7 minute read
reTaIlers Try To fIgure ouT gen Z
Retailers try to figure out what Gen Z members want
Advertisement
Madison Choudhry, Special to The Weekly Journal
Retailers have been left reeling as the try to understand Gen Z demographic. Comprised by the people born between 1997 and 2012, Gen Z is a group that has been proven difficult to understand. This has forced retailers to figure out what might entice them and where this generation differs from previous ones.
The answer, unfortunately for retailers, is not straightforward. Gen Z is still in the process of growing up, with the oldest members in their young 20s, and —as tends to happen— what they find important is changing rapidly. Researchers are learning more about the generation, but what is important to them now, may be totally different from what will be important five years from now.
However, the generation has high expectations for retailers when considering giving them their hard earned dollar. Gen Z is aware of how well retailers’ technology functions and prefer payment options that evolve to what the in-store experience is and especially how authentic the brand is. Gen Z doesn’t yet possess significant purchasing power, but it is an age group that wields sizable influence over consumer thinking.
In recent years, the consumer’s mindset has changed tremendously, “fueled a lot by Gen
Z,” said Chiro Aikat, Mastercard’s executive vice president of North America products.
A current purchasing option of buy now pay later seems so be popular amongst the Gen Z members. The trend suggest younger people tend to be more willing to try something new than older generations. And the ability to spread a purchase across multiple pay periods is understandably appealing to a 24-year-old consumer who “doesn’t have massive amounts of liquidity,” explained Paul Siegriend, leader of TransUnion’s credit card business.
Gen Z’s current interest in buy now pay later (BNPL) options, or debit cards, may just be a function of age. In another five to 10 years, as they establish careers and increase their credit, experts expect estimate their priorities are likely to shift. That kind of gradual development in payment preferences is what is likely to keep young people moving in the direction of credit cards, said Charlie Youakim, CEO of Sezzle, a BNPL company. For Youakim, BNPL is “the perfect training wheels for credit” because it helps younger consumers start to understand how
In fact, to manage debt and pay it back, but he expects Gen Z will eventually adopt credit cards. “I just don’t see how you can argue against credit The ability to spread a purchase across multiple pay periods is understandably appealing to a 24-year-old consumer. cards,” he said. The plethora of options facing Gen Z has spurred traditional card industry players to introduce new offerings to remain competitive with neobanks and fintechs. American Express’s recent addition of a debit card linked to a checking account, points in part to the company’s reasoning on assuming “the young adult angle.” With 70% of new American Express cards acquired during last year’s fourth quarter going to millennials and Gen Zs, skepticism related to premium cardholder potential among those age groups “is over,” Amex CEO Steve Squeri said earlier this year. The company would not share data solely on
Gen Z customers, but a key part of Amex’s growth strategy involves “enhancing and expanding our benefits and features, with a focus on appealing in particular to younger customers,” Amex Communications Director Azar Boehm admitted. On his part, Discover CEO Roger Hochschild has also said BNPL isn’t taking away from credit cards. “I totally reject the idea that younger consumers can’t manage credit – it’s a myth. We’re seeing higher take-up rates for credit cards in the latest generation of students,” Hochschild said in an interview with American Banker, an online publication specializing in financial services. Many financial analysts consider that diversity of ideas is just one of the reasons Gen Z is likely to keep card companies and traditional banks on their toes in the years to come. These consumers have many payment options, and that heightened level of competition means it is “game on” for card stalwarts as companies seek to attract those maturing customers.
In fact,
Sustainability strategies mitigate risks, offer business solutions
Zoe Landi Fontana, The Weekly Journal
When the United Nations launched the 2030 Agenda for Sustainable Development in 2015, many business professionals didn’t understand the concept of sustainability, sustainable development, or how to integrate it into their business.
It’s no surprise, however, since businesses have often used the word ‘sustainable’ as haphazardly as they do ‘synergy,’ both concepts are still abstract, and therefore difficult to measure.
“Sustainability is [a] strategy for mitigating risks and capitalizing opportunities. Many challenges –environmental, social, economic– can be addressed through innovative solutions that can translate into sustainability wins. An approach that mitigates risk and takes advantage of opportunity can innovate solutions,” explained Arlette Palacio, CEO of SIP Group. In 2017, SIP Group, a leading firm in consulting services for sustainability and innovation based in the Dominican Republic, began training organizations to receive sustainable certification. They have now certified over 175 businesses as sustainability practitioners. Last year, partnering with CTI Consulting Group, the program expanded to Puerto Rico, where they’ve since certified over 40 participants.
“Every company is implementing sustainability one way or another, even if they’re not calling it that. The true value that you as a manager, as a CEO, have, is to align the interests of all of your stakeholders in one same direction,” said Palacio. With the global focus on the effects of climate change on communities and business alike, it’s imperative that organizations know how to address issues before they’ve hit the surface. More than that, consumers and other stakeholders expect businesses to have strategies in place to meet both the expected and unexpected.
“You’re delivering what they want, what they’re expecting, and that builds brand value. That translates into more revenue, goodwill from collaborators, having an operation that is financially healthy and resilient,” Palacio stated,
highlighting the expectations that stakeholders now have after experiencing the effects of the COVD-19 Pandemic and seeing how unprepared the global economy was.
Issued by the Chicago-based Center for Sustainability and Excellence and the Chartered Management Institute (CMI), the Sustainability Certificate, which is recognized internationally, allows businesses to lead and develop the processes of sustainable transformation in their organizations.
“Together with our partners, we help our clients reinvent their businesses at scale, creating business value and sustainable impact for all stakeholders,” said Viviane Fortuño, President of CTI.
The purpose of the program is to educate managers and business leaders on how to develop a sustainable strategy within their business plan. The program is 16 hours long, taught over two consecutive days. Additionally, participants can expect to dedicate an extra 1215 hours to prepare and present a sustainable project.
During the last training session, various industries were represented from multinational corporations, to NGOs and representatives from government offices. “It’s evidence of so much interest in all sectors in the area of sustainability. There’s a lot of motivation from people that work in different sectors to be able to incorporate this into their jobs,” praised Palacio.
“They see the competitive advantage in incorporating this approach into their business. It’s what customers and financiers are expecting from a responsible business. This vision, in Puerto Rico, seems to be permeating more rapidly,” continued Palacio.
Among the skills acquired are how to conduct a materiality analysis, identification of key strategic performance indicators, how to measure performance, and how to report results.
Palacio that sustainable development focuses on the social, environmental and economic aspects of growth, such as problems that may affect the quality of life of people, the environment and the role of companies. The work of sustainability consists in defining actions that contribute to a better distribution and management of the use of natural resources and in the generation of opportunities for all people.
“We need to stay updated on rapid industry changes, understanding the impact of current global economic, social, and environmental pressures on business,” Fortuño said of the importance of having these skills.
Viviane Fortuño, President of CTI
