Translated by AI

Generation Z: Navigating the Consumer and Financial Challenges Between 'Oshi-katsu' and 'High Costs'

Generation Z is a cohort that has grown up in the digital age. They are not only digital natives but also entering society during a period of global economic instability and rising living costs. This unique environment has shaped their distinct consumer behavior patterns and presented them with unprecedented financial challenges.

I. Value-Driven Consumption Patterns: Saving Where Necessary, Spending Where Needed

The consumption concepts of Generation Z exhibit a dual characteristic of being 'value-driven' and 'rationally savvy.' They do not simply chase low prices or major brands; rather, they prefer to spend money on things that offer spiritual satisfaction, enhance self-worth, or align with personal values.

1. Experience First and 'Oshi-katsu' (Fan Activities)

Ever find yourself eating instant noodles at month-end, yet you can still scramble for concert tickets for your favorite idol?

Generation Z places experience above material goods. Travel, events, live performances, and other 'koto consumption' (experience consumption) attract them more. Among these, 'oshi-katsu' (activities supporting idols, celebrities, virtual characters, etc.) is a notable consumption feature unique to Generation Z. Many Gen Z individuals, even with limited discretionary income each month, are willing to allocate a significant portion to 'oshi-katsu,' with some even willing to borrow for such activities. We may save on breakfast, but we'll ensure we have enough for concert tickets because joyful memories outlast bags and shoes.

2. Smart and Calculated Savvy Consumption

While we are ready to pay for 'love,' our daily lives remain pragmatic. Generation Z is particularly sensitive to 'cost-effectiveness' (CP value) and 'time-effectiveness' (TP value). They are skilled at comparing prices, using discount codes, and coupons, and might even choose second-hand or eco-friendly products—because they save money and align with their values.

Additionally, 'buy now, pay later' (BNPL) is popular because it offers flexibility. However, without proper planning, the pressure of next month's bill explosion is no joke.

3. The Impact of Social Media and Multiple Income/Expenditure Streams

The purchasing decisions of Generation Z are greatly influenced by social media, with many buying products or services after seeing related content online. Moreover, to increase their income streams, many Gen Z individuals are exploring multiple income modes, such as side jobs, freelancing, social media management, or using auction apps. Our consumption choices are also deeply influenced by social media, often prompted to buy upon recommendations from friends or influencers.

II. The Severe Financial Challenges Facing Generation Z

Along with their unique consumption habits, Generation Z is also living in an era rife with financial pressures, where several critical factors hinder the establishment of stable economic foundations.

1. High Living Costs and Insufficient Income

Many Gen Z individuals are just starting their careers, facing relatively low starting salaries that contrast sharply with high living costs. Over half of the surveyed Generation Z report that their income doesn't support the life they wish to lead. This 'living beyond means' pressure makes it difficult for them to save consistently and stably.

2. Insufficient Savings and Weak Emergency Preparedness

High living expenses coupled with the 'experiences' we pursue result in low saving rates. Many don't even have enough emergency funds, and when unexpected events occur, financial stress escalates quickly. Everyday little pleasures—a drink, a small gift—though relaxing, often derail our savings plans midway.

3. Debt Anxiety and the Unreachable Dream of Homeownership

Having witnessed previous generations grapple with student loans and credit card crises, Generation Z is cautious about debt. Yet the reality stands: even avoiding debt does not make homebuying any closer. Rising housing prices make owning a home a distant luxury, heightening uncertainty and anxiety about their financial future.

4. Financial Literacy and Digital Risks

Despite growing up in a digital environment, Generation Z still has room for improvement in basic financial literacy and effective debt management. For instance, their heavy reliance on 'buy now, pay later' (BNPL), if not backed by suitable budgeting and management abilities, could lead to hidden debt risks. Additionally, with the prevalence of digital transactions, they are more susceptible to encountering digital financial scams.

III. Conclusion and Outlook

The consumer and financial dilemmas of Generation Z are the result of an interplay between generational values and external economic environments. They strive to achieve spiritual richness and personal value realization within limited resources, but high living costs often render their efforts futile.

In the coming decade, as Generation Z continues to gain a larger share in the global consumer market, their financial conditions will profoundly impact the global economy. What they need is not just higher wages but systematic financial education, more resilient financial products, and an economic environment that allows them to balance personal pursuits of 'oshi-katsu' with the long-term security of 'savings.' Only by addressing the fundamental contradiction between insufficient income and high expenditure can Gen Z truly overcome financial anxiety and achieve economic independence and stability.

In essence, the consumer and financial struggles of Generation Z stem from the confluence of 'generational values' and the 'external economic environment.' We desire spiritual fulfillment and personal value but are often drawn back into the anxiety of 'not having enough money.'

Only by discovering new balances between incomes and expenditures can Generation Z truly eradicate financial anxiety and move towards economic independence and stability.