Market transit: “baby boomers” vs “digital generation”
If in the previous 10 years the consumer market lived up to the "baby boomers" born before Kazakhstan gained independence, then in the next 10 years it would have to be kept up to the "digital generation", which does not know the world without a smartphone. Every citizen of Kazakhstan has on average started to consume 20% more goods and services over the past 5 years. The domestic market has increased by more than $24 billion under the influence of economic and demographic factors.
All in a breath, large-scale structural changes are taking place in the consumer market:
- they began to use cash less, replacing them with mobile transfers, card payments and contactless;
- we can make purchases without leaving home, and if there is not enough money, then with a few clicks get a loan;
- we order food delivery from our favourite restaurant, call a taxi, find specialists for repairs and housework via mobile applications;
- listen to music, buy movies and video games, take educational courses and get medical advice online.
The year 2020 – the COVID-19 pandemic and social distancing influenced these processes, significantly accelerating the “digitalization of consumption”.
The speed of the changes taking place and the different propensity to adapt to them of different age groups form their own, familiar and preferred ways and methods of consumption for each generation of Kazakhstan citizens. At the same time, the intergenerational gap is growing, which will significantly impact the structure of the domestic market in the next 5, 10, and 15 years.
We have considered the following in this study:
- How did the “baby boomers” generation affect the scale of consumption?
- What will change in the consumer market with the increasing influence of the “digital generation” of Kazakhstan citizens?
Read more in the paper
Alexander Dauranov
Executive DirectorRelated News
09 October 23
How not to be unemployed: what you need to know about the future labour market
Experts of the World Economic Forum (WEF) presented new forecasts for business, professions and skills development in the next 5 years. The study is based on surveys of the largest employers and their expectations regarding business development, professions and skills. The survey involved 803 companies employing more than 11.3 million people, covering 27 industry clusters and 45 economies worldwide.
Key insights:
- Employers expect structural changes in 23% of jobs;
- The "green" economy is the main source of new jobs;
- Economic challenges are the greatest threat to the labour market;
- Advanced technologies will remain a key driver in business transformation;
- About 75% of the surveyed companies plan to implement AI by 2027;
- Up to 43% of all business tasks will be performed by machines in the coming 5 years;
- The most popular profession is artificial intelligence and machine learning specialists;
- Analytical thinking is a key skill for a successful career;
- 47% of the surveyed employers evaluate their skills when selecting candidates, and 45% require a diploma;
- In the next five years, 44% of the basic skills of employees will become obsolete and 6 out of 10 employees will have to undergo training.
Periodic Researches
Businesslabour marketAlexandra Molchanovskaya
06 September 23
Financial analytics: How much do we spend on routine expenditures?
We face a variety of expenses that vary depending on our needs, circumstances and preferences in our daily lives. Some people need quality food, others need to repay loans regularly and for some entertainment and recreation become a priority. However, the question often arises: Do we have enough income to meet all these needs? What amount of money is needed to achieve a comfortable standard of living? Is it possible to classify yourself as middle class by your expenses?
In this regard, we decided to analyze the core expenditures that each person or family needs to achieve a minimum level of comfort and meet basic life needs. As a result of the study, we divided the employees of Astana and Almaty cities into 6 groups depending on their income and expenses and also determined the size of each class: the least well-off, low-income, lower middle class, middle class, prosperous and well-off.
Key insights:
- An average of 246.3 thousand tenge or 60% of salary is spent on core expenditures every month.
- The largest amount of daily expenses is observed in the first 4 days after receiving a wage.
- At least 450 thousand tenge per month is required to satisfy all basic needs for a comfortable life in megapolicies.
- Almost half of the employed in Astana and Almaty cities (49%) do not have enough earnings to cover their daily expenses.
- The is an essential disparity between workers and cities - there are 4 times more workers with financial difficulties in Almaty than in the capital.
- Only 4.4% of employees with wages from 700 thousand to 1.2 million tenge, whose daily expenses account for 40-50% of income, can be attributed to the middle class.
- Employees with above-average incomes make up the smallest share of the employed population - 2%.
One-off Researches
ConsumptionStandard of livingAlexandra Molchanovskaya
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