As Gen Z slowly grows to make up the majority of the market, it will hold most of the buying power globally. Retail businesses will need to re-align their methods keeping in mind this tech-savvy generation’s spending habits.
Who really?
Digital natives, a generation born into the face of both parents and a camera, inherently understand the world through its lens. For these young new consumers, also known as Generation Z, their smartphones grew into an extension of their own arms, and the ability to manoeuvre and manage them just as natural.
Born between 1994 and 2010, they represent 25.9 percent of the world’s population. Generation Z is an innovative bunch, born consuming information with a global reach and already accounting for $44 billion dollars of consumption, which barely scratches their projected consumption of $200 billion by 2018. As for family spending, they already influence a staggering $600 billion. In terms of population size, this means they will go from their current 26 percent of total population to 40 percent by 2020—nearly half of the total population.
Armed with their smartphones, digital natives have the pocket-sized power to search for top-tier quality at the best price. They quickly evolved from the naïve idealism of millennials into proactive, pragmatic shoppers. Struck with the reality that their peers are just as talented as they are, this groups understands the need for individualism in an increasingly globalised world. They are willing to seek out the best for themselves and understand the importance and difficulty of a truly unique design or product.
This digitalisation of the world of buying and selling has revolutionised the very nature of consumption. With a few clicks on a keyboard, you can have all of the life’s necessities at your door. At a time where groceries have become deliverables, the only foraging that happens is for the best deal. When your consumer has the world of competitors, reviews, and your business history at their fingertips how do you entice them to your brand?
Here are eight factors that retail businesses should ponder on for their Gen Z strategies:
1. Millennials idealism to native practicality
Generation Z or Gen Z has grown up surrounded by millennials, watching their mistakes and learning from them. This group has seen firsthand that hard work is required to make a real difference. Economic uncertainties, wars, terrorism, and high student debt rates mean this group is not as willing to take risks as millennials. Digital natives hold practicality above idealism or comfort. They are more aware than any generation that diversity is essential and are willing to work towards a brighter, equal, cleaner future. Through technology, this group grew up immersed in a global conversation.
This globalization means they recognise the importance of individuality. Through social media accounts, this generation is constantly connected. They are constantly feeding information to their peers about each incredible aspect of their lives. This has led Gen Z to value face-to-face interaction and tools like Snapchat, Hangout, Facetime, Kik, Whisper, WhatsApp and even Skype, which facilitate actual real-life connections.
Generation Z is full of self-starters. They see the potential of education through technology and are more likely to seek internships and work right away before taking the more expensive higher education paths. Even in India, we see Gen Z bringing in self-earning opportunities like setting up a small trinkets stalls, a lemonade station, working at McDonalds or even sports shops like Decathlon and such, all to bring in early money and an idea of financial independence.
Digital natives as consumers place practical companies with a global mission above the latest fashion. This sets up trends for future consumption to focus on social impact rather than cheap marketing ploys.
Generation z Vs. Millennials
Based on: http://www.business2community.com/brandviews/newscred/move-millennials-marketers-make-room-generation-z-01010656
2. Diversify to personalise
Technology enables the exposure of young people to global trends from an early age. At their fingertips, there is the power to compare and analyse the best deals and designs from across the globe. This power of choice will ultimately shape future trends. A worldwide study found that 58 percent of individuals over the age of 35 agree, “Kids today have more in common with their global peers than they do with adults in their own country.” This level of connection and globalisation is unique to digital natives. Diverse styles ranging across countries culminate to create an expectation for brands to offer the chance for unique individuality.
This ability to find and define the latest fashion comes hand-in-hand with the knowledge that a better deal may be looming on the horizon. Digital natives have an awareness that the possibility of finding the best price and potentially a better style could be just a few clicks away. When you have the power to research every option for dinner, flights, or a simple t-shirt, the need to make an informed decision becomes second nature.
Generation Z as consumers are pragmatic seekers of individualised style. While working to define their own signature style, they will not settle for the traditional marketing path filled with gimmicks or the tired one-liners.
