When we talk about Gen Z, we're not just talking about those young people who were born between 1996 and 2010, we're talking about a new consumption model, a new set of values, a whole new way of life.
Those who win Generation Z will win the world. It's not just a slogan, it's a deep market insight.
Gen Z was born and raised in the digital age. As "cyber natives", Gen Z has become accustomed to all kinds of new Internet technologies that change the way they live, play, and work.
A new research report released by Goldman Sachs estimates that about 251 million post-95 people in China currently belong to Generation Z. With the rapid development of technology and the advancement of globalization, Generation Z has become a consumer force that cannot be ignored, and the consumption behaviors and concepts of young people are leading the new trend.
Jason Dorsey, CEO and Denise Villa, director of the Center for Intergenerational Dynamics (CGK), have been working on generational research for many years. Based on 65 generational research reports and more than 700 company surveys, they have truly restored the thoughts and thoughts of Gen Z from the triple perspective of marketing, human resources and business strategy, and summarized them in their new book, "The Z Economy: New Forces Reshaping the Business World".
According to the authors, generations are not a fixed-size box that can be neatly stored in 5 or 10 years by year of birth. Because of the increased predictability of the characteristics of their generation, they also have the practical value of being studied and analyzed as a generation. Flip through The Z-Economy: A New Force Reshaping the Business World, and you'll see an amazing Gen Z.
"Z Economy"
This is a comprehensive survival guide for entrepreneurs and leaders to understand and embrace Gen Z. Through extensive consumer group research and collaboration with more than 500 companies around the world, the authors focus on answering a few questions: Who is Gen Z? What do employers, marketers, and sales executives need to know, and more importantly, what should leaders do now? Gen Z is reshaping the business world, and this change will only accelerate. The authors of this book are experts in generational studies, specializing in helping businesses and customers understand the preferences and habits of the new generation. As an authoritative handbook, it will help executives, entrepreneurs, HR or marketing professionals successfully unlock the immense potential of Gen Z at this critical time.
Every year, Gen Z spends billions of dollars both online and offline. As a result, the positioning of products and services of many companies has also changed with the trend of society. As Gen Z enters the age of 25~29, their development momentum will be further enhanced. Because of this, Gen Z has become particularly important in high-spending industries such as automobiles, insurance, real estate, technology, and travel.
So, what exactly do Gen Z need in terms of brand awareness, first try, payment, referrals, and loyalty, and what trends will affect their lives as they grow older, and how will they affect the next generation?
The authors found three key traits that attract Gen Z shoppers: value, personalized content and advertising, and social responsibility.
Value, i.e. value for money. The author reminds everyone not to forget that Gen Z grew up in the aftermath of the Great Recession and not to be fooled by their age. This decisive period has made Gen Z more financially conservative and pragmatic. Gen Z wants their money to be well spent, both in terms of pricing and practicality and durability. For example, buy products that can be used for a long time, use huge discounts on Amazon or physical stores, and buy designer clothes at 95% off the original price at second-hand stores.
In fact, Gen Z likes to shop in second-hand stores. They share with people how important it is to buy clothes with huge discounts, how exciting it is to shop in second-hand stores, how easy and enjoyable it is compared to shopping in the mall, and how many options there are.
It's always been a wonder why second-hand items shouldn't be for people who can't afford to buy what their local mall or Amazon has to offer because they're financially struggling? Surprisingly, the authors' research found that Gen Z, who prefer to shop in second-hand stores, is mostly wealthy. They will talk about how outrageous the price of clothes is, how cheap second-hand stores are, and how good they are in buying items. In short, they repeat almost word for word the topic of the lower socioeconomic status of Gen Z: value, value, value.
However, Gen Z's quest for value doesn't mean they tolerate inferior products. They would rather opt for well-made cheap clothes or save up for a pair of high-end shoes than spend very little money on cheap items.
Personalized content is also an important factor in attracting Gen Z. According to the authors, Gen Z has experienced more products, services, brand ads, and content as adults than any other generation in history. This is due to the fact that this generation has spent countless hours on phones, tablets, and larger screens, as well as on ubiquitous advertising and promotions. These ads can be found everywhere.
According to the research of the two authors, 24% of the members of Generation Z aged 13~17 have never even read a paper newspaper. Instead, they're inundated with highly customized ads that are tailored to them, appearing between their friends, family photos, and social media messages. Today, Gen Z likes highly personalized ads and content, which makes them extremely averse to generic ads that aren't targeted.
Brands that are given meaning will make Gen Z feel better. Gen Z believes that brands should not only pursue profits, but also showcase the positive impact they have on the world. This expectation has quickly moved towards normalcy.
In August 2019, Business Roundtable, an organization of nearly 200 of the most influential CEOs in the United States, signed a pledge to redefine the purpose of the company. They promise that the company should not only be accountable to shareholders but should serve all stakeholders. Who are the stakeholders, how do these CEOs intend to serve them, and their commitment is to deliver value to customers, invest in their people, deal with suppliers fairly and ethically, and support the communities in which they operate. The commitment concludes with a reference to the interests of shareholders and is in the context of long-term developments.
This new trend comes at a good time for businesses, as Gen Z is an adult and sees ads for brands promoting their social status, donations of shoes (TOMS), eyeglasses (Warby Parker), food and water, and everything else to help others in need. While this highly public, socially value-aligned approach is new and, in most cases, geared toward millennials, many Gen Zers are looking forward to it. Before they think about buying a brand, they want to know about the brand beyond the product.
In the future, what economic, social and technological development trends will Generation Z face?
The authors believe that as the pace of change and breakthrough increases, the adulthood dominated by Gen Z will be completely different from previous generations in the next 50 years or so. In Gen Z's future, flying cars are commonplace, custom organs are a way to slow down aging, and space travel is no longer science fiction but a financial budget. Looking ahead to the next two or three decades, the authors believe that the autonomous driving revolution may begin, virtual reality will gradually enter life, population aging and generational transition, the emergence of artificial intelligence, the Internet of Things, connected devices and consumer technology, labor automation, medical breakthroughs, space tourism, global challenges, blockchain and university transformation will influence the next generation in the coming decades.
All of these trends, breakthroughs, challenges, and innovations will dramatically shape and change the beliefs and expectations of Gen Z, and it's certain that it's Gen Z who brings new worldviews, talents, and energies that bring out the best in everyone, today or in the future.
All of these trends, breakthroughs, challenges, and innovations will dramatically shape and change the beliefs and expectations of Gen Z, and it's certain that it's Gen Z who brings new worldviews, talents, and energies that bring out the best in everyone, today or in the future.
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