How to be relevant now, and in the future, with Gen Z
The shape of retail over the next 50 years will be defined by Gen Z. And it will be influenced to a level never seen before.
As Einstein said, if you want to know the future, look at the past. In the 1960s and 70’s, the baby boomers fought for women’s rights, gay rights, civil rights and for social equality. They also played a big role in shaping popular culture and retail.
Therefore, If you want to know what you need to do to be relevant now, and in the future, Gen Z will provide all the answers. However, they shouldn’t be thought of as a market segment, they are more than that, they are a community. And it is the power of the community and Gen Z as a collective that will shape the future. They are the change agents who will redefine how we deal with diversity, the environment, sustainability, the circular economy, financial wellness and happiness and trust.
Retailers who tap into this insight can get ahead, and stay ahead, of competitors and maintain their relevance for years to come.
While Gen Z will have a significant impact upon retail the way baby boomers did and share their activism on causes of most importance to them, their behaviour in other ways is pretty much polar opposite. Here are five things you need to know about this pivotal generations shopping and spending habits.
1. When it comes to money, they don’t want debt, therefore they don’t use credit cards the way earlier generations did. They want to pay cashwith their own money. That means debit cards or even better, having the flexibility to buy now but pay back later. This helps them to budget and empowers them with more control over their finances as opposed to entrapping them the way credit card debt would do.
2. They aren’t influenced by traditional aspirational advertising that uses models and celebrities to promote their wares. They engage with brands who are empathetic and authentic and use real people in marketing that they can relate to.
3. They are emotional and passionate and look to engage with brands who want to have a deeper relationship with them. Trust will be at the heart of any relationship they have. However, they will often start from a position of distrust. And it will be down to a brand to prove that it can be trusted. This means taking the issues that are most important to Gen Z seriously. Such as the environment, sustainability, diversity and inclusion.
4. They are the changemakers. Greta Thunberg being the prime example of the passion and activism of Gen Z. Undoubtedly, Gen Z will lead the way to a better world for all of us. They will force us all to take sustainability seriously, to measure our own carbon footprint. They will ensure brands have a genuine purpose and look after the planet, their people and their customers. They will drive us to care about the community and think more about others and less about ourselves. They will even reshape what retailers sell us. As we move more towards the circular economy and re-purposed products, we will find more and more retailers selling a range of products that includes both the old and the new.
5. Also, of huge importance is to deliver a more personalised experience with relevant content, messaging, marketing and products. This way they can see that a brand is taking them seriously and not treating them as just a number.
Don’t make the mistake of thinking that Gen Z is not your core customer and therefore you don’t need to worry about any of this for the time being as their influence goes way beyond their own brand preferences. They have a bigger influence on other generations than any previous generation did. They are the beacons and the path-makers. And we should all look to them for what comes next.
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