Uncover the 15 characteristics of Generation Z and grasp the future consumption potential of 450 billion

As an entertainment tool, Generation Z is extremely dependent on social media, and they are keen to find fun and social interactions on these platforms. Brands should make full use of these platforms to attract the attention of Generation Z through creative and entertaining advertising content and establish a closer connection with them.

As Generation Z youth born between 1995 and 2000 gradually enter society and become the backbone of society, they are receiving extensive attention from major brands. This generation, often referred to as the "net generation" or "Internet generation", is becoming the leader of the future market.

Therefore, for brands, attracting the attention of Generation Z and winning their favor is the key to mastering the future market initiative. It is estimated that the global potential consumption power of Generation Z has exceeded US$450 billion, showing a strong economic influence.

However, it is worth noting that this group shows a remarkable prudence in their consumption habits. This prudence is mainly due to their experience of the financial turmoil during the Great Recession and the profound impact of the COVID-19 pandemic on the economy. These experiences have shaped their high regard for economic stability.

Of course, economic stability is not the only issue that Generation Z is concerned about. Issues such as climate change and mental health are also of great concern to them. So what are the characteristics of Generation Z specifically? What can brands do in marketing to target these characteristics?

1. Trait 1: Generation Z faces mental health issues

Generation Z is facing significant mental health issues. According to statistics, up to 47% of Generation Z members "always" or "often" feel anxious, while 22% "always" or "often" feel depressed. What's more serious is that these negative emotions and feelings show an upward trend with age.

This data reveals a problem that cannot be ignored: as Generation Z gradually enters adulthood, the stress and anxiety they are under seem to be increasing. This may be related to multiple factors such as the highly competitive environment in modern society, the rapidly changing lifestyle, and the rising cost of living. Marketing advice: optimize processes and increase the sense of reward

Although Generation Z’s anxiety has no direct connection to their shopping experience, optimizing the shopping process and increasing the sense of reward from shopping will undoubtedly increase their preference for brands.

Specifically, implementing an exclusive offer strategy can effectively stimulate consumers’ positive emotions. According to survey data, about half of Generation Z consumers expressed “gratefulness” when receiving exclusive offers, 32% of consumers felt “excited”, and another 30% said they were “happy”.

2. Characteristic 2: Climate Change and Environmental Issues

Climate change and environmental issues have become a major concern for Generation Z. According to the survey, up to 60% of Generation Z members have felt anxious about climate change and environmental conditions in the past month. It is worth noting that 21% of people even listed environmental issues as their top concern, second only to the cost of living (35%) and unemployment (22%).

This deep concern for the environment is gradually affecting the behavior patterns of Generation Z. Specifically, in order to reduce the negative impact on the environment, 35% of Generation Z have chosen to stop driving private cars. At the same time, 33% have begun to avoid buying fast fashion products to reduce resource consumption and waste generation. In addition, 21% have adopted a vegetarian or vegan lifestyle to reduce the impact of animal husbandry on the environment.

Marketing advice: Pay great attention to environmental issues and avoid "greenwashing"

When reaching out to Generation Z consumers, brands must fully recognize the importance of sustainability and eco-responsibility. This generation attaches great importance to environmental issues, so if a brand has environmental credentials and practices, it should actively share them with them. According to relevant data, up to 47% of Generation Z consumers hope that the brands they buy can support sustainability and address climate change. This means that it is crucial for brands to demonstrate their environmental commitments and actions.

However, when communicating with Generation Z, brands need to avoid using empty or vague terms, such as simply claiming to be "green" or "eco-friendly." Instead, brands should support their environmental claims with specific, detailed content. For example, brands can share the sustainability measures they have taken, the results of reducing resource consumption and waste generation, and how they are working to reduce their impact on the environment.

It is worth noting that Generation Z has a zero tolerance for “greenwashing” (i.e. false or exaggerated environmental claims). Therefore, brands must ensure that their environmental commitments and actual actions are consistent to win their trust and respect.

