Gen Z... What do you want from Us?

Gen Z. The generation that everyone in luxury, nay, the world, is trying to figure out. They brought us Tik Tok, tie dye, Billie Eilish, and eating tide pods for fun. But like it or not, they are the new consumer, and as such brands have to tap into their wants, their needs, and their habits in order to stay relevant.

I listened to a fascinating Zoom on Gen Z the other day on Business of Fashion, and much of what I am going to write here is inspired by that call. The call really got me thinking about who Gen Z is. Like many of us, I’ve become completely addicted to Tik Tok during the quarantine time. It’s a mixture of teenage nostalgia and pure entertainment that keeps me hooked. But also it is the understanding that a new generation below millennials are starting to rule, and they are so different. I wouldn’t say I’m feeling behind the times, but it is no longer our generation which leads the way in terms of digital innovation and creativity. Us millennials aren’t old hat yet, but well, we’re close.

While I can’t do a full length study on who Gen Z is, I will point to some truisms (seemingly and so far) about the 15-25 year old generation. And here they are:

1. For Gen Z, consumption is about access rather than possession

2. Gen Z crave to express their individual identity

3. Consumption for Gen Z is ethical. Transparency and sustainability are a must, not a maybe

4. Gen Z want to define themselves in multiple ways. They want a selection of different products from different brands, but behind each product they want a story and meaning. They purchase brands with purpose

5. Gen Z think pragmatically about their purchases. For many of them they may be first buyers. They want to be empowered in their buying choices, and want brands that provide realness and consistency

6. For Gen Z, brand image is the most key part of their purchasing decision i.e. who is your brand and what does it stand for

The market place of Gen Z is one of digital nativism, excess products and brands, and consumption. These are the generation that are making their first purchases, and they want to be empowered by the brands they buy and stand with. They want ease, convenience and access, but also purpose and meaning. Again, this is the entry level customer, and their priorities have shifted towards access to products and ethical values. They are the generation that always need to update themselves, and be updated with what is happening in the world. They are socially responsible, and responsive to change. As McKinsey states,  “A new global ethos is emerging, and billions of people are using consumption as a means to express their deeply held beliefs.”

And make no mistake, these consumers are important. Gen Z represents approx $150 billion of spending power in the US alone, and by 2020 they will account for 40% of global consumers.

For Gen Z, purchasing appears to be all about Newness, Authenticity and Accessibility, and it is only the start of their reign.

Sources: BOF & McKinsey