This article really became an offshoot of my previous piece on consumer insights in a pandemic world – https://outsideinlens.substack.com/p/consumer-insights-in-a-pandemic-world – when I found myself getting deeper and deeper into Gen Z Insights then. I found a lot of fresh stuff that I could consume (in addition to what I had already heard at various forums during the last year) and I felt it deserved a dedicated piece of its own. So, here goes…
The Generation Z Snapshot
Demographic Definition: Gen Z includes anyone born after 1996 and is in the age group of 18-24
Digital Orientation: They are not just digital savvy, they are digital natives
Digital Activities: They are regularly immersed in social media. They are a tweet away, catching up on the news developments and dance trends on Instagram, with short attention spans. They want to see real content and are proactive in calling out fake news
Grabbing their Attention: They are surrounded by a barrage of digital information. They are spoilt for choice and unhesitatingly skip ads that do not keep them hooked beyond the first few seconds. But if you do get their attention in 8 seconds, they are also a generation that binge watches content
Why are Gen Z Important?
The next decade will be shaped by the maturation of Gen Z, comprising 1.8 billion people. They will make up for almost a quarter of the global population. In India, this 375 million-strong segment accounts for 27% of its total population (while millennials stand at 24%). Moreover, as the largest generational cohort in history, their Consumption Patterns are the Future
Quickly, What Does It Mean for Brands?
For Brands to make a connection with Gen Z (and be part of their mindshare), they will need to align with them at the point of discovery/research/engagement via Digital Touchpoints. See the illustration below for the Fashion segment in the US
And, Brands will need to create “Online-first Channels” for meaningful Engagement and Purchase Enablement. See the illustration below for Channels Used by Gen Z in the US
These behaviours are likely to be similar across the world, since Gen Z is more or less a ‘Global Citizen’ today. Okay, that got my attention. Tell me more…
The Evolution of Gen Z
According to an article by Emily Nash last year, there are 5 Types of Gen Z Tribes emerging globally: Nomads, Digital Divas, Politi-Fly, Touchy Feely, Thriving and Thrifty
Nomads: Nomads aren’t tied down to geography. Even less so in an age of remote working, in which it’s possible to telecommute to the office from the other side of the world. These professionals like to stay agile and take advantage of all available opportunities, regardless of location. A Brand’s digital offering is an essential part of marketing to this tribe. They’ll value the chance to connect with people who care about the same issues. They’ll be interested in digital communities, large e-learning libraries, and the chance to contribute from anywhere
Digital Divas: Digital divas are connected to influencer culture, and may be influencers themselves. Members of this tribe are highly tech-savvy. They care a lot about the quality of digital services. They like to connect with people and organizations that have a clear, trustworthy voice. This potentially makes them excellent advocates and ambassadors – if you can get them to join. They’re also content connoisseurs, who can immediately tell if your online proposition isn’t up to scratch. What this tribe wants more than anything else is authenticity. They also like content that highlights real people, such as testimonials from members like them
Politi-Fly: The Polti-Fly tribe are the ambassadors of this new world. They are hyper-connected and politically active. Their perception of society is shaped by movements like BLM and #metoo, and they’re increasingly concerned with climate change. They are active in finding their social purpose and fighting for it – leading to rising number of societal revolutions. Brands can appeal to this tribe by creating volunteer opportunities and giving them a chance to connect with like-minded individuals
Touchy Feely: Gen Z has lived through two global financial catastrophes and one pandemic, plus they have the long-term uncertainty of climate change. It’s no wonder that many of them are feeling the burden. They’re positive and proactive about mental health and well-being, and they believe in maintaining a healthy work-life balance. This is another tribe that values authenticity above all else. They tend to be highly media-literate and can see right through marketing speak. Meetings, symposiums, and networking events will appeal to them, as will digital communities where they can talk to their peers
Thriving & Thrifty: Not only is Gen Z facing an uncertain financial future, but they’re also starting with a worrying financial burden. It has an impact on their long-term career choices, as they look for opportunities to break even. It also has an effect on their spending choices. Forget the “avocado toast” stereotype; this tribe is counting every penny. This group loves a bargain, so you can attract them with discounts and special offers. Be sure to use marketing automation techniques to send them targeted offers that suit their needs
Characteristics of (Indian/Global) Gen Z
According to popular Indian author Amish Tripathi, from his many interactions with younger Indian Millennials and Gen Z Generation (but possibly of global Gen Z as well), the typical characteristics he sees in them are:
They want you to be authentic,
They are very comfortable with the fact that some people will like them, some will not – I will be who I am,
