Are You Ready for Generation Z - The Next Wave of Shoppers?

Times of the brand leading the consumer are soon to become a thing of the past, usurped by the new generation using companies and their products. however they deem meaningful.

Getting a Gen Z’er to be loyal to your brand is nearly impossible. Brands will need to work extra hard to earn their trust. This generation will fuel a massive change in how people shop with unique experiences, beliefs, and behaviors. 

Their primary motivator is price. According to recent surveys, saving money and looking for value is very important to Gen Z’ers. They don't want to pay full price for anything and are very thrifty. These spending habits were likely passed down to Gen Z by their parents and teachers, who were shaped by the recession. This obsession with price makes them less loyal to brands, and will cause a shift to shopping for clothing from brands that already have low prices, or seeking longer lasting products with value coming over the product’s lifetime. 

They do not use brands to define their identity. Being unique and saving money is very important to them. Since their life is in pictures, they feel a pressure to always have new clothes and be unique. That is fueling growth in unconventional forms of shopping, like rental and resale.

Gen Z’s focus is on quality, value, and thoughtful purchasing. They are way more sustainability-minded than previous generations. Brands such as Rent the Runway, Express with recently launched iExpress Style Trial service, and American Eagle with American Eagle Style Drop will pave the way to a new shopping format. There is a trend toward clothes having a second life and being used again.

This generation does not want to be told by the brands what to think and how to feel. They would much rather be asked how they feel. Brands that understand them and reflect their values are going to resonate with customers better. Most of the generation sees diversity as good for society. They value transparency and authenticity, and retailers such as Aerie are gradually responding to this idea.  

Aerie banned any photo retouching in its ads in 2014. They have always been a brand that stands for inclusivity, diversity, and youth empowerment, and it resonated with their customers creating a strong and supportive community around the brand.

The #AerieREAL Campaign. Photo: Aerie by Ali Mitton