Gen Z has emerged as a lucrative market for marketers and businesses are working hard to unlock future spending. This group of consumers has unique characteristics and is regarded as a financial powerhouse.
Gen Z, those born between 1997 and 2012, make up the largest generation to date. They are said to be the wealthiest generation ever, will have the fastest growth in spending power, and will overtake Boomer spending by 2029.
According to NIQ Report ‘Spend Z Gen Z changes everything’, Gen Z is influencing household purchases at a disproportionate rate compared with previous generations. Gen Z is digital-first, highly non-Western, and spans various life stages. This group has never known a life without immediate, open access to information through technology, which makes it the first truly ‘digitally native’ consumer cohort.
Nielsen stated that the diversity of Gen Zers comes through their social and cultural values. It highlighted that relationships manifest differently for Gen Zers. “Their digital connectedness lends itself to virtual engagement, sometimes at the cost of in-person relationships. This has led to increased rates of isolation and loneliness, and the deprioritization of values like enduring love, romance, and sex.” As such, belonging and self-esteem are also among the top values Gen Z holds dear when looking for products from manufacturers and retailers.
Gen Z Realities and Perceptions
It should be noted that Gen Z is grounded in the realities of life, be it the economy or climate change. They are very much aware of what all goes around, the global issues, and the usage of social media for impact.
Gen Z has a heightened awareness of value – thus the goal of retailers and manufacturers is to increase the perception of value for the products one sells. In its 2024 Global Consumer Outlook Report, Nielsen asked consumers of all generations what matters most to them when it comes to their purchasing habits. The spotlight fell on ‘affordability’.
Gen Z consumers prefer to buy sustainable products. The report’s executive summary recommends investing in data that reveals the attributes Gen Zers are gravitating toward, such as cruelty-free, sustainable, etc. “Be cautious, however, that you aren’t simply investing or overinvesting in attributes. Gen Zers merely claim they are prioritizing. They are more prone to brand exploration and look for novelty and fun in everyday products,” it said.
Experts recommend brands include incremental and disruptive innovation for product freshness and playful, but authentic, advertising campaigns that speak directly to Gen Z’s values – value, quality, and authenticity.
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