To this group, brand loyalty is as archaic as cave paintings. When the entire world of fashion is at your disposal, settling on one brand for all your needs is the equivalent of getting all your produce from a vending machine. Variety really is the spice of life for digital natives—they do not want your bland sweater vest. They are searching for eclectic blends that go beyond the future businessperson, the laid-back bohemian, and the classic black dress purist. If you are an apparel business, your brand should bring these styles together to cultivate something fundamentally new and daring. Limiting a look targets only the niche, but opening up the styles to the bizarre allows the consumer the chance for a perfect match among the mismatch.
3. Buy into practical pricing
Digital natives are just hitting the market, so their likelihood of affording designer wear or holding loyalty to one brand above all others is incredibly low. They simply cannot afford it. They were born looking at alternative lifestyles, fashions, products, platforms, and community on a global scale. This perspective means it doesn’t impress them that something is expensive, it impresses them that something is new or stylish at a reasonable price. Their formative years, during the economic recession of the early 2000s, means they understand financial insecurities. For marketing, this means you need creative tactics like a flash sale of your products or giveaways to increase appeal. Keep a tab on Levi’s here?
The fashion editor at Elanstreet, Sohini Dey, describes this thought process in an article* by DNA: “Gen Z are constantly in touch with international fashion trends, new style inspirations, and it’s an age when one is constantly ready to try new things. Achieving brand loyalty is really only possible once you’ve reached an age when you’re sure of your personal style and know exactly what works for you,” she says.
Just because affording the design chic is not always an option for Gen Z now, it doesn’t mean these soon-to-be entrepreneurs probably won’t be purchasing Chanel in a few years. Since this is such a large generation, their spending habits now already account for $44 billion a year. Also, many of them are already in college and their pragmatic nature is sure to lead to a lucrative career.
Offering a few giveaways or competitions to win high-end designs will keep them coming back for more later in life. Shaping your business strategy to suit this group is definitely going to pay off in the long term.
As Gen Z slowly grows to make up the majority of the market, it will hold most of the buying power globally. Retail businesses will need to re-align their methods keeping in mind this tech-savvy generation’s spending habits.
Who really?
Digital natives, a generation born into the face of both parents and a camera, inherently understand the world through its lens. For these young new consumers, also known as Generation Z, their smartphones grew into an extension of their own arms, and the ability to manoeuvre and manage them just as natural.
Born between 1994 and 2010, they represent 25.9 percent of the world’s population. Generation Z is an innovative bunch, born consuming information with a global reach and already accounting for $44 billion dollars of consumption, which barely scratches their projected consumption of $200 billion by 2018. As for family spending, they already influence a staggering $600 billion. In terms of population size, this means they will go from their current 26 percent of total population to 40 percent by 2020—nearly half of the total population.
Armed with their smartphones, digital natives have the pocket-sized power to search for top-tier quality at the best price. They quickly evolved from the naïve idealism of millennials into proactive, pragmatic shoppers. Struck with the reality that their peers are just as talented as they are, this groups understands the need for individualism in an increasingly globalised world. They are willing to seek out the best for themselves and understand the importance and difficulty of a truly unique design or product.
This digitalisation of the world of buying and selling has revolutionised the very nature of consumption. With a few clicks on a keyboard, you can have all of the life’s necessities at your door. At a time where groceries have become deliverables, the only foraging that happens is for the best deal. When your consumer has the world of competitors, reviews, and your business history at their fingertips how do you entice them to your brand?
Here are eight factors that retail businesses should ponder on for their Gen Z strategies:
1. Millennials idealism to native practicality
Generation Z or Gen Z has grown up surrounded by millennials, watching their mistakes and learning from them. This group has seen firsthand that hard work is required to make a real difference. Economic uncertainties, wars, terrorism, and high student debt rates mean this group is not as willing to take risks as millennials. Digital natives hold practicality above idealism or comfort. They are more aware than any generation that diversity is essential and are willing to work towards a brighter, equal, cleaner future. Through technology, this group grew up immersed in a global conversation.
