What Marketers Need To Know About Gen Z’s Spending Habits

Gen Z might not currently be the United States’ top consumers, but?their purchasing power of $360 billion?shouldn’t be ignored by marketers. Consisting of individuals born between 1996 and 2012, most of Gen Z is only just now starting to enter the workforce, attend college, or start getting paychecks of their own.

Despite this, they’re an important market to consider when putting together your marketing campaigns. Gen Z has a different relationship with shopping than their millennial predecessors, and tend to be both more impulsive and more value-focused. Whereas millennials value brand loyalty, Gen Z cares less about loyalty to a single brand, and more about getting a good value overall.

Where Does Gen Z Shop?

Gen Z does most of their shopping online, especially from small businesses they believe in, or discount sites where they can get the most for their money. More important, though, is the social media Gen Z consumes on a daily basis. Influencers are the people Gen Z tend to trust the most when trying to make buying decisions, and they will frequently buy what’s promoted by influencers they trust on social media.

Youtube, Instagram, and Tiktok are the sites where Gen Z spends most of their online time, as well as where they go to look for new product recommendations and reviews. Gen Z uses the internet to find small businesses they believe in, as well as to find the product or services.

Another thing Gen Z looks for when making purchasing decisions is if the values of the company align with their personal values and beliefs or not, and will choose the products offered by companies that do. Gen Z is not shy about boycotting businesses or their political views, an important fact to know when trying to target them with a campaign.

What Will Gen Z Spend Money On?

As of right now, Gen Z prioritizes health and wellness, technology, and electronics with their money, spending the most in these few categories. Unlike their millennial predecessors, Gen Z is less concerned with travel, furniture, and goods for the home.

While not easily convinced to make big, expensive purchases, the money Gen Z will invest in video games proves they are willing to spend more for good experiences. Things that can improve daily life, alleviate boredom, and give them a fun way to unwind are favorites of this generation. They will splurge if they’re convinced to, and though it can be a challenge, it’s far from impossible.

Thanks to the economic climate they were raised in, Gen Z also loves a good bargain, and the majority of them will wait for a sale or discount rather than buy a product full price. Regardless of their anxieties about finances, if a product can make a good case for the value of a product, they’re more likely to justify it and buy it at full price.

Clothing and clothing labels are less of a draw for them as well, and unlike Millennials, brand loyalty is at the bottom of their list of concerns when it comes to shopping. If you run a clothing business, convincing Gen Z why your clothes are better than the cheaper alternatives on the market will be a challenge, but it can be done.

Brand trust is the key when it comes to Gen Z, and getting them to associate a logo with brand trust is crucial. Mental health is another cause Gen Z is passionate about, and they have been advocating for more awareness and better, more accessible mental health services.

In Summary:

Gen Z might sound like a difficult group to market to, and while they might reject some of the luxury brands and products that managed to sell to the generations before them, they have a list of values when it comes to shopping that can be used to market to them, directly. While they’re bargain hunters and more frugal than past generations, if they can be convinced of the value in something or believe enough in the cause, they can be convinced to splurge.

Article Link - What Marketers Need To Know About Gen Z’s Spending Habits

Author - Staff Writer

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