Baby Boomers / Generation X / Generation Y / Generation Z - everyone is familiar with these terms or classifications of Generations.

So what exactly is a Generation classification???

          A Generation classification is a demographic grouping based on the years in which a Generation is born. But did you know that there is currently a new Generation that is being discussed as the smartest among all Generations? This new group is known as Generation ALPHA. Today, Terrabkk will introduce everyone to the significance of Generation ALPHA.

Who is Generation ALPHA?

          This group consists of individuals born from 2010 onwards, the children of Generation Y and Z, currently around 8-9 years old. They are preschoolers born to older parents who have fewer children and more financial stability than previous generations. They have been exposed to digital devices and technology since birth. According to the 2018 census in Thailand, there were 6,390,046 children aged 8 and under, accounting for about 10% of the total population. It is projected that by 2030, there will be approximately 1.59 billion Generation ALPHA worldwide.

          Mark McCrindle, a renowned Australian demographer, once spoke on the TEDx stage about the noteworthy movements of the new Gen emerging in the world. McCrindle predicts that Gen Alpha will be the smartest Gen in human history, having grown up fully immersed in technology from a young age. This group spends an average of 47.4% of their daily activities online, with a continuous trend of increasing internet usage. As most Gen Alpha grow up with fully developed modern technology, they have never experienced life without a smartphone and express themselves quickly online, impacting their lifestyles and thoughts in various dimensions. They are accustomed to change, and their educational experiences shape their perspectives on learning and careers differently from their parents who grew up in different eras.

Attitudes of Generation ALPHA

          Generation ALPHA is the center of the family

          Generation ALPHA is the group that receives abundant love and care from parents and grandparents. Everyone pays attention to them, and with the current world of rapidly growing technology, Generation ALPHA can remember stories better than previous Generations. This sometimes leads Generation ALPHA to be more materialistic, exhibiting quick and immediate behavior, being familiar with change, and having lower patience, which can create issues in their thinking patterns and behaviors.

          Generation ALPHA: Play is no longer just for fun

          In the past, children's play was mostly for fun, but for Generation ALPHA, every play and activity leads to learning, creativity, skill development, fun, curiosity, and exploration of their world. We can observe that Generation ALPHA enjoys asking questions in every activity and seeks answers, aided by modern technology that allows for quick information retrieval, enabling them to find answers and develop skills independently.

          Generation ALPHA: The diminishing value of money

The Generation ALPHA grows up in an era of financial technology, entering a cashless society where they see parents and those around them using credit cards, automatic transfers, or smartphone payments as a normal part of daily life. This leads children of Generation ALPHA to not value money in the same way as other generations. Child psychologist Dr. Michael Carr-Gregg stated that the cashless era makes it difficult for children to understand money because they do not see cash exchanged in hand; they believe money is just digital currency that comes with a shake.

          Why is Generation ALPHA important?

          1. As mentioned, Generation ALPHA is the center of the family, significantly influencing family spending decisions, especially among parents from GEN Y and MILLENNIAL backgrounds, accounting for up to 65% of spending.

          2. Parents and families of Generation ALPHA will spend on activities that foster family interaction, such as special skill development, sports, and music, to keep their children away from the online world.

What businesses will cater to Generation ALPHA?

          1. Education businesses - Due to parents' concerns about pressure and stress in traditional schools, many are seeking alternative schools for their children. Recent studies show that 75% of children in England spend less time outdoors than prisoners. Consequently, parents are looking for learning opportunities outside the classroom or schools with more open classes for children.

          2. Financial businesses - Businesses that focus on financial education rather than convenience in a cashless society, such as Pre-paid Cards like GoHenry and Osper, which are apps that allow parents to load financial information for children aged 6 to spend using ATM cards, shop online, or conduct transactions. These services also help parents monitor and control spending while instilling a better understanding of money.

          3. Travel businesses - Parents of Generation ALPHA are looking for travel experiences that foster good family relationships. Travel agency Mr & Mrs Smith reports that many family trips start from children's interests, helping them take a break from technology.

          4. Various technology businesses - This sector will grow significantly among Generation ALPHA, as they will grow up in an era where technology meets their needs 24/7, seeking convenience in their daily lives. As mentioned, Generation ALPHA will be the smartest group in the world, making them not only users of technology but also developers of technology for the future.

          Finally, businesses that believe they already have a stable customer base should reconsider. Today, both “customer groups” and “customer behaviors” are changing faster than ever. Continuous adaptation is essential, and every business should prioritize Generation ALPHA. Although Generation ALPHA may not currently be the primary market group for many businesses, in the future, these children will grow into adults in society, becoming the main customers for all products and services. Therefore, businesses that wish to grow sustainably and keep pace with the times should not overlook the importance of Generation ALPHA.