3. Trait 3: Generation Z has a wide range of interests and is highly engaged

On average, Z-generation users join 20 fan circles and interest communities, which fully demonstrates their extensive social and interest activities. Compared with the older generation, Z-generation prefers diversified interests and hobbies. They believe that having multiple interests is more valuable than focusing on only one or two areas, and this preference is 30% higher than that of the older generation.
In addition, it is worth noting that among Generation Z, as many as 65% consider themselves to be loyal fans of certain specific fields. This data not only highlights Generation Z’s enthusiasm for personalized pursuit, but also reflects their deep investment in their areas of interest.

Marketing advice: Capture relatively niche and unique customer interests

For companies, if they can accurately capture the interests of Generation Z, especially those relatively niche and unique hobbies, they may be able to effectively convert the enthusiasm of these fans into loyalty and support for the brand.

Take LEGO as an example. The company has successfully launched a number of product lines co-branded with popular IPs, such as Harry Potter, Star Wars, and Super Mario. These products are not only popular among young consumers, but also attract a large number of adult fans, even those who love retro video games.

4. Trait 4: Generation Z loves social media

As a witness of the Internet age, Generation Z's love for social media is obvious. The three most frequently used social platforms are YouTube, Instagram and TikTok, with usage rates of 80%, 75% and 69% respectively. This generation mainly regards social media as an entertainment tool, accounting for as high as 68%. It is worth noting that the influence of social media cannot be ignored in the process of consumer decision-making. According to the survey, 53% of Generation Z members said that comment videos had a direct impact on their purchasing decisions.

In addition, in the field of advertising, Generation Z hopes to incorporate more entertainment elements. Data shows that 52% of people prefer to watch creative and entertaining advertisements, while 43% prefer interesting advertising content.

Marketing advice: Put humorous presentation methods on frequently used social media. Companies should focus on conceiving and creating product display content in a light-hearted, fun and humorous way.

After completing content creation, the next key step is to accurately deliver this content to the social platforms frequently used by Generation Z. By clearly identifying the target audience and closely following their interests and preferences, companies can more effectively increase brand exposure and stimulate consumers' purchasing motivation.

5. Trait 5: Getting product information via email is still the first choice for Generation Z

The survey results show that up to 48% of the Z generation prefer to receive special offers via email, which highlights the importance of email in the daily lives of the Z generation. Further analysis of the data shows that in the past 12 months, 41% of Z generation consumers have made a purchase due to promotional information received via email. These data clearly show that email not only still has a strong influence, but also plays a key role in driving consumer purchasing behavior.

Marketing Tips: Send Promotions and Offers via Email

After brands have successfully attracted the attention of Generation Z through entertainment content, they can use email as an effective channel to deliver offers and promotions to them, thereby guiding them to pay attention to and understand their brand.

But in the process, brands must maintain the same creative and tone as when they first attracted them to ensure the consistency of information and the unity of the brand. This strategy will help brands build a closer connection with Generation Z consumers and further promote their purchasing behavior.

6. Trait 6: Generation Z generally values ​​the protection of online privacy

The importance that Generation Z users attach to online privacy is becoming increasingly prominent. According to survey data, nearly half (49%) of Generation Z users use ad blockers to reduce the leakage of personal information; 46% of users tend to browse in private or incognito mode on their browsers to enhance the confidentiality of their online behavior; and 35% of users actively purchase Internet security software to build a solid security line for personal data.

Marketing Tips: Respect Customer Privacy and Cybersecurity

In the face of this characteristic of Generation Z users, brands should adjust their marketing strategies accordingly. First, brands need to clearly convey to Generation Z users that they also attach great importance to cybersecurity and their privacy protection. This is not just a slogan, but should be demonstrated through actual actions, such as strictly abiding by relevant laws and regulations in all aspects of data collection, storage and use to ensure that the security of user information is not violated.

Secondly, brands should take a more cautious approach to user data collection. In the early stages of the customer acquisition channel, only necessary and minimal data should be collected. Doing so will not only reduce the risk of data leakage, but also increase users' trust in the brand. After all, in the eyes of Generation Z users, respect and protection of data is an important indicator of whether a company is trustworthy.

