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What Generation Z Values From Brands

Just a few years ago, Millennials were the hottest and most talked about generational cohort on the block, driving consumer behavior and value trends in the market. But in 2020, Generation Z has noticeably taken the wheel, accelerating actions and demanding accountability for brands to live and breathe diversity & inclusion, authenticity, and social responsibility.

Who is Gen Z and why are they so influential?

Gen Z, ages 8-23 today, are true digital natives. The first generation to be fully foreign to life before the digital landscape, Gen Z accounts for 20.46% of the total U.S. population (67.17 million), represent the most racially and ethnically diverse generation in history, and together with Millennials account for $350 billion in spending power in the U.S.—an impact impossible to deny for today’s leading brands and businesses.

Gen Z is a generation who leans into the value of self-expression from a non-binary lens, leverages voice and action to force change, and cares deeply about ethical and sustainable consumption.

The generation behaves completely differently from the generations before. Hyper digitally intelligent, Gen Z, and the brands they buy from, have a completely dynamic customer journey—whether the journey begins with an enticing Instagram ad or a pop-up event. Gen Z has made it clear that a hard-hitting, consistent, and relatable brand narrative, online and offline, plays a huge role in winning their attention, hearts, and pockets.

So, what should brands pay attention to when thinking about resonating, connecting, and engaging Gen Z?

1. Diversity & Inclusion

To start, if you’re looking to attract Gen Z, your brand’s diversity & inclusion has to run deeper than performatively plastering words on your careers page or adding more stock photos of people of color on your digital platforms. It’s about being authentically who you say you are. Gen Z’s can tell the difference between the posers and those authentically disrupting the status quo—with ease.

For example, when Rihanna launched Fenty Beauty in 2017, she completely shook the beauty industry. Her line offered 40 shades of foundation (now 50), ranging from the lighter shades typically in abundance in any given makeup aisle to deeper and darker shades that Black and Brown people have struggled to find for decades.

In my 24 years of life, the arrival of Fenty Beauty was the first time I’d ever seen any brand launch a campaign that depicted such a wide range of skin tones and that clearly celebrated people of color who weren’t predominantly lighter-skinned or racially ambiguous. And it didn’t just appeal to me because it was a clear representation of diversity. It was also raw, real, and relatable. It was content I’d never been exposed to. It was content I’d never seen so much of the world witness.

The Fenty Beauty brand, then and now, celebrates and normalizes what it looks like to be a HUMAN. But, it doesn’t stop there. Rihanna has continued this brand narrative across all of her brands including Savage X Fenty, her lingerie brand that recently added pieces for her male audience, and now Fenty Skin which is completely gender-neutral. She’s built her brand around diversity & inclusion and continues to deliver that promise at every touchpoint which is why it’s believable, truly authentic, and here to stay in people’s hearts and minds.  

2. Sustainable Consumerism

It’s imperative for any retailer looking to connect with Gen Z, Millennials, or Gen X to focus on ethics and sustainability. Immense access to digital information has educated and impassioned Gen Z and Millennials to become more environmentally conscious, influencing their consumer behavior and their parents.

As the rejection of fast fashion brands continues to grow, second-hand fashion retailers like ThredUp and peer-to-peer online shopping platforms like Poshmark and Depop continue to gain and maintain popularity. It’s clear that Gen Z wants to consume more while wasting less. In fact, ThredUp’s 2020 resale report estimates that the second-hand market will hit $64 billion by 2024 and is expected to grow to 69% by 2021.

Increased desire to consume more sustainably has also made room for niche household brands—Caboo bamboo toilet paper, Unni biodegradable trash bags, and Blueland eco-friendly cleaning products—to enter the market and appeal to both younger and older generations. This trend is likely to continue as Gen Xers come into more financial maturity and have the means to spend more money.

3. Authenticity

The civil unrest following the killings of George Floyd and Breonna Taylor earlier this year sparked BLM protests around the world and pushed brands to speak out on Instagram to express their solidarity for Black lives. Anthropologie, who posted a quote by Maya Angelou highlighting the importance of diversity and equality, received backlash and public callouts by former and current employees. It became viewed as hypocritical and performative across audiences when it was unveiled that the brand, including brands like Urban Outfitters and Zara, had racial profiling practices within their organizations (racist behaviors like using internal code names for people of color who enter their stores).

Nike on the other hand is a great example of a truly authentic brand. They get their hands dirty in abundance when it comes to corporate social responsibility whether it’s partnering with grassroots organizations to help bridge opportunity gaps for youth in urban communities, responsibly sourcing materials for products, or taking a stand in support of socio-political issues and not just when it looks good. No wonder they’re a Gen Z favorite.

Why do brands need to embrace Gen Z values?

This generational cohort is young, but they have the power of influence when it comes to behavior and value. Not just on themselves, but on all generations. This is why brands must pay attention to this generation. To be a lasting brand, you have to focus on authentic and ethical brand behavior to build brands that Gen Z’s are going to trust, value, and love.

