Consumer habits of Gen Z

When it comes to consumer habits, Generation Z is something totally unprecedented. This tech-savvy, socially-conscious generation is fast becoming the most interesting demographic group for many companies. Here's what you need to know about Gen Z. 

Who are Gen Zers, and what are their defining characteristics

Gen Z, sometimes referred to as iGeneration, Zoomers or Centennials, is a generation of people born after the mid-1990s. This group is naturally diverse in terms of race, ethnicity and gender; however, they tend to be more accepting and tolerant of difference than their predecessors.

Gen Zers grew up with technology and are used to having access to digital tools that make communication and collaboration easier. 

Unlike Millennials, Gen Zers are less interested in flashy brands and material possessions; instead, they prefer experiences and connections that create memories.
 
Gen Z is also more socially conscious and is often searching for ways to make a positive impact on the world. They prioritise sustainability, ethical production and consumerism that supports causes they believe in.

Although Gen Z can come off as overly confident at times when sharing their opinions on social media platforms, overall this generation is extremely intelligent, ambitious and driven when it comes to achieving their goals.

On the economic aspect, the purchasing power of Gen Z is 86 percent less than what Baby Boomers had when they were in their 20s. In addition, most of them do not feel financially secure. That is why they tend to be more frugal than previous generation. They grew up during the Great Recession, so they are incredibly conscious of how they spend their money and are often searching for ways to save. However, they currently possess a disposable income of $360 billion, which will grow as more of them enter the workforce.

Elements that companies need to consider if they want to connect with this demographic group 

Reaching this age group through focused strategies can be extremely beneficial since young consumers are looking for products they can relate to and identify with; marketers who understand this can really strike a chord with them. As such, it's essential for marketers to capture the attention of this burgeoning demographic in order to better attain their trust and loyalty going forward.
Here are a few elements that companies should take into consideration: 

Gen Z values

This generation's ethical stance on consumerism makes them more likely to pay attention to sustainability and corporate social responsibility when looking at potential purchases, even if it means paying more for items. Moreover, since Gen Z prioritises experiences over possessions, they typically look for events rather than physical goods when it comes to spending money.

Gen Z and marketing

Marketers should appreciate Gen Z’s increasingly short attention span by creating short and visually appealing content optimised for social media platforms with quick delivery taps.

Gen Zers are drawn to content that speaks directly to their interests and values, so it’s important for marketers to really take the time to understand this generation in order to create content that resonates with them. Companies should strive to promote their values through real stories about real people.

Marketers should also strive to create an immersive experience that goes beyond just the product itself in order to truly engage Gen Zers and build loyalty within this demographic. 

Finally, Gen Z customers expect brands to be transparent, honest and relatable when marketing their products. They want to feel a sense of connection with the companies they purchase from.

Their expectations about products and services

Centennials have high expectations for customer service; they demand fast response times, personalised interactions and solutions tailored to their individual needs. 

They also favour customisation; they like being able to personalise their products and make something unique that reflects their individual style.

Their relationship with technology 

Gen Zers are highly engaged in the digital space and spend a lot of time researching products before making purchasing decisions. They overwhelmingly prefer online shopping. 

This group values connecting with peers when discovering new brands and items. For this reason, involvement with social networks is essential for a product to be successful with Gen Z and live commerce could be a winning strategy with this generation.

Of course, Gen Zers are more likely to use the latest technology in order to shop, so companies should consider investing in solutions such as voice-activated devices and augmented reality applications.
To effectively engage with Gen Zers, marketers must be willing to experiment with new techniques and technologies. One example is connected products, which give younger consumers the ability to access information on product origin, supply chain sustainability, but also services and exclusive digital content. 

Additionally, due to their obsession with data security, brands should take extra steps to increase privacy protection measures.