To most, the simplified letters of X, Y and Z will mean nearly nothing apart from the last three letters of the modern alphabet. To some they may believe it to be referring to coordinates or axis on some sort of map. Yet to marketeers, these letters are crucial, as they define a particular group of consumers; a generation of consumers in fact.
Millennials were who brands were predominantly focussing their attention on, but now it seems Generation Z is here and ready to make their mark. Generation Z, the newest generation, are starting to make an impact on retail buying, and according to Forbes, Generation Z (those born in and after the year 2000) already make up 25% of the US population and a similar number here in the UK. That makes Generation Z a larger percentage of the population than Baby Boomers and are quickly approaching Millennial levels.
Not only large in size, Generation Z are also strong in purchasing influence. A recent IBM study (15,600 people in 16 countries) has Generation Z’s purchasing power at approx. £35 billion. Furthermore, Generation Z influences 93% of the family budget. The IBM study also reveals that Generation Z is all about mobile; 25% of Generation Z spend over five hours per day on a mobile device learning, socialising, but most importantly, purchasing, and they are the first generation to be born into a life where mobile technology is all they know.
Generation Z want to browse online and in stores, and they are looking for a seamless experience no matter what method they use to do this. If a brand can’t, or doesn’t react quickly to their needs, they will drop it and move on to another quickly, so brands need to be mobile-savvy, create a seamless, omnichannel experience and respond quickly to their needs.
With Generation Z, Brand loyalty is not at the forefront of their minds, as it is with Millennials and Baby Boomers. They are a new, but powerful group of buyers, so it’s important to start preparing for them now as they are impatient due to their overstimulation to technology.
