Sarah JamesMembers of Gen Z are beginning to receive their first paychecks, enrolling in college, or starting their careers. Research reveals that this generation purchases and spends money differently than its millennials.
Previous generations and millennials were more brand loyal. Gen Z is more interested in purchasing things that will give them the most value for their money. Additionally, Gen Zers acknowledge that they shop more impulsively than previous generations.
Things Gen Z Will Spend Money On
Electronics, technology, health, and wellbeing are among Gen Z’s top priorities, according to the 5WPR 2021 Consumer Culture Report.
On the other hand, elder generations and Millennials place more importance on home furnishings, travel, and experiences.
Gen Z is particularly interested in small enterprises. Additionally, they are prepared to buy now and pay later choices and wait for a decent price before making a purchase.
1. Electronics and Technology
Gen Z occasionally spends money on pleasant technical experiences like video games. There will be 2.95 billion gamers globally by the end of 2022, growing steadily at an average rate of 5.6% annually (YoY).
You might be concerned that Gen Z isn’t worth marketing to since they won’t splurge on your goods. But this age group can definitely be persuaded to make larger purchases that give interesting experiences or improve their daily lives.
Gen Z will purchase more expensive things, but they will still need convincing before opening their wallets. Brands aiming to reach Generation Z must produce content that explains why and how their product is necessary for that age group. How the product might alleviate problems or daily monotony, and why it is superior to a competitor’s.
2. Goods at a Discount
Eighty percent of Gen Z respondents to 5WPR’s report indicate they will hold off on making a purchase until it is on sale. A growing body of data indicates that the age groups’ perspectives on money are directly related to the economic era in which they were raised.
While millennials experienced a more secure socioeconomic environment as children, most of Gen Z’s earliest memories were made during the Great Recession in the United States. A large portion of this generation witnessed how economic hardships affected their family or grew up in households with strict budgets.
The majority of millennials and those in other age groups, however, can recall periods when their economy was booming. In contrast to previous generations, brand loyalty is one of the final considerations millennials make before making a purchase. Value and money are what the generation does prioritise.
According to research and their shopping habits, Gen Z appears to be unable to get over their worries about financial insecurity. According to research, the offering must be really beneficial to them in order for people to justify buying and investing in a good or service.
The Gen Z generation is always searching for a good deal and won’t just buy something because of the name on the package.
You must emphasise why your items are superior to less expensive alternatives from other brands, regardless of how well-known or popular your brand is.
If you’re marketing to Gen Z, you can think about getting well-known influencers or contented young adult consumers to post about your brand on social media. A genuine product review will help establish brand confidence while also demonstrating to Gen Z viewers that the product is used and popular by the people they follow.
3. Wellness and Health
Because the mental wellness of younger populations will influence healthcare trends, job requirements, and future generations’ well-being, Gen Z mental health is a subject that is becoming more and more popular.
According to the 5WPR 2021 consumer report cited earlier, Gen Z spends the second most money on health and fitness.
This group appears to be at the forefront of the wellness movement. They have raised awareness of connected topics like mental health, ethical food sourcing, and other wellness-related concerns.
4. Small companies
Gen Z has grown small company spending on Afterpay by more than 260%, which is 80% greater than Millennials. 60% of Gen Zers chose a product produced by a small business, according to our State of Consumer Report.
Most were motivated by the potential to forge close relationships with customers and support the regional economy. The willingness of consumers to share their data with small firms in exchange for offers and discounts is another intriguing finding. Brands are also required to disclose how the data will be used.
Good news for small businesses trying to connect with Gen Z customers. It’s an invitation to be more transparent about your company and to show what goes on in the background.
5. Education
You can capitalize on Gen Z’s desire to learn new things. By generating educational content that informs consumers about your sector. In addition to developing content that connects your product to academic or career interests.
Audiences may learn more about your product and increase their trust in your business after viewing your educational video. If consumers want to purchase a product connected to your brand, they might give your brand priority.
You can consider the age of your audience if you wish to make the most of instructional content. Gen Zers entering internships or the job may appreciate instructive B2B material. Younger members of the generation may be more interested in B2C brand content due to their age.