AD6606 FMP - Generation Z Research File

Executive summary

Move over Millennials, Gen Z are ushering in a ‘population tsunami’. With current estimates at two billion globally, this demographic is slated to be the single largest group of consumers worldwide in just a few years. While much has been written about the demographic, we wanted to go straight to the source to identify how our clients could better tap into their burgeoning spending power. We interviewed over 40 teenagers aged 16-21 from around the world in countries from Korea to the UK.

While there were similar concerns and influences amongst those we surveyed, it soon became blatantly clear: this generation defies stereotypes and makes its own rules. Rather than speaking broadly to Gen Z, we have identified two micro-segments within the cohort: Gen We and Gen Me. In this white paper we explore both these segments, including:

– What characteristics unite the generation

– How both segments responded to the political and economic uncertainity during their upbringing

– Their relationship with social media

– Their aspirations for education and the workforce

We will finish the paper by looking at how brands can attract both ends of the spectrum, and bridge the gap to create authentic and lifelong connections with Gen Z consumers.

Gen Z snapshot

There are fundamental diferences within Gen Z, but the demographic as a whole is defined by the common circumstances of their upbringing. They are a generation defined by technology, cultural aggregation, fluidity and contradiction. They are a divided generation, yet they are connected at the very same time by these commonalities.

The rise of individualism

Uniqueness is a priority for Gen Z. The most ethnically diverse generation in history, diference doesn’t scare them as it may have in the past. For Gen Z, there’s more emphasis during adolescence on creating their own path, whether that means building new educational systems or their own personal brands.

Gen Z wants to reframe outdated social constructs and create new ones. Brands that do the same will resonate with them. They sway towards brands that celebrate self-expression and empowerment. They don’t want brands that cater to everyone, they want brands that cater to the individual.

The beauty (and backlash) of connectivity

Digital natives from day one, Gen Z have never known a world without the World Wide Web. Their constant connectivity surfaces an alarming but unavoidable dichotomy similar to the Latin phrase “Quod me nutrit me destruit” (“What nourishes me destroys me”). While social media has provided endless opportunities to grow, learn, connect and build, it has also caused some level of damage. Never before have teens been so susceptible to depression, anxiety and suicide. According to a 2016 Monitoring the Future study, 13-year-olds who spend over 10 hours a week on social media are 56% more likely to be unhappy, while 27% of social media users see an increased risk of depression.1

Delaying adulthood

Born in the information age, Gen Z is more intellectually advanced. Yet, they’re also growing up slowly and taking longer to embrace the responsibilities of adulthood. It was even suggested in a recent child development scientific journal that the age range for adolescence should be expanded from 19 to 24 years old. Gen Z is engaging in less ‘adult’ activities (having sex, drinking, getting a driver’s licence and working) than any other generation. 2

2 “If adolescence now lasts until 24, what does that mean for the rest of us,” by Yvonne Roberts, The Guardian, January 20, 2018.

3 “iGen,” by Jean M. Twenge PhD, Atria Books, August 2017.

4 Roberts, The Guardian.

5 Ibid.

6 “More Americans of all ages spurning driver’s licenses,” University of Michigan Transportation Research Institute, January 20, 2016.

7 Roberts, The Guardian.

8 The American Freshman: National Norms Fall 2016,” by the Staff of the Cooperative Institutional Research Program, 2017.

9 “The Decline in Adult Activities Among U.S. Adolescents, 1976–2016,” by Jean M. Twinge, Child Development.

10 Roberts, The Guardian.

11 Roberts, The Guardian.

New definitions

For Gen Z, nothing could be worse than being attached to an idea before being seen as an individual. Remember, this is a demographic that doesn’t want to be everybody’s demographic.

Gen Me & Gen We

Regardless of what you call them, you need to understand them. And to understand them, means to accept that they are a deeply divided group.

When looking at the generation as a whole, two separate segments emerge that live on polar opposites of the spectrum:

Gen Me and Gen We

For the most part, Gen Me is highly documented, easily understood and currently being marketed towards by the majority of brands. When you look beyond the surface, though, you discover a new group shaking things up, commanding attention and forcing brands to reconsider their strategy. This new group is called Gen We.

In this white paper, we’ll look at Gen Me and Gen We – how they define themselves, their ambitions, rituals, communities and influencers. In doing so, we’ll look at how brands looking to tap into both sides of the spectrum can capture their attention.

While segmenting the two groups, however, it’s important not to think too linearly. As discussed, Gen Z is all about fluidity and openness. Although Gen Me and Gen We exude confidence and authority in their opinions and beliefs, they’re not immune to understanding each side’s allure, freeflowing along the spectrum and – either self-willing or unconsciously –contradicting themselves.

Me to We

Me to We

New feelings

How Gen Me reacts to the age of anxiety

It can be easy to overlook Gen Me because they are all around us. Today, they represent the vast majority of Gen Z consumers. While they care about issues facing teens today, they choose to escape from the noise rather than face or vocalise their feelings.

“In everyday life, you’ll take a stroll, but in electronic life you’ll take a scroll”

Paris,

15, Brisbane, Australia

More style-driven, they aren’t afraid to consciously develop counterfeit lives or follow trends rather than set them. For Gen Me, following trends is a way to reach new aspirational lifestyles.14

The endless stream and endless feed fuels Gen Me’s endless need for content. And with all their time directed towards the Internet, it’s no wonder Gen Me is emotionally exhausted. The result? They desensitise themselves by submerging themselves in a sea of social media.

“We don’t have a choice on whether we do social media, the question is how well we do it. Social media makes me feel like I have square eyes and like I’m not living my normal life anymore. I don’t feel like me, you kind of feel like a robot. It’s like you’re in a trance.” Paris, 15, Brisbane, Australia

As part of their obsession with social media, Gen Me consciously lives double lives; their real identity that surfaces in person, and their fabricated and filtered persona that parades all over their social channels.

“I’m embarrassed to say it, but there’s a specific niche of Instagram It Girls that I envy. They’re the ones who post pictures of fruits in those netting bags and cutely arranged clutter on their wicker cofee tables. I find myself trying to emulate their posts on a regular basis. I can never get it quite right, though. I’m just too human, lol.” Tess, 20, Detroit, Michigan

“On social media, it’s all about being popular, pretty and fake. In real life, it’s not about being rich or pretty or whether you make up, there’s chores to do and everyday life stuf In everyday life, you’ll take a stroll, but in electronic life you’ll take a scroll.”

Paris, 15, Brisbane, Australia

While anxiety permeates all of Gen Z segments, it’s Gen Me that glosses it over –wor even romanticises it.

“The reason social media causes anxiety is for obvious reasons. People make their lives look so great but in reality, those people’s lives aren’t necessarily as great as they make them out to be. But I think the good thing is that people are starting to be more honest and show their real, goofy sides, too.” Megan, 20, Long Island, New York

“I can never get it quite right, though. I’m just too human, lol”

Tess, 20, Detroit, Michigan, USA

New ambitions

Gen Me’s ambitions, thoughts on education, and feelings about the future

When it comes to work, education, fame and social status, Gen Me know where they want to go. Their industrious nature means that they are self-made, or at least in the process, aggregating the personal brand they want to project into the social sphere. Pair that with their filtered, curated and polished feeds, and one might mistake them for truly living their best life.

For Gen Me, education means emulating. They’re looking to YouTube and Instagram to be guided by their role models. They believe there’s nothing they can’t learn on social media and are challenging traditional educational paths.

“YouTube is a whole diferent world… You can learn how to do your make-up or how to match clothes… It’s like you’re travelling the world but through social media. It’s the biggest community because one minute you’ll be on a music video, then two minutes later you’ll be on a video about how to make ice-cream. It’s like TV for us Gen Z. If you have a YouTube channel you’re classed as cool.”

Paris, 15, Brisbane, Australia

In China, where the wanghong (Internet celebrity) economy is booming, over 54% of Gen Zers listed “livestreamer” as their dream profession. The Chongqing Institute of Engineering, a college in southwest China, even partnered with a local company to ofer a three-month programme on how to become a better livestreamer.

YouTube channel you’re classed as cool”

Paris, 15, Brisbane, Australia

With admission based on physical appearance and skills, the course teaches students how to build a persona, style themselves, ask for gifts, create viral topics and manage fans. “We want to train the students into both skillful performers and persuasive online marketing and salespersons,” the programme oficial told Beijing Youth Daily.15

When it comes to more traditional forms of education, Gen Me looks for practical, skillsdriven curriculums. Companies are creating alternatives to college with accelerated, skill-focused courses and pragmatic tuition plans that don’t leave students in massive debt. Education for the 21st century, MissionU ofers one-year programmes that aim to place graduates straight into some of the buzziest brands around, including Spotify, Uber and Casper – and have some of their salary deducted to pay back their tuition costs.

Based on the premise that students shouldn’t merely learn theory, MissionU is all about real-world experience, and with most US Gen Zers experiencing the recession through their parents, ‘real’ promises safety in an insecure workplace.

When it comes to work, Gen Me strives for jobs that ofer them contentment and happiness. Sure, money matters, but they’ll eventually choose their future employers based on a positive and flexible work environment over one that pays more.

“You need to be in a good work environment and I feel like people need to be happy around you. If no-one’s happy and everything is negative, you’re not going to want to go to work every single day and you’re not going to get as far as people working in a nice environment.” Jude, 18, United Kingdom

“Definitely a good company with flexible hours and things like that would be ideal because that can lead onto other things. If you’re in a job that you hate and there’s loads of hours that are going to take your life away, you’re not going to be happy, and for me a social life is quite important,” adds Jude.

As a whole, Gen Zers think outside the box and are natural-born entrepreneurs and innovators who like solving complex problems. From a young age, they forge their own paths and invent new opportunities that may not have previously existed. In 2016, employment website Monster 16 partnered with global research agency TNS on a study that revealed the workplace priorities of Gen Z. It found that Gen Z is the most entrepreneurial generation to date. Compared to 70% of all working generations, 76% of Gen Zers surveyed believe they are the drivers of their career and will work for their own professional advancement. Furthermore, 49% want to start their own business, compared to 32% across all working generations.

“We will constantly look for ways to streamline processes and procedures… We have grown up in a time where often the middleman has been eliminated so we will look for ways to do things more eficiently when we show up at the ofice. We truly are a DIY generation and will bring this mentality with us to work,” says teenager Jonah Stillman.17 Together with his dad, David Stillman, a generational expert, the two run GenZGuru, a company focused on revealing insights about Gen Z.

In 2017, the father-son duo released a book titled Gen Z @ Work that explored the workplace priorities of the younger cohort.18 Through their research, they found that 75% of Gen Z want their current hobby to eventually become their full-time job. Yet, this should not worry employers. As long as Gen Z gets their work done eficiently, companies who support the younger cohort’s side hustles will see higher levels of retention.

Social Media

For Gen Me, cultivating a visual lifestyle is top of mind and they are consumed with building their personal brand. Beauty is a crucial device for this group as they contour their identities to fit into the popular mould of cool. Their faces have become their calling cards and their greatest asset. It’s no surprise, therefore, that they will shell out big bucks to achieve the coveted look. Female Gen Zers now spend $368 annually on beauty, with skincare being a leading driver, up 18% year-on-year.19

What’s fueling the obsession? For some, it’s about making money. “I think having a large social media following is pretty important,” says 20-yearold Zach from Massachusetts. “It’s great to see when people are able to tap into and monetise their followings.” Tess, a 20-year-old from Detroit, Michigan, agrees, but steers clear of purchasing followers: “I do know some high school girls who have done so and now have entire ‘fan accounts’ on Instagram devoted to them.”

YouTube has been around since 2005, and for the most part, Gen Me doesn’t remember a world before it. Questions can be answered instantaneously and the platform has emerged as the premier self-help tool for this cohort. According to Google’s It’s Lit survey, teens ranked the social sharing platform as their top brand in 2017. 20 “There’s so many categories of what you can watch,” says Paris, a 15-year-old from Brisbane, Australia. From life hacks to beauty tutorials, the possibilities are endless and teens are using the platform to self-educate.

“I have a borderline existential crisis about my following nearly every day”

Tess,

Gen Me is sacrificing real-world friendships for those that derive in a false reality. Realstagram is a growth machine that prides itself on selling attention rather than followers. Here, robots are masked as friends playing the part of a community. They essentially look after your account, cultivating a following for you, taking ownership of all of the hard bits. “It’s really hard to not be sucked into the bubble of caring about how many likes you get or how many people are following you,” says Megan, a 20-year-old from Long Island, New York.

Hype Culture

Driven by capitalism, Gen Me spends its time engaging in resell culture. Hypnotised by hype, Gen Me buys into brands like Supreme, Palace and Bape before turning around to promote it almost simultaneously. According to a new study from ThredUp, by 2022, the resell market is set to grow from $21 billion to $41 billion and will account for 11% of people’s wardrobes. With resell culture set to outpace fast fashion by 2027, brands must brace for this evolving consumption behaviour. 21

Gone are the days of teens working seasonal summer jobs to make extra cash. With hype culture becoming the new luxury, Gen Me is willing to wait (in line) and willing to pay (online). Now 18, Boris Kunin founded the resell platform Lyne Up back in 2014, earning him thousands of dollars in revenue and real-world experience managing a business prior to even entering university. And he’s not alone. Instagram has welcomed a host of reselling entities ranging from large to small, which facilitate the exchange of goods, commanding huge audiences to pay a premium price.

Promote

Hype Culture in Action

it almost simultaneously

With hype culture becoming the new luxury Hypnotised by hype

Gen Me is willing to wait (in line) and willing to pay (online)

Resell market

The line

For streetwear aficionados, the queue outside of Supreme has become a new community centre. Although Gen Me typically uses phones as a shield from the bright shiny beams of reality, the line has emerged as a place to foster connections with those who share the same stamina for FOMO-induced waiting. “I think people have always tried to bottle scenes, cultures and movements as being very singular, individual events, and the line itself ofers an opportunity for kids with a shared mindset to come together,” says Jef Carvalho, Partner and Executive Editor at Highsnobiety. While the line surely serves as a marketplace in itself, the community aspect is paramount. “The line is a place where they can all come together and actually have real hard talk or shoptalk around it,” says Carvalho. “In many ways, it’s a judgement-free zone, but it is a tough place.”

The community has moved online, connecting kids around the world who may not have direct access to a physical store. Through the app Supreme Community, kids can keep up to date on the restocks and drop lists. Reselling extends beyond the parameters of the drop itself, with many kids taking to popular resell sites like Grailed for young men or its sister site, Heroine, for their female counterparts. Another platform, Depop, brands itself as a social shopping female-led community, with 54% of its users aged 14 to 24. 29 On the platform, users can buy and resell their clothes from each other and celebrities who also have accounts. “It’s cooler than Poshmark. I like looking at celebs’ stuf, too,” says Megan, a 20-year-old from Long Island, New York.

“The line itself ofers an opportunity for kids with a shared mindset to come together”

Je f Carvalho, Partner and Executive Editor of Highsnobiety

Retail stores

The physical store has become a community centre luring Gen Me audiences in to capture social imagery. Designed with the squarepegged image in mind, these spaces with their considered lighting, colour, aroma and overall aesthetic have an opportunity to draw crowds and amplify scale across social media. “My friends and I go to cafes with Instagrammable interiors and take pictures,” says Hyunjin, a 21-year-old from Seoul.

Coachella

Festivals remain a tried and true way to attract and retain the young cohort. Hyper-curated productions and modern festivals enable a brand to foster one-to-one relationships with consumers IRL. Now in its 19th year, Coachella continues to draw large crowds, with attendance ticking upwards in 2017. Gen Me flocks to the desert clad in the latest festival wear in search of content that they can post online. “You think of what out fits would look best in the photos with your friends,” says 23-year-old Nicole from Orange County, California. “Solo shots are cool, but friends shots are way better. This is sad to admit, but yeah, it’s a guilty pleasure to dream up cool photos in settings like Coachella or on vacation on an island.” On the other end of the spectrum, kids are looking to document the event purely to share their whereabouts online with their community. “It wouldn’t necessarily be to brag on Instagram, but I would like to share my experience. And that goes for any sort of event, I don’t think about it necessarily as bragging or stunting, but I do like to document my experiences and turn it into shareable content,” says 20-year-old Zach from Massachusetts.

“My friends and I go to cafes with Instagrammable interiors and take pictures”

Hyunjin, 21, Seoul, South Korea

Cons

‘Cons’ have also proved favourable amongst the Gen Me set, attracting like-minded individuals to a physical space to sharpen their skills and knowledge, and make real-world connections. Beautycon caters to the beauty-obsessed who spend time watching YouTube tutorials, while Sneaker Con, a global event, attracts the streetwear scene. ComplexCon will host its third iteration in 2018. Taking place in Long Beach, California, the event attracts a healthy dose of US Gen Me chasing the latest music, fashion and culture. Within the walls of the Long Beach Convention Center, attendees enjoy panel discussions, musical performances and retail pop-ups that induce hype.

Video games

According to Google’s It’s Lit survey, the need for community is a major driver behind the explosive popularity of video games.30 Twitch, a streaming platform, has risen to prominence in recent years for its ability to allow mass audiences to tune in and watch successful and infamous gamers whilst in action. “I don’t go on Twitch a tonne but it’s my go-to source for watching any video game live stream,” says Zach, 20, from Massachusetts. The streaming site boasts 15 million daily active users who spend 106 minutes watching and engaging in content.31 Twitch’s community skews heavily male at 81.5% with 55% between the ages of 18 and 34.32

“It’s taking over our boyfriends’ lives and brainwashing them”

Petitioner Chloe DePalmer, writing on Change.org of Fortnite

81.5%

Percentage of Twitch users that are male

Arguably one of the most popular games of the moment is Fortnite, with 3.4 million concurrent users as of February 2018.33 While Gen Me men are engrossed with the game, which drives a sense of anticipated nerves to audiences looking on, their loving partners and families have had just about enough of it. The leading ladies in their lives have taken to Change. org, creating a petition to get rid of Fortnite, a desperate plea to reclaim attention from these distracted gamers. The Change.org document, which reportedly started of as a joke, has since gone viral gaining over 3.2k signatures and a whole host of comments. “It’s taking over our boyfriends’ lives and brainwashing them,” petitioner Chloe DePalma wrote. These petitioners are attempting to implement change on a very super ficial cause.

30 “It’s lit,” by Google, coolbook@google.com, 2017. https://storage.googleapis.com/think/docs/its-lit.pdf.

31 “Gaming has become a universal part of our entertainmentdiet.” By Twitch Internal Data, Twitch Advertising, September 2017. http://twitchadvertising.tv/audience/.

32 Ibid.

33 “Nearly a third of PC gamers are playing a battle royale game,” by Ali Jones, PC Games News, March 27, 2018. 27

“Someone that I look up to is Kylie Jenner because she took nine months of her life of social media for the benefit of her child”

Paris, 15, Brisbane, Australia

The Big Four

The Kardashian efect and the super (social) models

1 3 2 4

When the Kardashians opened up their home to the world 11 years ago, no one could have anticipated the magnitude of success they’ve since achieved. The female Gen Me is predominantly influenced by reigning lip kit queen, Kylie Jenner, who has become a cultural icon and one of the biggest points of reference aesthetically for this sector.

Supreme, streetwear and reselling Streetwear is big business. In 2017, the hype seemed to reach fever pitch, with consumers clamouring for access to exclusive releases and logo-heavy activewear. Hyped product has become a symbol of status, and streetwear has become the new luxury. Brands are tapping into drop culture to achieve the Supremeefect and young kids are buying into it. They’re prepared for lengthy wait times and hefty price tags to achieve this modern, manufactured and systemic notion of cool.

Meme culture

Memes have become the new language, with kids exchanging them the way they normally would words. No subject or person is of limits and it’s not all fun and games. Becoming meme-ified has the potential to not only negatively tarnish a brand in the interim, but to stay within the minds of the impressionable youth for years to follow.

From hip-hop to K-pop: a culture without borders Subculture no more, hip-hop has hit the masses and continues to bolster its impact on fashion, beauty and youth culture. During politically fraught times, rap resonates. In 2018, 30-year-old acclaimed rapper Kendrick Lamar won the prestigious Pulitzer Prize for Music, an award that had never before gone to a musician outside of the jazz or classical genre.34

Today, K-pop is making its transition from a regional youth subculture to a global cultural phenomenon. Thanks to mobile technology, fans across the world have 24-hour access to celebrities’ lives behind the scenes. Armed with elaborate social media strategies and style influencers, the ‘Korean Wave’ is boosting creative and economic growth.

New feelings

How Gen We grows up in the age of anxiety

Unlike their Gen Me counterparts, Gen We takes an unfiltered and unabashed eye to the political circumstances of their upbringing. Compassion is in their DNA and caring is the new cool. Self-expression comes very feeling-focused for Gen We. After all, it’s all about feeling together and vocalising their emotions. They refuse to escape from reality – they would rather face and solve problems, or express and embrace their vulnerability and imperfection.

“We feel obligated to take care of others through our own experiences”

Cassandra, 20, Maine, USA

Experiencing the worst mental health crisis in history, Gen We collectively lift each other up to remind everyone that “you are not alone in this”. Fully acknowledging the detrimental efects of social media, they are striving to raise awareness of technological ethics and safe spaces for anxious teens. Take Amanda Southworth, a 16-year-old who developed the Anxietyhelper app to provide resources for young people’s mental health. She recently rolled out another app called Verena, specifically aimed at helping the LGBTQ community feel safe. Joining the conversation around mental health, self-care apps are rising as the new (mobile) companion. Aloe App sends daily reminders to check in with yourself, and Claire – The Dear Diary That Replies allows users to chat about how they feel at the moment.

Unlike their counterparts living in a filtered bubble, Gen We accept themselves as who they are and are not afraid to expose their imperfections and vulnerabilities to the world. It’s their way of empowering others – fighting stigmas together to bring about change.

For example, photographer Peter Devito posts his untouched portrait series on Instagram, to empower people by normalising acne. The Ugly Girls Club challenges beauty ideals and tackles the fear of ugly to empower women. Combatting the diet culture that feeds into self-loathing, the Anti Diet Riot Club dives into the body positive movement for emotional well-being.

When it comes to feel vulnerable, Gen We use their own experience as a tool to help others.

“Vulnerability has changed from a rawness to more of a healing… Once we come forward with our experiences and let it help other people, we start to heal. It’s about that empowerment and the feeling of ‘I don’t want someone else to go through what I did.’” Cassandra, 20, Maine, USA

In Australia, 13-year-old Hamish Finlayson builds apps and games to increase awareness and teach his peers about autism, using his own experience of the condition.

