How brands can reach Gen Z
Referred to as 'Gen Z', 'Zoomers' and even 'Generation Sensible', they have become a major buying power, now accounting for 40 percent of consumers worldwide. As the most recent KPMG report accurately states: "It's time for organisations to take [them] seriously".
There is some discrepancy on the age of Gen Z, with reports going from anywhere between six and 24 years old. We will be looking specifically at KPMG's 'Me, my life, my wallet' report, which categorises them as between seven and 16.
Far too many businesses have preconceived notions about this generation, executing marketing strategies with no real understanding of what is important to them, and what they want in a brand. KPMG's report contains some excellent findings that shed a light on all of this. We highly recommend you read it for yourself.
What drives Gen Z
I have had a lot of conversations with people in which they have pigeonholed Gen Z as driven by social media, mainstream trends, and TikTok dances. This is not true.
KPMG's report found this generation cares less about fashion, music and entertainment, and more about family, friends, work, and wellbeing. Over 60 percent are perturbed by climate change, compared to just over 30 percent that want to be the first to use new technology.
Yes, this generation is influenced by technology, but even at such a young age, they demonstrate strong moral and ethical awareness. Brands that categorise them as primarily motivated by shallow, quick trends online are very incorrect.
The impacts of COVID-19
As with every generation, the global pandemic has had a big impact on Gen Z.
More than half are worried about their finances, resulting in 48 percent reducing spend and saving more. I'm not sure about you, but when I was 16, saving money was not exactly a top priority. 'Generation Sensible' is probably a fair name.
Brands should consider this moving forward. COVID-19 has had a considerable impact on their spending mentality, a behaviour they will likely uphold even when the pandemic is over. Some of their most influential years have been disrupted by witnessing job uncertainty, high unemployment rates, and concerns for health and wellbeing. This is particularly important to consider for global brands: in Australia, we have not felt the same impacts as in other countries. Be mindful that the habits and behaviours of Gen Z consumers will be shaped differently based on where they lived during the pandemic.
What Gen Z want from brands
It is no secret that there is a huge demand from consumers for brands to act ethically and sustainably; we have seen it in the news, from grassroots fundraisers to international protests.
This is a characteristic also seen within Gen Z.
72 percent of consumers in this generation "buy into brands that align with their values", rating empathy as either 'important' or 'very important'.
Brands cannot expect to create a social media page and resonate with this audience. They also cannot expect to vocalise support for a social issue and leave it there, or worse than this, stay neutral. And remember to show, don't tell. Drive positive initiatives and use your platform to uphold important messages. Work ethically, morally, and sustainably.
Final thoughts
Gen Z are far more complex and socially aware than many brands give them credit for. To resonate with this demographic, brands must demonstrate strong values with a moral and ethical drive that goes beyond shallow posts on social media.
Written by Sophie Richardson