Emotive Brand is a brand strategy and design agency in Oakland, California

Generation Z: A New Generation With New Challenges for Brands

Gen Z, Already?

For the past several years the spotlight has been on one generation: yes, millennials – the most studied and arguably the most sought after (or talked about) generation by brands and businesses to date. We, for one, have discussed: what brands they love, where they put their money, where they put their loyalty, why where they work matters, if all the “millennial advertising” hype is even worth it… Now, it seems the focus is shifting. The internet, advertisers, and marketers today are starting to pay a little more attention to those millennials’ younger siblings: Gen Z.

There are three major narratives floating about Gen Z:

1) The generation is just an exaggerated version of millennials: more distrustful, more digital, and more diverse.

2) Gen Z is not like millennials at all. They spend less, collaborate less, and care less about brand names.

3) Some combination of the latter. So, what is it?

Who Is Gen Z and Why Even Pay Attention?

When you dive deep into the available research and stream of news articles making claims about who Gen Z is and isn’t, it’s hard to make out fact from fiction. When it comes down to it, we just don’t know enough – yet. The studies ask too few people in too few areas at too few ages to make any kind of definite conclusions.

What we do know for sure is this: Gen Z is still young and developing. The oldest of the Gen Z generation is just about to enter the workforce – that means late teens/early 20s. Gen Z grew up during the Occupy Wall Street Movement. They were young when 9/11 happened. They don’t remember life without the internet or social media. Now, they are a generation of about 70 million – the most diverse and multicultural of any generation before – and everyone is paying attention.

New Spotlight: Generation Z

As a branding agency, we are excited to keep up-to-date on this emerging generation. Based on what we know and the current research out there, here’s what we can predict about Gen Z.

Experiences Aren’t Forever

We’ve talked a lot about building resonant brand experiences. However, Gen Z might be demanding a different type of experience than generations before. This is a generation who lives on SnapChat. And what differentiates SnapChat from other social media platforms? SnapChat’s entire identity is based on its impermanence. The photos disappear. And it doesn’t stop at SnapChat. Other platforms like Whisper and Secret are among the most popular with Gen Z – both of which offer the value of privacy within the guise of being “social apps.”

Our guess why? In a world of information-overload and constant availability, fleeting experiences feel unique and special. Brands that embrace the ephemeral might find new success with this generation – think experiential events, mixed medium, VR …experiences that allow individuals to shape them. This is exciting for brands who must step up with creative, innovative, fresh, and brief but lasting ways into this generation’s heart.

An Entrepreneurial and Innovative Spirit

Gen Z seems to be a notably independent generation. A recent HBR study found that ¼ of Gen Z students display interest in starting their own business. And according to Gallup, 8/10 kids want to be their own boss, and 4/10 want to start their own business. In fact, 70% of teens are already their own boss – self-employed and making money by teaching piano or selling clothes on YouTube – showing an increase from generations before.

This means businesses and brands are going to have to work hard to keep up. Innovation is even more of an expectation. Companies who want to attract young talent are going to have to work hard to tailor jobs that allow Gen Z to create, innovate, and disrupt.

Dreams With A Price Tag

Initial studies have shown one big difference between millennials and Gen Z: Gen Z cares more about money. According to a Lincoln Financial Group study, around 60% of them already have a savings account and 71% say they really want to focus on saving in the future. Many articles note that this generation worries more about college debt.

Two interesting examples of brands who are catching on to this thrifty nature are Spirit Airlines (a budget airline) and Stayful (an app for competitive boutique hotel rates). Both brands pride themselves on transparency and value – in short, you get what you pay for. And both have found immense success with targeting this emerging generation.

It’s not necessarily that Gen Z is scared to spend, they just want to make sure what they are buying is worth it. This means brands who are transparent about value should find success with this younger generation as well. We also expect brands who are able to offer and demystify financial planning tools will thrive with this generation.

Brand Is A Given. It’s What You Do With It.

What’s most interesting about Gen Z for brands today is the generation’s general mistrust of them. Especially the big ones. Claims aren’t enough for this generation. Neither are ads. They always look closer – because they can. The technology and the resources to dive deeper are right there. What’s the culture really like? Is it inclusive? What are the work conditions? How does their CEO behave?

Like millennials, authenticity and transparency are values that sit at the heart of this. That’s why we see this generation trusting individuals more than institutions. That’s why this generation cares about what’s in the news surrounding the brands they buy from. And that’s why just sticking a logo on a clothing line is not going to cut it (not that it did before).

Brands who want to succeed today have to work even harder to build their brand from the inside out. Invest in the culture and the leadership that will drive you in the right direction. Adapt more transparent practices. Figure out new ways to personalize. Don’t just rely on a logo (Gen Z isn’t interested in being a walking advertisement). Say what you stand for and let people experience your brand in a different way – in their way. Recruit and retain talent that exhibits the creativity to do so. As Gen Z evolves and comes into view, we believe brands have a big opportunity to do the same.

Keep posted for more about this emerging generation and more.

Emotive Brand is a San Francisco brand strategy and design agency.