Instagram-based collective @blackboyfeelings see themselves as an “avenue for black expression”, exploring the emotional experience of being a young black man in America. In March 2018, the BBC released a documentary, Just Boys IRL, where five teenage boys that met on online game Dota, travel together and openly discuss their struggles with mental health issues. Films like Wonderstruck and Eighth Grade (with a 100% fresh rating on Rotten Tomatoes)35, also tap into the sense of vulnerability and loneliness that surrounds teenagers.

New ambitions

Gen We’s ambitions, thoughts on education, and feelings about the future

Similar to Gen Me, Gen We are goal-oriented, just not to the point of obsession. They dream big, but more importantly, they get things done. In their eyes, collective progress is more important than individual success. The importance of college and securing the right job is still somewhat appealing to Gen We, but the values and attitudes these institutions uphold have to be completely upheaved, otherwise Gen We are looking elsewhere for an education.

Gen We teens value safety and financial security, having grown up during the US recession or with precarious and unstable economies. Still, there’s a big emphasis on carving out the right path and finding resourceful and entrepreneurial ways to support themselves. With this comes a healthy dose of scepticism towards traditional educational.

“I am quite anti-college for the most part. Mostly because of how colleges have become huge for-profit institutions. Students have become numbers and dollar signs. I have many friends in college who are so stressed out it seems inhumane to me. It definitely doesn’t make economic sense to me either. I never wanted to go to college and I don’t plan on going. The 17-year-old me was looking at adulthood pretty anxious and overwhelmed.”

Kayla, 18 (and CEO of GreenBoxShop), Miami, USA

“The education I wanted was learning how to love yourself – not killing yourself”

Jaehyun Jung, 17, Seoul, South Korea

New rituals

Major lifestyle changes for Gen We

Food Transparency

Rising as the biggest spender in the food industry, teens are spending 24% of their cash on food (4% more than what they spend on clothing), according to Piper Jafray’s Spring 2018 study.40 And when it comes to Gen We, inclusive menus are top of mind. They believe restaurants should cater to all types of consumers and ofer more vegetarian, gluten-free and halal options.

Growing up with limitless access to information, Gen We want to know where their food comes from, how it is grown and who made it. They also care deeply about how their eating habits afect the environment.

“I’m very into farming and food justice. I’ve been volunteering at local farms in the South Florida area, and the community here is so lovely. Sitting on fertile soil and being hands-on with the fruits of the earth while talking about conspiracy theories with your harvest partner is always so deeply refreshing.” Kayla, 18, Miami, USA

Activism

Compared to Gen Me, who spend most of their time online to feed self-interests, Gen We are shifting the focus from me to we. They use online platforms to communicate and organise, while ensuring their daily activities bring them purpose. Gen We use their spare time to educate themselves, speak out about inclusivity, diversity and the environment. For Gen We, activism needs to be taken to the street. “We want to make sure every aspect is linking up to avoid any kind of faux activist connotation,” explains Cassandra, 20, from Maine, USA.

24%

Money spent by teens on food

20%

Money spent by teens on clothes VS

Travel

For Gen We, travel is another way to get out of their comfort zone and look for cultural immersion.

“The more we understand about how everything is around the world, and how diferent people work, makes us more tolerant.” Jose, 21, Queens, New York, USA

“Knowing diversity and experiencing it makes you more creative. I don’t think you can reach your full capacity unless you are aware of things that aren’t similar to you.” Ariana, 21, Queens, New York, USA

One way to travel is to take a gap year, which has increased in popularity 43% YOY since 200641. Gen Z influencers like Malia Obama and Yara Shahidi also took a year of before entering Harvard. Gap years can give Gen Zers the opportunity to travel more authentically and gain a new perspective or sense of purpose. According to the Association of British Travel Agents (ABTA), top destinations for gap years include Thailand, Australia, Vietnam, Peru, New Zealand, USA, Cambodia, South Africa, Argentina and India42.

In China, there has been a related shift as university students opt to volunteer abroad, rather than study in the West.

“If, in the past, Chinese people had a passion for learning about developed Western nations, then they are now beginning to develop a more balanced understanding of other parts of the world. We not only need to learn from other countries’ success stories, we also need to understand the dificulties that less fortunate people face. Only with this understanding can we work together to create a better world,” wrote Guangzhou University student Chai Bipeng in Sixth Tone of her experience in youth-led volunteer projects.43

IRL

In light of the increasing digital saturation of their lives, Gen We strive to spend their free time with their friends and family. According to WGSN research, favourite weekend activities include eating out, going to friends’ houses, or other intimate settings where teens can interact with each other and spend quality time. “During weekdays, it’s hard for me to give full attention to my loved ones since I’m busy with my work at school, so I try to make an e fort to spend more time with them on weekends. This is not only for the social relationships, but for my own mental health and happiness,” says Claire, 19, from Bangkok, Thailand.

New communities

Social media is making it easier than ever before for like-minded teens to find each other, and Gen

We is congregating both online and of to demand the change they wish to see in the world.

Concerned with progress rather than success, they crave community and connection. By using social media, they have been able to form micro-online communities to help mobilise support for new causes and issues. These issues and communities can be bucketed under five main themes: mental health, sustainability, inclusivity, rights and safety, and accountability.

Mental Health

With so many pressures, many young people have turned to online communities for support as they battle mental health issues.

1. #Halfthestory: A project to highlight our most human attributes via social media and reignite human connection in the digital space. It’s dedicated to sharing experiences, struggles, entrepreneurial journeys and aspirations.

2. Gurls Talk: a safe space community for women that focuses on topics like mental health and the repercussions of social media. The project was founded by British model, Adwoa Aboah.

Sustainability

As sustainability continues to be top of mind for this cohort, they are turning to social and each other to rally for positive change.

1. @bahamasplasticmovement: An online movement that successfully persuaded the prime minister of the Bahamas to ban the use of plastic bags.

2. @greenschoolbali: A non-profit private pre-kindergarten to grade 12 school in Bali created to educate tomorrow’s civic leaders in sustainable development.

3. March for Science: A worldwide protest on Earth Day attended by people of all ages. This year’s march took place in over 200 cities around the globe.

4. Girlfriend Collective: A brand that makes leggings from recycled plastic water bottles from Taiwan.

Equality

Acceptance and inclusivity is key to Gen We. A number of collectives and groups strive to cultivate a more inclusive world that understands and celebrates diferences. Causes range from race and gender rights, to protecting the rights of LGBTQ+ individuals.

1. Thatswhatss: Based in the UK, Thatswhatss explores girlhood in a digital age, aiming to fight for change, reduce stigma and create meaningful conversations to give young female voices a platform to be heard.

2. #Girlgaze (@girlgaze): With the hashtag, anyone can submit their work to this digital media collective based in LA. Having branched into the analogue world with Girlgaze, the digital platform has ventured into an analogue world with a book and the project has achieved over one million contributions.

3. Phluid project (thephluidproject.com): Part community and part retail marketplace, this New York-based retailer aims to cultivate a gender-neutral space, free from judgement.

4. ReproRightsZine (@reprorightszine): A free zine initiative to inform readers about the current state of reproductive rights.

5. Kode with Klossy: Founded by supermodel Karlie Kloss, Kode with Klossy runs summer camps across a variety of American cities that operate without tuition. The camps are open to selected applicants between the ages of 13-18, who learn the “ABCs of code,” according to Kloss.

Rights & Safety

After a series of high-profile mass shootings in schools, the US is at the centre of a heated debate. Kids have had enough and are tired of fearing for their lives and safety every time they enter a classroom. They’ve decided to stand up and speak out.

1. #marchforourlives: In March 2018, US students from Parkland, Florida, rallied together to create a movement that achieved a ripple efect across the world. In the wake of a school shooting that killed 14 students and three staf, the students created a movement and a march to protest the US gun laws. Dubbed March For Our Lives, the students were able to draw a crowd of 500,000 to Washington DC.

2. Self-Defence Seminar (@killerandasweetthang): Bringing URL to IRL, the popular influencer @ killerandasweetthang and her loyal platform created a community event to help empower girls with self-defence techniques, including Jiu-Jitsu.

3. Grrrl Gang Manilla: An outspoken collective of feminists in the Philippines who speak out about key issues facing the nation.

4. Girls Against: Teen intersectional feminists combating sexual harassment at festivals. The group has over 6k Instagram and 18k Twitter followers and has partnered with over 25 UKbased festivals to raise awareness.

5. #freeperiods (@amikageorge): A 19-year-old Brit who asked the government to provide free menstrual products to those on free school meals.

6. SitWithUs: An anti-bullying app started by high school junior Natalie Hampton from Los Angeles in 2016. The app creates lunch events to invite students who may otherwise have eaten alone. It also invites users to become ambassadors, helping fight bullying and promote inclusion.

New leaders

Who Gen We looks up to

While Gen Me looks up to macro influencers, Gen We looks to each other. It’s not about competition for this group – it’s collaboration that reigns supreme. Gen We is inspired by the actions of their peers and they empower one another to ignite the change they want to see.

Conscious of the future, this cohort invests time, money and energy into delivering impactful change. Issues like mental health, sustainability, race, LGBTQ+ rights and safety are top of mind, and micro leaders have emerged to drive meaningful impact around these concepts.

In contrast to Gen Me, these niche influencers don’t resonate because of their famous face or follower count. For the most part, they’ve emerged from obscurity cultivating a following not because of who they are, but for what they say – and stand for. While these influencers are mostly unrecognisable, the weight of their messages is intended for the greatest impact.

Bridging the divide

While Gen Me and Gen We live on opposite ends of the spectrum, there’s a middle ground of influencers who bridge the divide. With transgenerational qualities, they highlight how influencers and brands can appeal to both sides and encompass a micro, mass, celebrity and mixed perspective.

Celeb

Yara Shahidi

Amandla Stenberg

Rowan Blanchard

Mock

Lil Miquela

Ronnie Blawko

Shudu Gram

Micro

Sophia Hadjipanteli

Desmond Napoles

Sorsha Morava

Alok

Mass

Brockhampton

Killer and a Sweet Thang

Emily Elaine Oberg

Ninja

Action points

Gen Z

There are two sides to Gen Z, and microsegmentation will reign, meaning less is more when it comes to targeting.

Don’t play the sidelines, pick a side but be sure to stay true to your DNA.

Purpose isn’t a marketing tool, it’s a long-term company commitment, a commitment to your brand values.

You can’t shoehorn purpose into your strategy.

Use the bridging influencers to connect both Gen Me and Gen We without alienating either side.

The only way for brands to authentically play in the middle is when the influencer and brand SROI (Social Return On Investment)* is high.

Consider what role your brand can play in the age of anxiety. Mental Health is a crisis for this generation, and your brand could be a change-maker.

Whether Gen Me or Gen We, this group is hands-on, results-driven and pragmatic, which means they want authenticity and consistency.

Risk gauge

Gen We

Gen Me

Gen We

Brands need to bake empathy into all aspects of their business.

Don’t just talk about diversity in your campaigns, represent it in your workplace and with the people you do business with – Gen We will look under the surface.

Leverage the power of buycotters. Gen We wants to buy into brands that they believe in, not avoid ones they distrust. They expect business leaders to f ill in the gap where governments have lost trust.

Gen We craves connection. Deliver ofline experiences, events and workshops that combat the loneliness social media is creating.

Giving a product to communities only matters when the product is needed. Do trendy shoes or sunglasses really matter to a starving child?

Look towards new companies like Conscious Period, which donates female sanitary products to homeless women in the US.

Bake optimism into your communication strategies: 53% of consumers see a better year ahead. Despite the gloom and doom, it’s important to stay upbeat yet realistic for Gen We.

Gen Me

Create content to help them escape. Think ASMR-led content and Instagrammable activations.

Lose the corporate vibe if you want to hire youth. They’re looking for flexibility and informality.

Don’t chase culture, create it. Gen Me wants to engage with viral moments. Look at brands like KFC and adidas for inspiration.

For China, look to this segment of Gen Z to be impulse purchasers and triggered by social media.

My Notes:

Page 2

single largest group of consumers worldwide

We interviewed over 40 teenagers aged 16-21 from around the world in countries from Korea to the UK.

Interview from WGSN where statistics have been gathered…

Gen We and Gen Me

The two micro segments.

Page 3

They are a generation defined by technology, cultural aggregation, fluidity and contradiction

Page 4

Uniqueness is a priority for Gen Z.

They sway towards brands that celebrate self-expression and empowerment. want brands that cater to the individual.

Page 5

27% of social media users see an increased risk of depression.1

Page 6

growing up slowly and taking longer to embrace the responsibilities of adulthood

Page 8

For Gen Z, nothing could be worse than being attached to an idea before being seen as an individual

Page 10

they are a deeply divided group

Gen Me is highly documented, easily understood and currently being marketed towards by the majority of brands

Page 14

It can be easy to overlook Gen Me because they are all around us. Today, they represent the vast majority of Gen Z consumers. While they care about issues facing teens today, they choose to escape from the noise rather than face or vocalise their feelings

Page 15

More style-driven, they aren’t afraid to consciously develop counterfeit lives or follow trends rather than set them. For Gen Me, following trends is a way to reach new aspirational lifestyles.14

GEN ME

Gen Me consciously lives double lives; their real identity that surfaces in person, and their fabricated and filtered persona that parades all over their social channels.

“I’m embarrassed to say it, but there’s a specific niche of Instagram It Girls that I envy. They’re the ones who post pictures of fruits in those netting bags and cutely arranged clutter on their wicker coffee tables. I find myself trying to emulate their posts on a regular basis. I can never get it quite right, though. I’m just too human, lol.” Tess, 20, Detroit, Michigan

“On social media, it’s all about being popular, pretty and fake.

Page 16

For Gen Me, education means emulating. They’re looking to YouTube and Instagram to be guided by their role models. They believe there’s nothing they can’t learn on social media and are challenging traditional educational paths.

Page 17

Gen Me strives for jobs that offer them contentment and happiness.

Page 18

As a whole, Gen Zers think outside the box and are natural-born entrepreneurs and innovators who like solving complex problems.

Page 20

Social Media For Gen Me, cultivating a visual lifestyle is top of mind and they are consumed with building their personal brand. Beauty is a crucial device for this group as they contour their identities to fit into the popular mould of cool. Their

faces have become their calling cards and their greatest asset. It’s no surprise, therefore, that they will shell out big bucks to achieve the coveted look. Female Gen Zers now spend $368 annually on beauty, with skincare being a leading driver, up 18% year-on-year.19

$368 How much female Gen Zers spend on beauty annually

“I have a borderline existential crisis about my following nearly every day” Tess, 20, Detroit, Michigan, USA

Gen Me is sacrificing real-world friendships for those that derive in a false reality.

“It’s really hard to not be sucked into the bubble of caring about how many likes you get or how many people are following you,” says Megan, a 20-year-old from Long Island, New York.

Page 21

Gen Me spends its time engaging in resell culture

Page 25 FOMO

Through the app Supreme Community, kids can keep up to date on the restocks and drop lists.

With limited product releases PLT could have some sort of access point for buyers to queue for the products?

Page 26

Gen Me flocks to the desert clad in the latest festival wear in search of content that they can post online. “You think of what outfits would look best in the photos with your friends,” says 23-year-old Nicole from Orange County, California

Coachella is more about what you can post from it rather than the music they listen to for many Gen Me Individuals.

Page 27

need for community is a major driver behind the explosive popularity of video games.30

Fortnite, with 3.4 million concurrent users as of February 2018.3

Gaming culture is an extremely popular market.

Page 29

The Kardashian effect and

The female Gen Me is predominantly influenced by reigning lip kit queen, Kylie Jenner, who has become a cultural icon and one of the biggest points of reference aesthetically for this sector.

Supreme, streetwear and reselling

Research how streetwear brands tell their stories - this is in influential to Gen Me who engage in street culture markets.

Meme culture

No subject or person is off limits and it’s not all fun and games.

Page 31

Gen We takes an unfiltered and unabashed eye to the political circumstances of their upbringing.

They refuse to escape from reality – they would rather face and solve problems, or express and embrace their vulnerability and imperfection.

Page 32

“We feel obligated to take care of others through our own experiences”

Page 33

Gen We teens value safety and financial security

Page 36

Gen We use their spare time to educate themselves, speak out about inclusivity, diversity and the environment.

For Gen We, activism needs to be taken to the street. “We want to make sure every aspect is linking up to avoid any kind of faux activist connotation,” explains Cassandra, 20, from Maine, USA.

Page 37

For Gen We, travel is another way to get out of their comfort zone and look for cultural immersion.

a gap year

Page 38

Gen We is congregating both online and off to demand the change they wish to see in the world.

they have been able to form micro-online communities to help mobilise support for new causes and issues.

GEN WE. Mental Health

As sustainability continues to be top of mind for this cohort, they are turning to social and each other to rally for positive change.

. @bahamasplasticmovemen

@greenschoolbali

. March for Science:

Girlfriend Collective: A brand that makes leggings from recycled plastic water bottles from Taiwan.

Research this brand further.

Page 40

Acceptance and inclusivity is key to Gen We.

They’ve decided to stand up and speak out.

GEN WE.

Page 41

While Gen Me looks up to macro influencers, Gen We looks to each other.

It’s not about competition for this group – it’s collaboration that reigns supreme. Gen We is inspired by the actions of their peers and they empower one another to ignite the change they want to see

Page 45

While Gen Me and Gen We live on opposite ends of the spectrum, there’s a middle ground of influencers who bridge the divide.

There are two sides to Gen Z, and micro- segmentation will reign, meaning less is more when it comes to targeting.

Purpose isn’t a marketing tool, it’s a long-term company commitment, a commitment to your brand values.

Page 50

Gen Me — Create content to help them escape. Think ASMR-led content and Instagrammable activations. — Lose the corporate vibe if you want to hire youth. They’re looking for flexibility and informality. — Don’t chase culture, create it. Gen Me wants to engage with viral moments. Look at brands like KFC and adidas for inspiration. — For China, look to this segment of Gen Z to be impulse purchasers and triggered by social media.

‘True Gen’: Generation Z and its implications for companies

See our latest research on Gen Z in America and Gen Z in Asia.

Long before the term “influencer” was coined, young people played that social role by creating and interpreting trends. Now a new generation of influencers has come on the scene. Members of Gen Z—loosely, people born from 1995 to 2010—are true digital natives: from earliest youth, they have been exposed to the internet, to social networks, and to mobile systems. That context has produced a hypercognitive generation very comfortable with collecting and cross-referencing many sources of information and with integrating virtual and offline experiences.

As global connectivity soars, generational shifts could come to play a more important role in setting behavior than socioeconomic differences do. Young people have become a potent influence on people of all ages and incomes, as well as on the way those people consume and relate to brands. In Brazil, Gen Z already makes up 20 percent of the country’s population. McKinsey recently collaborated with Box1824, a research agency specializing in consumer trends, to conduct a survey investigating the behaviors of this new generation and its influence on consumption patterns in Brazil.1 The survey coupled qualitative insights about Gen Z in three of the country’s major cities (Recife, Rio de Janeiro, and São Paulo) with multigenerational quantitative data that cut across socioeconomic classes. Our goal was to understand how this new generation’s views might affect the broader population, as well as consumption in general.

Our study based on the survey reveals four core Gen Z behaviors, all

anchored in one element: this generation’s search for truth. Gen Zers value individual expression and avoid labels. They mobilize themselves for a variety of causes. They believe profoundly in the efficacy of dialogue to solve conflicts and improve the world. Finally, they make decisions and relate to institutions in a highly analytical and pragmatic way. That is why, for us, Gen Z is “True Gen.” In contrast, the previous generation—the millennials, sometimes called the “me generation”—got its start in an era of economic prosperity and focuses on the self. Its members are more idealistic, more confrontational, and less willing to accept diverse points of view.

More about Gen Z

Listen to the authors of this article describe Gen Z characteristics in greater detail.

Learn more

Such behaviors influence the way Gen Zers view consumption and their relationships with brands. Companies should be attuned to three implications for this generation: consumption as access rather than possession, consumption as an expression of individual identity, and consumption as a matter of ethical concern. Coupled with technological advances, this generational shift is transforming the consumer landscape in a way that cuts across all socioeconomic brackets and extends beyond Gen Z, permeating the whole demographic pyramid. The possibilities now emerging for companies are as transformational as they are challenging. Businesses must rethink how they deliver value to the consumer, rebalance scale and mass production against personalization, and—more than ever— practice what they preach when they address marketing issues and work ethics.

Meet True Gen

Generations are shaped by the context in which they emerged (Exhibit 1). Baby boomers, born from 1940 to 1959, were immersed in the post–World War II context and are best represented by consumption as an expression of ideology. Gen Xers (born 1960–79) consumed status, while millennials (born 1980–94) consumed experiences. For Generation Z, as we have seen, the main spur to consumption is the search for truth, in both a personal and a communal form (Exhibit 2). This generation feels comfortable not having only one way to be itself. Its search for authenticity generates greater freedom of expression and greater openness to understanding different kinds of people.

‘Undefined ID’: Expressing individual truth

I need to be free; I need to be myself, increasingly be myself, every day. With the internet, I feel much more free.

—Female respondent, 22, city of São Paulo

I really like things that are unisex! I think it’s absurd that stores and brands split everything into “male” and “female.” After all, fabric is genderless.

—Female respondent, 22, Goiânia

For Gen Zers, the key point is not to define themselves through only one stereotype but rather for individuals to experiment with different ways of being themselves and to shape their individual identities over time (Exhibit 3). In this respect, you might call them “identity nomads.”

Seventy-six percent of Gen Zers say they are religious. At the same

time, they are also the generation most open to a variety of themes not necessarily aligned with the broader beliefs of their declared religions. For example, 20 percent of them do not consider themselves exclusively heterosexual, as opposed to 10 percent for other generations. Sixty percent of Gen Zers think that same-sex couples should be able to adopt children—ten percentage points more than people in other generations do.

Gender fluidity may be the most telling reflection of “undefined ID,” but it isn’t the only one. Gen Zers are always connected. They constantly evaluate unprecedented amounts of information and influences. For them, the self is a place to experiment, test, and change. Seven out of ten Gen Zers say it is important to defend causes related to identity, so they are more interested than previous generations have been in human rights; in matters related to race and ethnicity; in lesbian, gay, bisexual, and transgender issues; and in feminism (Exhibit 4).

‘Communaholic’: Connecting to different truths

We each have our own style and way of being, but what binds us is that we accept and understand everyone’s styles. —Male respondent, 16, Recife

Gen Zers are radically inclusive. They don’t distinguish between friends they meet online and friends in the physical world. They continually flow between communities that promote their causes by exploiting the high level of mobilization technology makes possible. Gen Zers value online communities because they allow people of different economic circumstances to connect and mobilize around causes and interests. (Sixty-six percent of the Gen Zers in our survey believe that communities are created by causes and interests, not by

economic backgrounds or educational levels. That percentage is well above the corresponding one for millennials, Gen Xers, and baby boomers.) Fifty-two percent of Gen Zers think it is natural for every individual to belong to different groups (compared with 45 percent of the people in other generations), and Gen Zers have no problem with moving between groups.

