Gen Z – a shopping force to be reckoned with
Despite Gen Z still being in their teens and tweens, they account for a whopping $198 billion in consumer spending. These whippersnappers are also the most diverse generation in America, and they see themselves as agents of change when it comes to the weighty societal, cultural and environmental issues they’re starring down. And brands better think again if they believe the spending power of Gen Z only reflects the almost 60 million individuals who make up the generation. 81% of Gen Z’s Gen X parents are quick to admit they’re influenced by their kids’ opinions when it comes to the brands they buy. Gen Z is proving they’re a generation not to be overlooked – and a force to be reckoned with.
So as we gallop into the holiday shopping season and the much-anticipated surge in eCommerce sales, it’s vital to understand how Gen Z’s shopping habits will impact sales – for both their purchases and their parental units. While retailers are preparing for a softer holiday season due to the pandemic, analysts show a major shift when it comes to eCommerce sales predictions. They anticipate an increase of eCommerce shopping of 35.8%, while in-store sales dip by 4.7%, netting in an almost 1% total holiday sales increase. All things considered, this ain’t bad for 2020.
Natively steeped in online shopping, many Gen Zers have had exposure to more brands than other generations, resulting in a greater willingness to try new brands without test-driving them first. And after encountering these new brands, as many as 42% say they’re willing to stick with them. As a result, brands should be taking a hard look at their purchase journeys and evaluate what they’re doing to get in front of Gen Zers and stay with them for the long haul.
When it comes to getting Gen Z’s attention, social media is where it’s at. Their favorite platforms include Insta, Tiktok, Snapchat, Twitter and YouTube – and within them, they gravitate toward collaboration. They’re not interested in a one-way conversation, they want to interact with brands, know they’re heard and be a part of the creative process. Fashion and beauty companies are nailing it and have mastered utilizing TikTok seamlessly as part of their marketing arsenal. That said, there are a variety of opportunities for brands outside of those categories to engage and connect. At the end of the day, it all comes down to understanding your audience, knowing what drives them within each platform, and building a brand story ripe for sharing across video and social channels.
Gen Z is an audience your brand needs to understand and how they’re impacting other audiences like their Gen X parents. Employing our Custom Target Connection process, Unbound identifies and targets your highest-value customers. We understand who they are, how to connect with them and how to build brand stories that resonate.
At Unbound, we bring over 100 years of experience working with brands to sharpen their story and drive results. Our team of strategic leaders knows how to get into the hearts and minds of your key customers and reach them where they are – with messages that matter.
Let’s set up 30 minutes to discuss how your marketing strategy is aligning with your key audience and evaluate opportunities for optimization and enhancement. Let’s get started today, give us a call at 816.589.3333.
Sources: Kantar Media, U.S. Census Bureau, eMarketer