How Gen Z Connects with Brands
By 2031, Generation Z will make over one quarter of the global income, or $2 trillion in global earnings. Already, this generation has $143 billion in annual spending power, plus $127 billion spent on their behalf by family members each year. Brands of all sizes and stripes need to get serious about marketing to Gen Z, if they haven’t already.
What makes Gen Z unique? This generation consists of people born between 1995 and 2010. Around the world, that’s over 2 billion young people, 90% of which live in emerging markets like India. In the US specifically, 48% of Gen Z is non-white, more than any other generation. 1 in 5 of Gen Z’s identify as LGBTQ+, over twice as many as previous generations. Collectively, Gen Z is on track to be the best-educated generation, with 57% of recent high school grads enrolled in post-secondary education.
As a result of all these facts, Gen Z has also been nicknamed “the diversity generation.” It should come as no surprise that Gen Z values diversity and inclusion in the brands from which they buy. A majority of those surveyed want better gender equality in fashion, options to search for gender neutral clothing, and non-binary gender options on their forms. While about half of Gen Z consumers want to see more inclusivity in marketing, an even higher percentage also want to see diversity in senior leadership positions. Companies can’t rely on tokenism to market their goods.
Only 36% of people in the generation say they have a strong loyalty to a brand. Instead, Gen Z buys based on perceived company values. Nearly 2 in 3 Gen Z consumers research product origins before making a purchase. They want to know where the product was made, what materials it uses, and how it was produced. Consumers put this information to good use; 73% of Gen Z consumers surveyed were willing to pay more for sustainable products, the largest percentage of any generation. Good marketing should emphasize how the brand is fighting the effects of climate change.
Beyond the content of marketing, brands should allow mobile marketing to dominate their Gen Z outreach. In the US, half of the nation’s teenagers are on their mobile devices 10+ hours a day. Social media is the best place to reach them, though Gen Z prefers TikTok to Twitter. The key is making your brand relatable to them.