One characteristic of Gen Y, those born during the peak of capitalism, is their boredom with the lifestyles of previous generations. They crave experiences, are intensely passionate about their interests, seek role models, and question their surroundings. As we have read extensively, the lifestyle of Gen Y is often seen as restless, picky, and extravagant, as they tend to spend money on experiences and personal passions in the form of eating, traveling, and playing. These behaviors are perceived to have significant impacts on the global economy as well.

But did you know? The behaviors of Gen Y also have their benefits, as new businesses are emerging that increasingly cater to the needs of both Gen Y and Millennials in an era of rapid change. These can truly be called 'businesses by Gen Y for Gen Y'.

Cafés & Co-working Spaces

The café business has boomed to the point of nearly bursting in the past few years. From 2010 to 2014, it saw tremendous growth, with revenues reaching 14 billion baht in 2010 and soaring to over 17 billion baht per year. Additionally, it requires relatively low capital, allowing many young graduates or even students to open cafés.

            As supply flooded the market, traditional cafés that only offered a place to sip coffee began to slow down. Coupled with the trend of mobile work, this led to the emergence of co-working spaces that integrated the functions of traditional cafés, providing places to work, read, or hold meetings. Since cafés already attracted customers who lingered, co-working spaces also boomed between 2015 and 2017, making them easily accessible in urban areas, office districts, and universities.

            Examples of this type of business include HUBBA So-working Space, Pencave Co-working Space.

Web Bloggers & YouTubers

            In the digital platform era, where everyone owns at least one smartphone, the behaviors of Gen Y—seeking 'role models' and being 'picky'—have led to the rapid emergence of bloggers and YouTubers. Anyone can become one; it's easy to consume and popular, allowing these individuals to sometimes become influencers, replacing famous personalities. Importantly, they can be hired at a lower cost. For instance, a cosmetics brand might hire a blogger just to try out a product and share its benefits, which can lead to sales. This phenomenon spans all types of businesses, from food and cosmetics to sports, fitness, clothing, travel, DIY, education, and more.

            Currently, popular careers among Gen Y include travel and gaming bloggers and YouTubers, allowing them to travel while earning money, which resonates with Gen Y's tendency to make decisions based on experiences—those shared by bloggers and YouTubers, whether visiting popular or unseen destinations.

         Examples of this type of business gaining popularity include Above The Mars and HappyNancy.

Hostels

            The boom of hostels coincides with the travel behaviors of Gen Y and Millennials worldwide, who are increasingly traveling both solo and in groups. Surveys indicate that Gen Y typically travels more than twice a year, often for short periods—frequent trips but of shorter duration—leading to limited travel budgets. This makes hostels a popular choice, especially given their preference for socializing and seeking experiences, which hostels cater to well.

            Since starting a hostel business does not require a high investment compared to other types of hotels, as long as it is located near public transport, is easy to access, safe, and clean, many Gen Y individuals are increasingly investing in this type of business.

         Examples of this type of business include Once Again Hostel and Bed Station.

Event Organization & Concerts

            This business model is incredibly appealing to Gen Y, especially in organizing various types of concerts. Nowadays, many organizing companies are starting to host their own concerts or even manage events for large sponsors, unlike in the past when only major record labels or media companies could organize such events. This aligns with Gen Y's intense passion for their interests, as they are willing to pay 4,000 to 5,000 baht for tickets to see their favorite artists. In 2017 alone, over 40 international bands held concerts in Thailand, and tickets sold out so quickly that fans would sit in front of their computers ready to click, only to find them sold out within the hour.

            Additionally, there are concerts by Thai artists, both big and small, organizing music festivals in various provinces, encouraging Gen Y to be active as they can travel and attend concerts simultaneously.

         Examples of this type of business include ZAAP, Wonderfruit, fungjai (music festival organizers) and VIJI CORP (organizers of international concerts).

Fashion

           'Fashion never dies; it only disappears to return anew' This saying seems to hold true, as fashion cycles back every few years. Especially in this digital age, where online shopping is prevalent, the emergence of fashion designers has also grown. Fashion businesses, starting from owning clothing brands, modeling, blogging, or owning multi-brand stores, have become increasingly popular among Gen Y. Driven by the desire to 'look good' and their passion, many Gen Y individuals are creating their own clothing brands, leading to a surge of online clothing brands. Those that gain popularity may eventually move into shopping malls or physical stores or be featured in multi-brand stores that gather products from various online fashion brands in one place, allowing buyers to choose items in person before deciding whether to purchase in-store or online.

         Examples of this type of business include SOS Sense of Style, A.SAP and Matchbox.

 

Article by: TerraBKK Investment Tips

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