By the end of 2020, 40% of consumers are Gen Zers, and with an incredible spending power of $143 billion, it’s no wonder their behaviour is making such a big impact. So, why should you consider Gen Z’s consumer behaviour?
There has been a shift in attitude from the generation of millennials, with Gen Z now influencing their previous generations in regards to buyer behaviour. Taking an interest in these changes and how it can affect the way Gen Zers perceive your business, will really benefit your sales in the long run. Let’s take a look.
For Generation Z, the act of buying a product has become a multi-dimensional decision-making process. For a start, there has been a big shift in attitude towards individuality and uniqueness. Millennials and Gen X tend to be self-concerned, combined with wanting to follow direction. This also equates to a desire to fit in with the crowd, like when we have previously seen ‘luxury’ as being high-end branded purchases. On the contrary, Gen Zers aspire to be unique, and with that comes a need for distinctive products and brands. This doesn’t mean to say that these consumers are unwilling to pay for luxury, in fact quite the opposite.
They are willing to pay for luxury, but not how you would typically think of it. They are less concerned with the branding and more interested in fresh ideas, confirming the need for businesses to deliver innovative products, and they will happily pay high prices for something that sets them apart. Consequently, it is easy to understand why trends are showing a decreasing number of brand loyalists. Businesses cannot just think about brand loyalty, but need to consider how they can win the consumer each time with a new and exclusive product. They need to capture excitement in the product every time and not just trust the customer to stick around for the next.
Where is your money going?
Another part of the consumer decision-making process for Gen Z is the reflection of societal values from a brand. This is a distinctive attitude to look out for, as their need for knowing where their money is going. McKinsey and Co refer to Gen Z as ‘True Gen’ within their recent study of consumer behaviour, due to their attention towards searching for the truth. A value which is held very highly for these consumers is sustainability, and this is only becoming stronger. They are becoming more sustainable every year, and requiring this from the businesses they buy from. The ‘cancel culture’ which has been seen widely across the last year or so on social media has resulted in brand loyalty reducing, as consumers are not afraid to shop elsewhere if a business cannot actively show their positive impact on the environment, and not only talk about it.
For example, two big changes in the food industry have been the rise in niche diets, and the increased availability for online shopping. In terms of Gen Z, 35% are shopping somewhere that is not a traditional supermarket. This is often due to the availability of products for niche diets, such as vegan stores. However, we have seen that these consumers like to buy local and know who their money is going to, rather than giving their money to large supermarket chains. Gen Z will make up their own mind about an organisation. They are less likely to listen to what the business says, and more likely to make decisions based on recommendations, online reviews, and social media influencers.
Availability of shops
One of the most valuable things to take into account when considering Gen Z behaviours, is the ease and availability of shopping. The key point to remember here, is that this is the norm for this generation – they have grown up with online shopping. Whereas, for other generations, there is still a feeling of newness around e-commerce. Today, you can shop over various formats from in-store, to department stores with numerous brands, to online stores, and most recently – social media shopping.
This has resulted in an increased frequency of shopping by Gen Z consumers as it is available to them at any time, as well as an incline in small, niche businesses. Because small businesses can set up online without needing to incorporate themselves into the distribution channel, it has made it easier than ever before for people to open stores through platforms like Instagram Shopping. Being more available to consumers, Gen Zers are browsing all the time, and making purchases within one click. This means that these consumers are always looking for brands that they can view online and through social media platforms. As a business, it’s important to think about growing your Instagram following, and other platforms that could attract new customers.
So, as we have seen, Gen Z are concerned with basing their opinions about a brand on reviews and recommendations and like to find this easily on their phones. It’s no surprise that over recent years, influencer marketing has become the next best thing for promoting your company. You used to only ever see advertisements from big celebrities however, consumers do not value this highly anymore, as they feel that they can’t trust these recommendations. This has led to a community of micro influencers being built on platforms like Instagram, who are constantly working with brands to promote products that they genuinely like and care about.
Hence, when taking into account the above points about Gen Z consumer behaviour, it could be worthwhile to consider using an influencer marketing platform for your brands. Businesses from small to large are using Instagram influencers every day, to post promotional content and to help spread their brands values to consumers from a trusted source. Gen Zers are using social media every single day, and regularly visiting business accounts while on these platforms. So, if you don’t already have your shop set up online and on social media, then now is the time to do it.
To sum up, there is a lot more to think about when it comes to consumer behaviour from Generation Z. But, typically their buyer needs are surrounded by uniqueness, sustainability, and availability.
If you’re on the road to marketing towards Gen Z and ready to take the next step, then head to Heepsy, where you can find influencers to help achieve your marketing goals.