‘Dialoguer’: Understanding different truths

We must practice tolerance, and we must learn to listen and accept differences.

—Male respondent, 20, Gioânia

Gen Zers believe in the importance of dialogue and accept differences of opinion with the institutions in which they participate and with their own families (Exhibit 5). They can interact with institutions that reject their personal values without abandoning those values. The fact that Gen Zers feel comfortable interacting with traditional religious institutions without abandoning personal beliefs that might not be broadly accepted by these institutions also demonstrates their pragmatism. Rather than spurn an institution altogether, Gen Zers would rather engage with it to extract whatever makes sense for them.

Members of this generation therefore tend to believe that change must come from dialogue: 57 percent of millennials, Gen Xers, and baby boomers think they would have to break with the system to change the world, compared with 49 percent of Gen Zers. Gen Z is also more willing to accommodate the failings of companies. Thirtynine percent of the people in this generation, for example, expect companies to answer customer complaints in the same day; for the three earlier generations, the percentage is much higher—52 percent.

Gen Z’s belief in dialogue combines a high value for individual identity, the rejection of stereotypes, and a considerable degree of pragmatism. That brings us to the fourth core behavior of Gen Z.

‘Realistic’: Unveiling the truth behind all things

I don’t believe this talk of investing in the dream and all that. Work is work.

—Female respondent, 22, Salvador, state of Bahia

Gen Zers, with vast amounts of information at their disposal, are more pragmatic and analytical about their decisions than members of previous generations were. Sixty-five percent of the Gen Zers in our survey said that they particularly value knowing what is going on around them and being in control. This generation of self-learners is also more comfortable absorbing knowledge online than in traditional institutions of learning.

What’s more, Gen Z was raised at a time of global economic stress— in fact, the greatest economic downturn in Brazil’s history. These challenges made Gen Zers less idealistic than the millennials we surveyed (Exhibit 6). Many Gen Zers are keenly aware of the need to save for the future and see job stability as more important than a high salary. They already show a high preference for regular employment rather than freelance or part-time work, which may come as a surprise compared to the attitude of millennials, for example. According to the survey, 42 percent of Gen Zers from 17 to 23 years old are already gainfully employed in either full- or parttime jobs or as freelance workers—a high percentage for people so young.

Gen Z: Consumption and implications for

companies

The youthful forms of behavior we discuss here are influencing all generations and, ultimately, attitudes toward consumption as well. Three forces are emerging in a powerful confluence of technology and behavior.

Consumption re-signified: From possession to access

This more pragmatic and realistic generation of consumers expects to access and evaluate a broad range of information before purchases. Gen Zers analyze not only what they buy but also the very act of consuming. Consumption has also gained a new meaning. For Gen Z—and increasingly for older generations as well— consumption means having access to products or services, not necessarily owning them. As access becomes the new form of consumption, unlimited access to goods and services (such as carriding services, video streaming, and subscriptions) creates value. Products become services, and services connect consumers.

As collaborative consumption gains traction, people are also starting to view it as a way to generate additional income in the “gig economy.” Another aspect of the gig economy involves consumers who take advantage of their existing relationships with companies to generate additional income by working temporarily for them. Some companies are already embracing the implications.

Car manufacturers, for example, are renting out vehicles directly to consumers, so that instead of selling 1,000 cars, these companies may sell one car 1,000 times. The role of sporting-goods businesses, likewise, has shifted to helping people become better athletes by providing access to equipment, technology, coaching, and

communities of like-minded consumers. Similarly, traditional consumer-goods companies should consider creating platforms of products, services, and experiences that aggregate or connect customers around brands. Companies historically defined by the products they sell or consume can now rethink their value-creation models, leveraging more direct relationships with consumers and new distribution channels.

Singularity: Consumption as an expression of individual identity

The core of Gen Z is the idea of manifesting individual identity. Consumption therefore becomes a means of self-expression—as opposed, for example, to buying or wearing brands to fit in with the norms of groups. Led by Gen Z and millennials, consumers across generations are not only eager for more personalized products but also willing to pay a premium for products that highlight their individuality. Fifty-eight percent of A-class and 43 percent of C-class consumers2 say they are willing to pay more for personalized offerings. Seventy percent of A-class and 58 percent of C-class consumers are willing to pay a premium for products from brands that embrace causes those consumers identify with. And here’s another finding that stood out in our survey: 48 percent of Gen Zers —but only 38 percent of consumers in other generations—said they value brands that don’t classify items as male or female. For most brands, that is truly new territory.

Although expectations of personalization are high, consumers across generations are not yet totally comfortable about sharing their personal data with companies. Only 10 to 15 percent of them declare not to have any issues in sharing personal data with companies. If there is a clear counterpart from companies to consumers, then the number of consumers willing to share personal information with

companies goes up to 35 percent—still a relatively small number.

As the on- and offline worlds converge, consumers expect more than ever to consume products and services any time and any place, so omnichannel marketing and sales must reach a new level. For consumers who are always and everywhere online, the online–offline boundary doesn’t exist. Meanwhile, we are entering the “segmentation of one” age now that companies can use advanced analytics to improve their insights from consumer data. Customer information that companies have long buried in data repositories now has strategic value, and in some cases information itself creates the value. Leading companies should therefore have a data strategy that will prepare them to develop business insights by collecting and interpreting information about individual consumers while protecting data privacy.

For decades, consumer companies and retailers have realized gains through economies of scale. Now they may have to accept a twotrack model: the first for scale and mass consumption, the other for customization catering to specific groups of consumers or to the most loyal consumers. In this scenario, not only marketing but also the supply chain and manufacturing processes would require more agility and flexibility. For businesses, that kind of future raises many questions. How long will clothing collections grouped by gender continue to make sense, for example? How should companies market cars or jewelry in an inclusive, unbiased way? To what extent should the need for a two-speed business transform the internal processes and structure of companies?

Consumption anchored on ethics

Finally, consumers increasingly expect brands to “take a stand.” The point is not to have a politically correct position on a broad range of

topics. It is to choose the specific topics (or causes) that make sense for a brand and its consumers and to have something clear to say about those particular issues. In a transparent world, younger consumers don’t distinguish between the ethics of a brand, the company that owns it, and its network of partners and suppliers. A company’s actions must match its ideals, and those ideals must permeate the entire stakeholder system.

Gen Z consumers are mostly well educated about brands and the realities behind them. When they are not, they know how to access information and develop a point of view quickly. If a brand advertises diversity but lacks diversity within its own ranks, for example, that contradiction will be noticed. In fact, members of the other generations we surveyed share this mind-set. Seventy percent of our respondents say they try to purchase products from companies they consider ethical. Eighty percent say they remember at least one scandal or controversy involving a company. About 65 percent try to learn the origins of anything they buy—where it is made, what it is made from, and how it is made. About 80 percent refuse to buy goods from companies involved in scandals.

All this is relevant for businesses, since 63 percent of the consumers we surveyed said that recommendations from friends are their most trusted source for learning about products and brands. The good news is that consumers—in particular Gen Zers—are tolerant of brands when they make mistakes, if the mistakes are corrected. That path is more challenging for large corporations, since a majority of our respondents believe that major brands are less ethical than small ones.

For consumers, marketing and work ethics are converging. Companies must therefore not only identify clearly the topics on which they will take positions but also ensure that everyone

throughout the value chain gets on board. For the same reason, companies ought to think carefully about the marketing agents who represent their brands and products. Remember too that consumers increasingly understand that some companies subsidize their influencers. Perhaps partly for that reason, consumers tend to pay more attention to closer connections—for example, Instagram personas with 5,000 to 20,000 followers. Marketing in the digital age is posing increasingly complex challenges as channels become more fragmented and ever changing.

Young people have always embodied the zeitgeist of their societies, profoundly influencing trends and behavior alike. The influence of Gen Z—the first generation of true digital natives—is now radiating outward, with the search for truth at the center of its characteristic behavior and consumption patterns. Technology has given young people an unprecedented degree of connectivity among themselves and with the rest of the population. That makes generational shifts more important and speeds up technological trends as well. For companies, this shift will bring both challenges and equally attractive opportunities. And remember: the first step in capturing any opportunity is being open to it.

My Notes:

Page 1

hypercognitive generation very comfortable with collecting and crossreferencing many sources of information and with integrating virtual and offline experiences.

Page 2

Gen Zers value individual expression and avoid labels.

They mobilize themselves for a variety of causes.

They believe profoundly in the efficacy of dialogue to solve conflicts and improve the world.

they make decisions and relate to institutions in a highly analytical and pragmatic way.

Companies should be attuned to three implications for this generation: consumption as access rather than possession, consumption as an expression of individual identity, and consumption as a matter of ethical concern.

Businesses must rethink how they deliver value to the consumer, rebalance scale and mass production against personalization, and—more than ever— practice what they preach when they address marketing issues and work ethics.

Transparency in regard to sustainability that isn’t vague - needs to be backed up.

Page 3

search for authenticity

I really like things that are unisex! I think it’s absurd that stores and brands split everything into “male” and “female.” After all, fabric is genderless. —Female respondent, 22, Goiânia

Oversized fit t shirt is more gender neutral.

“identity nomads.”

Page 4

They constantly evaluate unprecedented amounts of information and influences.

We each have our own style and way of being, but what binds us is that we

accept and understand everyone’s styles. —Male respondent, 16, Recife

Gen Zers are radically inclusive.

continually flow between communities high level of mobilization

(Sixty-six percent of the Gen Zers in our survey believe that communities are created by causes and interests,

Page 5

Gen Zers have no problem with moving between groups.

They can interact with institutions that reject their personal values without abandoning those values

Members of this generation therefore tend to believe that change must come from dialogue

Gen Z is also more willing to accommodate the failings of companies.

May be more understanding and appreciate PLT acknowledging it’s wrong doing before it addresses its adjustments.

Page 6

Sixty-five percent of the Gen Zers in our survey said that they particularly value knowing what is going on around them and being in control.

self-learners

more comfortable absorbing knowledge online

Gen Zers are keenly aware of the need to save for the future

Page 7

This more pragmatic and realistic generation of consumers expects to access and evaluate a broad range of information before purchases

For Gen Z—and increasingly for older generations as well— consumption means having access to products or services, not necessarily owning them

This creates value for them.

Page 8

traditional consumer-goods companies should consider creating platforms of products, services, and experiences that aggregate or connect customers around brands.

Consumption therefore becomes a means of self-expression

Seventy percent of A-class and 58 percent of C-class consumers are willing to pay a premium for products from brands that embrace causes those consumers identify with.

Page 9

consumers expect more than ever to consume products and services any time and any place, so omnichannel marketing and sales must reach a new level.

the supply chain and manufacturing processes would require more agility and flexibility.

consumers increasingly expect brands to “take a stand.”

Page 10

company’s actions must match its ideals

Gen Z consumers are mostly well educated about brands and the realities behind them. When they are not, they know how to access information and develop a point of view quickly.

Seventy percent of our respondents say they try to purchase products from companies they consider ethical

Eighty percent say they remember at least one scandal or controversy involving a company.

Will take a long time for PLT’s previous operations to be a thing of the past!!

Gen Zers—are tolerant of brands when they make mistakes, if the mistakes are corrected

Page 11

consumers increasingly understand that some companies subsidize their influencers.

Why Fast Fashion Still Has Gen-Z’s Heart? #262

2021/20/10

The generation credited with leading the charge on climate activism and social justice is also propelling the growth of fast-fashion behemoths like Shein and Boohoo.

I Saw It

First, a UK-based online fast fashion brand, was able to pivot with lightning speed from going-out dresses to tiedye sweatpants when the world locked down and back again as soon as restrictions eased. […] For its pandemic-era success, I Saw It

First, as well as competitors like Boohoo and Shein, can thank Gen-Z. The youngest generation of consumers can’t get enough of cheap, disposable clothes. […] According to Google, the top four trending fashion brands among US Gen-Z consumers at the start of September were all companies built in the Chinese fast fashion seller’s mould: Edikted, Cider, Verge Girl and Adika.

And yet, shoppers in their teens and early 20s also have a reputation for ethical consumption. Gen-Z is “leading the charge when it comes to sustainability and climate change and really pushing brands to do better,” said Emma Chiu, global director at Wunderman Thompson Intelligence. They have helped popularise upcycling and reselling used clothes, due to become a $51 billion business by 2025 according to GlobalData. In other words, Gen-Z contains multitudes. […]

Shoppers From Birth

Gen-Z grew up in a world where fast fashion, the internet, social media and economic uncertainty have always been the norm. Some cultural commentators believe that it’s hard for young consumers to step outside of that, whatever their core values.

[…] While older Millennials were exposed to aspirational brands and products through print magazine ads, today’s crop of young consumers sees them worn by influencers in fleeting content designed for a cursory scroll on Instagram.

It’s a model built to drive consumers toward impulse purchases and an endless cycle of disposable outfits, said Tahirah Hairston, fashion and beauty director at Teen Vogue. […]

Sustainable Fashion for All?

There is another reason many Gen-Zers prefer fast fashion over more eco-friendly alternatives: it’s cheap.

An I Saw It First dress can cost £15, even before the discounts applied from regular flash sales. Sustainable brands — which, to do justice to that label, must make clothes from low-waste, low-impact materials and manufacturing under fair working conditions — can rarely price their clothes so low.

Even the handful of sustainable brands catering to younger audiences with trendy silhouettes can feel out of reach to a broke teenager. Reformation, one of the rare sustainable brands to find success with a broad audience, sells dresses for about $250.

“A Reformation dress is an impressive investment piece when you’re 17,” said Hairston.

Fast fashion brands can also ofer a variety of afordable clothing for plus-size consumers, she added. However, that gap is closing: Reformation has ofered sizes up to 3XL in its permanent collection since 2019 and on Friday, Scandi-cool brand Ganni launched a 10-piece capsule collection with the help of upmarket plus-size retailer 11 Honoré.

The Credibility Gap

My Notes:

2021/20/10

Page 1

Page 2

The youngest generation of consumers can’t get enough of cheap, disposable clothes

shoppers in their teens and early 20s also have a reputation for ethical consumption.

Gen-Z is “leading the charge when it comes to sustainability and climate change and really pushing brands to do better,” said Emma Chiu, helped popularise upcycling and reselling used clothes,

Gen-Z grew up in a world where fast fashion, the internet, social media and economic uncertainty have always been the norm. Some cultural commentators believe that it’s hard for young consumers to step outside of that, whatever their core values.

Gen-Zers prefer fast fashion over more eco-friendly alternatives: it’s cheap.

Influencers Social Media Influencer Marketing Share

By Ellie Barber, Cultural Insights Director

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MARCH 3, 2023 | 7 MIN

What fuels Gen Z’s affinity with influencers? Ellie Barber of youth marketing agency Nerds Collective chimes in with insights from its consumer-led intelligence

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be influenced persists.

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Identity

At Nerds, whenever we speak to our community, we consistently hear of their love for influencers. According to a style and social media survey from our consumer-centric cultural intelligence platform, when looking for style inspiration, 45% of European Gen Zs want brands they’ve seen an influencer or celebrity wear, while just 18% want brands their friends wear.

While Gen Z wants to feel unique and stand out, they also seek reassurance. Their peer groups shape their cultural references; fitting in is a priority. But there’s a delicate balance between demonstrating they understand what’s culturally relevant and outright copying their friends. Here is where influencers come in. A trusted voice, cultural insiders represent their interests and can introduce them to the style, music and ideas that will help them shape their identity.

Perpetually online, Gen Z are inherently

Digitalzone

Decoding databases: Navigating choice between proprietary and party solutions

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Marketers drawn to the a!liate in order to access emerging tech, "nds Talon

Playing the aces: Using OOH to brand grow in 2024

trusting of social media personalities. TikTok has usurped Google as their search engine, and they turn to social media for guidance on everything from style and news to restaurants and even money. In fact, Gen Z are five times more likely than over-40s to turn to social platforms for financial advice.

As well as education, we know from our community that browsing creator content is a form of entertainment and aspirational window-shopping. 73% of European Gen Zs say they like looking at products online even if they can’t afford them.

A love story

The trust Gen Zs place in influencers can create parasocial relationships. In traditional media such as film, this is where the audience becomes attached to a fictional character; on social platforms, it’s easy for followers to feel closely connected to the people whose lives they’re welcomed into.

With Gen Z experiencing increased rates of loneliness, these relationships can

offer connection, companionship and aspiration, highlighting the value this audience can draw from online interaction. For brands, acknowledging this is one part of developing a sustainable and impactful influencer marketing strategy.

As Gen Z develops higher levels of cultural affinity and familiarity with the creators they connect with, they are much more likely to spot when an influencer doesn’t back the product or brand they’re working with. The deinfluencer trend highlights how creators will prioritize protecting their personal platform and communicating trustworthiness over an unquestioning deference to any given brand.

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Gen Z loves a good collaboration

The partnerships that work well and resonate are those where the brand and creator are a logical fit, ensuring recommendations feel sincere. Take JD Sports’ YouTube content as an example. Partnering with creators like Chunkz and Chloe Burrows, the brand and influencers have naturally overlapping audiences and their styles and personalities are aligned.

The output is authentic and engaging; the brand has worked collaboratively with the creators, giving them creative freedom and the ability to maintain their

tone of voice, ultimately delivering content the audience wants. By leveraging the existing community these creators have, JD is able to develop its own connections with its consumers.

What next for the creator economy?

What the popularity of the deinfluencing trend highlights is Gen Z’s desire for honesty and integrity from the personalities they connect with online. Knowing that influencer recommendations are key to this audience, there’s no danger to the continued power of online creators.

The message it sends to brands is to ensure they are contributing to a spirit of authenticity and honest promotion, respecting the communities creators and their audiences have built together. In doing this, brands can create a point of connection not centered on the product alone – hopefully, safeguarding themselves from the next anticonsumerism TikTok trend.

Influencers Social Media Influencer Marketing

My Notes:

MARCH 3, 2023

Page 1

Page 3

love for influencers

45% of European Gen Zs want brands they’ve seen an influencer or celebrity wear,

While Gen Z wants to feel unique and stand out, they also seek reassurance. Their peer groups shape their cultural references; fitting in is a priority

Here is where influencers come in. A trusted voice, cultural insiders represent their interests and can introduce them to the style, music and ideas that will help them shape their identity.

Page 4

73% of European Gen Zs say they like looking at products online even if they can’t afford them.

The trust Gen Zs place in influencers can create parasocial relationships. where the audience becomes attached to a fictional character

Page 5

connection, companionship and aspiration, highlighting the value this audience can draw from online interaction

Page 6

Gen Z loves a good collaboration

naturally overlapping audiences and their styles and personalities are aligned. authentic and engaging

Page 7

authenticity and honest promotion

Gen Z’s behaviours: Find them on TikTok

As digital natives, Gen Zers love TikTok.

Among other social media platforms, like Instagram, Facebook, and Twitter, TikTok stands out. Not only is the app Gen Z-dominated, with 43% of global users aged 18-24, but young consumers also prefer TikTok to such an extent that it’s begun to rival Google as a search engine

Why? Gen Z trusts TikTok to give them the unbiased gist of what they’re looking for.

It’s no surprise, then, that paid ads rarely perform well on TikTok. Instead, 62% of TikTok users say that the best way for brands to connect with them is through organic content created in collaboration with another brand on TikTok or a TikTok creator.

The photography brand Polaroid, for instance, realised that their iconic reputation didn’t translate to Gen Z consumers, whose baby pictures were all taken on digital cameras and smartphones. To get Gen Z’s attention, Polaroid took on TikTok with a campaign that steered away from traditional advertising.

This is why Polaroid, for their first-ever TikTok campaign, opted to collab with young creators like Zack Lugo, Kyla Imani, and Nathan Ramsay, who each took Polaroid on a journey with their friends. Using Spark ads to cross-promote the collab across Polaroid’s account and creator accounts helped the campaign reach 9.4 million unique users and a 53% view-through rate.

Playing by Gen Z’s rules forces brands to throw their old playbooks for consumer marketing out the window, challenging them to think creatively and deliver content that works organically. Exploring new platforms, especially TikTok, is a must. And collabing with creative experts like content creators opens the door to an organic narrative that’s become invaluable.

Gen Z’s values: It’s time to BeReal

By the time the oldest members of Gen Z downloaded their first social media apps, the platforms were already dominated by Instagram models, YouTube stars, and corporate Twitter accounts all striving to be #relatable.

Gen Z is the content generation. And, having been steeped in social content that feels performative, pandering, and fake, they’re chasing something different: authenticity.

Talking about authenticity requires talking about BeReal, the antiperformativity photo-sharing app which has been downloaded more than 20 million times in under two years. BeReal allows users to post just once a day, giving them just a two-minute window to take a simultaneous front and back camera photo. Share yours past the time limit and the app lets your friends know, giving them the heads up that you haven’t been real.

According to Wired, BeReal represents how the idea of authenticity is packaged by commercialisation, as nostalgia for an old way of living that seems better because it predates the problems that people attribute to the inauthenticity they encounter today.

By this token, authenticity is part of a generational cycle and a Holy Grail.

But even if this is true, the quest to find it has always been a driving force of online culture.

Millennials and Gen Xers will recall MySpace, LiveJournal, and Tumblr, preFacebook platforms that became online communities for teenagers who felt misunderstood, different, or full of emotional angst. These Y2K teens went online in search of their authentic selves. And the content they created reflected that.

“When I found Tumblr, it felt like finding the whole world. This kind of thing is difficult to put into words—like the sensation of learning how to read, or your first existential crisis,” Kaitlyn Tiffany wrote, describing Tumblr’s legacy.

Tiffany’s article, How the Snowflakes Won the Internet, traces how it was soft, angsty teens like her—not the edgelords, or the billionaires, or the billionaire-edgelords (hi, Elon Musk)—who, in pursuit of authenticity, created the foundation for the internet as we know it today.

And, for better or worse, a new generation of snowflakes is here to change it again.

My Notes:

Page 2

As digital natives, Gen Zers love TikTok.

43% of global users aged 18-24, b

TikTok to such an extent that it’s begun to rival Google as a search engine.

62% of TikTok users say that the best way for brands to connect with them is through organic content created in collaboration with another brand on TikTok or a TikTok creator.

steered away from traditional advertising. Page 3

they’re chasing something different: authenticity.

BeReal represents how the idea of authenticity is packaged by commercialisation authenticity is part of a generational cycle always been a driving force of online culture.

Confessional or educational spaces

No other generation demands more sustainable and ethical commitment from brands than the Generation Z. They are expected to develop into the strongest group of buyers in the coming years, and there are high expectations in their role as the engine of positive development in the fashion industry. But perhaps this hopeful view is too simple. After all, this cohort is not only familiar with the rising threat of climate change, but also grew up with the boom of and social media. fast fashion

This results in a historically unique pressure: Gen Z want to follow the latest trends, almost weekly, and is therefore at the forefront of fast fashion consumption. A blatant contradiction to their sustainable mindset. So what exactly does Gen Z stand for? How compatible are their consumer behavior and their efforts for a healthy planet? And how can confessional and education spaces offer a way out?

