Do you ever wonder what makes the Generation Z open their wallets?? We at getGFTD uncovered the same information that those at HubSpot did in its recent article 5 Things Gen Z Will Spend Money On & Why Marketers Need to Care.? Here are our findings summarized for your gifting:
- Electronics and Technology: Gen Z occasionally splurges on technological experiences, such as video games. They are willing to make larger purchases that offer fun experiences or improve their daily lives. Brands targeting Gen Z need to create content that demonstrates the product's value, how it solves daily problems, and why it's better than competitors. Example: Gen Z may splurge on the latest gaming consoles, high-performance laptops, or trendy tech gadgets like wireless earbuds from brands like Apple, Samsung, or Sony.
- Discounted Goods: 80% of Gen Z will wait for an item to go on sale before buying it. Gen Z's spending habits are influenced by the economic era they were raised in, marked by financial instability. They prioritize value over brand loyalty and are more focused on price. Example: Gen Z might wait for items to go on sale before purchasing, looking for affordable yet stylish clothing from fast-fashion brands like H&M or utilizing Buy Now, Pay Later (BNPL) services for online shopping.
- Health and Wellness: Gen Z prioritizes health and wellness, spending significantly in this category. They are leaders in the wellness movement, showing a preference for natural remedies over traditional medications. This generation is conscious of ethical food sourcing and related wellness issues. Example: Gen Z prioritizes health and wellness by investing in fitness-related products like fitness trackers such as Fitbit, wellness apps, or sustainable and organic food products.
- Small Businesses: Gen Z has increased spending on small businesses, showing a 260% increase on Afterpay since January 2020. This conscious effort to support small businesses likely stems from the impact of the recent pandemic.
Example: Gen Z consciously supports small businesses, purchasing handmade or unique items from platforms like Etsy or choosing local coffee shops and restaurants over larger chains.
- Education: Gen Z places importance on education, with a focus on advancing future earnings. They are more likely to start saving for college at a younger age than millennials. Gen Z is interested in courses or educational programs that contribute to their future success. Example: Gen Z spends on educational content, subscribing to online courses, purchasing books, or investing in tools that enhance their learning experience, such as tablets or e-readers.
How to Market Based on Gen Z's Spending Habits:
- Focus on providing value to customers.
- Understand that Gen Z is less likely to splurge on brand names or frivolous products.
- Highlight how your product solves problems, offers val
- ue, and provides a positive experience.
- Leverage educational content to engage Gen Z, showing them how your product relates to their academic or career interests.
- Consider the age range of your audience within Gen Z, tailoring your marketing approach accordingly.
In summary, Gen Z is characterized by a focus on value, a preference for online shopping, a willingness to wait for discounts, and a conscious effort to support small businesses. Their spending habits are influenced by a desire for experiences, health and wellness considerations, and a commitment to education and future success.
