Millennials as of yet have been the largest consumer group for most brands with $200 billion in buying power. However, the next generation of buying power is with Generation Z, the next cohort in this cycle of commerce, the oldest of this generation being teenagers were born between the mid 1990’s until the present, with $44 billion in buying power and growing as they make up nearly 26% of the worlds population. So its no wonder why brands need to start adjusting the marketing techniques in order to relate with this fast adapting generation, to gain their trust as they will become very valuable really soon (Garton, 2015).
Gen Z have grown up with the internet, iPhone and smart TV’s making them the most informed Generation with all the knowledge that they would need readily at their fingertips, therefore marketers need to change the way that they approach consumer campaigns over the next decade.
Lobato, (2015) wrote an article with Text100 after conducting a study of 1000 participants, from this it was outlined that Gen Z are less likely to be affected in the way Millennials where in terms of being traditional and conformity. As they were being influenced by so much technology and social media, they have learnt how to express themselves in a more creative way and “shuns social conformity and wants to make a difference in the world”.
Social media is obviously very important with Gen Z as they can never be offline, therefore being up to date with most of what is happening in the world is very important.Gen Z respondents admitted to watching YouTube for more than two hours every day.The report also suggested that Facebook still owns social media, with 84 percent of 13- to 17-year-olds and 46 percent of 8- to 12-year-olds holding active accounts.
Organisations need to tap into this idea of not advertising in a way which seems fake, where they are only saying that their product or service is helping the world, in which case would have been enough for the previous generation, however marketers need to take their campaigns a step farther to engage Gen Z more directly by showing how they are changing the world. What’s interesting also is the fact that 67 percent of Gen Z prefers narratives and storytelling, so it’s no wonder Gen Z is flocking to YouTube, and therefore other social media outlets could work quite well in this aspect like Snapchat which bases its heart in narrative story telling.
Not only this but by study conducted by Frank N. Magid Associates, Inc reported that Gen Z are the most positive about ethical diversity, by existing in the most diverse social circles and are most likely the last generation to believe in the ‘American Dream’ as well as being affected by blending gender roles, to find out more please click here (source: Gen Z).
A quote by Lenovo’s CMO David Roman: “Consumers want to feel inspired and part of something exciting, so telling a brand’s unique story is a powerful tool in achieving consumer loyalty and engagement,”.
Therefore, to conclude it is still early to understand how business will be able to adapt their strategies for Gen Z or how commerce or e-commence will be in the next 20-30 years? Will their openness to diversity create demands for more diverse representation in programming and advertising? Or will there willingness to make the world a better place allow business to change also to make themselves better as well as their products to suit this trend? Only time will tell.
References
Garton, C. (2015). 4 Marketing Tactics for Appealing to Generation Z. [online] Entrepreneur. Available at: http://www.entrepreneur.com/article/252923 [Accessed 27 Jan. 2016].
Lobato, M. (2015). Marketing to Generation Z: Why Your Millennial Plan is Kaput. [online] Text100 Integrated Communications. Available at: https://www.text100.com/articles/digital-marketing/marketing-to-generation-z/ [Accessed 27 Jan. 2016].