Facebook Grow: The Future of Gen-Z featuring TCO's Head of Insight, Helen Job
THE FUTURE LOOKS BRIGHT
Connected, ethical, business savvy: Gen Z – born between 1997 and 2012 – are set to overtake Gen X and Baby Boomers in size by 2020. Shanu Walpita asks how brands can attract this enlightened generation
Read on Facebook Grow Words Shanu Walpita, Illustration Linn Fritz
Gen Z will account for 40% of global consumers by 2020[1]. Ignore them at your business’s peril: in the US alone, they’ll have direct access to up to $143 billion in spending power, not including their influence on their parents’ and grandparents’ wallets. So what sets this generation apart from the others and what’s shaping their cultural standpoint?
Like any new cohort, the media has been quick to generalise about Gen Z, but because they’re living in dualities, they’re tricky to define in singular terms. They’re lonely, yet simultaneously hyper-connected; traditional and progressive; loyal but fickle – ready to “cancel” a brand if their values don’t align. And unlike other generations, they’re the ones in control.
“Gen Z are also known as ‘pivotals’ – they are the first generation to drive the narrative,” says Sima Kumar, head of global strategy and fashion partnerships at The Other Box. “Before, brands and businesses were the ones telling us who we were, who we should be, what we should wear and what values we should embrace. Gen Z are the first generation successfully to flip the script and feed this information to brands and businesses.”
This role reversal is enunciated by Gen Z’s connection to the digital world. Growing up with constant connectivity has produced a hyper-cognitive generation that’s comfortable collecting and cross-referencing many sources of information, flitting between URL and IRL experiences with ease and little distinction. “Online” and “real life” are one and the same – it’s all “life” to them.
“As the first completely digitally native generation, Gen Z are literally wired differently from the rest of us and have a radically different relationship to technology,” explains Navaz Batliwalla, creative consultant and founder of the blog Disneyrollergirl. “They use apps and social media to create their own reality, which could change from one day to the next.”
GET PHYGITAL
“If millennials were digital natives, then Gen Z are mobile natives,” says Helen Sac, consultant director at forecaster WGSN. “They’re avid video consumers, deeply engaged with YouTube and social media.” These young consumers are “phygital” (physical and digital) and spend an average of 29 hours and 8 minutes a week[2] on their smartphones in the UK, scrolling through over 90m of content every day. Their devices are facilitating “blended realities” – from layered AR filters on Snapchat and Instagram, to immersive brand activations that connect youngsters with products online and in real life.
Successful brands understand just how important it is to grow their engagement online and on social media. Some, like Kyra TV – a disruptive Gen Z media company with close to 600k followers across its Instagram accounts and over 650k subscribers to its PAQ YouTube show alone – exists exclusively on social channels. Its most-popular videos get over a million views. “We’ve grown rapidly within these platforms, and we try and engage with our audience in the real world as much as possible,” says head producer Matt Brown. “We’ve hosted pop-ups and a live studio shoot, and we’re working on plans to develop and retail merch, which will be marketed via the shows and social media platforms.”
Other savvy businesses and brands blend online with offline in playful, experiential ways. One important area of blended reality is the gamification of retail. Here, brands are leveraging the popularity of online gaming to engage with young people in innovative ways. Luxury French fashion house Dior, for example, marked its Shanghai store opening with a WeChat game that invited users to collect items via an interactive treasure hunt.
AirDrop is another noteworthy mode of phygital connectivity – from guerrilla meme dropping, where teens share content with friends and strangers, to playful brand activations, like Childish Gambino gifting Adidas sneakers at Coachella 2019 (fans that clicked “Accept” had 60 minutes to pick up the free kicks). Retailers can also couple gamification with their social media campaigns to generate hype. Online game, Kim Kardashian: Hollywood, made $1.6 million within its first five days of release and had 22.8 million players by the end of its first quarter.
“Gen Z will engage with value-led brands that can demonstrate real impact… brands need to look at who they are and why they exist”
Helen Job, head of insight, TCO
REACTIVISM, NOT ACTIVISM
Today’s youth feel more compelled than ever to take a stand for their beliefs and values. But it’s not activism. They’re engaged in reactivism; they’re reacting to the uncertainties, stresses and complexities of Brexit, Trump and the climate crisis – all heightened by social media. A recent survey by Irregular Labs[3] underscored this: 75% of its respondents felt being politically or socially engaged was very important to their identity. Influencers such as Greta Thunberg have catalysed an entire generation into taking a stand. Not only is Gen Z finding ways to ignite positive change, its members also expect brands to be as purposeful. A 2018 study[4] from UN foundation's Girl Up found that 70% of Gen Z believe they need to make a difference and 65% feel it’s important for companies to take a stand on social issues. “Purpose and authenticity are the most misused and abused words in the worlds of branding and communications,” says Helen Job, head of insight at TCO, the media company behind culture brands such as Huck and Little White Lies. “Gen Z will engage with value-led brands that can actually demonstrate real impact, not those paying lip service, who might have skeletons in the closet. Brands need to look at who they are and why they exist. If it’s simply to make money, then their chances of success are pretty slim.”
Poonam Dhuffer, founder of cultural insights and events consultancy YSM8, agrees: “Businesses need to think outside the box and consider how their brand can help to uplift, inspire and empower these young minds. Gift vouchers aren’t going to cut it. Gen Z has no time for anything that doesn’t serve them. Give back to them, be vulnerable and give them value.”
Ethical streetwear label STORY mfg. is one such Gen Z success story: the brand uses organic fibres and natural dyes, and works closely with its community of weavers, embroiderers and tailors in India. “Being a good person and being a good company are one and the same, and there’s no excuse for bad behaviour,” says co-founder Saeed Al-Rubeyi.
And, conversely, Gen Z can sniff out inauthenticity a mile off. Shanice Mears, co-founder of The Elephant Room agency, cautions companies to be selective with their marketing. “Brands don’t need to be part of every cultural trend,” she says. “Value comes in different ways: some brands give back; some remain ethically principled – it all depends on what they do. But jumping on bandwagons is not the answer.”
THE NEW OLD
Get ready to embrace a retail revolution. Old is the new “new”, thanks to Gen Z’s entrepreneurial spirit and the resale culture it has engendered. Once a niche category, resale is becoming an increasingly important component of the circular economy. “This is the nano-attention span generation, wired for fast turnover, novelty-inspired trends,” says Disneyrollergirl’s Batliwalla. “It’s also a peer-influenced and entrepreneurial generation. Social-savvy teens are setting up as mini brands on Depop to sell directly to their online micro-communities. They value ownership less than previous generations, so the circular idea of buying something, then reselling it when they get bored of it, or to raise cash for their next purchase, is becoming more common.”
“Brands, especially luxury ones, can learn that there is value in their product beyond retail point of sale,” says Sam Trotman, denim trend consultant of Denim Dudes. “Not only is resale a way to monetise on out-of-season products, it also offers brands a way to embed a more sustainable mindset into their business model.” Clothes rental is another growth sector – it’ll be worth $1.96 billion by 2023[5]. It appeals to Gen Z’s concerns about sustainability and also builds communities via sites such as Grailed, a marketplace for men’s fashion – that’s a win-win for businesses and consumers.
PRO TIPS
FIVE WAYS TO WOW GENERATION Z
1. ENTERTAIN IRL
“Gen Z shop online and in apps,” says Elisa Harca, co-founder of Chinese digital marketing agency Red Ant Asia. “But they do go into stores, too. When they do, they expect entertainment. They want genuine experiences that cross physical and digital – and that make social media-worthy photos.”
2. ADD VALUE
Helen Job, head of insight at TCO, says brands should be honest about who they are. “This generation is not interested in silos or categories or internal business units. Whether you are a fashion brand, content provider or music artist, you’re competing for their time and money, and it’s a simple equation – does this piece of popular culture speak to me? Can I see myself represented in it? Does it share my values?”
3. CO-CREATE
Gen Z want to contribute to your brand – so let them. “Co-creation is essential to stay relevant and in touch with the audience,” says Matt Brown of Kyra TV. “We work closely with our talent to nurture and develop them, while our audience’s comments on episodes and posts enable us to receive instant feedback.”
4. BE REAL
“The current climate of brands and celebs has created a vacuum of authenticity; Gen Z consumers are looking for people and companies that are true to themselves,” says Saeed Al-Rubeyi of STORY mfg. “Build in purpose from the start – it shouldn’t just be a marketing tactic.”
5. RESELL
“Gen-Z shoppers have no qualms about shopping second-hand,” says Sam Trotman. “They love the treasure-hunt experience. And second-hand, rental and resell platforms have huge kudos, offering lessened environmental impact and unique authenticity.”
Sources [1]“Generation Z: Unique and Powerful”, MNI Targeted Media, 2018. [2]“Tecmark’s Mobile Phone Usage Statistics 2019”, Tecmark, 2019. [3]“The Irregular Report: Gender, Activism and Gen Z”, Irregular Labs, 2019. [4]“Her Gen Z World”, Girl Up, 2018. [5]“2019 Resale Report”, ThredUp, 2019.