The Gen-Z Influenced Future of Brands

Gen-Z’s future as the predominant spending generation is inevitable. By 2031, Gen-Z’s income will continue to increase until it’s greater than that of millennials, reaching a quarter of all global income. This is a generation defined by it’s diversity, it’s less white, less heterosexual, and more gender neutral. 

It’s in part due to this diversity that there’s been a trend in Gen-Z towards value based buying. This means that although values like affordability are still important, other factors such as sustainability, inclusivity, and ethical business practices have risen to prominence. 65% of Gen-Z will research a product before buying it, companies are now held much more morally accountable.

In monetary practice, this means Gen-Z will pay more for more ethical brands. For example, 73% of Gen-Z say they will pay more for environmentally sustainable products. 49% are also more willing to purchase from a brand that is simply marketed with more inclusivity. Only 36% of Gen-Z have any sort of brand loyalty, but that doesn’t mean that preferences won’t form.

One way these preferences show themselves is in a desire for better gender equality and gender neutral options. Fashion brands that let users search without specifying a gender are very desired, and 59% of Gen-Z believe forms and profiles should offer non-binary options, a big increase from millenials. 

On top of the value based buying of Gen-Z, there has been a big increase in mobile-first marketing in response to Gen-Z tendencies. Almost half of all Gen-Z teens spend more than 10 hours a day on their phones and much of this time goes to social media use. 66% of Gen-Z even say they are interested in purchasing through social media directly. This makes social media the newest and best way to reach the younger markets that exist today.

The future of brands lies in acquiring the purchasing power of Gen-Z. The way forward is ethical, mobile, and forward-thinking brands. Companies like Google, Amazon, and Youtube are some of the most popular currently, but there’s much room for other brands to earn hearts of Gen-Z.