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How Consumer Trends Are Changing With Gen Z

Gen Z brands

Generation Z consists of 2 billion people around the world born from 1995 to 2010.  This young generation has already changed the way we communicate with each other through social media apps, but soon they will demand attention from large businesses.  Let’s talk about how and why this is happening. 


The Power of Gen Z

By 2031, Gen Z will overtake Millennials as the generation with the highest level of income.  It makes sense that during this next decade, young professionals will begin to take higher-paying jobs.  During that time, Gen Z will increase their income by five times, growing to over $2 trillion in income annually.  


So how does that affect businesses? Well, smart companies who focus on the future will begin to look to Gen Z as the most important consumer age group and begin tailoring their business strategies to the younger generations.  Let’s talk about what Gen Z cares about and how companies can connect with this upcoming generation.


Gen Z’s Brand Preferences

Gen Z’s top three brands all fall into the tech industry (Google, Netflix, YouTube), and about half of all teens spend most of their day online.  But these online relationships go past social interactions and have even started transitioning to the business world.  Two out of three Gen Zers are interested in purchasing through social media platforms directly, and 44% purposefully interact with certain posts to better tailor the algorithm to their interests.


As such, companies hoping to reach this Gen Z audience must direct their efforts toward the digital world.  But Gen Z consumers care about more than social media prowess, as younger people care more about sustainable business practices than any other generation.  Companies that ‘go green’ will find success in creating meaningful connections with members of Gen Z.  In fact, 73% of Gen Z consumers said they would pay more money for a sustainably sourced product, more than any other generation. 


Furthermore, Gen Z values inclusivity, which makes sense considering Gen Z is the most diverse generation by far in terms of both race and sexual orientation.  Companies that practice broad inclusivity initiatives and support diversity within their company can better connect with Gen Z consumers as well.  


In Conclusion

Overall, younger people are becoming the best-educated and highest-earning generation worldwide.  Given this information, companies are beginning to orient their brand messaging toward Generation Z.  This change in consumerism will certainly affect the way businesses large and small market themselves to consumers. 

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