Chris Hayes EVP, Brand Strategy

Generation Z, the newest demographic cohort, composed of Americans born between 1997 to 2012, is on track to be the largest, most ethnically diverse, best educated and most financially powerful generation ever. And though research on this emerging group is still in the early stages, some interesting shopping trends are emerging that marketers should be watching closely.

Five early trends as reported by Morning Consult:

  • Gen Z adults shop for fun. Nearly half go shopping several times per month when they are not looking for anything in particular. Two thirds shop at least once per month. Brand differentiation is critical to capture these shoppers’ attention.
  • In-store is the most popular shopping option. Though they’ve never lived in a world without computers and mobile devices, Gen Z adults prefer brick and mortar two to one over online shopping. Gen Z women especially want the in-store experience.
  • Consumer reviews and ratings on websites drive new product trial and purchase decisions. Friends and family recommendations and “expert” reviews still matter, but not quite as much as for previous generations. Surprisingly, social media influencers have relatively little effect on this group.
  • Less brand loyal than previous generations. Only about half of Gen Z adults report they are brand loyal when there are alternative options. Older adults scored about 8% higher for brand loyalty. It’s not a big gap, but worth watching.
  • Not afraid to express or act on opinions. Over a third have shared online memes mocking a company and their actions. The same percentage have offered suggestions online about how a brand could do better. A slightly smaller percentage have stopped paying for a company’s products or services as a result of a political stance and encouraged others to boycott those companies.

Generation Z is poised to break new ground and present new challenges for brand marketers across all categories. And while it’s still too early to assess the impact of this newest generational cohort, whose oldest members are just now entering their 20’s, it’s not too early to begin tracking the preferences and habits of this fascinating group.

What do you need to be doing now to ensure that your brand is positioned for success as Gen Z emerges? We can help answer that question.

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