By 2031, Generation Z’s income will surpass that of Millennials’. As a generation, they will grow to over $2 trillion in global earnings. Brands of all types will increasingly want to market to them (if they don’t already), but they may be surprised to learn that Gen Z consumers don’t respond to traditional marketing tactics.
Who is Generation Z? Anyone born between 1995 and 2010 is considered a member. In the US, 48% of Gen Z is non-white, more than any prior generation. 20% identify as LGBTQ+, over twice as many as other generations. This generation is on track to be the best-educated one in history, with 57% of recent high school grads enrolled in post-secondary education. Globally, more than 2 billion people fall in the Gen Z category. 9 in 10 of them live in emerging markets, with India claiming 1 in 5 of them.
How can companies market to Gen Z? Only 36% of the generation says they have a strong connection to any particular brand. Instead, Gen Z tries to organize their shopping around perceived company values. Young consumers want to buy from brands they can trust; 65% research product origins before purchasing, seeking information on origin, materials, and production processes. As a whole, Gen Z prefers products that promote sustainable and ethical business practices as well as inclusivity. Over half of Gen Z consumers surveyed said they would pay more than 10% more for a product that was made sustainably. Company marketing should emphasize company values and include individuals from diverse backgrounds.
With regards to platform, companies should adopt a mobile-first strategy to reach Gen Z. Nearly half of teens in the US today are on their mobile devices more than 10 hours a day. Emphasize alternative social media like Tik Tok, Instagram, Snapchat and YouTube.