In less than a decade, Generation Z’s global earnings will eclipse those of Millennial’s. Already in the US, Gen Z accounts for 40% of the consumer base and wields$143 billion in annual spending power. They influence an additional $127 billion of family spending every year. Despite their massive presence in the market, Gen Z feels relatively little affiliation for specific brands, with only 36% reporting strong loyalty to any one company.
If brand recognition isn’t cutting it, how can companies market to Gen Z? The first thing to change is messaging. Gen Z buys based on perceived values. They care more than prior generations about sustainability and inclusivity initiatives. Businesses need to practice what they preach to attract young consumers. Also important is platform; Gen Z is the most active generation on social media. Platforms like TikTok, Instagram, and YouTube wield immense power over the attention of young consumers.