Generation Z is expected to earn five times more than Millennials over the next decade. Generation Z (born 1995-2010) is the most powerful generation in terms of annual spending, with $143 billion and $127 billion respectively. They are the most racially diverse, LGBTQ+ inclusive, and best educated generation in history.
Because of their wealth and purchasing power, brands are naturally inclined to want to market their products to Gen Z consumers. However, traditional methods won’t be enough. Generation Z only 36% say that they feel a connection to brands. Generation Z buyers base their decisions on company values like sustainability/ethical business practices as well as inclusion of marketing and employees. Generation Z customers were more likely to be willing pay higher prices for environmentally friendly products (73%) – a much larger percentage than the rest of generations. These consumers are more likely to reject brands that they find too macho or scandal-prone.
What can brands do to inform consumers about their values and beliefs? It is important that they emphasize mobile marketing. The majority of teens in the US spend at least 10 hours on their phones each day. TikTok and Instagram are some of their favourite platforms. 2/3 want to shop via social media.