Gen Z: The Sustainability Generation

It is now wonder that the are considered to be particularly conscious: every group is influenced in its behavior by globally decisive events. events such as the impact of . The pandemic has shown the Gen Z not only that it is possible to produce and consume less, but also how positive it is for the environment. That doesn't mean that Covid triggered the Green Revolution - but definitely that it has been accelerated by it. And that's exactly why Gen Z should now rewrite the rules of the game in the fashion industry and establish .

Gen Z Covid-19 conscious consumption as the New Normal

At least according to the First Insight survey

The State of Consumer Spending non-toxic and therefore health-friendly materials

Gen Z consumers are demanding sustainable business models. They prefer to buy sustainable brands and would even pay 10% more for it. In addition, 75% require workers and consumers to be treated safely. Which means fair working conditions as well have to be the standard.

Generation Z will also dominate , therefore seeking dialogue and emotional connections with exclusive brands and demanding social responsibility from them. But this is where the contradictions come in. While Gen Z are influencing the future of the luxury segment and becoming its key target group, it is also the main target group of the fast fashion tomorrow's luxury market

giants. So it's not about quality instead of quantity and exclusivity instead of mainstream, but about quality and quantity as well as exclusivity and mainstream.

At the intersection of responsibility and temptation

Stella McCartney

Imagine this: cheap trendy goods that are styled with sustainable luxury products. SHEIN meets ? No way. If you want to compensate for CO2 emissions with your purchasing decisions, you also have to deal with the fact that other pieces in your own collection could violate human rights in the Global South. And yet more and more studies are revealing that Generation Z are shopping on a large scale from mainstream providers such as Amazon, SHEIN or Fashion Nova. Providers who need to be questioned in terms of both sustainability and ethics.

Gen Z Fashion Report vintage

The recently released by the platform thredUP found that 1/3 of the respondents describe themselves as addicted to fast fashion and 72% bought those trending fashion items in the last year. One possible reason could be the media behavior of the generation. Around 40% said they browse fast fashion websites or apps at least once a day, while 50% watch haul videos on social media weekly or even more often.

GenZHasaFastFashionProblem

Source & Copyright by thredUP

35%

ofcollegestudentssaythey spendtoomuchtimeandmoney onfastfashion.

45%

ofcollegestudentssayit'shard toresistthetemptationthat fastfashionoffers.' 01

But: At the same time, the report shows that the generation wants to replace the consumption of fast fashion with more sustainable habits. While 45% stated that they find it difficult to resist the temptation of fast fashion, 51% want to stop or at least reduce their consumption. In addition, 65% want to shop more sustainably and with higher quality. This is because Gen Z is well aware of how damaging fast fashion overproduction is to the planet. So it is very important to understand why this group still consumes far too much fast fashion and willingly accepts a guilty conscience for fleeting and environmentally harmful trends.

Gen Z's "Fast Fashion Paradox"

In 2020, researchers Malthe Overgaard and Nikolas Rønholt examined this contradiction between sustainable consciousness and fast fashion consumption under the title "The Fast Fashion Paradox". In a broader sense is responsible for this contradiction. Specifically, Gen Z's main information channel: social media. And the associated social pressure to follow trends and the resulting urge for self-expression. Fast fashion brands use social media as a platform to spread aggressive marketing campaigns and set new trends daily. Inscrutable algorithms also convey the image of being omnipresent. The result: A must-do mentality for the digitization

feeling of belonging or even of being someone.

lifestyle

According to BoF, SHEIN alone, which is probably the most polluting and yet fastest-growing fast fashion brand, launches up to 3.000 new styles per day and markets them specifically to Generation Z via social media such as Instagram or TikTok. A particularly popular tool: influencer marketing. Gen Z celebrities are neither Hollywood nor out of touch. Instead, Stardom often arises in children's rooms and is gained through supposed closeness and identification. This is how influencers move at the interface between celebrity and friends, which is why their is not only desirable, but also achievable. Their word is also a promise of quality. The result: thanks to influencer marketing, fast fashion is seen as a representation of an exclusive lifestyle and as a ticket to an exclusive community.

Source & Copyright by thredUP

It is therefore not clear why influencers represent their brand in this way. After all, the media criticism of fast fashion is massive. Which sooner or later means bad publicity for collaborating influencers. However, in this case, as too often, the cost argument prevails: giants like SHEIN have horrendous marketing budgets and resources for customer acquisition. Resources that sustainable brands can only dream of.

Why greenwashing and wokewashing can no longer be an excuse

1. More and more fast fashion brands seem to recognize the sustainable mindset of Gen Z. That's why they try to turn the contradiction between sustainability and fast fashion into an interaction. They are launching more and more "Conscious" or "Sustainable" collections that glorify a minimal amount of recycled textiles for sustainable top performance. Taking a closer look, it quickly becomes clear that these are only empty shells and cases instead of true progress.

What is noticeable: Greenwashing

The same applies to : diversity Inclusion

2. The brand ambassadors and advertisement clearly stand for , exude belongingness and positivity. So far, so good - representation matters. However, the problem here is that many fast fashion brands do not create sufficient internal structures to treat and empower the equally of everyone. Starting with the reproduction of structural grievances such as the exploitation of workers in the Global South.

A crucial question: Greenwashing

3. Isn't Gen Z actually too "woke" to fall into the or wokewashing trap? Finally, there is an awareness of what sustainability and ethics actually

mean and fast fashion brands definitely do not live up to these criteria. Where there is no transparency, brands usually have something to hide.

Why sustainability needs more clout in consumer decisions

In addition, size and price accessibility are often cited as reasons for consuming fast fashion. However, the argument of size accessibility can be easily refuted: More and more eco-brands like Reformation are and many -brands allow people of all shapes to have made-to-measure garments.

size inclusive made2order

Study 2022: Future needs of Generation Z Zeitgeist

ECC Club

In terms of price, things get a little more complicated when it comes to Gen Z. The found that 72% of those surveyed put more value on the price than on the sustainability of a product. In addition, 1/3 believe that sustainable consumption is only possible in connection with cutbacks. A possible explanation for this opinion is the current . More than any other generation, the Gen Z have grown up with the perceived privilege of consuming cheaply, quickly and as much as they can. And they are not willing to lose this level of comfort.

Ultimately, it comes down to the problem of defining value. It seems that Gen Z - at least in part - only sees the value of a fast fashion product from a monetary perspective. And forget the price paid by workers and the environment. In addition, sustainable fashion is often associated with opportunity costs such as a higher search effort. So what is needed for a rethink? The value of a piece of clothing should not be measured by its suitability for trends, but rather by new , such as timelessness, durability, sustainability and . values ethics

What's next: Awareness for and against the contradiction

Fashion Report

1-

855-THREDUP second hand

Though Gen Z's toxic relationship with fast fashion is worrying, there's hope: Like the thredUP has shown, the generation wants to break their bad habits. And that's exactly why the platform launched a "Fast-Fashion Confessional Hotline" - a kind of telephone consultation - to support Gen Z shoppers. Aiming to equip the generation with a unique resource to dissuade from fast fashion and introduce them to sustainable shopping habits. If you dial , you can confess your fast-fashion sins. In such case, they are not met with condemnation, but with understanding, advice and an educational service on the environmental impact of fast fashion and sustainable fashion alternatives. Extra plus: callers can access a carefully curated selection of -pieces.

Initiatives like this are definitely an important step in the right direction and food for thought. After all, social media seems to be, at least in large parts, the source of the fast fashion paradox. Accordingly, it is productive to expand confessional or educational spaces such as the thredUP hotline on social media and by this way create places where Gen Z can raise their awareness within the framework of their community. Social recognition for a sustainable mindset instead of an ephemeral trend selfie. In essence, it is about creating even more customer-oriented offers in order to transfer the theoretically existing awareness into practice. Since brands are ultimately driven by profit, they will only improve if consumers change their demands.

Gen Z Contradictions- The Fast Fashion Paradox

Page 3

No other generation demands more sustainable and ethical commitment from brands than the Generation Z.

familiar with the rising threat of climate change

: Gen Z want to follow the latest trends, almost weekly, and is therefore at the forefront of fast fashion consumption. A blatant contradiction to their sustainable mindset

Gen Z consumers are demanding sustainable business models.

seeking dialogue and emotional connections with exclusive brands and demanding social responsibility from them Page 4

Generation Z are shopping on a large scale from mainstream providers such as Amazon, SHEIN or Fashion Nova.

Gen Z Fashion Report by the vintage platform thredUP found that 1/3 of the respondents describe themselves as addicted to fast fashion and 72% bought those trending fashion items in the last year.

50% watch haul videos on social media weekly or even more often.

the generation wants to replace the consumption of fast fashion with more sustainable habits.

45% stated that they find it difficult to resist the temptation of fast fashion, 51% want to stop or at least reduce their consumption. In addition, 65% want to shop more sustainably and with higher quality.

"The Fast Fashion Paradox". In a broader sense digitization is responsible for this contradiction.

social pressure to follow trends and the resulting urge for self-expression

Fast fashion brands use social media as a platform to spread aggressive marketing campaigns and set new trends daily

image of being omnipresent

feeling of belonging or even of being someone

fast fashion is seen as a representation of an exclusive lifestyle and as a ticket to an exclusive community

the media criticism of fast fashion is massive. Which sooner or later means bad publicity for collaborating influencers.

greenwashing

They are launching more and more "Conscious" or "Sustainable" collections that glorify a minimal amount of recycled textiles for sustainable top performance.

The ECC Club Study 2022: Future needs of Generation Z found that 72% of those surveyed put more value on the price than on the sustainability of a product.

Gen Z have grown up with the perceived privilege of consuming cheaply, quickly and as much as they can. And they are not willing to lose this level of comfort.

Gen Z - at least in part - only sees the value of a fast fashion product from a monetary perspective. And forget the price paid by workers and the environment

the generation wants to break their bad habits.

"Fast-Fashion Confessional Hotline" - a kind of telephone consultation - to support Gen Z shoppers

8 characteristics of Gen Z in 2024

Tom Hedges February 21, 2024

It’s easy to assume that if you’re the same age as someone, you’ve had similar life experiences. That holds up to some extent; people start and end school at roughly the same time, for example. But while life’s milestones represent moments of relatability, they neglect the unique experiences that shaped who we were as individuals at that time. And this is why looking beyond demographic consumer data is so crucial to really knowing your audience.

By digging deeper into psychographics, we can explore how consumers really feel, and where key differences in their views, habits, lifestyles, and preferences lie. So when it comes to Gen Z, one of the most diverse audiences around, what’s fact and what’s fiction? We’re here to set the record straight.

Who are Generation Z ?

Gen Z are the generation after millennials, and before Gen Alpha, so roughly speaking, they were born between the mid-1990s and early 2010s.

They’re the first generation of “digital natives”, never knowing a world without the internet. This, coupled with the fact they had a worldwide pandemic and a cost of living crisis to contend with during their formative years, has profoundly impacted their personality and values, making them a fascinating audience to get to grips with. Here are 8 Gen Z characteristics worth knowing – according to real consumer data.

Key characteristics of Generation Z

1. They’re growing up

2. They’re prioritizing saving money

3. They love to travel

4. They’re prone to anxiety

5. They see gaming as more than a hobby

6. Their environmental attitudes aren’t as strong as you think

7. They might define AI adoption

8. They shape culture through social media

1) They’re growing up

You might think of Gen Z as young consumers who are glued to their phones. But in reality, they’re climbing the corporate ladder, buying their own homes, getting married, and starting families; and by default, coming into contact with new products and services for the first time. Think of some of the more routine things in life, like home insurance, mortgages, and dishwashers.

11% of Gen Z expect to get engaged or married in the next six months

While this speaks to older Gen Zs, the youngest in this generation are only just entering higher education. These formative years highlight the differences between Gen Z on each side of the age spectrum, with some saving for a wedding, and others saving for textbooks. It’s true they might share some characteristics, but shows why you need to look beyond age alone.

2) They’re prioritizing saving money

In 2022 we saw stories published surrounding Gen Z’s luxury spending habits. Some benefitted from time living at home during the pandemic, meaning they could save their hard-earned money rather than spending it on rent.

They’re the generation most likely to say they save as much money as they want to each month, but also the most likely to say their priority for 2024 is saving more money. So why are these young consumers so cash-conscious?

40% of Gen Z households are in the lowincome bracket – and 25% more likely to be so than the average consumer

While life moves on, and this generation grows up, rising costs are putting pressure on and curbing their ambitions. Brands need to keep this in mind as future Gen Z consumers behave differently down the line.

3) They love to travel

Gen Z’s standout priorities for 2024 are centered around selfenrichment: things like starting new jobs, learning new skills, reading more, or finding love. And while they aren’t as likely as their older counterparts to say traveling more is a priority, 38% of Generation Z are still looking to explore more this year – at home and abroad.

Since Q2 2022, the number of Gen Z who’ve purchased domestic vacation tickets in the last 3-6 months has grown 15%

While only 1 in 10 are buying vacations abroad, 1 in 4 have been buying domestic vacations in the last 3-6 months – a figure that’s rising. We’re seeing ambition balanced by budget constraints, and Gen Z are taking advantage of domestic vacation planning for cost and convenience.

4) They’re prone to anxiety

Of all generations, Gen Z are most likely to say they’re prone to anxiety. This is especially the case among those in Austria (2.15x more likely than all consumers), Taiwan (1.98x), and Germany (1.98x). To make matters worse, the number who say this is on the rise.

29% of Gen Z say they’re prone to anxiety

There’s a lot of context for why this might be. Climate change no doubt will affect them most, home ownership feels like a distant prospect for many, and Covid hit their studies hard. The worry here is that it’s a growing issue, with the number of Gen Z prone to anxiety increasing in 31/51 markets we’ve tracked since Q3 2022.

As more Gen Z enter the workplace, it’s a big factor for employers to consider. Workers who say their employer offers mental health support have a better work-life balance, better overall workplace culture, and a better salary/compensation. These workers are typically more engaged and satisfied, and benefits like these have become a necessity for attracting and retaining top talent.

5) They see gaming as more than a hobby

Which of these do you think is the least off-putting conversation topic for Gen Z singletons on a date: sports, pop culture, or gaming?

As it turns out they’re the most likely of all generations to play games, and even as they grow older and take on more responsibility, they’re still finding time for serious button mashing.

75% of Gen Z gamers have played online in the last month, rising to 81% for Gen Z with children

Gaming is ingrained in Gen Z’s culture. Brands looking to hook this generation should dip into psychographic data to capture the unique way Gen Z interacts with this activity, as this will better inform accurate depictions of gamers in their marketing campaigns.

6) Their environmental attitudes aren’t as strong as you think

Many see Gen Z as the environmental generation, taking to social media to voice their concern about climate change. But for all the posts or the protests you might see, it’s not so black and white.

Gen Z are as likely as any other generation to say helping the environment is important to them

There’s nothing distinctive about their environmental views, so we can look at other generational attitudes to give a more rounded perspective. Gen Z are the least likely generation to say they always try to recycle, while millennials are more likely to pay extra for an eco-friendly version of a product, and baby boomers are more likely to want brands to be eco-friendly.

So while there’s some truth to what you hear about Gen Z, it’s important to have a 360-degree view of their attitudes. Ecoconsciousness is something all brands should have in mind by now, as it impacts consumers beyond Gen Z alone.

7) They might define AI adoption

AI took the world by storm in 2023, and there’s no doubt people have a mix of excitement and concern about the technology. Many don’t trust AI tools, and some aren’t comfortable using them – but surprisingly, the same can’t be said for Gen Z.

In 12 markets, 68% of Gen Z say they’ve used an AI tool in the past month, with ChatGPT their preferred platform, followed by Google Bard and Bing AI Chat. They’re using these tools frequently but, more than that, are confident with their output too.

59% of Gen Z say they trust AI-generated information a lot/completely, compared to just 33% of baby boomers

As AI becomes a mainstay, how Gen Z use the technology could be looked at as an advantage for employers. By putting the right systems in place for testing and security, and making training and upskilling a focal point, AI adoption might pick up very quickly.

8) They shape culture through social media

Social media is central to Gen Z’s life. 86% say they’ve brought it up in their conversations in the last week, compared to 47% of baby boomers. The platforms they use shape the culture they consume, but this is where some new perspectives come in.

My Notes:

Page 1

February 21, 2024

mid-1990s and early 2010s.

“digital natives”, never knowing a world without the internet

Page 2

lovetotravel

pronetoanxiety

seegamingasmorethanahobby

AIadoption

shapeculturethroughsocialmedia

Page 4

29% of Gen Z say they’re prone to anxiety

Page 5

most likely of all generations to play games, and even as they grow older and take on more responsibility, they’re still finding time for serious button mashing

75% of Gen Z gamers have played online in the last month, rising to 81% for Gen Z with children

Brands looking to hook this generation should dip into psychographic data to capture the unique way Gen Z interacts with this activity, as this will better inform accurate depictions of gamers in their marketing campaigns.

Page 6

68% of Gen Z say they’ve used an AI tool in the past month,

59% of Gen Z say they trust AI-generated information a lot/completely

Social media is central to Gen Z’s life

Willingness to pay more for green products: A critical challenge for Gen Z Highlights

• The pressure to consume green products is increasingly a reality in our daily lives.

• Generation Z has been given the responsibility to make the world more sustainable.

• Environmental concerns, future green estimation, and green perceived quality are determinants of Generation Z's consumption.

• These determinants positively influence the willingness to pay more for green products by Gen Z.

• Generation Z is more permeable to changes in their consumption behavior.

Abstract

Digital natives, with a sense of equality, social justice and environmental awareness, young people from Generation Z value money more than previous generations and, as such, are conscientious in their consumption choices. The consumption of greener products can contribute to achieving the sustainability goals imposed on societies. The study explores the determinants of Generation Z youth's demand for green products and how they influence their willingness to pay more. A quantitative analysis was carried out through a questionnaire in which 927 Portuguese Generation Z consumers of green products participated. First, a descriptive statistical analysis was carried out. Then the Partial Least Square method was applied to explore the relationship between the determinants of demand for green products and the willingness to pay more for them. The results showed that environmental concerns, green future estimation and green perceived quality are potential determinants of Generation Z's consumption of green products and positively influence willingness to pay more for green products. Green perceived benefits have the effect put. This study presents the first evidence of how environmental concerns, future green vision, green perceived quality and green benefits by young Portuguese Generation Z consumers can influence the willingness to pay more for green products. It also demonstrates how green products can be used as signals.

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Keywords

Generation Z

Environmental concerns

Green future estimation

Green perceived benefits

Green perceived quality

Signalling theory

1 . Introduction

Sustainability is an increasing concern for consumers, which has led to the proliferation of actions with a strong green marketing component and the growing appearance of environmentally friendly products, also called green products (Squires, 2019). This is an emerging challenge for companies (Jabbour et al., 2015; Tsalis et al., 2020). There is a theoretical and practical interest in realizing if generations have a greater propensity for these realities and what factors can generate a willingness to pay more for green products (Sheth, 2021).

Exploiting generational cohorts will allow us to understand that each cohort shares political, cultural, and economic issues and values (Kotler, 2006; Reisenwitz and Iyer, 2009). Generally, each generation shares common characteristics, different from one generation to another. Z Generation, in particular, is considered in the literature as the one with more environmental concerns and is green-friendly, willing to pay more for eco-friendly products (Casalegno et al., 2022; Ham et al., 2022). From a marketing viewpoint, more studies are needed to understand the Z Generation's environmental concerns better so that marketers can have a deeper knowledge to determine in which generation(s) to invest their marketing resources and helps the development of specific products for specifics generations (Abdelkader and Attallah, 2021; Ottman, 2017).

Generation Z (sometimes referred to as iGen or Centennials) refers to the generation born between 1997 and 2012, after millennials. Gen Z was raised in a digital world with the internet and social media (Kardaras, 2016). They spend their time on their phones and are considered an open-minded generation (Kaplan, 2020). This generation embraces diversity and inclusion. They are tech-savvy and mobile-first—and have high standards for how they want to spend their time online. According to Firstinsight (2020), most Gen Z shoppers prefer to buy sustainable brands and are willing to spend more (an average of 10 per cent more). The report also found that Gen Z is the most receptive and likely to purchase based on hedonic (personal, social and environmental) principles and values. Z generation also expects retailers and brands to become more sustainable.

Generation Z is the generation that wants to achieve success faster and gives more value to money (Chillakuri, 2020) and represents about 20% of the population in Portugal in 2021 (Pordata, 2021). Despite the representativeness of generation Z in Portugal and around the world (32% of the total population in 2019) (World Bank, 2021), there are still few studies that address the environmental concerns exclusively of this generation (Dabija et al., 2019, 2020; Hill and Lee, 2012; Lakatos et al., 2018) and how these concerns translate into practical implications such as the consumption of more green products and the willingness to pay more for this type of products (Biswas and Roy, 2016; Testa et al., 2021; Wei et al., 2018).

So, to what extent are they willing to pay more for green products?

Which determinants most affected your willingness to pay? In this context, the aim of this study is to explore the determinants of the demand of Gen Z youth for green products and to assess their influence on their willingness to pay more for green products.

This study will contribute to the body of green marketing literature

because it aims to develop an exploratory analysis of the determinants (environmental concerns, green future estimation, green perceived benefits and green perceived quality) that affect the willingness to pay more for green products by generation Z. By doing so, this study expects to extend the existing literature of green marketing research based on an innovative perspective: the signalling theory and its integration with green and trendings issues such as environmental concerns, green future estimation, green perceived benefits and green perceived quality in a unique new framework applied to Z Generation.

