Tired of reading? Listen to the Article Summary here:
Generation Z is the newest generation of teenagers and young adults consuming the world. They are more ethnically diverse, socially liberal, and religiously unaffiliated than any previous generation in history. Brands are finally catching on to this new demographic and are adapting their strategies to keep up with what’s trending in Gen Z culture.
Quick Video Rundown
Who Are Gen Z?
Generation Z, also known as Gen Z or iGen, is the demographic cohort following Generation Y. There are no precise dates for when this generation starts and ends; demographers and researchers typically use birth years ranging from the mid-1990s to the early 2000s. This makes them a bit of a mystery to many marketers who have been accustomed to understanding generations by decade.
Currently, Gen Z makes up around 32% of the world’s population and spends an estimated $143 billion annually. That represents a massive potential market that many brands are looking to capitalize on as they become adults.
What Makes Gen Z Unique?
Gen Z has many unique characteristics that are different from previous generations, thanks to their social environment growing up—a world shaped by technology with heavy influence from companies like Instagram, Snapchat, and YouTube. This new generation is far more liberal than millennials and Generation X, focusing on finding and using brands that support their beliefs and align with their values, rather than just buying products for their image or popularity.
While older generations grew up with the Internet since its inception, this group did not experience such dramatic change during formative years. As such, the internet and digital experience aren’t the be-all-end-all for Gen Z. This different approach to purchasing is reflected by how Gen Z is less interested in digital ads and content, and more interested in brand experiences and brick-and-mortar stores.
What Does Gen Z Look For In Brands?
The marketing industry is already taking notice of Gen Z, with many companies trying to gain insight into this new generation. Here are some of the ways that companies are adjusting to the preferences of Gen Z:
Values
Gen Z is more socially liberal and socially conscious than any previous generation. They expect the brands they engage with to be on the same page.
Research into Gen Z shows that 75% of members have boycotted or would boycott a brand due to perceived discrimination. This has been a major factor in the shift towards more inclusive advertising and will continue to impact brand communications going forward.
This emphasis on corporate responsibility extends to other issues, too. Around 61% of Gen Z see brands as more responsible for addressing climate change than governments. Gen Z expects brands to accept their responsibility and rise to the occasion.
Gen Z is also the most ethnically and racially diverse generation ever according to AdWeek. They’re also growing up at a time when race relations are more important than ever before. This has affected their buying decisions, with 74% of 13 to 18 year-olds preferring multicultural casting for advertisements.
Responsiveness
Responsiveness is one of the most important traits Gen Z looks for in a brand. Around 77% of members expect communication within 24 hours, and over 70% consider that responsiveness to be the most important part of communication with a company. Responsiveness also includes Gen Z’s insistence that brands respond to their feedback in meaningful ways like changing policies and admitting mistakes.
Relatability
A full 82% of people ages 13-20 are more likely to buy a product when it is being advertised by an influencer according to Forbes. This is because Gen Z prioritizes relatability in brands above traits like authority or tradition. Influencers speak the language of Gen Z, and that makes them highly relatable marketing assets.
Minimalism
Gen Z is the most design-aware generation ever with preferences for simple, modern logo designs with bold colors. This makes sense given they spend an average of 6 hours per day on their phones where visual content is king. They expect brands to make this shift as well and provide strong visual cues that get the message across within their 8-second attention span.
Experiences
The preferred mode of purchasing remains in-store for Gen Z according to Coresight Research, even though online shopping has become far more accessible than ever before. Around 56% of Generation Z members prefer to shop in person—whereas only 49% would rather buy online. Gen Z looks to brick-and-mortar retailers for immersive and unique experiences that create memories and evoke emotions.
How Marketers Can Connect With Gen Z
As the youngest members of the workforce become a larger consumer demographic, businesses must alter their traditional strategies for product promotion and awareness. Here are some ways companies can adjust to cater to this new group:
Adopt a Value-Based Mission Statement
Gen Z is the most socially liberal generation ever and they expect brands to align with them. Brands need to prioritize support for diversity, ecological responsibility, and social progress both as social goods and as a way to appeal to different subgroups within the demographic. Having a genuine purpose that goes beyond profits is key to connecting with this generation.
Focus on Responsiveness
Part of what makes Gen Z unique is its high expectations for brands. They expect brands to be open and communicative, which means it’s essential that companies maintain healthy lines of social media communication with Gen Z members where they respond to feedback and criticism.
Image via Adweek
Don’t Forget the Influencers
Influencer marketing has proven extremely effective at reaching this generation. More than half of influencers are now under 25 years old which means they’re a perfect tool for relating the Gen Z. Remember, though, that authenticity can be a gift or a curse. When you partner with an influencer they become a de facto representative of your company, so it’s important to vet their content for its alignment with your brand’s values.
Prioritize Social Media
According to research published by Addison Group, 71% of Gen Z follows brands they love on social media. They use these channels as the primary way to communicate with their favorite brands so marketers must ensure that all communication is consistent across all channels.
Nike House of Innovation in Shanghai, China
Engage In Experience-Driven Marketing
Gen Z isn’t susceptible to traditional marketing strategies and hard-sells – they want experiences. Partnering with companies specializing in experiential marketing can help you launch new products and drive sales by offering unique experiences for Gen Z. This strategy works well for brick-and-mortar retailers who want to attract visitors looking for a memorable experience rather than just another product transaction.
Nike’s House of Innovation concept stores are a great example of this. They sell clothes and shoes like traditional retail locations, but also offer unique retail experiences like fitness classes and cooking demonstrations that appeal to Gen Z.
Finally, another experience Gen Z craves is membership to a distinct community. If you can turn your brand into a tribe, Gen Z is likely to come on board.
With a little creativity and a lot of research, brands can successfully engage Generation Z with an updated strategy that truly embraces their ever-evolving sense of generational identity.
