For years, sellers of all stripes have focused their promotional efforts on millennials. Now, retailers must develop new strategies to attract buyers of a new cohort: Generation Z. Like their picky predecessors, members of this group share unique shopping habits. Of course, brick-and-mortar and online brands have no choice but to adjust. Though many have yet to graduate high school, Generation Z consumers have already amassed a collective $44 billion in buying power, according to recent data from the professional services firm Ernst and Young.
Millennials, for the most part, yearn for stimulating shopping environments and are willing to spend money on intangibles. Thus the rise of the experiential retail movement and brands that facilitate experiences. Generation Z shoppers, on the other hand, are more practical and are simply interested in acquiring the items they need, Business Insider reported.
“Generation Z consumers have already amassed a collective $44 billion in buying power.”
Over the last decade, e-commerce has taken off, due in no small part to millennials who would rather shop online than take a trip to the mall. Surprisingly, Generation Z consumers aren’t so invested in web-based retailers. These buyers shop at both brick-and-mortar and online enterprises and usually turn to the most convenient option with the most streamline point-of-sales experience.
Frugal without fault
Unlike millennials who consistently splurge without considering the financial repercussions, Gen Xers have their eye on the future and look to save money whenever possible, The New York Times reported.
“If Hannah Horvath from ‘Girls’ is the typical millennial – self-involved, dependent, flailing financially in the real world as her expectations of a dream job and life collide with reality – then Alex Dunphy from ‘Modern Family’ represents the Gen Z antidote,” Lucie Greene, worldwide director of the Innovation Group at the advertising firm J. Walter Thompson, told the newspaper. “Alex is a true Gen Z: conscientious, hard-working, somewhat anxious and mindful of the future.”
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