2 . Literature review

2.1. Signaling Theory

Signalling Theory is considered a social cognitive theory (Connelly et al., 2011)and was initially developed in two different contexts: 1) biology by Zahavi (1975); and 2) economics by Spence (1973). This theory is based on information asymmetry, where an individual emits information to convince another that he/she possesses desired qualities, but this characteristic is not directly perceived or observable. Thus, according to this theory, a signal must be reliable because if it is not, the receiver of the information will ignore and refuse to make an exchange with the individual who issued the signal. For the signal to be reliable, individuals who hold the desired quality are willing to incur more costs (Berger, 2019). Recently, some studies have linked the consumption behaviour of green products to the willingness to pay more through the Signaling Theory (Ki and Kim, 2022; Rahman and Reynolds, 2019). This theory was first applied to luxury goods consumption, which signifies wealth and high social status, distinguishing luxury consumers from the rest (Chung and Kalnins, 2001). However, several authors have argued

that costly signalling is not restricted to this type of consumption. Thus, an individual consuming a green product may signal that he or she is willing to pay more for the green premium (Berger, 2019; Costa et al., 2014; Elliott, 2013). Thus, according to the Signaling Theory, what matters is not the total cost of the product but the additional premium that the individual is willing to pay (Przepiorka and Berger, 2017). Thus, in green consumption, the premium of paying more for green products may not be a signal merely of social status but may signal pro-social and cooperative values, demonstrating that individuals who consume green products care about the environment based on their environmental concerns and green future vision and, as such, the global environment (Berger, 2019; Kohlova and Urban, 2018; Whitfield, 2011). However, there are other reasons for consuming green products other than social signals to benefit the environment or to signal quality. The fact that green products are perceived to be healthier, of better quality and are associated with higher perceived benefits (especially in the case of edible products), makes the purchase of green products motivated by self-interest (Lockie et al., 2002; Michaelidou and Hassan, 2008; Pickett-Baker and Ozaki, 2008). These self-interests are signalled through willingness to pay more (additional premium) for green products.

2.2. Environmental concerns

Environmental concern refers to consumers' general attitude toward preserving the environment (Ellen et al., 1991). It is the degree of consumers' awareness of environmental problems and willingness to contribute to solving them (Dunlap and Jones, 2002; Kim and Choi, 2005; Wei et al., 2018). A pro-environmental attitude can manifest itself in various ways, from specific beliefs to specific behaviours, such as recycling and consumption of green products (Choi and

Johnson, 2019). The effects of consumers' environmental concerns have been studied, although the results of these behaviours are still inconsistent. Kim and Choi (2005), In their study on higher education students, concluded that there is a direct and significant relationship between environmental concerns and green purchasing behaviour. Also, Maichum et al. (2016) demonstrated a positive association between environmental concerns and young consumers' purchase of green products in Thailand. Lee et al. (2014) also found a positive relationship between environmental concerns and intention to purchase green products stabilized through pro-environmental behaviour, such as Irawan and Darmayanti (2012), who focused on students in Indonesia. However, there has also been evidence that environmental concerns are the least effective variable to explain green purchasing behaviour when evaluated with other variables and may not have a direct effect (Bamberg, 2003; Joshi and Rahman, 2017). One barrier to environmentally responsible behaviours is the lack of environmental concern (Cheah and Phau, 2011). When individuals exhibit low environmental concern or negative attitudes towards preserving the environment, they are less likely to engage in pro-environmental behaviours (Paul et al., 2016). Consequently, a lack of environmental concern is negatively related to the willingness to pay more for green products. (Ellen et al., 1991; Wei et al., 2018). Maichum et al. (2016) showed that young consumers' environmental concerns (18–30 years old) positively influence environmental attitudes towards green products. Consequently, young consumers' environmental concern positively influence young consumers' purchase intentions towards green products as concluded by Albayrak et al. (2013) and Aman et al. (2012). Thus, proenvironmental attitude and higher environmental awareness positively influence willingness to pay more for green products in young consumers (Hao et al., 2019; Kaufmann et al., 2012; Khoiriyah and Toro, 2018; Leszczyńska, 2014). Thus, the following hypothesis

was formulated:

H1

Environmental concerns positively influence the willingness to pay more for green products for young people of generation Z.

2.3. Green future estimation

The future estimation for green products depends on the current consumer demand for green products or services (Nekmahmud and Fekete-Farkas, 2020). If the demand for green products is positive, this demand will increase. The demand for green products to be positive depends on whether the products are environmentally friendly and whether there are benefits for consumers, namely in terms of health and satisfaction. Thus, the previous purchase experience results from the consumer's affective, cognitive and emotional responses (McColl-Kennedy et al., 2015; Meyer and Schwager, 2007). This contact can occur before, during and after purchase (Lemon and Verhoef, 2016; Penz and Hogg, 2011). According to Parkinson et al. (2018), the results of previous experience can be considered a personal source of information that serves as a basis for future decisions. Even if the consumer is aware of sustainable issues, engagement with sustainability only occurs with actual sustainable consumption to internalise green purchasing elements (McColl-Kennedy et al., 2015; Tanner and Wölfing Kast, 2003). Green marketing is key in stimulating future demand for green products and will be most effective for consumers with lower or middle incomes (Nekmahmud and Fekete-Farkas, 2020). Price plays an important role in the decision to buy green products in the future (Lin et al., 2020) and is considered a barrier that changes behaviour toward sustainable consumption (Ferreira and Coelho, 2017), especially among younger consumers who have more limited

budgets (Chaudhary, 2018). Consumers, in general, with a positive experience of consuming green products are willing to pay more for green products in the future (Boronat-Navarro and Pérez-Aranda, 2020; Namkung and Jang, 2017; Tezer and Bodur, 2019; Xu et al., 2012). Also, for young consumers, several studies have shown that previous experience of consuming green products influences future purchase intention, and if it is positive, it affects the willingness to pay more for green products (Chaudhary, 2018; Cronin et al., 2011; Yadav and Pathak, 2016). Thus, we formulate the following hypothesis:

H2

Green future estimation of a product has a significant positive influence on the willingness to pay more for green products by generation Z.

2.4. Green perceived benefits

Perceived benefits are positive beliefs that are related to behaviours in the face of risks. According to Chandon et al. (2000), perceived benefits encompass six elements: 1) convenience; 2) value; 3) quality; 4) expression; 5) monetary savings; and 6) entertainment. The benefits consumers perceive concerning green products, namely a good perception of health, taste and flavour, generate purchase intention and higher satisfaction (Islam and Zabin, 2013; Martínez et al., 2020; Silva et al., 2021). Young consumers recognise the perceived benefits of consuming green products and are willing to pay more the higher the perceived benefits (Kovacs and Keresztes, 2022; Yazdanpanah et al., 2015). In this context, the following hypothesis was formulated:

H3

Green Perceived Benefits positively influence the willingness to pay more for green products by generation Z youth.

2.5. Green perceived quality

Perceived quality is defined as a consumer's reputation for superiority or excellence, of superiority or excellence (Zeithaml, 1988). The consumer's pre-existing impression can influence the perceived quality, the difference in quality perception between the consumer and the supplier, and consumers' information asymmetry because they cannot obtain global information about product quality based on the selected information (Zeithaml, 1988). Measures of the perceived quality of a product can be determined by five dimensions: 1) functionality; 2) ease of use; 3) performance; 4) reputation; and 5) serviceability (Brucks et al., 2000). When consumers have no previous experience consuming the goods, purchase intention cannot be influenced by experience. But the perceived quality of a product or brand can influence purchase intention (Chen et al., 2015). So, perceived quality is one of the most significant determinants of purchase intention (Wang et al., 2020). The quality of green products is reflected by their composition, characteristics and environmental benefits (Ali et al., 2011). In this way, perceived quality is understood as consumers' decisions about the overall environment (Chen and Chang, 2013). Most consumers have confidence in the quality of green products because they have higher quality standards and a cost-benefit balance (Ferguson et al., 2009; Mahesh, 2013). Thus, consumers' purchase decisions are influenced by the perceived quality of green products (Suki, 2013, 2016) and may be an antecedent of green consumer satisfaction and loyalty (Gelderman et al., 2021). Previous studies have shown that consumers are willing to pay more for green products, the higher the perceived quality (D'Souza et al., 2007; Shen et al., 2020), although

there is no evidence yet for young consumers. In this context, the following hypothesis was formulated:

H4

Green perceived quality positively influences the willingness to pay for green products by generation Z youth.

The hypotheses formulated can be represented through the structural model shown in Fig. 1.

Download : Download high-res image (142KB)

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3 . Methods

3.1. Sample and measures

Data were collected through an online questionnaire between October and December 2021 and made available to young Generation Z Portuguese through social networks (Facebook, Instagram and LinkedIn). Participation was voluntary and anonymous, and participants were informed about the purpose of

Fig. 1 Structural model explaining willingness to pay more for green products by Generation Z.

My Notes:

Page 1

Generation Z has been given the responsibility to make the world more sustainable.

Generation Z is more permeable to changes in their consumption behavior.

Page 2

value money more than previous generations conscientious in their consumption choices willingness to pay more.

Page 3

more environmental concerns and is green-friendly, willing to pay more for ecofriendly products

More so Gen We.

Page 4

Gen Z was raised in a digital world with the internet and social media open-minded generation embraces diversity and inclusion. tech-savvy and mobile-first

Gen Z is the most receptive and likely to purchase based on hedonic (personal, social and environmental) principles and values.

Z generation also expects retailers and brands to become more sustainable. wants to achieve success faster

Page 5

Signalling Theory is considered a social cognitive theory

This theory is based on information asymmetry, where an individual emits information to convince another that he/she possesses desired qualities, but this characteristic is not directly perceived or observable

Page 6

an individual consuming a green product may signal that he or she is willing to pay more for the green premium

what matters is not the total cost of the product but the additional premium that the individual is willing to pay

signal pro-social and cooperative values

green products are perceived to be healthier, of better quality and are associated with higher perceived benefits

Sustainable consumers or just health obsessed?

Page 7

direct and significant relationship between environmental concerns and green purchasing behaviour.

When individuals exhibit low environmental concern or negative attitudes towards preserving the environment, they are less likely to engage in proenvironmental behaviours

Consequently, a lack of environmental concern is negatively related to the willingness to pay more for green products

Page 8

Environmental concerns positively influence the willingness to pay more for green products for young people of generation Z.

Green marketing is key in stimulating future demand for green products

Page 9

Consumers, in general, with a positive experience of consuming green products are willing to pay more for green products in the future

Green future estimation of a product has a significant positive influence on the willingness to pay more for green products by generation Z.

Page 10

Perceived quality is defined as a consumer's reputation for superiority or excellence, of superiority or excellence

1) functionality; 2) ease of use; 3) performance; 4) reputation; and 5) serviceability Page 11

Green perceived quality positively influences the willingness to pay for green products by generation Z youth.

How Exactly Is That Sustainable?

Rebecca Mazzu Jul 12

Digital natives, woke warriors, our future leaders.

Haul lovers, Shein shoppers, micro-trend followers, outfit repeater shamers.

Centennials, iGen, Zoomers, Generation-Z.

We refer to them by many names, even though they’d rather not be put in a box. And, before we go any further, I have a confession to make: I’m one of them, a fellow Gen-Zer. No matter how much Millenials make fun of us for our slang, Gen-Xers disregard us for being too radical, and Boomers disdain us for challenging the systems they built, none of that name calling affects us. Actually, we like the attention.

But, if there is one thing that gets under my skin it’s the sneaking suspicion that we may be hypocrites. With all the hope put on Gen-Z to save the planet, it’s time we get to the bottom of why we continue to voraciously consume fast fashion in a very, very….unsustainable way.

Why is the generation that considers nothing off-limits when protesting for climate action also comfortable showing up to that same protest in Shein? How can the most environmentally conscious generation also be the biggest consumers of fast fashion?

Are there two separate camps of Gen-Z’s: the tree huggers and tree burners? The Kylie Jenner devotees and Greta Thunberg stans?

Or, is it something else, where we find a way to hold the two conflicting ideas - a passion for sustainability and a love for fast fashion - in the same space? Maybe we just don’t really care about the environment? Or, in true “doomer” fashion, maybe we just think it’s all a lost cause anyways. What is going on inside those brains!?

The only way to find out is to get to the source, which is why your woman on the inside (me) interviewed some Gen-Z’s to bring you the inside scoop.

Starting with the basics, who even counts as Generation-Z?

No, your 5-year old niece is not Gen-Z just because she has an iPad. Gen-Z is anyone born between the years of 1997 and 2013, who share the experience of being brought up in a world where technology played a significant part of their lives. They are digital natives. Who is cool is determined by Instagram followers and TikTok views, not who got the latest NSYNC CD on VHS (FYI, I’m not 100% sure what VHS is so I may have used it wrong).

But it’s not all negative. Technology is also how they organize for protests or humiliate sitting presidents by reserving tickets to their rallies, leaving him in an almost empty room.

Most recently, it’s also how they find the newest Zara summer dress they *need* to buy that is only a few ‘link in bio’ clicks away. For good or for evil, technology has given them and placed them under an unprecedented amount of influence at a very young age.

Gen-Z’s seem to be the biggest advocates for sustainable fashion and simultaneously the biggest consumers of fast fashion. So let’s get our ducks in a row, as you might say, about these two opposing terms.

What is Sustainable Fashion?

The only truly sustainable fashion is the fashion already in your wardrobe. In second place, contrary to what Reformation might say, comes secondhand clothing.

Any fashion brand claiming to be sustainable is an oxymoron. Don’t get me wrong, buying from a brand who considers their environmental footprint throughout the product lifecycle from the materials used to recycling programs is far better than buying from a fast fashion brand. But all fashion brands fundamentally want to sell more, so they need to produce more, which means the model is inherently opposed to promoting sustainability.

While Gen Z buys secondhand clothing in unprecedented numbers, they also buy every kind of clothing in “hauls”. They completely disregard their most sustainable option - their wardrobes - for newer and trendier options, in bulk. The issue is volume.

What We All Have Wrong About Sustainable Fashion

Learn more about what truly makes fashion sustainable and why most brands just don’t pass the bar.

What is Fast Fashion?

Fast fashion is a business model that quickly translates what is on catwalks into cheap clothing that is produced in mass quantities. Brands like Zara and H&M established this model, but newer companies like Shein have sped up the cycle - and consequently, the volume.

Fast fashion found its ideal consumer in Gen-Z buyers as they are most plugged into all the new trend that seemingly come with every TikTok swipe - and, they desire inexpensive options.

Learn more about how fast fashion works, how it impacts the planet, and which brands are the biggest offenders.

The Conflict

While McKinsey and Forbes have been busy publishing awe inspiring statistics like how 73% of the “sustainability generation” will pay up to 10% more for sustainable clothing, they failed to actually observe

that behavior.

I’m always cautious to quote a comedian, but Bill Maher made an insightful observation about Gen-Z that many journalists have failed to see. While the media was busy proclaiming Greta Thunberg as Gen-Z’s icon on the cover of every Gen-X magazine , they failed to see that Gen-Z influencers such as Kylie Jenner have an incomparable amount of real influence.

While Greta is sailing across the Atlantic, Kylie is flying her private jet full of clothes she’ll only wear once, but will be copied by fast fashion brands like Boohoo millions of times. And yes, most Zoomers know and respect Greta Thunberg, but she’s not who they are watching on TikTok or liking on Instagram.

What I’m saying is: media has deluded itself into believing Gen Z are our environmental saviors, when in fact the voracious fast fashion consumption was always there.

Sustainable fashion advocates such as ReMake have claimed millennial favorite fast fashion brand Forever 21 went bankrupt because Gen-Z prefers sustainable fashion, when in reality they simply expanded its physical stores too quickly without focusing on online sales. At the same time Forever 21 was filing for bankruptcy, Shein was growing to become a $100 billion company almost exclusively fueled by online sales to Gen-Z.

So are we talking about two different camps of Gen-Z consumers, the Kylie’s of the world and the Greta’s?

In reality, as a study by Sheffield Hallam University found “17% of [Gen-Z] participants admitted shopping at a fast fashion retailer each week, 62% monthly and 11% yearly, with only 10% claiming that they had never purchased from a fast fashion retailer”. Yet the same

study also found that 94% of participants were in favor of action for sustainability.

So, they do hold both ideas in the same head. We just got it wrong, as at least when it comes to fashion they are not the most ecoconscious generation after all and they never were.

This is not to discount the work Gen-Z has done to normalize buying secondhand clothing. Depop, an online reselling app, claims that 90% of its UK users are under the age of 26.

But as one TikTok user found, a stroll around a thrift store these days is no longer a multi-generational trip down memory lane, it’s more like a blast from just a year or two ago. The MiuMiu-inspired mini skirt and 13 Going On 30 dress that were trending not so long ago are already being resold. With the sheer amount of clothes they are buying in the first place, it’s no wonder they have so many options to buy from secondhand! So, yes, they boosted the secondhand market, but you know what that actually tells us? They buy a lot! Of everything!

Where does this gap in thought and action come from? As we established before, the defining characteristic of Gen-Z is that they grew up with technology, so let’s start there.

Social media has been the greatest cultural disruptor of our time for any generation, but Gen-Z is the first to grow up in a world with social media. Most of us Zoomers don’t remember what life was like when Facebook didn’t exist, and some of us never even had a Facebook because the world had already moved on to Instagram by the time we were in elementary school.

There’s a lot to unpack when it comes to the influence of social media on developing brains, most of which we haven’t even begun to

understand, but let’s focus on how brands have used it to their advantage. With hundreds, if not thousands, of influencers each sharing pictures and videos wearing the latest Zara or Mango “collection”, the clothes get older faster. With every scroll, Gen Z is bombarded with newer and newer trends, what was “in” a month ago, feels dated now.

Unsurprisingly, many Zoomers wouldn’t be caught dead posting the same outfit twice. As Emily, a 23 year old from Santa Barbara explains, it’s an unspoken rule. Just like liking your own picture on Instagram, she described it as “social suicide” - something that destroys your social standing to do.

Another characteristic of Generation Z is that social media has given them freedom to uniquely express themselves. Individuality is currency with Gen Z - they want to be unique, and one of the ways they express that uniqueness is through their clothes. This is in contrast to the Millennial generation where there was much more social currency in “fitting in”.

Of course, everyone from any given generation has experimented with their style when growing up, but Generation Z is the first who isn’t tied down to just what is cool in their local high school. They can see what’s cool in South Korea, in New York City or Paris. While that is a testament to the benefits of social media in creating a more globalized world, it does also mean they have a lot more trends to cycle through. Anyone who loves fashion can sympathize with dressing up and having fun with clothes, but the combination of cheap options and thousands of trends to try, is a recipe for disaster.

While certainly their digital environment plays a big role in why they are so susceptible to fast fashion marketing, it's not the full picture. It’s also incredibly easy to buy fast fashion - easier than ever before.

First, fast fashion is cheap. The oldest Gen-Z’s are 26 in 2023, and obviously don’t have the same purchasing power as Millennials or Gen-Xers.

But as one Gen-Z slow fashion advocate points out on TikTok, the people who are spending hundreds of dollars on Shein and Zara hauls clearly do have plenty of disposable income to buy clothes. Ultimately what it comes down to is wanting to have 7 pieces instead of 2. The issue is once again, drum roll please - volume.

Fast fashion today also makes it incredibly easy to find anything you could possibly want. While shopping second hand requires time to hunt down just the right item in your size, you can search up ‘red polka dot raincoat size 8’ on Google and immediately be served a number of options.

A comment on a sustainability video that gained over 4 thousand likes argued “Another thing about “ethical” brands is how… boring most of their clothing is. Why would I buy a plain white t-shirt for 70 bucks”. This sentiment was shared by Jasmine who describes her style as sexy and bold. She says she simply doesn’t know of any sustainable brand that makes sexy clothes, but she can always find something at Boohoo.

Not to sound like a broken record - and yes, I did Google Gen-X sayings - but the main issue is how many Boohoo items are we talking about, exactly. Gen-Z icon and TikTok influencer Alix Earle famously took days to clear out her college dorm room due to the sheer amount of clothes she owns. She even dedicated a TikTok to clearing out her college crop-top drawer, a video many users found “so relatable”. On a positive note, one of her followers suggested she sell her tops on Depop, a comment liked by 16 thousand people, which may help alleviate some of the waste as surely they would be

sold instantly.

Perhaps more pressing than styles, fast fashion brands make it easier to buy in different sizes. Buying second hand is not built for convenience and it can be very hard to find what you’re looking for in your size. And, ethical brands don’t seem to be filling the gap. As a sustainable YouTuber with over 200 thousand followers, Alexa Sunshine expresses her frustrations with the slow fashion movement she champions, pointing out that most Americans fall between a size 14-16 but most ethical brands only offer S-M-L sizing. Even though she herself only buys from thrift shops, she acknowledges that it is a lengthy process and should not be the only option given to people who wear larger sizes.

Other comments on this video highlight another major reasoning

behind Zoomer consumer thinking: is this really our job? For many of them the role does not fall on consumers but on governments to regulate consumption - and corporations are attempting to shift the focus of this responsibility to consumers having to be conscious shoppers.

To their credit, corporations have long advocated for recycling; but have never really pushed the rethink, refuse, repair, reduce or reuse of the 6R’s of sustainability. And unsurprisingly, McKinsey & Company found that 88% of Gen-Z shoppers do not trust companies’ sustainability claims. They just don’t think it’s the consumer's job to be figuring out which brands are genuinely sustainable, but instead the responsibility falls on the government to regulate. A job they are failing miserably at.

Gen-Z’s are bargaining with the planet. At the end of the day, they know fast fashion is in conflict with their aspirations of sustainability but aren’t willing to give up the dopamine hit. It’s hypocritical, but they justify it by trading off in other ways.

As 24 year old Hannah from Connecticut defends her shopping habits “I don’t buy plastic water bottles, I never take a plastic straw, I take produce bags to the supermarket, I rarely drive and bike where I can, I only eat meat out, I use package free shampoo, but yes I buy a lot of clothes from H&M and Zara. Sue me.”

Hannah is not alone. TikToker Nava Rose apologized to her almost 6 million followers for her contributions to the fast fashion industry and explained how she had excused her beliefs through living an otherwise eco-conscious life, such as having a worm compost.

While we see hypocrisy between their words and their actions, GenZ are, for the most part, trying to do good for the planet. I honestly don’t know of many Millennials or Gen-Xers who willingly welcome

worms into their home.

So, where does this leave us?

Gen-Z is fully aware of the impact of their choices which is why they make these excuses. And yes, there is validity to many of their arguments, but it doesn’t change the fact that the main issue is quantity. It’s not necessarily about not buying any fast fashion, but not buying $300 dollars worth of Shein that will soon be garbage. And, $300 at Shein goes a long way in creating a literal mountain of garbage.

Yet, I’d still argue that the blame is not fully on us. As the world struggles to cope with the impact of technology, it’s important to understand how drastically Gen-Z was affected. We’ve been “influenced” online since we were literal children. And many of them, like Leonardo DiCaprio’s girlfriends for example, don’t even have a fully developed prefrontal cortex to help make responsible decisions. No other generation experienced this level of consumer convenience and social media influence through their childhood and adolescence.

I’ll also say: all generations tend to overconsume in their teens and 20s. Perhaps not *quite* to this extent, but the fast fashion model wasn't as fully developed until quite recently. Millennials loved Forever 21 and Gen X idolized Gap. They grew out of it. As Gen Z gets older, I do believe they will likely have a stronger sense of their personal style, start to prioritize quality, and choose to buy fewer, better quality things.

In the past few months we’ve also seen the rise of influencers like Sofia Richie who prefer a more timeless look, and Gen-Z’s have

welcomed the 24 year old nepo baby as their newest it-girl. This may be a sign of a shift in Gen-Z fashion mentality, perhaps not in the name of sustainability, but either way, we’ll take it.

