Totaling around 2 billion individuals worldwide, Gen Z consists of young people born between 1995 and 2010. It may come as a surprise that this Generation will soon become the most critical generation for businesses to consider, as they are set to outpace the earnings of Millennials by 2031. Understanding how Gen Z relates to brands and technology is essential for any business.
Gen Z’s Purchasing Power
Gen Z now accounts for over 40% of all consumers in the United States alone. With so much purchasing power, it is important for brands to understand what drives this generation’s purchasing decisions. These young people are increasingly interested in buying from brands that they trust, and over 60% perform research on a company before supporting it with their purchase.
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Gen Z prefers products that promote sustainability, inclusivity, and ethical business practices. Furthermore, Gen Z will actually pay more money for a product if the business model has shared values with the consumer. Clearly, a strong sense of connectivity between the business and this generation is essential in reaching these young consumers. For example, look to businesses such as Google, Netflix, and YouTube; which are currently Gen Z’s three favorite brands.
Clearly a technology-focused generation, young people are thrown into the digital world more than any other generation. With so many of these young consumers on social media sites, mobile-first marketing becomes an essential part of successful business models. With roughly half of this generation getting their news from social media, brands who are active on these platforms have the best chance of connecting with Gen Z.
As Gen Z grows in purchasing power, more and more brands will evolve their business strategies to best reach this upcoming generation. As the wealth falls to younger consumers, businesses have to adapt their messaging to best connect with young people. As shown, finding common values will immediately boost a businesses reputation. And the best way to promote these messages is through social media, as Gen Z is by far the most digitally connected and will be the first to find this information.
Infographic source: RaveReviews
