Gen Z is the generation approaching adulthood, and consequently have a lot of power in today’s market. By 2031 Gen Z is projected to overtake millenial’s income, reach over a quarter of global income, and grow to over $2 trillion total.
Gen Z currently is still influencing and spending their families money more than their own. Gen Z spends the most on clothes, books and music, and apps or toys and games currently. As they get older areas such as rent, food, and furniture are projected to grow though.
When it comes to brands, the three kings are Google, Netflix, and Youtube for Gen Z. This lines up well with the fact that many members of Gen Z grew up heavily using and identifying with these brands. Although there are many factors that influence Gen Z’s perception of a brand.
Most notably, Gen Z tends to buy based on values. There’s been a large decline in support of police, news media, and the government for Gen Z at large. 65% of Gen Z research the brands they buy from before a purchase. This has created a giant desire for sustainable, affordable, and ethical products to get Gen Z’s business.
It’s desires like these that have created the diversity incentives, sustainable initiatives, and moves away from any racist, homophobic, or any other controversy that define companies today. Although it started with millenials, the desire for ethical businesses is the defining point behind Gen Z’s relationship with brands. This is now a necessary aspect for any business to consider to garner Gen Z’s support.