This globalization means they recognise the importance of individuality. Through social media accounts, this generation is constantly connected. They are constantly feeding information to their peers about each incredible aspect of their lives. This has led Gen Z to value face-to-face interaction and tools like Snapchat, Hangout, Facetime, Kik, Whisper, WhatsApp and even Skype, which facilitate actual real-life connections.
Generation Z is full of self-starters. They see the potential of education through technology and are more likely to seek internships and work right away before taking the more expensive higher education paths. Even in India, we see Gen Z bringing in self-earning opportunities like setting up a small trinkets stalls, a lemonade station, working at McDonalds or even sports shops like Decathlon and such, all to bring in early money and an idea of financial independence.
Digital natives as consumers place practical companies with a global mission above the latest fashion. This sets up trends for future consumption to focus on social impact rather than cheap marketing ploys.
Generation z Vs. Millennials
Based on: http://www.business2community.com/brandviews/newscred/move-millennials-marketers-make-room-generation-z-01010656
2. Diversify to personalise
Technology enables the exposure of young people to global trends from an early age. At their fingertips, there is the power to compare and analyse the best deals and designs from across the globe. This power of choice will ultimately shape future trends. A worldwide study found that 58 percent of individuals over the age of 35 agree, “Kids today have more in common with their global peers than they do with adults in their own country.” This level of connection and globalisation is unique to digital natives. Diverse styles ranging across countries culminate to create an expectation for brands to offer the chance for unique individuality.
This ability to find and define the latest fashion comes hand-in-hand with the knowledge that a better deal may be looming on the horizon. Digital natives have an awareness that the possibility of finding the best price and potentially a better style could be just a few clicks away. When you have the power to research every option for dinner, flights, or a simple t-shirt, the need to make an informed decision becomes second nature.
Generation Z as consumers are pragmatic seekers of individualised style. While working to define their own signature style, they will not settle for the traditional marketing path filled with gimmicks or the tired one-liners.
To this group, brand loyalty is as archaic as cave paintings. When the entire world of fashion is at your disposal, settling on one brand for all your needs is the equivalent of getting all your produce from a vending machine. Variety really is the spice of life for digital natives—they do not want your bland sweater vest. They are searching for eclectic blends that go beyond the future businessperson, the laid-back bohemian, and the classic black dress purist. If you are an apparel business, your brand should bring these styles together to cultivate something fundamentally new and daring. Limiting a look targets only the niche, but opening up the styles to the bizarre allows the consumer the chance for a perfect match among the mismatch.
3. Buy into practical pricing
Digital natives are just hitting the market, so their likelihood of affording designer wear or holding loyalty to one brand above all others is incredibly low. They simply cannot afford it. They were born looking at alternative lifestyles, fashions, products, platforms, and community on a global scale. This perspective means it doesn’t impress them that something is expensive, it impresses them that something is new or stylish at a reasonable price. Their formative years, during the economic recession of the early 2000s, means they understand financial insecurities. For marketing, this means you need creative tactics like a flash sale of your products or giveaways to increase appeal. Keep a tab on Levi’s here?
The fashion editor at Elanstreet, Sohini Dey, describes this thought process in an article* by DNA: “Gen Z are constantly in touch with international fashion trends, new style inspirations, and it’s an age when one is constantly ready to try new things. Achieving brand loyalty is really only possible once you’ve reached an age when you’re sure of your personal style and know exactly what works for you,” she says.
Just because affording the design chic is not always an option for Gen Z now, it doesn’t mean these soon-to-be entrepreneurs probably won’t be purchasing Chanel in a few years. Since this is such a large generation, their spending habits now already account for $44 billion a year. Also, many of them are already in college and their pragmatic nature is sure to lead to a lucrative career.
Offering a few giveaways or competitions to win high-end designs will keep them coming back for more later in life. Shaping your business strategy to suit this group is definitely going to pay off in the long term.
[Source”pcworld”]
