Sneakernomics: Here comes Gen Alpha

Just when you thought you had Gen Z all figured out, here comes Gen Alpha.

For perspective, let’s review the characteristics of Gen Z.

This cohort was born from 1996-2010. Gen Z is twenty percent of the US population and is growing in percentage every day as Boomers shrink.

About 40% of Gen Z are under 18. Gen Z is the first majority non-white cohort. They do not see race/gender in same way older generations do. Every combination is welcomed and respected.

A survey conducted some time ago asked Gen Z to describe themselves in one word. That word was “unique.” Uniqueness is a very important attribute to Gen Z.

Gen Z values DEI and wants to do business with brands that genuinely support DEI. For Gen Z, climate change is a major concern. Their values influence their purchases. They want to know the values of the companies they are doing business with. If those values do not align, they will take their business elsewhere.

Gen Z is the first Digitally native generation. They are hardworking and independent.

This cohort are made of Spenders (as long as values align). Experience in retail is key. They are Thrifty and respond to deals. They are Brand loyal, until they are not.

?

Now let’s take a closer look at Gen Alpha.

This generation was born after 2010; the eldest is about 14. Gen Alphan is less than 20% of the US population.

Some have described Gen Alpha as “Gen Z on Steroids.” This cohort is even more diverse than Gen Z. They are even more digitally connected. DEI and Climate change are major concerns and impact how they think about brands and retailers. Their values influence everything.

COVID had a major impact on this generation. The youngest cohort faced educational setbacks, lived in distrust and fear, and had a lot of anxiety.

Gen Alpha is fiercely independent and self-reliant, but collaborative. They believe in freedom of choice, to live their lives as they see fit. This cohort are risk takers, while seeking authenticity and honesty.

What are the main differences between Gen Z and Gen Alpha?

Gen Z is more independent; Gen Alpha is more collaborative.

Gen Z has a lower brand maturity; Gen Alpha has a higher brand maturity, at younger age.

Gen Alpha has a higher sense of purpose than Gen Z.

Gen Alpha values sustainability and DEI at higher levels than Gen Z. Brands and retailers that ignore this put themselves at risk.

Finally Mental health is a major concern for Gen Alpha, much more than Gen Z.

?

Gen Alpha is just becoming a primary consumer, but it is clear that they will shape retail for the foreseeable future. They are not yet in the workforce but will likely transform how we work.

Brands and retailers will benefit from understanding and embracing this new generation.