Of course, in order to provide better services, sometimes brands do need users to provide more information. In this case, brands should clearly explain to users in advance how they will use this information and emphasize how this information will bring them practical benefits. For example, brands can provide users with a more personalized shopping experience by analyzing their shopping habits and preferences. In this way, users can not only feel that the brand respects their privacy, but also enjoy more intimate and professional services.

7. Trait 7: Most Generation Z choose to relieve stress through video games

Games play an important role in the lives of Generation Z. According to statistics, up to 71% of Generation Z adults have played video games to improve their mental health or relieve daily stress. Not only that, 72% of people are deeply attracted to elements such as finding clues and investigating mysteries in games. Marketing advice: Use gamification strategies to increase stickiness between brands and customers. Gamification is an effective way to attract the attention of Generation Z and keep them closely interacting with brands.

By incorporating game elements such as points, rankings, challenges and rewards, brands can not only increase user engagement, but also naturally collect information about these consumers during the interaction. This information is crucial for precision marketing and personalized services, but traditional information collection methods may make it difficult to obtain active cooperation from such consumers.

Take Starbucks as an example, its “Starbucks Rewards” rewards program is well known among coffee lovers.

When customers buy drinks or food, they can earn star points, which are similar to the experience points accumulated in games. When the points reach a certain amount, they can be exchanged for free drinks, food and other discounts. This strategy contains three core gamification elements:

1. Points system: It encourages customers to accumulate star points through purchases;
2. Level system: The more star points a customer has, the more they can upgrade from Green Star Member to Gold Star Member and enjoy higher-level benefits;
3. Reward mechanism: Customers can redeem points for actual rewards. This positive feedback greatly motivates customers to continue their consumption behavior.

This gamification marketing initiative of Starbucks has not only significantly improved customer loyalty and repeat purchase rate, but also effectively enhanced the stickiness between the brand and users and increased overall user engagement.

8. Trait 8: Generation Z prefers debit card payments over digital payments

Regarding the payment preferences of Generation Z users, the research shows that digital payment is not their first choice. Only 14% of Generation Z users prefer to use digital payment. In contrast, debit cards top the list with a proportion of 45%, followed by cash and credit cards. This finding reminds brands that although digital payment is gradually becoming popular in the overall market, they still need to take into account the importance of traditional payment methods in their marketing strategies for Generation Z consumers.

Marketing advice: Support multiple payment methods and promote "BNPL services"

In order to cope with this phenomenon, brands should flexibly adjust their payment strategies to meet the diverse needs of Generation Z users. On the one hand, it is imperative to promote and support multiple payment methods, which can not only improve the convenience of shopping for users, but also help enhance the market competitiveness of brands.

On the other hand, in-depth research and promotion of "BNPL (buy now, pay later) services" may further capture the hearts of Generation Z consumers. It is worth noting that "BNPL services" are significantly more popular among Generation Z than other age groups. Data shows that as many as 37% of Generation Z adults have tried BNPL services at least once, which is significantly higher than the 32% of Millennials, 16% of Generation X, and 6% of Baby Boomers.

9. Trait 9: Generation Z values ​​quality and service and is highly sensitive to price

Generation Z, as a young generation, has unique and clear requirements for products. According to the survey, as many as 72% of Generation Z consumers believe that if a brand wants to stand out in the fierce market competition, providing high-quality products or services is the most critical.

At the same time, the price factor cannot be ignored. According to data, 48% of Generation Z believe that competitive prices are an important factor in attracting brands. This shows that while pursuing quality, they are also highly sensitive to prices.

In addition, brand differentiation strategies are equally important in attracting Generation Z consumers. About one-third of Generation Z pointed out that brands are more likely to win their favor if they can offer exclusive discounts for their age group.

Marketing suggestions: Ensure product quality and improve customer service level

In response to these findings, brands should realize that while price is a key driver for attracting Generation Z to purchase, the quality of products or services should not be ignored. The "quality" here includes not only the quality of the product itself, but also the level of customer service. In order to get closer to the needs of Generation Z consumers, it is particularly important to provide tailored personalized offers and support.

