4 Financial Trends Marketers Should Know About Gen Z
Gen Z is made up of individuals born between the years 1997 and 2012. This classification of children and young adults is among the most educated, influential, and technologically-experienced generation the world has ever seen. They are the first generation growing up with access to all of the information and resources they will ever need right in their back pocket (literally). This generation has the ability to connect with people all over the world, and most of them don’t know a life without a smartphone and internet access readily available. Brands have a major impact on Gen Z due to the fact that every click, search, and like is monitored by their smartphones, laptops, and tablets. It’s estimated that Gen Z spends an average of five hours or more a day using their smartphones — leaving ample time for brands to influence this cutting-edge generation.
Food & Spending
According to research, Gen Z households spend $760 on food each month, with 72% of that going to groceries and the other 28% spent on eating out. A study done on Gen Z and Millennials shows that neither generation are huge fans of online grocery shopping. 56% of Gen Zers who were surveyed reported they had not grocery shopped online in the last 30 days. This could be surprising to some brands because Gen Z is all about convenience, so this could change how they decide to market their products.
Gen Z currently has the spending power of $143 billion. With ages ranging from 8-23 years old, many members of this generation have some portion of their parent’s money to spend on retail items. Research shows that over 40% of Gen Zers have reported purchasing more than half of their clothing online. The reason for this is because they are able to compare many different brands and prices. It is easier to find the best deals when shopping online, and it is also easier to find coupons and promo codes. Teens and young adults are also 54% more likely to purchase a product if an influencer recommends it. Retail brands that prioritize the customer’s online shopping experience through user-generated content and shoppable social media features stand out to Gen Z’ers as they spend increasing time online.
Health & Wellness
Gen Zers have been reported to be the most active generation of all time. Gen Z alone made up 38% of gym membership sign-ups globally in 2018. Along with that, 87% of Gen Z has reported being physically active three or more times per week, either going to the gym, working out at home, or using a fitness app to achieve their health goals. It has also been reported that 71% of Gen Z discovers new fitness opportunities and healthy restaurants on social media, compared to only 25% who find them on television commercials. It is important for brands to be focusing on getting more advertising for their products on social media (such as YouTube and TikTok) and spending less advertising dollars on paying for TV commercials and billboards.
Gen Z has every other generation beat when it comes to being environmentally friendly. They are the largest generation of consumers, making it extremely important for brands to evolve in order to meet their wants and needs. Gen Z is willing to pay extra for sustainable products and brands, which is why so many companies have switched their processes and business models in order to be more eco-friendly. Surveys of Gen Z members show that 73% are willing to pay more for sustainability. As more members of this generation get older, that number is only going to increase. Younger generations are more likely to believe in these scientific findings than the older generations, and because they are growing up surrounded by activism and information readily available online. Soon, Gen Z will make up the majority of adults that are spending money in the market. For brands, it is vital to cater to their beliefs and sustainable values now so that as they get older, they will continue to shop with them.Gen Z has already made a lasting impact on the world, and they are just getting started. To be among one of the largest generations in history with more resources available to them than ever before is something to be valued. Brands have such a large influence over the younger generation, and it is important that they continue to be a positive influence and show value to things like finances and securing a financial future as a young adult.