Why do companies focus on Gen Z?
Gen Zers, the new trendsetters
According to a report published in 2015 by online marketing consulting firm Kissandra, 93% of parents said their children affect family spending and household purchases.
In a 2016 study by Marketing Vendor Interaction, 70% of parents reported that they listened to Gen Z’s advice when buying items online.
The decision makers influence all over the area. According to the IBM Institute for Values, for food and beverage, 77% of parents are affected by their Generation Z children. 76% for households, 66% for travel, 61% for electronics, and 60% for clothes and shoes.
As above, if Gen Zers are powerful opinion leaders or will be, what are the characteristics you must remember when marketing?
3 major characteristics of Gen Z
- Value-oriented
The quality of a product or service and brand value are still important to Gen Z, but they more actively link the value to social responsibility. According to a survey by US consulting firm Futurecast, 60% of teens said they would consume brands that are faithful to their social role.
Then, what is the social role of the brand that Gen Z considers particularly important? According to the IBM Institute for Value, the keywords of Gen Z’s favorite brands are eco-friendliness, high quality, and social responsibility.
According to former Wall Street analyst and Forbes top 8 investor, Mary Ricker, Gen Z prefers a brand that advocates environmental protection, child relief, fair trade in the production and sales process of products, and creates pleasant content in the process of using products.
If a particular brand has had a negative influence on society, they also actively boycott. Gen Zers, the most socially conscious generation, put their money where their values are; look at Patagonia, Reformation or other fair trade brands.
2) They’re protective of their privacy
Gen Zers love to share personal experiences on social media, but they’re also keen to protect their privacy.
Cyber-savvy Gen Zers have witnessed many cyber hacking crises and have learned the importance of privacy and security at schools. They’re more inclined to cover the webcam on their laptops and install ad block than previous generations.
But, according to IBM’s survey Uniquely Gen Z, 61% would feel better sharing personal information with brands if they could trust it was being securely stored and protected.
Companies should be transparent regarding data collection and use. Policies on privacy and security should be accessible, and a company should show how much they care for their privacy..
3) Digital natives shop in offline stores as well
Despite Gen Zers often use web browser for shopping, they still love browsing in store. According to CSA, sixty percent of Gen Z shoppers still prefer to purchase in-store, and 46% will still check in store to get more information before making an online purchase. In the U.S., 77% of Gen Z respondents said that brick-and-mortar stores is their preferred shopping channel.
They love “real” experiences, even waiting in a long line to buy limited-edition products. This is why many brands focus on building omni-channel shopping experience for customers- linking Online to Offline, which connects social media browsing to actual purchases.
In search of authentic brands
From 3 characteristics of Gen Z above, the things they love can be expressed in one word: authenticity.
- The authentic brand that value social causes
- The authentic brand that really cares customer privacy
- The authentic experience that they can directly see and feel
In the book “Marketing to Gen Z” written by two authors, Jeff Fromm and Angie Read, describes Gen Z as a prudent consumer, a generation that acts with the belief of ‘changing the world’.
As a prudent consumer, they rather believe their friends or other buyers than influencers or celebrities. Keep themselves consciously away from marketing hype, they choose authentic brand or at least the brands they feel so.
Gen Z, the most smart & tech savvy generation, can easily detect whether the brand is authentic or not. They distinguish paid and organic reviews with a few hints. And the words and reviews of those opinion leaders spread quickly on social media and affect others’ decision making.
In the world where authenticity rules, the brand needs to be perceived as reliable, respectful, and real. Building authenticity include transparent communication, dedication to social causes, active social listening and feedback, keeping promises. To raise credibility, consistency can only help. No shortcuts.
Ideas for Social Impact 