It is worth noting that Generation Z attaches more importance to customer service than previously expected.

In terms of characteristics, 48% of Generation Z customers clearly stated that they are willing to pay extra for better customer service. This proportion is even higher than that of Baby Boomers or Generation X, showing that Generation Z attaches great importance to service experience.

10. Trait 10: Product reviews on social media have become a reference for half of Generation Z before shopping

For Generation Z, the functions of social media have far exceeded the traditional scope of chatting and socializing. According to the latest survey, nearly half of Generation Z consumers (accounting for as high as 46%) tend to browse or search for relevant product reviews on social media platforms before making a shopping decision.

Marketing advice: Brands should use social media as a powerful channel to promote content

Considering that Generation Z is exposed to a large number of product reviews and unboxing videos when browsing social media, brands can use this content for effective promotion. In fact, social media has become a powerful channel for increasing brand awareness. According to surveys, 68% of Generation Z discovered new brands in this way.

Therefore, brands should strengthen their interaction with social media opinion leaders (KOLs) and consumers, actively respond to comments and questions, and enhance their brand image and trust. At the same time, they should use social media platforms to publish attractive content, such as product demonstrations, user reviews, and tutorials, to attract more attention from Generation Z consumers. This will not only increase brand exposure, but also effectively convert it into sales momentum, maximizing commercial value.

11. Trait 11: Generation Z gets information across multiple channels when shopping

As Generation Z gradually becomes the main force in the consumer market, their shopping behaviors and habits have a profound impact on brand marketing strategies. According to statistics, as many as 63% of Generation Z consumers obtain information across multiple channels when shopping, which is significantly higher than the 52% of overall consumers.

Marketing advice: adopt a multi-channel marketing strategy. Through in-depth analysis of relevant data, it is not difficult to find that multi-channel exposure is crucial for brands.

Although social media has a wide influence on Generation Z consumers, brands need to avoid focusing all marketing resources on this platform. The shopping habits of Generation Z show that their consumption behavior is far more diverse than we imagined. It is worth noting that in today's digital wave, Generation Z still has a strong interest in physical stores.

According to reliable data, up to 97% of Generation Z consumers choose to shop in physical stores, which is roughly the same as the 95% choice rate for online shopping. However, this data does not mean that they completely prefer physical shopping, but rather that they will cleverly combine digital channels to collect and compare product information during the shopping decision-making process.

In view of this, brands should adopt a multi-channel marketing strategy. This strategy can not only help brands fully cover the information receiving channels of Generation Z, but also significantly improve marketing effectiveness through the complementarity between channels. When implementing, brands should comprehensively consider the synergy between online and offline to ensure that a consistent and high-quality brand experience can be provided at every contact point between consumers and brands.

Trait 12: Family and friends are the main factors influencing Generation Z’s purchasing behavior

Data shows that 56% of Generation Z believe that family and friends are the biggest factors influencing their purchasing behavior. In contrast, only 39% believe that the influence of social media and Internet celebrities is decisive.

Marketing strategy: Use word-of-mouth marketing and recommendations from family and friends to deepen consumers’ recognition of the brand

Obviously, for modern brands, it is difficult to effectively reach Generation Z consumers by simply relying on the influence of social media. In the context of increasingly homogenized social media marketing strategies, brands urgently need to find new entry points to strengthen the connection with target consumers. At this time, recommendations from family and friends are particularly important. This kind of word-of-mouth communication based on deep trust and intimacy can often have a more direct and far-reaching impact on the purchasing decisions of Generation Z.

In view of this, in addition to continuing to shape and maintain their brand image on social media, brands need to design marketing activities that are topical and interactive. Such activities should inspire consumers to participate with their family and friends, and encourage them to deepen their identification and favorability with the brand through sharing and discussion.

To achieve this goal, brands can design a series of marketing activities that not only encourage consumers to participate personally, but more importantly, guide them to invite their relatives and friends to join in. In this way, in a relaxed and pleasant atmosphere, the brand's image and concept can be naturally spread, and the emotional connection between consumers and brands will be further strengthened.