We are also seeing increased regulation in the EU, albeit much of it still remains vague, these are steps in the right direction and a response to the demand for consumer protection that we would like to see on the other side of the Atlantic. The private sector is responding with more focus on secondhand fashion, which with time will break its barriers to entry by making it more accessible and convenient like buying fast fashion.

At the end of the day, the problem is Gen-Z buys too many clothes and the solution is that Gen-Z needs to buy less. While the current situation may seem grim, the same technology that got them here may be the technology that gets them out. They are quick adopters of new technology, secondhand shopping apps and styling apps like Indyx. Whatever is most convenient, most affordable, and most fashionable will capture our very short attention spans. The positive thing is that all these things are in motion for Gen-Z, so they may become, afterall, the most sustainable generation.

Rebecca is a fashion stylist and writer, recently graduated from the University of California, Berkeley, and currently living in London. She enjoys reading, skiing and having people cook for her.

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My Notes:

Page 1

Digital natives, woke warriors, our future leaders. Haul lovers, Shein shoppers, micro-trend followers, outfit repeater shamers.

like the attention.

Page 2

a passion for sustainability and a love for fast fashion - in the same space?

Who is cool is determined by Instagram followers and TikTok views, Gen-Z’s seem to be the biggest advocates for sustainable fashion and simultaneously the biggest consumers of fast fashion.

Page 3

While Gen Z buys secondhand clothing in unprecedented numbers, they also buy every kind of clothing in “hauls”. They completely disregard their most sustainable option - their wardrobes - for newer and trendier options, in bulk. The issue is volume.

Page 5

Fast fashion found its ideal consumer in Gen-Z buyers as they are most plugged into all the new trend that seemingly come with every TikTok swipe - and, they desire inexpensive options.

Page 6

media has deluded itself into believing Gen Z are our environmental saviors, when in fact the voracious fast fashion consumption was always there.

“17% of [Gen-Z] participants admitted shopping at a fast fashion retailer each week, 62% monthly and 11% yearly, with only 10% claiming that they had never purchased from a fast fashion retailer”.

Page 7

study also found that 94% of participants were in favor of action for sustainability.

Same study as above…

With the sheer amount of clothes they are buying in the first place, it’s no wonder they have so many options to buy from secondhand!

So, yes, they boosted the secondhand market, but you know what that actually tells us? They buy a lot!

Page 8

With hundreds, if not thousands, of influencers each sharing pictures and videos wearing the latest Zara or Mango “collection”,

With every scroll, Gen Z is bombarded with newer and newer trends, what was “in” a month ago, feels dated now.

wouldn’t be caught dead posting the same outfit twice. unspoken rule.

“social suicide”

social media has given them freedom to uniquely express themselves dressing up and having fun with clothes, combination of cheap options and thousands of trends to try

Page 9

fast fashion is cheap. The oldest Gen-Z’s are 26 in 2023, and obviously don’t have the same purchasing power as Millennials or Gen-Xers.

people who are spending hundreds of dollars on Shein and Zara hauls clearly do have plenty of disposable income to buy clothes.

wanting to have 7 pieces instead of 2

Fast fashion today also makes it incredibly easy to find anything you could possibly want.

“Another thing about “ethical” brands is how... boring most of their clothing is. Why would I buy a plain white t-shirt for 70 bucks”.

doesn’t know of any sustainable brand that makes sexy clothes

Page 10

fast fashion brands make it easier to buy in different sizes

11

88% of Gen-Z shoppers do not trust companies’ sustainability claims.

Gen-Z’s are bargaining with the planet. At the end of the day, they know fast fashion is in conflict with their aspirations of sustainability but aren’t willing to give up the dopamine hit

“I don’t buy plastic water bottles, I never take a plastic straw, I take produce bags to the supermarket, I rarely drive and bike where I can, I only eat meat out, I use package free shampoo, but yes I buy a lot of clothes from H&M and Zara. Sue me.”

These plastic items don’t give consumers the same dopamine hit. Page 12

main issue is quantity. It’s not necessarily about not buying any fast fashion, but not buying $300 dollars worth of Shein that will soon be garbage Page 13

24 year old nepo baby as their newest it-girl

Sofia Ritchie - timeless look

Gen-Z needs to buy less.

Gen Z still loves fast fashion, but Boohoo investors are spooked

A Vogue Business survey shows that despite shocking claims about the fast fashion’s supply chain in Leicester, young consumers are still buying.

By Lucy Maguire and George Arnett July 10, 2020

Gen Z are often cited as the most sustainably minded generation. But for a large proportion of young consumers, it’s not easy to stop buying £9 dusty pink cropped lounge sweats and other fast fashion online.

Fast fashion firm Boohoo was one one of the rare winners of the Covid-19 lockdown, with sales up 45 per cent in the three months to May. But its share price has fallen by nearly a third in the last week, wiping out £1.5 billion in value, after allegations of malpractice by suppliers in the English city of Leicester including vastly underpaid staff working in cramped, unsafe conditions by Labour Behind the Label and The Sunday Times newspaper. Campaigners have partially attributed a spike of Covid-19 cases in the region to poor social distancing at the factories. The area is still in tight lockdown despite easing across the UK.

Still, that’s not been enough to change the mind of consumers, who bought over £1 billion from Boohoo last year, a tenfold increase in five years. Over half of 105 Gen Zs surveyed by Vogue Business reported buying “most of their clothes” from Boohoo and other fast

Mehak Akhter/Sophie Martin/Laura Nuñez Peguero

fashion e-tailers like Asos, PrettyLittleThing and Missguided. And of those who shop with these brands, half said they would continue to buy from Boohoo-owned brands (PrettyLittleThing, Boohoo and Nasty Gal) even after hearing about the Leicester coverage. Boohoo has rejected the allegations, but accepts there have been breaches of its code of conduct and has launched an independent investigation.

Analysts and Gen Z agree that Boohoo and its peers’ winning formula is attributable to its heavy reliance on influencer marketing, competitive pricing and the fast flow of new styles. Having a local supply chain means products worn on TV shows like Love Island or popular Instagrammers can be mimicked and made available days later. If social engagement suggests demand is there, even more product is ordered. If it can maintain those drivers, it seems unlikely that a significant enough number of its target consumers will abandon the brand. However, nosediving investor sentiment suggests it can’t continue being opaque about its supply chain.

Low price fast fashion meets Gen Zs needs

The majority of young shoppers consulted prefer fast fashion etailers because of their trend-led, influencer inspired clothing, extensive sizing and fast delivery. The most common descriptors used for brands like Boohoo and PrettyLittleThing were “accessible”, “affordable” and “fast delivery”.

Mehak Akhter, a 19-year-old from Manchester, regularly posts “haul” videos on TikTok, (a common format among Gen Zs where users show or try on all the things they have bought from fast fashion sites). Akhter buys most of her clothes from Boohoo, PrettyLittleThing and Nasty Gal because they stay on top of the trends and delivery is quick.

“When I’m bored I end up going through them and I always end up buying something,” she says. “All these brands are affordable, they also offer new discounts everyday or student discounts which make you feel better about spending.”

On all of the fast fashion e-tailers, you can sign up to unlimited nextday delivery for around £10 per year. This, coupled with pay later services like Klarna, means young consumers with low funds can buy a fast fashion haul without exchanging any money, until they decide what to keep.

“From a consumer perspective, can you get fashion at that price anywhere else and the buzz and engagement you get from Boohoo? Not at the moment,” says Eleonora Dani, equity research analyst at investment bank Stifel.

Boohoo said it was committing £10 million to a supply chain audit and commissioning an independent review led by Alison Levitt, former principal legal advisor to the UK director of public prosecutions. This is a relatively unusual situation given most major supply chain revelations, including the Rana Plaza disaster in 2013, are typically followed by a quick bounce back in investor sentiment.

Concerns about Boohoo’s supply chain practices are not new, with newspaper exposés and even open criticism in a 2018 report by the UK Parliament’s Environmental Audit Committee, with calls to end the era of “throwaway fashion”. Peel Hunt analyst John Stevenson says that an increasing focus on environmental and social governance by the investment community has shifted the dial and ensured that negative PR like this hits a lot harder. “The point of difference actually is the fund managers, which is interesting,” he says.

Boohoo’s largest external shareholder Jupiter Asset Management

says it had previously undertaken site visits to several of Boohoo’s UK suppliers. “We have been given strong assurances by management that any suppliers found to be in breach of the company’s strict code of conduct will be terminated immediately and we will continue to engage with the firm regarding this situation,” it said in a statement. Invesco, another investment management firm who owns Boohoo shares, said we “don’t generally comment on rumours in the press… but we take issues of company governance very seriously and will be investigating these reported concerns to assess their circumstances and validity.”

Young people stick with brands for lack of a better alternative

Less than half the Gen Zs consulted for this story were aware of the Leicester factory news reports prior to speaking with Vogue Business. Laura Nuñez Peguero, 21, in York, northern England, feels there’s a lack of awareness of ethical issues in the TikTok community. “After hearing [about Leicester] I will try to spread the news as I’m sure most people aren’t aware — this should be brought to light.”

Data provided by market research firm YouGov suggests that the story is resonating with the wider population. More Brits now say they would not be proud to work for the company than would be, a measure YouGov uses to track the strength of a company’s brand.

Akhter was horrified at the Leicester coverage and said she would only continue to buy from Boohoo owned companies if they “actively work on resolving this issue and not making the same mistakes”. But for those used to posting haul content, it will be challenging to find new retailers where they can afford the same level of consumption.

Sophie Martin, 21, from East Sussex often posts her high-volume fast

fashion purchases on Instagram and TikTok (pictured above), but is now “actively looking” for alternatives to Missguided and PrettyLittleThing.

For those who will continue to shop from Boohoo-owned brands, affordability is the key driver. “I wish I didn’t have to buy from these brands but I do, purely because they are cheap and I can get more for my money,” says Tara, 17, from Manchester.

Respondents felt the onus shouldn’t be on those unable to afford sustainable fashion labels to change their habits and stop buying cheap clothes.

“A lot of my friends who have a similar socio-economic background to me shop on sites like PrettyLittleThing because they don’t have a choice,” says Grace Samuel, a 20-year-old Manchester fashion student. “Boohoo group gets so much [criticism] for how unethical they are. But I think if you look at kind of what a lot of high fashion luxury companies do, many of them are the same in terms of ethical practice.”

YouGov data shows that the longer lockdown went on, the more interested 18 to 24 year olds were in shopping with Boohoo. “The way we consume clothing is tied up in our identity in a way that is very different from other environmental issues that this generation may be concerned about,” says Stella Claxton, a fashion lecturer at Nottingham Trent University.

It’s difficult to break the consumption cycle, where young people today feel pressure to wear the latest trends because of Instagram and reality shows like Love Island, says London student Iona Spensley, 21. She feels that it shouldn’t be down to Gen Z to boycott.

“It’s time for brands to make a change so that people can make

My Notes:

Page 1

shocking claims about the fast fashion’s supply chain in Leicester, young consumers are still buying.

July 10, 2020

Gen Z are often cited as the most sustainably minded generation. But for a large proportion of young consumers, it’s not easy to stop buying £9 dusty pink cropped lounge sweats and other fast fashion online.

consumers, who bought over £1 billion from Boohoo last year,

Over half of 105 Gen Zs surveyed by Vogue Business reported buying “most of their clothes” from Boohoo and other Page 2

half said they would continue to buy from Boohoo-owned brands (PrettyLittleThing, Boohoo and Nasty Gal) even after hearing about the Leicester coverage

Analysts and Gen Z agree that Boohoo and its peers’ winning formula is attributable to its heavy reliance on influencer marketing,

competitive pricing and the fast flow of new styles

TV shows like Love Island or popular Instagrammers can be mimicked and made available days later.

The majority of young shoppers consulted prefer fast fashion e- tailers because of their trend-led, influencer inspired clothing, extensive sizing and fast delivery. “accessible”, “affordable” and “fast delivery”.

Mehak Akhter, a 19-year-old from Manchester, regularly posts “haul” videos on TikTok, (a common format among Gen Zs where users show or try on all the things they have bought from fast fashion sites).

Page 3

“When I’m bored I end up going through them and I always end up buying something,” she says. “All these brands are affordable, they also offer new discounts everyday or student discounts which make you feel better about

spending.”

“From a consumer perspective, can you get fashion at that price anywhere else and the buzz and engagement you get from Boohoo? Not at the moment,” says Eleonora Dani, equity research analyst at investment bank Stifel.

Page 4

Young people stick with brands for lack of a better alternative

Page 5

“I wish I didn’t have to buy from these brands but I do, purely because they are cheap and I can get more for my money,” says Tara, 17, from Manchester.

“A lot of my friends who have a similar socio-economic background to me shop on sites like PrettyLittleThing because they don’t have a choice,” says Grace Samuel, a 20-year-old Manchester fashion student.

It’s difficult to break the consumption cycle, where young people today feel pressure to wear the latest trends because of Instagram and reality shows like Love Island, says London student Iona Spensley, 21.

The devil wears Shein

Gen Z's addiction to fast fashion is destroying the planet

Eve Upton-Clark May 17, 2023, 11:02 AM BST

Arif Qazi / Insider

Everyone knows that Gen Z cares about the planet: The generation has been at the forefront of the climate movement, they are more likely than any other generation to say that the climate crisis is their No. 1 concern, and some have even reported turning down jobs over companies' climate records. But they also have a big problem: Gen Z can't stop buying new clothes.

It's not that young people don't want to shop sustainably: Threequarters of Gen Zers say that sustainability is more important to them than brand name, according to a survey by First Insight and the Wharton School of Business at the University of Pennsylvania. But despite their stated preferences, the actual buying habits of young shoppers are fueling a planetary crisis.

A recently released report on Gen Z by the online vintage-resale platform ThredUp found that while 65% of Gen Z respondents said they want to shop more sustainably and buy higher-quality clothing, one-third also described themselves as addicted to fast fashion, and more than two in five said they buy clothes that they're likely to wear only once. Researchers from Sheffield Hallam University in England found that despite their preference for sustainable clothing, 90% of young Brits still opt for fast fashion — and only 16% of those surveyed could name a single sustainable-fashion brand.

As Gen Zers get older, richer, and make up more of the fashion industry's market share, their habits have the potential to affect the industry for good — or ill. And pushing the fashion industry to be more sustainable is key in the fight against climate change: At our current rate, the fashion industry is on track to consume 26% of the world's carbon budget by 2050. And clothing production contributes 20% of all global wastewater, with an anticipated 50% increase in greenhouse-gas emissions from the industry by 2030.

Fast fashion — the most environmentally damaging business model — prioritizes the quick design, manufacturing, and marketing of astronomically large quantities of clothing, using low-quality materials to replicate current fashion trends in affordable styles. Brands like Missguided and Fashion Nova dominated fast fashion's Instagram era, releasing about 1,000 new styles a week. Now, the TikTok-favorite Chinese brand Shein has stepped on the accelerator, adding anywhere between 2,000 and 10,000 individual styles to its app each day, according to an investigation by Rest of World. That overproduction of styles creates a huge amount of waste: 100 million tons of clothes are tossed out each year.

Based on their preferences, young people seem to understand how important shopping sustainably is, so why are they still so addicted to fast fashion?

The Gen Z paradox

Gen Z's economic power is growing faster than other generations, according to Bank of America. By 2030, as more of the generation begins working, their income is predicted to account for over a quarter of the world's income. By 2031, they will surpass the income

of millennials. And what are young people spending their money on? In the US, fashion is the preferred category for entertainment spending among Gen Z, outranking dining out, video games, and music.

The market-research firm Mintel found that younger generations tend to outspend older generations on fashion. And more of the clothes they buy go to waste: In the UK, 64% of 16- to 19-year-olds said they have purchased clothes that they have never worn, compared with 44% of all adults surveyed. Plus, the clothes they buy aren't usually from sustainable brands. A 2021 McKinsey survey found that 42% of American Gen Zers said they didn't even know what makes clothes sustainable.

"I feel like with Gen Z there's sort of like dissonance where we say we care about sustainability, but then all of the Gen Z influencers who are influencing millions of people are telling us to go to these fast fashion brands that are only making things to be worn like three times," Estella Struck, 22, who founded a marketing agency focused on sustainable brands, said.

" You can either shop secondhand or you can just fall into the fast-fashion trappings and there's not any other options. "

Malthe Overgaard and Nikolas Rønholt, researchers at Aarhus University in Denmark, published a study in 2020 on the contradiction, which they called "The Fast Fashion Paradox," to understand how consumers were thinking about what they buy. More than half of participants either agreed or strongly agreed with the statement, "I like it, I buy it," to describe their clothing-consumption behavior. One participant said that liking the clothes "is the most

important thing," adding that they will buy cheap clothes they like even if they weren't sustainably made. Overgaard and Rønholt concluded the reason for the discrepancy between Gen Z's preference for sustainable fashion and their behavior was mainly because of cost. "The low prices offered by fast fashion retailers were articulated as something that affected their attitude in the sense that they were willing to compromise with their attitude towards sustainability," they wrote in their report.

This was certainly the case for Katie Robinson, a 24-year-old student, who told me that her fast-fashion purchases are driven by economic necessity. "I didn't have money to shop sustainable alternatives," she told me. "With the cost-of-living crisis, young people also often have student debt and don't have well-paying jobs. You're not able to afford these really expensive, sustainable alternatives. You can either shop secondhand or you can just fall into the fast-fashion trappings and there's not any other options."

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A 2022 survey, commissioned by Earthtopia, one of the world's largest eco-communities on TikTok, found 96% of UK Gen Z and millennial consumers feel the high cost of living is preventing them from making sustainable purchases.

While money is a huge factor, it isn't the only explanation for young people's addiction to cheap brands. After all, consumers are buying 60% more than they did in 2000 and keeping it only half as long according to McKinsey. Consumer psychologist Kate Nightingale believes that this paradox is the result of the "intention behavior gap." She explained that "intentions are great, even attitudes are great, but they don't necessarily result in action."

Nightingale believes Gen Z are particularly susceptible to this

paradox because their identities are still developing and so they're more easily influenced, especially by social media. "They're going to be naturally much more prone to impulsive shopping, which can be very easily triggered by the way that shopping on social media and other sort of similar platforms is designed," she said.

The live-shopping rabbit hole

For the environmentally aware generation, the viselike grip of fast fashion has been fueled by social media. "You literally can't go on TikTok or Instagram without being sold to," Robinson, who runs a TikTok about sustainable fashion, said. "It's just consumerism all the time. Especially when they're integrating these easy shopping features into the platform — it removes all barriers for you."

One of those shopping features — live shopping — has made it much harder to resist buying unnecessary clothes. Instead of shopping at your leisure in a physical store or on a brand's website, live shopping makes buying clothes a time-sensitive experience. Individual sellers or representatives for fashion brands sell their products on a livestream on TikTok, Instagram, Facebook, or YouTube. The sellers interact with the audience in real time, showing off their products and answering questions people put in the comments. These sessions often include specialty items, flash sales, or special discounts that disappear when the livestream is over. And if someone wants to buy something, they never have to leave the app. It often only takes a few clicks.

TikTok has been testing its live-shopping feature, which has exploded in popularity in China, where the most popular influencers are able to sell more than $1 billion worth of goods in a single broadcast, The Financial Times reported. Robinson is based in the UK and said that as soon as her TikTok account gained followers, she

started to get invitations to participate in TikTok's shopping feature. "I would get a push notification every week saying 'join TikTok shop and you can grow a following because we'll get eyes on it,'" she said.

Part of why the model, described as "the new QVC," is so successful is because it's frictionless. Nightingale explained that when we shop normally there is a lot of "meaningless friction" such as cumbersome website design or waiting in checkout lines in a physical store. But on a livestream, there's not much time to consider what you're buying. Because it's so instantaneous, live shopping encourages the buynow, think-later approach that fast-fashion companies profit from. Lauren Bravo, an author and journalist, explained how this kind of shopping is flattening the difference between what we like, want, and need. "You can see a dress and think, 'I really like that,' in the same way that you can like a painting or a flower, but it doesn't mean you necessarily want it and it definitely doesn't mean that you need it," she said. "I think what these social-media apps are trying to do is flatten all of those different emotions so that we interpret everything as need."

A 2021 Mckinsey report found that companies have reported conversion rates — meaning the percentage of potential customers who end up buying something — from live shopping that are up to 10 times higher than conventional e-commerce. TikTok's own report on its live-shopping feature found that 67% of users said TikTok inspired them to shop even when they weren't planning to. "That idea that you can click and buy something immediately within an app, I think is quite dangerous," Bravo said.

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In addition to pushing people to buy more clothes, the buy-now,

think-later model of live shopping also encourages people to buy clothes that are worse for the planet. The model lends itself well to the ultra-fast-fashion labels that produce endless styles and lure in young customers with popular influencers and tantalizing discounts — leaving no time to question what this rate of consumption is doing to the planet. One compilation of TikTok live-shopping streams recently went viral because sellers were left stumped when questioned about the environmental impact of the cheap clothes they were selling. One seller, when asked why the clothes were so cheap, responded, "Don't even question it guys." Another boasted that the clothes she was selling are "cheaper than Shein."

Cutting through the noise

For Gen Z to really live up to their reputation as the green generation, cutting back on the endless scrolling is an important step. Shopping in brick-and-mortar stores can help anyone pause and think more critically about what they're buying to limit overconsumption. As Bravo noted, waiting in a crowded checkout line with music blaring is enough to make any shopper question how much they truly want the items in their basket.

After shopping fast fashion throughout her teens, Estella Struck wanted to try to close the gap between Gen Z's desire to shop sustainably and their fast-fashion habits. "It seems like Gen Z are backed into a corner where we have to trade off between caring about the planet or being fashionable, and that bridge needs to be closed," Struck said. To solve that problem, she founded Viviene New York in 2022, a Gen Z-led marketing agency that helps sustainable brands connect with Gen Z audiences through social media.

If sustainable brands jump on the live-shopping trend, Struck said,

they could encourage more young people to buy the clothes they claim they want to buy. Bravo also believes there's an opportunity for these brands to create more authenticity and intimacy with their customers through the live-shopping model. "It could be a real positive thing in that we're able to have a more personal relationship with the product and potentially even the maker that you're buying from," she said. By putting eyes on more sustainable options right at the source, it could help Gen Z ultimately put their money where their mouths are.

Eve Upton-Clark is a features writer covering culture and society.

My Notes:

the planet Ev

May 17, 2023,

Page 1

more likely than any other generation to say that the climate crisis is their No. 1 concern

But they also have a big problem: Gen Z can't stop buying new clothes.

