Generation Z Is the Most Coveted Retail Demographic

Generation Z is substituting Millennials as the most coveted retail market cohort. With $44 billion in spending power according to Forbes magazine, Generation Z has been courted by retailers and brands.

The Millennial generation is made up of those born between 1981 and 1996; the earliest among them are near 40.

Generation Z is defined as people born between 1997 and 2012, ranging in age from 7 to 22, according to the Pew Research. Center. This cohort comprises about 74 million people, roughly the same as Millennials. Not surprisingly given their ages, 62 percent of Gen Z members reside with their parents, and 55 percent are students, according to research company GlobalWebIndex.

…the oldest one of them are near 40.

Gen Z vs. Millennials

Generation Z members are somewhat more optimistic than Millennials, who suffered a significant downturn in the market when many were entering the workforce. The majority of Generation Z isn’t yet saddled with student loan debt from school, something which is part of the lives of many Millennials well into their thirties. This younger generation is much more confident of the ability to produce a living doing something they enjoy.

However, they’re also careful about spending money. A desire for financial security has prompted them to avoid incurring debt whenever possible — 40 percent of those aged 18 to 22 don’t have any debt, according to pollster Morning Consult. They have fewer credit cards and prefer using debit cards. They do not feel the need to possess big-ticket things like houses and cars (there is Uber, after all).

Contrary to Millennials, members of Generation Z aren’t simply digital natives, but they’re also social media natives and mobile-first. A number of them might have just a sporadic or non-existent relationship using a landline or a laptop or desktop computer. A smartphone is the device of choice, and spending seven hours a day on the internet is common.

Gen Z is much more likely to discover about new products on social networking, usually Instagram or YouTube, according to a poll by Businessweek/Morning Consult. Seventy-five percentage of Generation Z could be categorized as”star networkers” based on GlobalWebIndex. They are 1.4 times more likely than the normal online user to trace celebrities or celebrity information.

Characteristics

Members of Generation Z:

  • View consumption as an expression of individuality.
  • Rely on internet influencers for clothes and accessory choices.
  • Tend to be more likely to use social networks for brand or product research than any other demographic group.
  • Like thrift-shopping and sporting second-hand clothing. A third of Generation Z shoppers are predicted to purchase secondhand products this year.
  • Worth the opinions of the friends in making purchase decisions; four in 10 say they may be affected by the opinion of others.
  • Love gaming (especially men ) but not gaming.
  • Wish to be entrepreneurs, not just part of the gig market.

Teen Preferences

Management firm Piper Jaffray issued its semi-annual”Taking Stock With Teens” poll in April. This year the study based on Generation Z. Survey findings include:

  • Amazon is undoubtedly the most popular shopping site at 50 percent. Nike is next at 5 percent.
  • Athletic brands dominate adolescent spending preferences.
  • Nike is definitely the hottest clothing and apparel manufacturer.
  • Ninety percent of female adolescents favor searching for beauty items in a physical store.
  • Eighty percent of teenagers say they get beauty tips from influencers.
  • Eighty-three percentage of teenagers own an iPhone.

Seventy-three percent of adolescent shoppers utilize Instagram. It is accompanied by Snapchat (49 percent), email (37 percent), text messaging (34 percent), website ads (29 percent), Twitter (20 percent), TV/radio (19 percent), and Facebook (12 percent). Chart by eMarketer. Source: Piper Jaffray, “Taking Stock with Teens: Spring 2019.”

Brand Discovery

Generation Z is probably to hear about new products from online marketing and search engines. They aren’t big users of customer review websites. Gen Z members spend an average of two hours and 52 minutes each day on social networks and messaging solutions, based on GlobalWebIndex, often researching products and sharing information with friends.

Nevertheless, Gen Z members are eager to shop in physical shops, particularly the ones that provide a personalized experience. A number of these shops are ecommerce brands which have attracted their online experience into the physical world, such as Warby Parker (glasses ) and Everlane (apparel). Female members of Generation Z are rediscovering malls.

How to Attain

It is important for merchants to maximize the mobile experience because Gen Z folks use smartphones to shop online. When buying in a physical store, they’ll use their smartphone.

Generation Z believes in corporate social responsibility and that firms have a duty to act ethically in how they treat workers and what they put in their products. Giving to triggers which resonate with Generation Z, like the environment, also gets their attention. Advertisers should emphasize social responsibility when marketing to this demographic.

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