Described as “the most disruptive generation,” Generation Z is already on the verge of surpassing Millennials ’income in 2031. This makes the generation born between 1995 and 2010 a highly sought-after demographic for companies looking to maintain the growth over the next few years. .
How does Generation Z respond to brands?
With Generation Z currently between the ages of 10 and 20, they represent 2 billion of the world’s population. Perhaps most importantly for American companies, Generation Z accounts for 40% of U.S. consumers.
This means that companies will need to understand how Generation Z relates to brands and technology to attract their tastes. The best way to achieve this is with data, and fortunately we have a recently published view to analyze.
Influences on Generation Z spending
Data company NowSourcing collected information about the Generation Z relationship with brands on behalf of Rave Reviews. They found that Generation Z spends mostly their own money on clothes and shoes, books and music, apps, toys, and games. Events and outings were another popular spending influence for Generation Z.
The most popular brands among the Gen Z were Netflix, Google and Youtube, with Amazon, Oreo and Playstation also very popular. Other popular brands among the Gen Z were retail giants Walmart and Target, as well as Doritos and Nintendo.
Interestingly, however, only 36% said they had a strong connection or loyalty to a particular brand.
The generation of diversity
Another interesting aspect of Generation Z is the diversity they are. Today, 48% of Generation Z are not white, with 22% with at least one immigrant father, compared to 14% of millennials.
Twice as many previous generations identify as LGBT +, with 35% saying they know someone who prefers gender-neutral pronouns.
Generation Z is also on the verge of becoming the most educated generation, with 57% of recent high school graduates enrolled in a 2- or 4-year-old university. Only 44% live with a father with a university degree.
Values and Ethics of Generation Z
The way Gen Z perceives the world can have a big influence on how companies can market their products to them. The data suggests that the best way to attract Gen Z customers is to have an ethical product. This is because 65% say they research the origins of a product before buying it, including where and how it was made, as well as what it is made of.
More than 90% of Generation Z say they prefer products that promote sustainable and ethical business practices. Also on their list of priorities is inclusion and shared general principles. More than three-quarters will also actively spread unethical companies they consider sexist, racist or homophobic, as well as involved in scandals.
They are also using a wide variety of social networking platforms, with TikTok, Instagram, YouTube, Snapchat and Discord some of the most popular. Less obvious forums include Fortnite and Roblox games, as well as the Twitch streaming service.
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