Marketing Gen Z: The buying behavior of new consumers

Generation Z is now a major force on the job market.

As a generation intrinsically linked to the digital age from birth, they have already left their mark, influencing consumer habits and redefining brand interactions on social networks. What's more, their purchasing power is growing all the time, increasingly influencing the global economy.

Faced with this phenomenon, companies are obliged to rethink their strategy to adapt to these distinct preferences if they are to win and retain the loyalty of these new-style consumers.

What's particularly remarkable is the profound shift in values we're seeing within this demographic. This young generation places authenticity and transparency at the heart of its priorities. They are less interested in the possession of material goods than in the shopping experience itself, and aspire to establish an authentic relationship with brands whose values align with their own.

In this article, we aim to provide you with an in-depth insight into who Generation Z really is and how they are shaping current consumer trends. We'll also reveal the best marketing strategies to adopt to effectively engage this group of consumers, who are certainly more demanding, but also more involved and engaged than ever.

Who is Generation Z?

Born between 1997 and 2009, Gen Z is set to make up a third of the French workforce by 2030. This generation stands out in particular for being the first to be born into the digital age, having never known a world without the Internet.

The Economist describes them as better educated, more ethnically diverse andmore empathetic. A study by Stanford University also sees Gen Z as more collaborative, genuinely concerned about others, and taking a more pragmatic approach to solving problems inherited from previous generations, such as climate change.

Hard hit by the pandemic, which has generated a significant level of anxiety, Gen Z also stands out for its pronounced idealism. They embody a new era of progressive, inclusive consumers. In general, members of Gen Z are convinced that every individual has the power and responsibility to act to protect the environment and build a fairer society.

More than any previous generation, Generation Z demands greater accountability, transparency and sustainability from institutions, and especially brands.

Understanding the consumer behavior of Generation Z

This promising generation, whose revenues will increase more than ninefold over the next decade, will grow from €25 billion in 2019 to an impressive €213 billion worldwide in 2030.

It is therefore of crucial importance to understand how this young generation interacts with brands, and the criteria they use to select a product or service differ significantly from those of previous generations.

Firstly, and even before considering price, she values the quality and authenticity of a brand. Recommendations from friends and family, other consumers, and especially influencers, play a crucial role in their purchasing decisions. As a result, traditional marketing is no longer enough to effectively reach and convert Gen Z consumers.

According to a study:

• 63% of Gen Z believe that quality is the most important factor when it comes to choosing a brand.
• 45% say they are more likely to choose a company that has been recommended by a friend.
• 73% of Gen Z consumers favor brands that reflect their own values.

Used to discovering brands and making purchases online, Gen Z has high expectations in terms of the shopping experience. They want to be able to buy a product that has been recommended to them in just a few clicks, regardless of the channel they are on at any given time.

The meteoric rise of social networks and influencer marketing has significantly altered Gen Z's purchasing behavior, influencing both the frequency and the amount of their purchases. They no longer shop only once a week or once a month, but much more frequently, and generally for smaller amounts.

Strategies for marketing to Gen Z?

To attract the attention of this generation and build long-term loyalty, it's essential to understand Gen Z's motivations and consumption patterns. By tailoring your offer to their buying habits, proposing products/services that correspond to their values, and offering a personalized experience, you'll succeed in effectively engaging this consumer group over the long term.

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From digital to omnichannel shopping

Members of Generation Z highly value speed: they aspire to instant gratification, same-day delivery, self-service checkouts and immediate access to the information, products and services on offer. They expect interactions to be fast and efficient.

For example, 60% of Generation Z consumers won't risk using applications or websites that are slow to load or complicated to navigate.

They therefore tend to prefer brands that offer them an omnichannel shopping experience. For example, a member of Gen Z might discover a product thanks to an influencer, and buy it later after being exposed to a retargeting ad on social networks.

And while this generation is passionate about new technologies, it also appreciates the in-store shopping experience. However, they expect brands to build bridges between online and in-store shopping (e.g. via in-store QR codes to access product data sheets, or via the "click and collect" system).

Tip: Make sure you optimize your shopping experience across all channels, and create as many connections as possible between your online store and your physical points of sale. And make sure your brand image remains consistent across all these platforms.

Authenticity and transparency first

This younger generation of consumers is generally more skeptical of brands' commercial messages. Thanks to their digital fluency, they can easily verify the origin of products or the consistency of a brand's discourse on social networks, and will not tolerate any inconsistencies.

That's why Gen Z has a preference for brands that are transparent and authentic, brands that embody their values on the environment, inclusion and social justice.

Tip: Make sure the content you publish online represents and coincides with your values and commitment. Don't hesitate to invite consumers behind the scenes of your company, and offer them a candid insight into your production methods, and other aspects of your business.

Favour ethical and sustainable brands

Faced with the urgency of climate change, Gen Z consumers are increasingly feeling the need to change their consumption habits in favor of more environmentally-friendly practices.

As a result, they are more inclined to spend their money on better-quality, sustainable products. For example, 80% of GenZ members prefer to buy second-hand products, and a third of them have already resold at least one item in the past year.

Tip: Think about how you can incorporate sustainability into your products' entire production cycle. Emphasize their recyclability, consider investing in plastic-free packaging and make it easy to return containers (like Lush, for example).

Capitalize on recommendations from influencers and other consumers

Gen Z's buying behavior is no longer dictated by what brands say, but rather by what other consumers say. Indeed, 92% of them consider recommendations from influencers on social networks to be the most decisive factor in their purchasing decisions, far surpassing advertising, advice from in-store salespeople, or even celebrities.

Gen Z also likes to buy products recommended by other consumers. They are therefore particularly interested in product tests shared on social networks, and almost systematically seek out reviews from previous customers before placing an order.

Tip: Stimulate the creation of user-generated content (UGC ) among your customers to encourage digital word-of-mouth. Partner with influencers who share your values, adding credibility and authenticity to your brand.

Involving Gen Z in the creative process

Gen Z is not content to be a generation of passive consumers. It seeks to establish a real connection with the brands it buys from, and in particular wants to participate in the creation of their content. That's why they prefer interactive platforms like TikTok and Twitch, where they can interact directly with companies, take part in challenges and more.

Tip: You can go even further by inviting Gen Z to co-create your products or services. Companies like Nideco involve their community every step of the way, letting them imagine the beauty product they'd like to buy from their brand, then having them vote for the most relevant idea.

Adapt your marketing to Gen Z

Adapting marketing strategies in response to Generation Z is now an essential imperative for the survival and development of any business.

This new generation of consumers, in full ascendancy on the job market, has ever-increasing purchasing power. What's more, they have already begun to exert a major influence on consumer habits and the functioning of world trade.

Marketing to Generation Z requires a more collaborative, authentic and value-driven approach. Only brands that know how to adapt to these new demands will succeed in winning the loyalty of this generation and thrive in tomorrow's economy.

If you're looking for an agency that can help you develop large-scale campaigns to reach this younger generation, contact us.