In a social media age, if you are fake, you will get caught out; so it is wiser to be who you are,
They think they are good storytellers themselves and they are crunched for time, so you are competing for their time,
They will either give you zero time/nothing, or they will give you a full weekend! – There is nothing in between. The rewards of winning are either zero or you win everything
On his own book promotion experience – Gen Z is unlikely to read the full book upfront, so he had put up 9-10 videos/interviews/trailers (done for all his book promotions) on his Website as well as on Youtube as an addendum which they were likely to see, as compared to reading the full book
Check this trailer of his book ‘Scion of Ikshvaku:
Some more insights on Gen Z characteristics come from Nimish Shah, Creative Director of Fashion & Lifestyle Brand Bhaane: There is an acute sense of confidence and responsibility in Gen-Z compared to the millennials. It’s a different kind of smarts. They want their own relatability and not formal aspirations, unlike millennials
Okay, so tell me about their Lifestyle Approach…
The Gen Z Lifestyle Outlook
According to Nimish Shah (again), one’s lifestyle has a direction impact on how and what you shop. And this generation is already armed with a maturity in choice
They aren’t hoarding from budget brands or just buying the cheapest option available. They know what they want to buy when they have more money. A Financial Express article adds that Gen Z expects to get more for their money when it comes to spending. They are not brand-crazy and would rather own something without the logo and spend less than pay more for a branded product
They are also more (eco) conscious in their thoughts. Yoga, clean eating, meditation aren’t fads, but woven into the fabric of their everyday
They are already thinking about the environment and how they can fix the damage. They are whetting brands and products for themselves before buying them
They are actively seeking second-hand stores and mindful local brands. An Isobar-Ipsos survey also found that 69% claim to like brands that collaborate with local artisans and 68% want to be associated with brands supporting social causes
There is a lot more information available to them, and they apply clearer logic in processing it. It’s not a quarter-life crisis, followed by a mad run to fix things. It’s already their way of life
Having said that they want to co-create culture—and they make efforts to do so. This is a generation of Culture Creators that are redefining entertainment, consumption, the workplace and marketing. What’s different for this generation is not as simple as the internet or technology. Technology is an important component, but what’s changed is this generation’s relationship with Culture
A US Study reveals that 80% of Gen Z says that ‘finding themselves creatively’ is important. Over 25% post original video on a weekly basis, while 65% enjoy creating and sharing content on social media
In Conclusion
Gen Z is not looking for Information alone, they are looking for Knowledge. All Brands and Marketers need to be working on this Consumer Insight in all their Engagement initiatives to build, maintain and sustain their connect with Gen Z
High Digital Engagement is Needed: All of these Gen Z tribes have one thing in common. They all demonstrate a high level of digital engagement, which is the best option for connecting with them. Brands will need the right platforms in place and the Marketing Tech Stack should include elements like:
Integration and Management Tools to activate the data collected on Gen Z
eLearning Tools and Digital Educational Content
Managed social media presence on channels like Instagram, TikTok and LinkedIn
Multichannel Communication Tools, including IM, Text and WhatsApp
Virtual Events with active participation (Check my earlier pieces on Virtual Events: Part 1 - https://outsideinlens.substack.com/p/my-experiments-with-virtual-events and Part 2 - https://outsideinlens.substack.com/p/my-experiments-with-virtual-events-4f9)
Marketing Automation with Behavioral Messaging
User-Generated Content in Social Media and Email Marketing
Recognize and Build Cultural Currency: Culture Creators are empowered, connected, empathetic self-starters that want to stand out and make a difference in the world. They have created a new Cultural Currency that values uniqueness, authenticity, creativity, shareability and recognition. These attributes need to be reflected in the Brand
References and Sources
1) My Notes from ET MarTech Summit, IAMAI Conclave, Cannes Lions Live, Adobe Summit, WPP Commerce, PHYGITS, Nudgestock (and any other Event that I might have inadvertently missed)
2) Gen Z Tribes: https://www.highroadsolutions.com/blog/recruitnewgen
3) Gen Z Marketing: https://www.businessinsider.in/advertising/brands/article/most-effective-ways-to-market-to-genz-in-2020/articleshow/79025178.cms
4) Vogue Gen Z Shop: https://www.vogue.in/fashion/content/how-does-the-indian-gen-z-shop
5) Gen Z Marketing: https://heyorca.com/blog/social-media-planning/authentic-marketing-stories-live-video/
6) Marketoonist on Gen Z Marketing: https://marketoonist.com/2015/03/generation-z.html
7) Marketoonist on Gen Z Targeting: https://marketoonist.com/2017/06/genz.html
8) Financial Express: https://www.financialexpress.com/money/how-covid-19-is-changing-gen-z-millennials-spending-and-financial-habits/2024609/
9) Gen Z seeking Cool Experience and Finding Themselves Creatively: https://www.business2community.com/infographics/generation-z-characteristics-5-infographics-gen-z-lifestyle-01394477
10) Gen Z Shopper/Shopping: https://www.voguebusiness.com/consumers/post-pandemic-playbook-what-gen-z-want-from-physical-retail-adidas