The next generation also referred to as Generation Z, the people born between mid 90s and early teens of the current century, is changing the way consumers behave. Their beliefs and expectations are revolutionizing how brands engage and create, and their experiences are shaped entirely by digital technology.
Who Is Gen Z?
Gen Z is now a significant global population of over 2 billion. It is described that they are more innovative, liberal, computer literate, socially sensitive and have a spirit of enterprise. Unlike previous generations, the Gen Z, or the Millennials values such as authenticity, diversity, and relevance.
Key Ways Gen Z is Changing Consumer Behavior
Demand for Authenticity
Young generation of consumers prefer realness over the typical ads. They do not trust fancy advertising and are looking for brands that are authentic and genuine.
- Social Proof: Word of mouth, social media opinions and sponsored collaborations are more effective than endorsements by celebrities.
- Example: Companies such as Glossier and Gymshark rose to popularity with them creating communities and using word of mouth marketing.
Focus on Sustainability and Ethics
It is not longer a question of wanting to be sustainable, it is a question of when Gen Z want to be sustainable. They consciously look for the brands that can be environmentally friendly and socially sensitive.
- Conscious Consumption: Gen Z customers are loyal to companies that share their values, equality in employment, animal-friendly, and environmentalism.
- Example: This audience is particularly concerned with sustainability, which is why Patagonia becomes their choice of preference when shopping.
Emphasis on Personalization
They are more demanding: they want a unique approach to recommendations, the choice of products, individual packaging.
- Technology and AI: Such features as recommendation systems and augmented reality for fitting are becoming more and more familiar.
- Example: Nike’s ‘Nike By You’, is another area that enables consumers to create their own sneakers, this is a factor that will suit Gen Z.
Mobile-First and Digital Natives
Gen Z spends a significant portion of their time on mobile devices and social media platforms like TikTok, Instagram, and Snapchat.
- Short-Form Content: Content that is fast, interactive and graphic based works best.
- Example: If there is one company that has used TikTok to perfection, it is Chipotle whose TikTok campaigns have gone viral.
Prioritization of Experiences Over Products
While Millennials popularized the shift towards experiences, Gen Z has taken it further, valuing immersive and shareable moments.
- Experiential Marketing: They need to be engaged with pop up shops, virtual events and highly involved online campaigns.
- Example: Coca-Cola’s AR campaigns or augmented reality campaigns where consumers are able to engage the brand through their mobile phones.
What This Means for Brands
To engage Gen Z effectively, brands must adapt their strategies:
- Be Transparent: Publicize what your brand is all about and what it is doing.
- Leverage Digital Platforms: I recommend to focus on the short videos, memes and any kind of the interactive videos.
- Prioritize Sustainability: Practice sustainability and promote sustainability measures genuinely.
- Embrace Diversity and Inclusion: Include different perspectives in the advertisements and the products.
- Use Data Wisely: Leverage AI and analytics to provide first-person experiences.
Conclusion
Gen Z is changing the nature of consumption and therefore requires innovation and adaptability. They are creating new trends in every industry and their valued preferences are authenticity, sustainability, and personalization. Those that adapt and move in the right direction along with these values will not only gain it but also succeed in the constantly changing world.
What will it take to engage Generation Z and be ready to meet their expectations? The time to adapt is now.