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They\u2019ve been shaped\/scarred by not one but two global economic traumas \u2014 the Great Recession of 2008-2009 and the COVID pandemic \u2014 and they\u2019ve grown up with social media playing an increasingly large (and loud) role in shaping culture, including how these consumers shop, research and purchase products and services.<\/p>\n
They\u2019re Gen Z, born between 1997 and 2012 and comprising 20.69%<\/strong> of the U.S. population \u2014 just a bit fewer than Baby Boomers (20.93%<\/strong>) and the largest current group, millennials (21.71%<\/strong>), according to Statista. That\u2019s approximately 67 million<\/strong> people in the U.S. alone \u2014 an enormous, and increasingly powerful, consumer group.<\/p>\n So what are brands and retailers doing to engage this cohort, as the oldest among them enter the workforce and the youngest unleash their teenage angst on their parents and the world? They\u2019re drawing on a variety of strategies that align with some of Gen Z consumers\u2019 key commonalities, including the opportunity to use their own creativity and entrepreneurial spirit <\/strong>as well assupport for sustainability, authenticity<\/strong> and inclusiveness<\/strong>.<\/p>\n E.l.f. Cosmetics<\/strong> launched E.l.f. UP! on Roblox<\/strong> in November 2023, giving users a place to dream up their own startups that represent places and causes they care most about as well as fostering self-expression in a gamified environment. The Roblox activation features a recording studio and karaoke bar, a crystal cave jewelry and art gallery, an extreme climbing gym and tech startup and an underwater sea life charity and animal rescue.<\/p>\n The brand relies heavily on consumer data, including insights from its 3 million<\/strong>-member loyalty program, to guide its actions. But\u00a0data strategy<\/strong>\u00a0is only one of the beauty brand\u2019s many \u201csuperpowers,\u201d according to Ekta Chopra, E.l.f.\u2019s Chief Digital Officer: \u201cWe don\u2019t give our consumer just one thing \u2014 we learn from our community and then we bring on new superpowers that they want,\u201d Chopra said in an interview with\u00a0Retail TouchPoints<\/em>. \u201c[Becoming]\u00a0fair trade<\/strong>\u00a0is a great example; being\u00a0vegan<\/strong>\u00a0and\u00a0cruelty-free<\/strong>\u00a0is a great example.\u201d<\/p>\n Claire\u2019s<\/strong> also has gone directly to the source, so to speak, creating The Collab as a platform for young creators and influencers. The year-long program will allow seven<\/strong> members of \u201cGen Zalpha\u201d (the group bridging the gap between Gen Z and Gen Alpha) to participate in the retailer\u2019s branding in multiple ways, including styling photo and video shoots, creating content, hosting events and sharing their personal stories to motivate others to do the same.<\/p>\n Brands also are finding it\u2019s helpful to bounce ideas off of actual members of this generation. \u201cShein<\/strong> is very Gen Z oriented, so we bring in as many Gen Z team members as possible,\u201d said Marisa Runyon, Director of Creative Content and Production at Shein. \u201cWe spend a lot of time in brainstorming sessions, asking them, \u2018What are you watching? What are you listening to? What do you think is funny online?\u2019\u201d Shein spoke during a panel discussion at the recent FUTR conference in New York City.<\/p>\n Nearly half (47%<\/strong>) of Gen Z consumers want the brands they shop at to support environmental sustainability, according to the ICSC report, The Rise of the Gen Z Consumer<\/em>. And a majority are willing to back up their preferences with purchase choices: 56% <\/strong>of respondents said they are willing to spend more to buy sustainably sourced products.<\/p>\n Coach<\/strong> has taken these concerns to heart, creating an entirely new brand, Coachtopia<\/strong>, a sustainable label that taps into the edgy, fun designs Gen Z loves, all made from leftover textiles from the brand\u2019s full-line products. Coachtopia has developed a scalable model for reusing leather and other materials to create standout fashion items.