13. Trait 13: Generation Z is more cautious in purchasing decisions and pays more attention to cost performance

As consumer behavior continues to evolve, Generation Z and Millennials have shown significant differences in their shopping decisions. According to statistics, as many as 47% of Generation Z consumers prefer to wait a while before making a purchase, while this proportion is 41% among Millennials; only 29% of consumers are willing to buy goods immediately at the original price without considering discounts. This data shows that Generation Z is more cautious in purchasing decisions and pays attention to cost-effectiveness.

Marketing strategy: Combine consumers’ new shopping habits with abandoned cart emails and personalized offers

Based on the above observations, brands should take into account consumers’ patience and desire to seek discounts when developing marketing strategies. Patience, at least when it comes to shopping, has become a notable trait of Generation Z. Similarly, their active search for more favorable deal terms is also worthy of attention from brands. According to the latest data, more consumers will spend time searching for discount codes before making a purchase in 2023, up 14% compared to the previous year.

In view of this, brands should adjust their strategies to meet this emerging consumer trend. Specifically, by sending abandoned shopping cart emails and offering limited-time offers, brands have the potential to re-engage hesitant consumers. It is worth noting that more than two-thirds of Generation Z consumers (69%) said they like to receive email reminders about abandoned shopping carts, while 64% prefer to receive personalized offers after browsing the brand's website for a few minutes.

Therefore, combined with consumers' new shopping habits, brands should flexibly use email marketing and personalized discount strategies to improve conversion rates and customer satisfaction. This will not only effectively promote sales, but also deepen the connection between brands and consumers, laying a solid foundation for long-term customer relationship management.

14. Trait 14: Generation Z loves “free”

Generation Z consumers have a special liking for the word "free".

According to the survey data, the most attractive discounts for them include free delivery (accounting for 60%) and free gifts when shopping (accounting for 52%). This shows that in the consumption concept of Generation Z, "free" not only represents actual economic savings, but is also likely to bring a sense of psychological satisfaction and pleasure.

Marketing strategy: offer free gifts or activities

Given Generation Z’s strong interest in free offers, brands should take this into account when developing marketing strategies. An effective strategy is to surprise and delight this group of consumers by offering free gifts. This strategy not only immediately enhances consumers’ shopping experience, but also builds an emotional connection between the brand and consumers through free gifts.

Going a step further, brands can offer free gifts while promising more free gifts in the future. Doing so will not only continue to excite consumers, but also cultivate their loyalty and anticipation for the brand.

15. Trait 15: Generation Z wants to get preferential qualifications in a simple way

A whopping 59% of Gen Z consumers say that being able to instantly verify their eligibility for Gen Z-specific offers (for example, without having to upload documents to prove age) and without that data being shared with other brands has a positive impact on their decision to redeem an offer.

This data reflects the two core concerns of Generation Z consumers when enjoying discounts: one is the convenience of the verification process, and the other is the protection of personal privacy.

Marketing strategy: Simplify the discount operation process and strengthen personal discount data security measures

This finding highlights the importance of simplification and security in the purchase process. In order to cultivate and enhance the loyalty of Generation Z, companies should focus on optimizing the purchase process and reducing the complexity of consumers' operations when enjoying discounts. This includes providing a mechanism to quickly verify the identity of Generation Z to avoid cumbersome steps such as uploading documents.

At the same time, it is also crucial to meet the needs of Generation Z for cybersecurity. In the digital age, personal privacy and data security are issues that consumers are increasingly concerned about. Brands should ensure that while providing discounts, they strictly protect consumers' personal information and avoid data leakage or sharing with third parties, so that Generation Z can feel at ease while enjoying the discounts.

16. Conclusion

In the end, understanding and staying close to Generation Z is the key to brands winning the future market. Therefore, major brands need to keep up with the pace of Generation Z, constantly innovate and adjust strategies to ensure that they stay ahead in this rapidly changing market environment.

Author: Liang Qi

Source: Morketing