First, who makes up the Gen Z population?
Gen Z consists of anyone born after 1995. Today they account for 26% of the population and make up about
40% of all consumers. To understand why Gen Z is a substantial audience, let’s first focus on their actual spending habits.
They Like to Shop.
Although they are the youngest generational cohort, Gen Z spends the most at retail, averaging $6,768 annual dollars. This is almost 10% more than Millennials, the next closest age group. They also spend more, surprisingly, on travel and financial services (averaging $3,827 and $1,940 respectively).
They Have a Say in Family Purchases.
Additionally, 93% of parents say their children influence family spending and household purchases. So, this is not an audience to be trifled with for sure, and understanding what impacts Gen Z purchase decisions is essential for all brands.
They Want Their Dollars to Count.
Gen Z values authenticity. This generation is willing to pay more for brands that contribute to society (and shun brands that operate outside their norms).
Their Buying is Correlated with Their Social Media Observations.
Social media has a significant influence on purchase decisions for Gen Z. A whopping 80% of purchases transpired due (in some way) to social media. For brands not engaging on Instagram, Snapchat, or YouTube, this is a clear call to action.
They Use Their Phones to Make The Purchases.
Gen Z has grown up with powerful mobile devices (literally) at their fingertips. Mobile is not just about social media and gameplay. Gen Z uses mobile phones both for pre-shopping research and for making purchases. Gen Z spends twice as much time on their phones than millennials.
While they are young, Gen Z delivers impact. Gen Z comprised of 32 percent of the global population in 2019 and over 90 million in the United States. Brands that understand this generation’s shopping behavior will be rewarded.