<\/p>\n \u201cYounger shoppers are demanding value-based brands \u2014 social and environmental missions that resonate with them,\u201d said Marie Driscoll, Adjunct Professor at Parsons The New School in an interview with\u00a0Retail TouchPoints<\/em>. \u201cCoachtopia has done an amazing job speaking to this generation of young shoppers who care about consumerism, circularity and the environmental impact of their shopping choices. By designing products from inception with a circular mandate, Coachtopia is truly differentiating the brand and the product in the marketplace and has become a brand that younger shoppers are eagerly wearing and advocating.\u201d<\/p>\n Gen Z has come of age at a time of increased visibility for historically marginalized groups, including LGBTQ+ and disabled people, as well as those with unconventional body types. That\u2019s changed the look of both marketing and the products retailers sell.<\/p>\n For example, Walmart<\/strong> recently relaunched its $2 billion<\/strong> No Boundaries private label apparel line with styles, sizes and features specifically designed to appeal to Gen Z consumers. Sizing ranges from XXS to 5X for women and XS to 3X for men, and the line also will feature its first plant-based bra pad, made from more than 75% <\/strong>sugarcane, in select top-selling styles. The retailer added to its Gen Z street cred by introducing the No Boundaries brand within its Walmart Discovered experience on Roblox.<\/p>\n The \u201cchanging social acceptability of diverse bodies\u201d has been present on fashion catwalks and also affected marketing, in large part because younger consumers are looking for more diverse and authentic brand representatives, according to Mark Pingol, SVP at market research firm Savanta. In an Instagram post,\u00a0Outlander Magazine<\/em> noted that including older models and brand sponsors has an \u201copposite-influence effect\u201d for brands, indicating that \u201cOG\u201d actors, models and everyday people are garnering more attention and virality on social media than their younger counterparts.<\/p>\n Supercharged by social media, Gen Z trends move fast, so brands need to pick up the pace to keep up. \u201cI\u2019ve had the privilege of being at some brands where the CMO sat in the ivory tower and determined what audiences would like,\u201d said Craig Brommers, Chief Marketing Officer of American Eagle<\/strong> during the Retail CEO Forum in NYC. \u201cNow it\u2019s the inversion. It\u2019s my responsibility to activate the Gen Z audience, both external and internal. You have to have some guardrails of where you want to go, but you have to be willing and able to pivot almost immediately if they want to go in a different direction instead.\u201d<\/strong><\/p>\n Future Stores<\/strong>, a new immersive brick-and-mortar retail concept that\u2019s scheduled to debut on Oct. 30, 2024, on London\u2019s Oxford Street, has been designed to change quickly. \u201cHow can you capture someone\u2019s attention in today\u2019s world, where information is flowing so fast?,\u201d asked entrepreneur Ariel Haroush in Vogue Business<\/em>. <\/em>\u201cPeople love their Instagram<\/strong> or TikTok<\/strong> because it\u2019s always interesting; there\u2019s always a fresh reason to look. That\u2019s what I\u2019m trying to achieve with Future Stores.\u201d<\/p>\n The 4,680-square-foot<\/strong> store will feature a rotating lineup of brand activations that will change every two<\/strong> to six<\/strong> weeks; the space can be used by one or more brands and can be divided into two<\/strong> rooms. Brands also can use the space one way during the day and transform it for an evening event.<\/p>\n Along the back of the space\u2019s ground floor are floor-to-ceiling high-definition micro-LED displays, and the store\u2019s glass frontage allows passersby to see the head-turning screens. The space also features an integrated payment system, allowing brands to use it as a point of sale, with products stored in a basement floor stockroom. Cameras are set up to capture granular shopper behavior data, including footfall inside and outside the store, dwell time and shopper gender, with age and sentiment tracking scheduled to follow next year.<\/p>\n<\/p><\/div>\nE.l.f. Cosmetics, Claire\u2019s Tap Gen Z\u2019s Desire for Self-Expression<\/strong><\/h3>\n
Why Coach Built Sustainability into its Gen Z-Friendly Brand<\/strong><\/h3>\n
Brands Tout Inclusivity to Woo Gen Z<\/strong><\/h3>\n
Change is a Constant for Gen Z<\/strong><\/h3>\n