A Breakdown of Gen Z’s Main Segments: The Goal Setters

As the newest generation with spending power, Gen Z are stepping into the market landscape with a radically different set of consumption values and behaviours, prompting many companies to rethink traditional marketing strategies.

Compared to other generations, Gen Z tend to be more heterogeneous by nature both demographically and in their thoughts and opinions.

Growing up in an ever-changing digital world, means the internet is a huge part of shaping Gen Z values and behaviours. Understanding the nuances of these values and behaviours and recognising the differences among various subgroups within Gen Z, allows brands to better connect with their target audience and gain a competitive edge.

Key insights??

1. Gen Zs by nature are incredibly heterogeneous – understand and embrace their diversity to keep up with them.
2. Gen Z also have unique values when it comes to brands, purchase habits, buying decisions, and personal beliefs.
3. Despite the assumption that Gen Z are a screen generation, Goal Setters spend significantly less time using their screens compared to other Gen Z segments.

From our Top 100 Youth Brands study, we identified four primary personas among Gen Zs, segmented on the basis of their consumption-related values, spending behaviours and leisure activities.?One of those personas we’ve coined as the ‘Goal Setters’.

Compared to other segments, Gen Z’s who fall under the Goal Setters persona were more likely to be men or male-identifying (56%). Women or female-identifying made up less than half of the group (42%). As a whole, Goal Setters have clear objectives in life, are organised, and are more likely to be introverts who enjoy planning.

Spending & Leisure Habits of Goal Setters

Compared to other segments identified in our study, Goal Setters exhibit lower expenditure on most items relative to Value Conscious Minimalists. Specifically, Goal Setters allocate less financial resources towards shoes and clothing, fashion accessories, cosmetics, makeup, perfume, cologne, and cinema tickets when compared to all other groups.

Spending their leisure time on consuming films and TV shows, or using social media are not a priority for this group as they prefer to spend their time offline. Despite the assumption that Gen Z are a screen generation, Goal Setters spend significantly less time using their screens compared to other Gen Z segments. However when they do reach for their screens, they are more likely to engage with video games, rather than keep up with the latest fashion trends.

However, similarly to Value Conscious Minimalists, Goal Setters are careful with their finances. Budgeting and looking for ways to save is a big priority for this group. As a whole, given that?that the top concern for Gen Zs is inflation and the cost of living, it makes sense that young Australians are being more careful with their finances. And while luxury brands might be of interest to older generations, it’s not of interest to Goal Setters.

This is an excerpt from our Goal Setters article. To read the full article, please visit YouthInsight.