NEWSLETTER
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ISSUE 12 | MARCH 2022
New Generation
Industry News & Trends Generation Z
Gen Z is the newest generation to enter adulthood. While many dispute the exact date, the oldest members of the generation were born around 1997. Many of the elder Gen Z population has entered the workforce — you may already have Gen Z peers in your shop or dealership. This group is steadily accounting for more car sales, but what do you need to know when selling to them? Gen Z may not be as brand loyal as past generations. “71% of [Gen Z] say that they need to be aware of all the buying options available to them - making them more likely to engage with competitors and more likely to buy based on research than brand reputation,” says Ed Howarth. This group is likely to research based on your social media accounts and reviews. These digital-savvy buyers will still rely on their parents’ and friends’ suggestions, but many take to the internet to see what the broader world has to say. Hootsuite found that 80% of Gen Z uses a smart phone to visit an online retail store, 95% engage on social media, and 61% shop for a product online.
FUN Industry FACT Irv Gordon and his 1966 Volvo 1800S hold the record for highest vehicle mileage ever at over 3 million miles. Source: Road and Track
Because of this, they also look for the ability to start the car buying process online. A good thing to note is that Gen Z-ers prefer their smartphone, so you’ll want to make sure you optimize your website for mobile. A BMW service department has had great success with providing Gen Z customers with technician videos. This way, they can share the video with someone else who has more car experience, like a parent or friend, and get a second opinion. Building trust and catering to their online habits will help you earn the hard-won loyalty of Gen Z.
Automotive Parts & Accessories Estimated eCommerce in 2022 1st party .com revenue: $19.8 B 3rd party marketplaces: +$18.3 B = $38 Billion Source: Hedges & Company