Today’s opinion is from Payton Coon.
Sometimes referred to as the “Dot Com Kids” or “Generation Connected,” Generation Z is made up of over 2 billion young adults and teens born after 1996. The generation as a whole is coming of age and changing the world as we know it, especially as it relates to brands. Gen Z is becoming a powerhouse of a generation. Not only are they more racially and ethnically diverse than any generation in history but they are also on track to becoming the most educated generation to date [3]. The kids of Gen Z grew up in the era of digital which has influenced the way they see the world and the way they interact with brands.
Historically, brands will look at generation-wide preferences to gain information on how to better serve new consumers. Majority of large corporations have one main priority: to sell products and make money for shareholders. However, Gen Z is challenging the historic business model that we know. Their preferences include transparency, trust, and brand responsibility. Growing up in a digital age full of misinformation and alternative facts, Generation Z has adapted to not only sort out the fake news, but they can also separate the fake from the authentic brands.
The National Retail Federation did a report in 2018 about Generation Z and their relationships with brands. From their research they found that Gen Z is redefining brand expectations. In the past, generations have been drawn to the lowest priced items with the highest perceived quality. However, much like Millennials, Gen Zers value brands who hold opinions and take bold stances on certain key issues. By showing that they care about the same issues, brands can foster trust with Gen Z. In this new age, Generation Z is looking to build relationships with transparent brands that they can trust. Brands need to be clear about their processes and what they stand for within their company and farther beyond to develop loyalty from Gen Zers.
As Gen Z grows in age, so does their purchasing power. According to a Forbes interview, this generation “represents up to $143 billion in buying power – and that’s without accounting for the influence they have on household spending” (Cardador). The generation as a whole is far too big for brands to ignore and they present a huge opportunity. Large companies will need to adapt to become more socially, environmentally, and economically responsible in an authentic way if they want to gain the brand loyalty of Gen Z. Brands can only do this if they have a strong set of values and a core mission that is carried out and communicated to the consumers on a daily basis. Gen Z is changing the way brands interact with their audiences, and I believe it’s for the better.
I hope that Gen Z is the push that the world of business needed to start being ethical again. This generation, if they continue to care about these issues and put their money in responsible companies, can have an astronomical impact on our society at large and the way our economy operates. I want to see businesses respond to the demands of Gen Z. Weather it’s because it’s the right thing to do or because they want brand loyalty from the younger generation; either way, if we get more sustainable and ethical practices out of it, it’s a positive in my book. I have hope for this generation and hope that we can continue to push the world in a positive direction.