Three- quarters of Gen Zers say that sustainability is more important to them than brand name

buying habits of young shoppers are fueling a planetary crisis.

one-third also described themselves as addicted to fast fashion, more than two in five said they buy clothes that they're likely to wear only once despite their preference for sustainable clothing, 90% of young Brits still opt for fast fashion — and only 16% of those surveyed could name a single sustainablefashion brand. Page 2

the fashion industry is on track to consume 26% of the world's carbon budget by 2050.

And clothing production contributes 20% of all global wastewater, with an anticipated 50% increase in greenhouse-gas emissions from the industry by 2030.

1,000 new styles a week

overproduction of styles creates a huge amount of waste: 100 million tons of clothes are tossed out each year.

Page 3

fashion is the preferred category for entertainment spending among Gen Z, outranking dining out, video games, and music.

In the UK, 64% of 16- to 19-year-olds said they have purchased clothes that they have never worn,

42% of American Gen Zers said they didn't even know what makes clothes sustainable.

More than half of participants either agreed or strongly agreed with the statement, "I like it, I buy it," to describe their clothing-consumption behavior. Page 4

they will buy cheap clothes they like even if they weren't sustainably made.

discrepancy between Gen Z's preference for sustainable fashion and their behavior was mainly because of cost.

"The low prices offered by fast fashion retailers were articulated as something that affected their attitude in the sense that they were willing to compromise with their attitude towards sustainability,"

"With the cost-of-living crisis, young people also often have student debt and don't have well-paying jobs. You're not able to afford these really expensive, sustainable alternatives.

96% of UK Gen Z and millennial consumers feel the high cost of living is preventing them from making sustainable purchases.

"intentions are great, even attitudes are great, but they don't necessarily result in action." Page 5

their identities are still developing and so they're more easily influenced, especially by social media.

"They're going to be naturally much more prone to impulsive shopping, which can be very easily triggered by the way that shopping on social media and other sort of similar platforms is designed,"

viselike grip of fast fashion has been fueled by social media live shopping makes buying clothes a time-sensitive experience

The sellers interact with the audience in real time, showing off their products and answering questions people put in the comments

specialty items, flash sales, or special discounts that disappear when the livestream is over.

only takes a few clicks.

the most popular influencers are able to sell more than $1 billion worth of goods in a single broadcast,

Page 6

on a livestream, there's not much time to consider what you're buying. instantaneous

live shopping encourages the buy- now, think-later approach that fast-fashion companies profit from

"I think what these social-media apps are trying to do is flatten all of those different emotions so that we interpret everything as need."

67% of users said TikTok inspired them to shop even when they weren't planning to.

Page 7

no time to question what this rate of consumption is doing to the planet

For Gen Z to really live up to their reputation as the green generation, cutting back on the endless scrolling is an important step.

waiting in a crowded checkout line with music blaring is enough to make any shopper question how much they truly want the items in their basket.

"It seems like Gen Z are backed into a corner where we have to trade off between caring about the planet or being fashionable, and that bridge needs to be closed,"

Page 8

product and potentially even the maker that you're buying from," she said.

By putting eyes on more sustainable options right at the source, it could help Gen Z ultimately put their money where their mouths are.

Live shopping streams could be utilised in a much more beneficial way.

How Marketers Can Target Gen Z: Tapping

Into Social Media And TikTok

Plus: Google Upgrades Shopping Searches, Snapchat Gets A Boost From E-Commerce, And Branding In The Metaverse Impacts Real-World Revenues

Megan Poinski Nov 15, 2023,

This is the published version of Forbes' CMO newsletter, which offers the latest news for chief marketing officers and other messaging-focused leaders. Click here to get it delivered to your inbox every Wednesday.

When it comes to messaging today, social video is king. According to TikTok, the app had more than 150 million active users in the U.S. in March, and according to testimony from the app’s CEO Shou Zi Chew reported by Business Insider, the average user is “an adult well past college age.” Nine in 10 customers say that video helps them make buying decisions.

No age group consumes more social video media than Gen Z—those born between 1997 and 2012. It’s the default for them. According to Horizon Media’s 2023 Gen Z Field Guide, shared exclusively with Forbes, 74% of the people in this age group use TikTok as a search platform. More than half—51%—prefer it to Google.

“Social media—so think TikTok and [Instagram] Reels and [YouTube] Shorts—is really becoming more like entertainment,” said Matt Higgins, head of strategy at Blue Hour Studios, the influencer marketing unit of Horizon Media. “It’s replacing cable TV, it’s replacing channel flipping.”

Mastering social video messaging—and TikTok—is one of many keys to reach Gen Z consumers. But it isn’t just Gen Z. Horizon’s study found that parents of Gen Zers ages 13 to 17 are 20% more likely to say their kids influence the brands they buy. And social video works as a targeting tool for all generations, displaying a more experiential taste of brands, places, restaurants and activities to be shared across generations.

Keep on reading for more on Horizon’s Gen Z Field Guide. In the meantime, I’ll be pondering how to make TikTok versions of email newsletters. (Suggestions are welcome!)

TECHNOLOGY + INNOVATION

A person walks past a Google logo at a 2018 trade fair in Paris.

It’s holiday shopping season, and Google is rolling out new features designed to help people find deals. A search for “shop deals” on both desktop and mobile browsers will pull up a curated page featuring discounts from a variety of retailers. Chrome will also feature a discount tag that shows available coupon codes. The new features also make it easy for a user to get notifications about sales and price drops from this page. These features are brand new, so it’s unclear what kind of algorithm is used, but “deals” searches show both paid and organic results.

AFP via Getty Images

Social app Snapchat is getting into e-commerce as well. Amazon and Snapchat entered an agreement in which Snapchat users can buy products directly from the app. The news initially boosted Snapchat’s stock price 9%. A similar feature for Amazon shopping debuted on Meta’s apps Facebook and Instagram earlier this month. Snapchat has had a largely unpredictable last year, with unsteady ad revenue and layoffs. It’s unknown if a shopping platform will make a difference. After all, other social apps have similar Amazon partnerships and TikTok also has its TikTok Shop e-commerce platform.

Shopify has taken the idea of e-commerce and shifted it into the actual world. Taylor Swift’s Eras Tour merchandise shop has been on the platform since July, helping boost the app’s revenues by 25%. At Drake’s concerts, a QR code for his store on Shopify was projected on venue walls, and some shoppers received surprise gifts as they ordered. And YouTube celebrity Jimmy Donaldson, or MrBeast, worked on a scavenger hunt event at the Shopify event space in Manhattan.

BRANDS + MESSAGING

While millions of people young and old spend some of their time living in the virtual metaverse, studies show that bringing fashion and beauty brands there translates into positive consumer sentiment and real-world sales. In Roblox’s annual Digital Expression, Fashion & Beauty Trends report, three-quarters of Gen Z respondents said they prioritize styling their digital avatar in fashion from a recognized brand. But 84% also said they’d be likely to actually wear fashions from that brand in the actual world.

SOPA Images/LightRocket via Getty Images

Virtual experiences, ranging from the brand history and side-questfilled Gucci Cosmos Land on The Sandbox gaming platform, and the LGBTQIA+ friendly Valley of Belonging on that platform, which came through a brand partnership with NYX Cosmetics, also bring brands to where young consumers are. For Gucci, the partnerships have paid off. A Business of Fashion survey of Gen Z’s favorite fashion brands last year ranked Gucci at No. 2.

Climate change is a pressing real world problem, but the dry scientific explanations and politics around policy shifts have stopped some of the messages from hitting people’s ears. A new U.K. campaign, Climate Science Translated, uses stand-up comedians to “translate” some scientists’ climate warnings into humorous—and easily understood—messages. Will turning climate warnings into irreverent and sometimes profane punchlines work? British entrepreneur Nick Oldridge, who is working on the campaign with creative agency Utopia Bureau, thinks so, especially because scientists communicate more cautiously and conservatively.

“Comedians can speak much more freely,” Oldridge said. “They don’t get shot down like, say, virtue-signaling actors. They can deal with hecklers.”

ARTIFICIAL INTELLIGENCE

A pedestrian walks in front of the sign in front of Meta headquarters in Menlo Park, California.

As the 2024 election draws nearer, Meta introduced new AI policies for political ads. Advertisers won’t be allowed to use the company’s generative AI software to create political or social issue ads for either platform. Advertisers will also have to disclose when they used AI software to create images, video or audio with

Getty Images

people doing or saying things they might not have, as well as if the ad shows events that did not take place. Disclosures will not be necessary for generated or altered content that is inconsequential or immaterial to the issue in the ad. Google announced similar guidelines for political ads in September.

While these guidelines may help control the spread of some misinformation, the bigger question is how will the companies ensure that all of the guidelines are being followed.

ON MESSAGE

Horizon Media Pinpoints How To Communicate With Gen Z

Matt Higgins and Maxine Gurevich Horizon Media

Gen Z makes up about a fifth of the U.S. population and has $360 billion in disposable income, according to a 2021 estimate from Bloomberg. And, like every young generation society has known, they have their own way of looking at the world and interpreting messages. Horizon Media puts together an annual report on how marketers can best communicate and connect with Gen Zers. Not surprisingly, social media plays an outsized role—89% use social media to discover new content related to their unique passions.

Horizon Media gave Forbes the exclusive first look at their report, and I talked about it with Matt Higgins, head of strategy at Horizon Media’s influencer marketing unit Blue Hour Studios, and Maxine Gurevich, Horizon Media’s senior vice president for cultural intelligence. The following conversation has been lightly edited for brevity and clarity.

My Notes:

Page 1

Nov 15, 2023, social video is king

TikTok, the app had more than 150 million active users

Nine in 10 customers say that video helps them make buying decisions.

No age group consumes more social video media than Gen Z—those born between 1997 and 2012. It’s the default for them

74% of the people in this age group use TikTok as a search platform. More than half—51%—prefer it to Google.

Page 2

parents of Gen Zers ages 13 to 17 are 20% more likely to say their kids influence the brands they buy.

Page 3

Shopify has taken the idea of e-commerce and shifted it into the actual world.

While millions of people young and old spend some of their time living in the virtual metaverse, studies show that bringing fashion and beauty brands there translates into positive consumer sentiment and real-world sales.

three-quarters of Gen Z respondents said they prioritize styling their digital avatar in fashion from a recognized brand. But 84% also said they’d be likely to actually wear fashions from that brand in the actual world.

Page 4

Meta introduced new AI policies for political ads.

Advertisers won’t be allowed to use the company’s generative AI software to create political or social issue ads

Advertisers will also have to disclose when they used AI software

Page 5 89% use social media to discover new content related to their unique passions.

Guide to Gen Z: What matters to this generation and what it means for marketers

Arielle Feger

The socially conscious generation prioritizes mental health, sustainability, and racial equity, while shaping consumer habits with a tech-savvy approach

Born between 1997 and 2012, Gen Z represents about 20% of the US population as of 2023, per the US Census Bureau. In 2021, Bloomberg cited data from Gen Z Planet estimating the cohort had $360 billion in buying/spending power, a number which has most certainly grown as more and more Gen Zers join the workforce.

In this guide, we explore what Gen Z cares about, where they spend their time online, and how they shop so marketers can reach this valuable target audience. We also delve into their banking and payment habits and how they’re shaping the financial services industry.

Want to learn more about Gen Z and other marketing trends?  Sign up for the EMARKETER Daily newsletter.

Gen Z stats and demographics: Who are Gen Z consumers ?

Gen Z (or Generation Z) grew up with rapid digital changes. As teens, Gen Zers experienced the boom of smartphones, wearables, and virtual assistants, among other disruptive tech. This immersion makes them open to integrating new technology into their lives.

Gen Z is already using AI in their daily lives. Some 61% have positive attitudes toward AI-generated content on social media, according to EMARKETER’s July 2023 US Gen Z Social Media survey featured in the US Digital Habits by Generation report. They see AI as a handy tool for simplifying tasks like essay editing, checking code, and travel planning. They’ve also embraced the overlap between media and

technology, using multifunctional devices that promote simultaneous use, which makes what Gen Zers consume more important than where, per EMARKETER’s Gen Z Technology and Media Preferences report.

Gen Z characteristics: What does Gen Z care about ?

Gen Z consumers have strong opinions about the world they live in— and they aren’t afraid to voice them. Gen Zers are known for their social responsibility, dedication to social and political issues, and their demand for authenticity when it comes to brands and advertising.

53% of US Gen Zers want brands they shop at to support mental health, more than any other cause, according to a survey from ICSC and Big Village. Environmental causes (including climate change and sustainability) and racial and gender equity tied for second place with 47% each.

Gen Z also wants brands to support LGBTQ+ rights (like samesex marriage) and political activism, per ICSC and Big Village. However, while Gen Zers do care about the environment, they are also mostly teens or young adults and have to be choosy with how they spend their money. “We have to care, because we’re the ones that are going to be here for the next 70 or so years. We’re going to reap the benefits—and possible consequences—[of our actions now],” said Gen Z panelist Clay Lute during a June 2023 CommerceNext event in New York City. “But when it comes to a budget … we don’t have the money that some of the other generations have.”

Gen Z’s interest in sustainability has contributed to growing resale volumes (which EMARKETER forecasts will reach $108.64 billion in 2024), particularly when it comes to fashion.

61% of Gen Z shoppers will they look for an item secondhand before buying it new, per thredUP’s second annual Impact Report.

Over half of Gen Z shoppers are more likely to shop with a brand that offers secondhand apparel and new items.

Fashion online resale platform sales will total $13.68 billion in

A chart showing values that US Gen Z wants brands/companies to support, March 2023.

2024, per a December 2023 EMARKETER forecast, thanks in part to Gen Z’s interest in platforms like The RealReal or Poshmark.

Gen Z marketing: Where does Gen Z spend time online?

Gen Z has fully embraced the blending of media and technology, which is explored in EMARKETER’s Gen Z Technology and Media Preferences report. The seamless connectivity between devices allows Gen Zers to engage in multiple activities simultaneously, making what they consume more important than where they consume it.

Gen Zers are more likely to cite streaming video, streaming music, and playing video games as daily activities compared with the general adult population, per a May 2023 Morning Consult survey. They’re also less interested in traditional TV and listening to the radio.

Roughly 94% of Gen Z will stream video in 2023, per an EMARKETER forecast, with YouTube and Netflix as the top free and paid platforms, respectively.

Podcasts are also gaining popularity among Gen Zers, with podcast listening projected to rise significantly by 2027.

Gen Z is all about gaming, showing higher engagement rates compared with previous generations. This generation’s media habits reflect a clear shift toward digital experiences and interactive content.

However, having endless options for entertainment at their fingertips has also impacted attention spans.

It takes just 1.3 seconds for Gen Z to lose active attention for ads—less time than any other age group, according to a global study by Yahoo and OMD Worldwide.

This means that branded content needs to grab their attention immediately, or risk being passed over for something else.

What’s the role of social media in Gen Z’s lives

?

Social media is Gen Z’s primary outlet for sharing thoughts, seeking recommendations, and staying informed about current events.

A chart showing select daily media activities conducted by US Gen Z versus total adults, May 2023.

Instagram is the top choice for direct messaging among Gen Z users, according to EMARKETER’s July 2023 survey of US teens and adults ages 15 to 26, per EMARKETER’s Gen Z Social Media Preferences report.

In addition to direct messaging, Gen Zers also favor Instagram for Stories, making it their primary social media platform for this feature. However, marketers shouldn’t overlook TikTok, as nearly half of Stories viewers reported watching them on TikTok in the past month.

For short-form video content, TikTok remains the preferred platform among Gen Z, with a majority of respondents indicating it as their go-to for short videos on social media.

However, nearly half of respondents also reported viewing short videos on Instagram Reels and YouTube Shorts, signaling their preference for engaging with various platforms. But when it comes to long-form video content, YouTube claims the top spot among Gen Zers. TikTok is gaining traction, with the platform even beginning to test 15-minute videos.

When it comes to livestreaming (i.e., the real-time broadcasting of audio and/or video content over the internet for an audience to watch as it happens), Gen Z chooses TikTok over Instagram, although YouTube remains the ultimate leader in this arena.

Across all platforms, authenticity is key to engaging with Gen Z.

“Gen Z is definitely very direct,” said Megan Brophy, vice president of marketing at Abercrombie & Fitch, speaking at The Lead Innovation Summit in July 2023. “They’re very transparent. They want realness. They want authenticity.” Advertising for Gen Z can be “messy” and “chaotic” as a result, according to Brophy. She noted that Abercrombie & Fitch’s approach to influencer

marketing is finding creators that already wear Abercrombie apparel, which appeals to Gen Z’s desire to see real people giving them recommendations.

How do Gen Z consumers discover and buy products ?

Social media and influencer marketing play a major role in Gen Z’s purchasing journey, but more traditional channels like in-store and ecommerce are also shaping how they buy, per EMARKETER’s Gen Z’s Path to Purchase report.

Social media plays an important role in discovery, particularly when it comes to beauty, clothing, and health and personal care products, EMARKETER’s survey found. However, they also discover products by shopping in-store and talking to friends and family.

Gen Z’s favorite social networks for shopping discovery are TikTok and Instagram. Gen Zers usually watch videos and engage with influencer content creations to find new products and brands.

Gen Z shoppers are more likely to discover new items directly on brand websites than older shoppers, but less likely to find products via third-party retail websites and apps. Gen Zers are more cautious with their purchase decisions and are less likely to make impulse purchases than older generations.

Despite the influence of digital, Gen Zers are still making purchases in-store, even in categories where social plays an outsized role in discovery.

TikTok and Instagram are the most popular platforms for social commerce, according to EMARKETER’s July 2023 US Gen Z Social Media survey, as they offer convenient access to user

My Notes:

Page 2

generation prioritizes mental health, sustainability, and racial equity, while shaping consumer habits with a tech-savvy approach

rapid digital changes.

open to integrating new technology into their lives

61% have positive attitudes toward AI-generated content on social media see AI as a handy tool for simplifying tasks

Page 3

strong opinions about the world they live in social responsibility, dedication to social and political issues

demand for authenticity

Gen Zers want brands they shop at to support mental health,

Gen Z also wants brands to support LGBTQ+ rights

Gen Zers do care about the environment, they are also mostly teens or young adults and have to be choosy with how they spend their money.

Limited disposable incomes.

“We have to care, because we’re the ones that are going to be here for the next 70 or so years. We’re going to reap the benefits—and possible consequences— [of our actions now],” said Gen Z panelist Clay Lute during a June 2023 CommerceNext event in New York City. “But when it comes to a budget ... we don’t have the money that some of the other generations have.

Page 5

61% of Gen Z shoppers will they look for an item secondhand before buying it new

Page 6

Gen Zers are more likely to cite streaming video, streaming music, and playing video games as daily activities compared with the general adult population

Podcasts are also gaining popularity among Gen Zers

Gen Z is all about gaming

Page 8

It takes just 1.3 seconds for Gen Z to lose active attention for ads

branded content needs to grab their attention immediately,

Social media is Gen Z’s primary outlet for sharing thoughts, seeking recommendations, and staying informed about current events.

Page 9

TikTok remains the preferred platform among Gen Z,

“Gen Z is definitely very direct,”

“They’re very transparent. They want realness. They want authenticity.”

Advertising for Gen Z can be “messy” and “chaotic” as a result, according to Brophy.

Page 10

Social media and influencer marketing play a major role in Gen Z’s purchasing journey,

Gen Zers usually watch videos and engage with influencer content creations to find new products and brands.

TikTok and Instagram are the most popular platforms for social commerce,

Gen Z doesn’t know a world without fast fashion

Why do we expect teenagers to out-thrift major retailers ?

Terry Nguyen Jul 19, 2021, 8:00am EDT

Noam Galai/Getty Imagesnone

Millions of Americans, specifically those born around or after the year 2000, have never inhabited a world without fast fashion. They became shoppers at the height of its boom: Retailers like ASOS drop at least 5,000 new styles a week, and Shein offers 700 to 1,000 new styles daily. And while these young shoppers are increasingly wary of the evils of fast fashion, they have little room to protest. They buy what’s available, and what’s available is generally fast.

This pace is a relatively modern innovation. Garment production has quietly accelerated to breakneck speeds over the past three decades, easing young and old consumers into thinking of their clothes as disposable. It began in the 1990s, so the story goes, when the founder of Zara spun the fast fashion wheel into motion. Zara abandoned the concept of fashion seasons for the thrill of constant novelty.

A confluence of factors prompted Western designers and retailers — H&M, Forever 21, Gap, to name a few — to follow Zara’s lead in the next decade. Retailers migrated their manufacturing process overseas, where labor was cheaper. Cheaper was better, of course, from a business perspective. It was a period of excess for both consumers and retailers. Profits soared, and the number of garments produced from 2000 to 2014 doubled to 100 billion a year. The dream of “instant fashion” pioneered by Zara became a reality, and things were only about to get faster.

Toward the tail end of the 2010s, “ultra-fast” fashion brands emerged as viable competitors to the dominant fashion empires of the previous decade. They have names like Boohoo, Fashion Nova, Shein, and Princess Polly, and reached millions of young shoppers through social media, whereas fast fashion’s old guard resided in brick-and-mortar stores.

These retailers have now turned their attention toward Generation Z — the new kids on the block who’ve recently come of spending age. According to Pew Research, members of this demographic were born between the years 1997 and 2010, and grew up under the looming threat of climate change. Gen Z can’t imagine a world without fast fashion because they were born into its heyday. From 2000 to 2014, the average price of clothing declined in spite of inflation. Young people are conditioned to accept low prices as the

norm; some even rely on these depressed costs to access trendy clothes. Why pay more when you can buy a brand new T-shirt for $5, a dress for $20, or a pair of jeans for $30?

Related

Shein, the Chinese fast fashion giant, explained

Yet, marketing research and surveys have found that most young consumers care about sustainability. They are avid thrift store-goers and secondhand shoppers. Gen Z wants similar commitments from the companies they buy from and aren’t afraid to demand it. This has fueled an oft-repeated narrative that Gen Z’s green habits have “killed” or significantly slowed down fast fashion’s global expansion. While fast fashion is a relatively young phenomenon, it’s part of a centuries-old industry that has adjusted to its current pace of growth.

Major retailers are investing in sustainable technologies to bulk up their business portfolios. They’ve pledged to be more sustainable and resourceful in public campaigns. They haven’t, however, pledged to make less. Even if the materials and labor used to produce fashion are marginally better, it does little to offset the clothing consumption cycle Gen Z was born into. In reality, the corporate vice-grip of fast fashion is hard to escape, even for a generation made keenly aware of its environmental implications.

Gen Z certainly isn’t the only group buying from these companies or responsible for their continued success (“Most people in the Global North have worn fast fashion in some capacity in the last two decades,” said Aja Barber, a sustainable fashion writer and critic). They are, however, the first to do so during adolescence as a matter of course. They have to navigate a world in which trends are more accessible than ever. And these questions they face of personal

responsibility and overconsumption have remained unanswered and unsolved by older generations.

Sixteen-year-old Maddie Bialek does her best to avoid fast fashion, but she can’t remember a time without plentiful, cheaply produced clothes. When Bialek was born in 2005, the likes of Zara, Forever 21, and H&M were annually raking in billions of dollars in sales, and proliferating in malls across America and the world. The ultra-fast fashion brands most shoppers Bialek’s age would recognize either were in their infant days or had yet to exist at all. But the speedy groundwork for their later success was firmly established in the aughts.

Bialek is, in many ways, not your typical teenage shopper. She doesn’t buy from resale sites like Depop or Poshmark, and instead mends and crafts her own clothes, usually from secondhand fabrics sourced from local thrift stores. She comes from a family of artists, who instilled within her a do-it-yourself attitude that ultimately led her to reject the premise of fast fashion: that clothes are inherently disposable. “Ever since I’ve started to make and sell my own clothes, I’ve started looking at prices more critically,” Bialek told me. “If I see a new dress for $16, that makes me think someone along that supply chain who made it or transported it might not be paid well or treated fairly.”

She added that she “isn’t always perfect,” and could make improvements in other aspects of her life, such as reducing plastic waste. But as a high schooler, it requires a conscious effort on Bialek’s part to resist buying what everyone else is wearing. Social media might be a democratizing force for fashion, but it’s also an accelerator. Teenagers are a prime consumer market for brands, which are able to target age demographics in social media ads. Plus,

the integration of “social commerce” onto platforms like Instagram and TikTok further blurs the lines between scrolling and shopping: Users don’t have to head to a retail site to intentionally browse. Their social media feeds are frequently encouraging them to buy through direct advertisements, influencers, or even their peers.

That’s how Shein, the Chinese ultra-fast fashion retailer, became one of the most recognizable retailers for young female shoppers. The US is the brand’s largest consumer market, due to a successful blend of Instagram and TikTok marketing, low prices, and a trendforward approach. “Most of my friends buy from Shein,” said Chelsea, a 17-year-old from California, who asked to withhold her last name for privacy reasons. “It’s not my favorite place to shop, but their selection is very trendy and affordable, so if I ever need an outfit for a special event, I tend to look for it there.”

Shein’s advertising strategy is notoriously persistent and ubiquitous across all social platforms. There was a brief period when Chelsea would encounter Shein content wherever she went online. It became impossible to avoid the company. On TikTok, the hashtags #Shein and #SheinHaul boast billions of views, with buyers regularly showing off hundreds of dollars worth of clothes in try-on hauls, essentially serving as free marketing for the brand.

Chelsea occasionally shops secondhand, but she turns to fast fashion sites when she needs a specific item of clothing, like a graduation dress or a halter top. “When you go to a thrift store, you don’t always know what you’re going to find, which can be fun,” she said. “It’s a lot harder to find a specific style you want in a thrift store, especially during the pandemic.”

Resale apps like Depop and Poshmark have popularized secondhand or vintage buying and selling. Yet, their existence isn’t enough to

curtail Gen Z’s enthusiasm toward well-known brands — even those with sustainable shortcomings. According to a survey of 7,000 teenagers by the investment firm Piper Sandler, Amazon is one of the most popular online shopping sites teens turn to for clothes and other miscellaneous items. A few ultra-fast fashion retailers like Shein and Princess Polly were also labeled as Gen Z favorites on the survey, competing with established brands like Nike, American Eagle, and Lululemon.

Like many ideas on the internet, the phrase, “There is no ethical consumption under capitalism,” has been boiled into a pithy punchline, stripped of its original anti-capitalist meaning. “People are justifying why they spent hundreds of dollars on new clothes with this phrase they really don’t understand,” explained Shreya Karnik, the 16-year-old co-founder of the publication Voices of Gen Z. “Well, yes, ethical consumption is hard, but that doesn’t mean you should just drop $500 on fast fashion.” For Karnik and her co-founder Saanvi Shetty, the goal is to shop more intentionally, although they’re aware their personal styles might evolve as they grow older.

While the statement’s meaning has been defanged by TikTok teens, it’s rooted in a general truth, especially when it comes to fashion. Fast fashion is, to put it bluntly, the product of a system that prizes profit over workers’ rights and environmental effects. To be clear, most luxury and mall brand companies are no better than fast fashion when it comes to this. (During the onset of the pandemic last spring, retailers like American Eagle and Urban Outfitters cancelled garment orders last-minute and refused to pay workers for their completed labor.)

To be a consumer requires some level of mental separation from the clothing production process. Executives know that sustainability doesn’t scale, at least not quickly enough or to achieve a billion-

dollar business model. As a result, clothing supply chains have become so opaque to allow retailers to maximize profit, and it has been decades since a majority of American-designed clothes were actually made in America. Ethical consumption simply isn’t a facet of the modern fashion ecosystem.

‘no ethical consumption under capitalism’ isn’t an excuse for £100+ worth of shein hauls bestie <3

— kim (@kimchrstina) March 27, 2021

Last May, two researchers from Denmark, Nikolas Ronholt and Malthe Overgaard, published a study titled “The Fast Fashion Paradox.” The pair surveyed consumers between the ages of 22 and 25, and completed one-on-one interviews with respondents to understand why the participants kept purchasing fast fashion despite their own desires to be more sustainable.

“What intrigued us was how the consumers said they cared about sustainability, but that care did not translate into their actual purchasing behavior,” Overgaard told me. “There was a major gap there. It’s become trendy to label yourself as a sustainable consumer, but it’s another thing to see it reflected in your behavior.”

This paradox is particularly evident in the comments section of clothing hauls on TikTok, where a few commenters would urge haulers to shop more sustainably, only for others to defend the purchase. In one Shein haul video with 500,000 “Likes,” a user commented that they were bothered by how Shein packages each item in individual plastic bags. The creator of the video responded in agreement saying, “It is such a waste, I wish they wouldn’t :(” The response set off a series of comments asking why she bought from Shein if she cared about packaging waste.

Ronholt and Overgaard’s research gets at the heart of this responsibility paradox. Who is to blame in this transaction: the lone shopper who purchased hundreds of dollars worth of clothes, or the billion-dollar retailer? Should social media platforms also be held liable? A majority of consumers surveyed expect the retailers to take more sustainable steps, but history has proven that, unless pushed to do so by shoppers, brands are usually slow to act.

Plus, most corporate brands tend to greenwash their efforts with buzzy branding words like “conscious” or “ethical,” while failing to be specific about their goals. In 2018, for example, H&M was criticized by the Norwegian Consumer Authority for “misleading” marketing of its Conscious Collection; the retailer wasn’t specific about what types of “sustainable” materials its clothes were sourced from or what its clear goals were.

“The current situation looks like a deadlock,” said Ronholt. “There’s this duality in response from consumers who felt they could do better, but still wanted more transparency from retailers. Some even suggested political intervention to solve this, like a tax on things that aren’t sustainably produced.”

But even with sustainability hanging in the back of people’s minds, Ronholt added that young consumers have developed a, “I like it, I buy it,” mentality that does little to offset how often they shop. This, of course, is exacerbated by social media’s effects on trend cycles and clothing seasonality: Fast fashion and major retailers no longer rely on the traditional fashion calendar, and instead operate on the premise of “faster is better” to drive sales based on novelty.

Related

How thrifting became problematic

Karnik, the co-founder of Voices of Gen Z, admits she likes to browse Shein, even if she’s not planning to buy, in order to stay up to date on trends. As a teenager, Karnik’s clothing purchases are usually made under financial constraints. Price, as well as sizing availability, is a major fast fashion appeal for shoppers with budgets or other limitations.

“I’m guilty of looking, and I have like 98 items saved in my cart, although I haven’t bought anything in the past year,” she told me. “I’ve become aware that fast fashion is all about trends, though, so I’m trying to look for staple pieces that will stick with me for a couple of years.”

The most sustainable thing consumers can do, according to fashion critic Barber, is to buy less overall. Her proposed solution doesn’t require everyone to be perfect; it depends on individual efforts to resist novelty and trend cycles, ideally at a large scale.

“There’s a significant correlation between fast fashion, the way we consume clothing, and the rise of social media,” Barber told me. “You have teens saying they don’t want to wear the same outfit twice on social media, and to be honest, that makes me a bit sad.”

The challenge for sustainability advocates is, in Barber’s opinion, education. The number of people working in apparel manufacturing in the US has steadily declined since the 1980s, and fewer people know firsthand the workers who craft their clothes. As a result, it’s become easy to turn a blind eye to how clothes are constructed and to accept the unsustainable status quo. “In general, we’re losing tradespeople in our society,” Barber said. “If more people knew how much time went into sewing a pin cushion, they could recognize exploitation in a $3 shirt and become better, more informed consumers.”

My Notes:

Jul 19, 2021,

Page 1

born around or after the year 2000, have never inhabited a world without fast fashion

young shoppers are increasingly wary of the evils of fast fashion, they have little room to protest. They buy what’s available, and what’s available is generally fast.

Page 2

Garment production has quietly accelerated to breakneck speeds over the past three decades, easing young and old consumers into thinking of their clothes as disposable.

Retailers migrated their manufacturing process overseas, where labor was cheaper.

“instant fashion”

grew up under the looming threat of climate change

Gen Z can’t imagine a world without fast fashion because they were born into its heyday

2000 to 2014, the average price of clothing declined in spite of inflation.

Page 3

Why pay more

Gen Z mentality.

Gen Z’s green habits have “killed” or significantly slowed down fast fashion’s global expansion.

make less

Even if the materials and labor used to produce fashion are marginally better, it does little to offset the clothing consumption cycle Gen Z was born into.

trends are more accessible than ever.

Page 4

“Ever since I’ve started to make and sell my own clothes, I’ve started looking at prices more critically,” Bialek told me. “If I see a new dress for $16, that makes me think someone along that supply chain who made it or transported it might not be paid well or treated fairly.”

Social media might be a democratizing force for fashion, but it’s also an accelerator.

Page 5

integration of “social commerce” onto platforms like Instagram and TikTok further blurs the lines between scrolling and shopping:

social media feeds are frequently encouraging them to buy through direct advertisements, influencers, or even their peers.

blend of Instagram and TikTok marketing, low prices, and a trend- forward approach

Page 6

To be a consumer requires some level of mental separation from the clothing production process.

Page 7

Ethical consumption simply isn’t a facet of the modern fashion ecosystem.

“What intrigued us was how the consumers said they cared about sustainability, but that care did not translate into their actual purchasing behavior,”

It’s become trendy to label yourself as a sustainable consumer, but it’s another thing to see it reflected in your behavior.”

Page 8

brands are usually slow to act.

most corporate brands tend to greenwash their efforts with buzzy branding words like “conscious” or “ethical,” while failing to be specific about their goals.

Some even suggested political intervention to solve this, like a tax on things that aren’t sustainably produced.”

young consumers have developed a, “I like it, I buy it,” mentality

exacerbated by social media’s effects on trend cycles and clothing seasonality:

Price, as well as sizing availability, is a major fast fashion appeal for shoppers with budgets or other limitations.

“I’ve become aware that fast fashion is all about trends, though, so I’m trying to look for staple pieces that will stick with me for a couple of years.”

The most sustainable thing consumers can do, according to fashion critic Barber, is to buy less overall

“You have teens saying they don’t want to wear the same outfit twice on social media, and to be honest, that makes me a bit sad.”

become easy to turn a blind eye to how clothes are constructed and to accept the unsustainable status quo

Gen Z consumer behavior: What you need to know

When you hear the term ‘Gen Z’, what’s the first thing that comes to mind? It’s probably some variation of the ‘young person who spends too much time on their phone’ stereotype.

That may be an accurate representation of some members of Gen Z. But, like most stereotypes, it's wrong to assume they're all this way.

As the youngest adult generation, Generation Z is often confused with the millennials. Both grew up around digital technology, and they share some similar characteristics as a result.

But Gen Z (often individually referred to as Zoomers) is different to the millennial generation. And that’s something all businesses should be aware of. If you want to build a relationship with your Gen Z customers, first you need to understand what motivates them.

So, in this blog post we’ll cover:

Gen Z consumer characteristics

Implications for retailers

Targeting Gen Z with promotions

Who is Gen Z ?

We’ve previously discussed the consumer behaviors of the baby boomers and the millennials in another blog post. These generations were the main focus of media attention for many years, often being pitted against each other as supposed ideological enemies. This is mainly because they grew up in different socioeconomic climates, and they have different world-views as a result.

However, Gen Z is becoming an increasingly important part of the workforce. And Gen Z'ers are becoming increasingly powerful in terms of purchasing power and disposable income.

Gen Z spans the years 1997 to 2010, although these dates vary depending on who you ask. As of now, Gen Z ranges in age from 11 to 24. This puts them at an interesting crossroads.

The elder half of the generation is now legally classed as adult, and many individuals have already entered the workforce. The tail end of the generation, on the other hand, is still in school. These younger zoomers won’t gain any sort of financial independence for quite a while, and they'll probably change our current understanding of their generation as they get older.

In terms of formative socioeconomic influences, Gen Z has already lived through a few defining events. While the COVID-19 pandemic has hit Gen Z especially hard, it's not the only major economic downturn they've lived through. The first was the great recession of 2007-2009.

While the youngest individuals in Gen Z hadn’t even been born at this point, the effects of the great recession were most certainly felt by their families.

The effects of the recession lasted many years, severely impacting

the job market. This had a knock-on effect on attitudes towards higher education and the popularity of certain subjects, products or services. And, as opposed to millennials, who grew up on social media, Gen Z grew up using the precursors to the 'metaverse' such as Minecraft, Roblox or other immersive experiences.

Statistically, young people today are much more likely to study STEM (Science, Tech, Engineering or Maths) subjects and much less likely to study humanities than their counterparts a decade ago.

This preference for 'secure' degrees matches other observations about Gen Z. They’re generally more financially pragmatic than millennials, and they tend to be more risk averse. However, one thing they do have in common with millennials is a strong belief in social causes and corporate responsibility. This is in striking contrast to Gen Xers.

Gen Z consumer characteristics

Gen Z’ers consumer characteristics tend to reflect their pragmatic approach to money and education. Other key influences are their affinity for technology, their belief in social causes, and a strong individualistic streak.

We now have a clearer understanding of Gen Z than we did five years ago. But there’s still a bit of confusion around what they like, how they act, and what businesses need to do to appeal to them.

In general, Gen Z'ers display the following consumer behavior:

They tend to be ‘informed consumers’, and will often research and weigh up options before making a buying decision

They tend to be much less attached to specific brands, instead

preferring to shop around for the best deal

They place high importance on brand ethics and corporate responsibility, even more so than Millennials

Out of all the generations, they’re the most likely to shop via social media

While Gen Z'ers are price conscious, they aren’t as price-centric as some previous generations. Products and brands need to show a mixture of value, quality and ethical practices to tap into the Gen Z wallet.

When it comes to shopping, Gen Z'ers show the following preferences:

Despite being the most online generation, Gen Z likes shopping in-store

They also like having real shop assistants to help them with queries

Gen Z'ers have high expectations as consumers, both in terms of customer service and product quality

They like individualized shopping experiences that can be tailored to their own personal preferences

In fact, a survey conducted by IBM found that product choice, availability, convenience and value are the top influencing factors for Gen Z when choosing shopping channels.

Interestingly, Gen Z also has significantly more influence over the consumer market than their actual spending power would suggest. That’s because they have a big influence on their parents' buying

decisions and wider product trends.

Implications for retailers

As you probably gathered from the points above, Gen Z'ers share many consumer characteristics with Millennials. In this sense, retailers shouldn’t worry too much about having to completely reinvent their marketing strategy just for Gen Z. There's no clear benefit to reactively marketing to Gen Z, and ignoring things that have worked well for you so far.

However, there are some key considerations to bear in mind when setting yourself up to sell to the Gen Z market.

Firstly, you’ll stand the best chance of capturing as many customers as possible if you follow an omnichannel strategy. Although this is true of all generations, it’s especially so when it comes to Gen Z. They use many different channels to shop (including social media), and they respond well to personalized experiences/messaging.

You should also start thinking about how socially aware your brand is. The occasional post on social media about current trending causes isn’t good enough.

The younger generations are acutely aware of what’s genuine and what’s not when it comes to brands publicizing how socially aware they are.

You should be investing in initiatives that benefit the local community, the environment, important causes, etc. Your Gen Z customers will be able to tell if you’re genuinely interested in these things, and they’ll be much more inclined to shop with you as a result.

Targeting Gen Z with promotions

So, given everything we’ve mentioned so far, what’s the best way to target Gen Z using promotions? It might not be as straightforward as it is with the older generation. But, with a little creativity, you can set up promotions that will really help you connect with younger consumers.

First, you need to focus on personalized rewards and experiences.

Gen Z’ers respond well to personalized messaging, and they want to see the value in what they pay for. If you can tie your special offers and rewards into social media, then you’ll be even better positioned to reach your Gen Z target audience.

Alternatively you could capitalize on Gen Z’s affinity for microinfluencers and social med ia. Giving relevant micro-influencers their own unique referral codes to share with their followers has great potential as a promotion marketing campaign. Pick your microinfluencers well to help build a solid Gen Z customer base.

But remember, Gen Z'ers aren't loyal when it comes to brands. So you'll need to stay on your toes to keep them interested with new offers, products, and great customer service.

So, to recap

Many people mistake Gen Z for the millennials. While they are similar in many ways, businesses stand to lose out if they fail to optimize their marketing and promotion techniques for Gen Z. So, here are three key points to keep in mind:

Gen Z'ers are pragmatic, informed consumers, so you need to offer them products and promotions with real value

My Notes:

Page 1

‘young person who spends too much time on their phone’ stereotype.

youngest adult generation,

Page 2

Gen Z is becoming an increasingly important part of the workforce.

Gen Z'ers are becoming increasingly powerful in terms of purchasing power and disposable income

Gen Z has already lived through a few defining events.

COVID-19 pandemic

great recession

Page 3

Gen Z grew up using the precursors to the 'metaverse' such as Minecraft, Roblox or other immersive experiences.

They’re generally more financially pragmatic than millennials, and they tend to be more risk averse

strong belief in social causes and corporate responsibility

affinity for technology, their belief in social causes, and a strong individualistic streak.

They tend to be ‘informed consumers’, and will often research and weigh up options before making a buying decision

Page 4

preferring to shop around for the best deal

They place high importance on brand ethics and corporate responsibility

Out of all the generations, they’re the most likely to shop via social media

Gen Z'ers are price conscious

Products and brands need to show a mixture of value, quality and ethical

practices to tap into the Gen Z wallet.

Gen Z'ers have high expectations as consumers, both in terms of customer service and product quality

They like individualized shopping experiences that can be tailored to their own personal preferences

Gen Z also has significantly more influence over the consumer market than their actual spending power would suggest.

Page 5

omnichannel strategy.

The occasional post on social media about current trending causes isn’t good enough.

Gen Z customers will be able to tell if you’re genuinely interested in these things,

Page 6

focus on personalized rewards and experiences.

Gen Z’ers respond well to personalized messaging, and they want to see the value in what they pay for.

micro-influencers their own unique referral codes to share with their followers has great potential as a promotion marketing campaign

Gen Z'ers aren't loyal when it comes to brands.

Gen Z'ers are pragmatic, informed consumers, so you need to offer them products and promotions with real value

Gen Z Influencer Marketing: What Marketers Should Know (2024)

Step #1: Be transparent

People from Generation Z have effectively changed how brands advertise their products. This is due to their growing need for transparency and honesty from the companies and products they trust.

To ensure Gen Zers' trust, brands should be crystal clear when communicating their features, benefits, and offerings.

Companies should remain authentic in their ads and never mislead consumers with inaccurate information or empty promises.

Additionally, brands should strive to be informative with their customers so that Gen Zers understand their policies, licensing, and other information.

Portraying a brand as honest and transparent not only helps win over Gen Zers but also encourages them to learn more about the brand and build a long-lasting relationship with it.

Furthermore, companies should use trusted influencers to help them share their message and reach the right target audience.

Lastly, sticking to your brand values is one of the most important things you can do as a business.

It not only shows customers that you are trustworthy and reliable but also helps build loyalty and stronger trust in your brand.

That way, your customers become brand ambassadors and share your values with others.

Step #2: Promote a sense of responsibility

Gen Z buyers want to ensure that the products they buy and the companies they support are acting responsibly and are helping to create a sustainable future.

As a result, many companies have had to rethink their approach and have become more proactive in promoting their corporate social responsibility initiatives.

Companies committed to donating to charities or reducing their carbon footprint are more likely to be viewed favorably by Gen Z.

The impacts of social responsibility on Gen Z’s purchasing decisions can be tracked using data from various surveys.

For example, a 2017 survey found that more than two-thirds of Gen Z respondents were interested in learning more about a company’s social responsibility initiatives before deciding whether or not to make a purchase.

So, Gen Z is all about striving for a more sustainable tomorrow and therefore appreciates brands that share the same values.

My Notes:

Page 1

growing need for transparency and honesty

To ensure Gen Zers' trust, brands should be crystal clear when communicating their features, benefits, and offerings.

authentic in their ads never mislead consumers with inaccurate information or empty promises. informative policies, licensing

Portraying a brand as honest and transparent not only helps win over Gen Zers but also encourages them to learn more about the brand and build a longlasting relationship with it use trusted influencers

sticking to your brand values

Page 2

acting responsibly and are helping to create a sustainable future.

Companies committed to donating to charities or reducing their carbon footprint are more likely to be viewed favorably by Gen Z.

two-thirds of Gen Z respondents were interested in learning more about a company’s social responsibility initiatives before deciding whether or not to make a purchase.

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Upton-Clark, E. (2023, May 17). TikTok’s newest shopping feature is destroying the planet. Business Insider. https://www businessinsider com/gen-z-fast-fashion-cheap-clothes-tiktok-live-shopping-addiction-2023-5

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Scoville, K (2023, February 21) Scrolling through trends: Does Gen Z really care about sustainability? The NewsHouse https://www thenewshouse com/life-and-style/fashion/does-gen-z-really-care-aboutsustainability/

Poinski, M (n d ) How Marketers Can Target Gen Z: Tapping Into Social Media And TikTok Forbes Retrieved April 24, 2024, from https://www.forbes.com/sites/meganpoinski/2023/11/15/how-marketers-can-target-gen-ztapping-into-social-media-and-tiktok/?sh=165107e8f439

Salukov, D. (2023, January 18). Gen Z Influencer Marketing: What Marketers Should Know (2023). Insense.pro. https://insense pro/blog/gen-z-influencer-marketing

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Haus Von Eden (n d ) Gen Z Contradictions: The Fast Fashion Paradox [Review of Gen Z Contradictions: The Fast Fashion Paradox] Haus von Eden https://www hausvoneden com/sustainability/contradictions-gen-zalmost-fashion-paradox/