Although the threshold and the specifying years may slightly differ depending on the circumstances, the most accepted idea is that Generation Z, Gen Z, or Zoomers are those born between 1997 and 2012, according to experts.
Preceded by the millennials and followed by Generation Alpha, the uniqueness of Zoomers is that most technology, such as television, computers and the internet have been a part of their lives. According to professional predictions, the Gen Z community is emerging as the most influential buying segment in markets around the world. With their values, ideologies, buying behaviour, and driving innovation, they are set to shape the future of marketing activities.
Therefore, marketers throughout the world are compelled to understand the unique characteristics and thinking patterns of Gen Z to strategise their marketing efforts. They are more tech-savvy than millennials, as they have grown up in the era of digital technology advancements and intense social media connectivity.
Digital fluency
Those belonging to Gen Z have experienced the digital world from birth. Unlike the generations before them, they have used the internet from a tender age and are adept at using digital technology. Therefore, their digital fluency has inspired them to communicate, shop, entertain, or attend to other day-to-day activities through technology.
Another significantly important trait of this group is the social consciousness they display in society. They are highly knowledgeable about the social, environmental, or even political situations and attempt to value the diversity and sustainability of such issues. Hence, companies have already made their strategies with this awareness of Gen Z thinking patterns.
Gen Z people are independent thinkers and value individuality, authenticity and freedom. Unlike the old-world folk, they do not seem to follow adult instruction on things they purchase. They are perfectly capable of assessing products they want to purchase and often prefer products that are transparent and genuine. It is obvious that they are less keen on traditional advertising and rely more on customer reviews and social media information.
Personalised experience
The Gen Z customer segment visibly prefers experience over possessions. They do not seem to value material goods and place much greater value on satisfying experience in most situations, such as travel and entertainment. This can have a substantial impact on future markets and companies are forced to adapt to this shift in buying behaviour. The Gen Z also seems to prefer concise and engaging brief content and instant solutions.
The Gen Z, currently aged between 13 and 28 years, carry significant financial power that naturally leads to their buying capacity. Researchers said that this capacity would increase substantially during the next few decades. The disposable income of Gen Z is expected to multiply by several fold when the latter part of the community enters the job market.
Armed with knowledge derived from the digital space, even as teenagers, Gen Z can play an important role in domestic purchasing decisions. They are capable of influencing the older generation on spending on groceries, fashion, entertainment and other household purchases, making them an influential group in future markets.
The earning potential of Gen Z when they enter the workforce can be substantial. They will be the dominant segment in the future job market, considering the current age. This will amplify their purchasing power, which can impact markets in many segments. Companies that understand and cater to their preferences will be well-positioned to capitalise on this demographic shift.
Unlike the previous generations, Gen Z is showing signs of higher levels of entrepreneurial skills due to the knowledge obtained through digital technology. Many of them seem to be starting businesses at a young age, leveraging digital tools and platforms to create innovative solutions.
This is a trend that will be important to economies throughout the world and drive competition in business sectors.
The presence of Gen Z has already made a noteworthy impact on various markets through their distinctive preferences. Their inclinations in online buying have rapidly accelerated the growth of the e-commerce sector during the past few years. Their preferences on convenience and personalised experience have made most retailers adapt to technology by investing substantially in digital marketing.
They collect information through content primarily through digital platforms such as YouTube, Facebook, Instagram and other popular platforms and streaming services. This has driven the rise of short-form video content, influencer marketing and gaming as major entertainment industries.
Gen Z is not in favour of traditional methods of education and desire more practical learning. This has created a huge market around the world for online educational businesses.
The Gen Z most often prioritise overall wellness. This has created demand for online health services, health apps and fitness technology. The wellness industry has an opportunity to grow the health industry by evolving to meet these expectations.
They value sustainability and prefer eco-friendly products and green initiatives. Companies in these sectors must innovate to meet this demand in future years.
Companies must effectively use the potential of the Gen Z and adopt business strategies to derive the best. For that, they must be intensely active in social media marketing that reaches this community more effectively than traditional methods.
They should have a significant presence on popular platforms depending on the reach of their geographical boundaries. However, the content must be engaging and directly targeted to lure buyers of this age group.
Sense of authenticity
This generation is smarter than the previous ones and tends to identify insincere messages. Therefore, companies must be transparent and genuine in their marketing content. This can make a vital impact and foster a sense of authenticity. They seem to welcome diversity and inclusion throughout the societies they live in.
Despite immense opportunities for marketers, Gen Z can pose challenges to companies. They carry high expectations and demand quality products, social responsibility and an immaculate customer experience. Hence, companies must focus tediously on their overall efforts in serving this group.
Although the purchasing power of Gen Z is growing rapidly, economic challenges such as inflation, economic issues, conflict, and job volatility can impact buying decisions. Hence, businesses must offer value-driven solutions to remain relevant.
The distinctive characteristics, buying capacity and preferences of the Generation Z compel a change in how companies function and interact with them. Businesses that focus carefully on variety, sustainability, genuineness and digital innovation will be in a strong position to win over this vibrant group. The Gen Z will have a significant influence on the global economy as they continue to develop and will be a crucial group for businesses to comprehend and serve in the years to come.
