US, spending47% of their allowance on games, while children in other countries spend28%.
The study also marks an upswing in consumer spending intentions for high-end and big-ticket items, the study revealed a 46%increase in luxury goods purchases, a 30%increase in whitegoods purchases and a 25%increase in planned flight purchases, signalling a rebound in travel and tourism spending.
Apart from being the beneficiaries of their parents’ spending, children in the UAE are also spending independently in the digital economy, as 75%of eight-year-olds and 92% of 15-year-olds make payments themselves, rather than via a grown up.
The study further reveals the growing trend among Generation Alpha in the UAE over the age of 13 to use ‘buy now, pay later’ (BNPL) as a payment method, with11% of them showing preference for this option.
Globally, the study finds that Generation Alpha is driving over a quarter, 27%, of their household’s monthly spend globally, rising to nearly a third of monthly spend for digital purchases, as29% of Millennial parents take responsibility for purchasing digital products each month for their children. This comes as digital products and services make up over a fifth, 21%, of the average global household spend.
Generation Alpha’s purchase influence is greatest in online educational resources, which nearly half, 47%, of parents purchasing this for their children, followed by entertainment streaming, purchased by 30% of parents globally.