Get Ready For Generation Z!
Gen Z is bigger than the Baby Boomers and is about to upend consumerism. The kids of Generation Z, who make up 25% of the population of the USA, are about to become the planet's biggest spending force.
Generation Z thinks differently about marketing and commerce. Surveys show that unlike Millennials, Gen Z is cautious about consumption. After seeing their parents hit by the 2008 financial crisis, they prefer thrift stores, sustainable brands, and saving for rainy days, even when they have steady jobs and rising wages.
The new Generation Z will have to be coaxed to spend. Companies say "value" is key, providing lower price points, and more customized and sustainable experiences.
Here's how the oldest members and consumers compare with previous demographic cohorts in the United States:
Boomers: 54-72 Years Old
Generation X: 38-53 Years Old
Millennials: 22-37 Years Old
Generation Z: Born after 1996
Gen Z are more ethically minded spenders than the previous generation. Gen Z is coming into its spending power and looking for a good deal and sustainable products. The group is turning to reused clothing at the quickest pace, with 1 in 3 Gen Z shoppers buying second hand.
Gen Z are also harder to reach. Forget TV — social media will be how they connect. Most of Generation Z has used the internet since a young age and is comfortable with technology and social media. Statistics Canada notes they're sometimes called the "Internet Generation", as the first generation born after the popularization of the internet.
Different is the Name of the Game for these young adults. Nearly half of Gen Z shoppers want products tailor-made to their tastes and interests, according to a report from IBM and the National Retail Federation.
Check out Bloomberg Business Week's special series on Generation Z.