Retail Trend Sees History’s Most Demanding Consumers on the Horizon There’s no rest for the retailer. Just when you thought you’d mastered Millennial marketing, along comes a new wave of consumers you’ve got to figure out. Dubbed Generation Z and 70 million strong, this rising demographic will represent 25 percent of the US population by 2020. It’s time to get ready for what retail trend watchers say will be the most demanding consumers of all time.
Raised Online and Digitally Addicted: Meet Generation Z
Gen Z members are still very young (13 to 18), so it may be difficult to draw too many solid conclusions about their eventual buying habits. But a number of factors are likely to define their future behavior. Consider the following about them:
-First generation born in the 21st century
-Grew up in challenging economic times
-Never knew a world without the Internet
-Citizens of an on-demand culture
-Tethered to technology since their earliest days
That said, a picture emerges of a consumer who expects instant access to everything and who relies on digital resources for discovering what they want and for getting it when they want it. Forty-percent of Gen Z claim they are “addicted” to their digital devices.
Where to Reach The Z’s: Instagram, Snapchat and YouTube
Characterized by their short-attention spans and love of novelty, it’s no surprise that Z’s prefer quick visual communication. Instagram, Snapchat and YouTube are their platforms of choice. In fact, 72 percent say they visit YouTube daily. Streaming movies and music is a way of life for the group – over half do so daily – obviously a result of their on-demand orientation. And gaming is a major focus with a high degree of interest in virtual reality.
Z’s Are Different from Millennials in Surprising Ways
While both these age cohorts are intense social media users, Millennials (age 19-34) are more influenced by it than Z’s. Over half of the older group (58 percent) credit social as a top purchasing driver. Only 53 percent of the younger demo names it as their major influencer.
Millennials, as we know by now, are active reviewers of brands and experiences, sharing their opinions across the social media spectrum. Z’s much less so. Millennials are 40 percent more likely than Z’s to get their viewpoints out. Will the younger group grow into word-of-mouth as they mature? That’s something worth watching.
Gen Z’s were shaped by the uncertain economic environment of the last decade. Despite this experience, they are much less likely to be bargain hunters than the Millennials. The older group is 29 percent more inclined to check and compare prices before and during shopping trips. The Z’s milder interest in pricing may be due to the fact that the majority are not yet living independently. Will they acquire the Millennials’ cost consciousness as they move out on their own? Another retail trend to watch.
Don’t Miss Out on Marketing to Generation Z
Z’s are still in their formative years, but here’s what Deborah Weinswig, managing director of Fung Global Retail & Technology foresees. “Exposure to near-infinite choice and near-endless information makes this generation more demanding than any of its predecessors. As Gen Z matures, it will become more discerning, but its demanding nature is unlikely to be diluted. We think brands and retailers will be the ones that need to change, because Gen Z is unlikely to compromise on its high expectations.” Read more about Gen Z’s consumer demand here.
Yes, today’s tweens and teens will soon be full-fledged consumers with new and unique habits and demands. Savvy retailers should be ready to accommodate them. Sharpen your visual messaging now. Get active on Instagram, Snapchat and YouTube. Stay up to the minute with mobile marketing. Be ready to deliver at warp speed. Develop incentives for the Z’s to follow you on their platforms of choice. A new breed of shopper is heading your way!
For more information on Generation Z: