As Generation Z already reaches 26% of the global population, it’s becoming more and more noticeable in the marketing area. Fung Global Retail & Technology has recently carried out a study in order to see what, how and how much Gen Zers are ready to spend.

 

Now we pay for experiences

The study revealed that only in the US, customers spend about $829.5 billion on Generation Z, which is 6.8% of total US consumer spending, taking into account that not all of its members have yet been born. But the most important finding of the probe is about the role of social media in Gen Zer’s behavior and their spending. Gen Zers are the first generation to be brought up together with the development of technology – they simply cannot imagine life without it. There’s no doubt that technology, particularly social media, affects Gen Zers’ behavior and attitude towards lifestyle.

Deborah Weinswig, managing director at the firm, says that Gen Zers “tend to attach great importance to personal appearance: they are the first generation to grow up ‘in public’ online, i.e., documenting their lives on social media.” That’s some kind of pressure that young people have to deal with: to make everyone online sure that your life is full of fun, amazing emotions and great experiences. Gen Zers’ spend a lot on leisure services, they go out, attend trendy parties, eat fancy-looking desserts mostly because they subconsciously got used to post their activities online. The digital era creates a new system of behavior and prescribes new rules – that’s what the researchers called “the Instagram effect”.

Generations classifcation. Percentage and attitude

On-demand behavior

But if we look deeper , we’ll find a consequent chain and connection between “the Instagram effect”, Gen Zers’ behavior and marketing. The media influences Gen Zers, therefore it influences marketing as well. For instance, the tendency to spend on experiences has brought some fashion apparel retailers to the cut of revenue. Such companies as Wet Seal, Pacific Sunwear and Quiksilver are facing bankruptcy. The problem is connected with the Gen Zers’ attitude towards marketing: they got used to receive goods “on demand” and to buy it whenever and wherever they want. And we can see that this attitude also comes from the media development. We have now on-demand video services such as Netflix and even on-demand dates on Tinder. That makes Gen Zers less likely to make some afford to get what they want because they’re already given. Therefore, they are getting more demanding and less patient.

 

Generation-Z social media ecosystem

 

However, technology can guide this behavior. Online retailers and tech firms can make a profit from the on-demand attitude. In the nearest future digital marketing has an opportunity to create “on-demand content”. Since the beginning 2001 a lot of important hardware and software project were launched. And they do correspond to the Gen Zers’ demand. Lets just remember, Facebook was created in 2004, then Netflix streaming in 2007. In 2009 was launched Uber, which made travelling even more easier. All these usable projects have changed our lifestyle forever and made us more demanding. So there’s plenty of chances for convenient start-ups to take off.

“The Instagram effect” has already conquered the world, and now digital media and marketing are facing a new reality. Yes, not all Gen Zers have yet been born, but offer should develop faster than demand. It’s also in marketers’ interests to fuel Gen Zers’ behavior, as it’s once has been done by social media.

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