Understanding the Next Generation of Consumers

As the world evolves, so do consumer behaviors and preferences. The next generation of consumers, often referred to as Gen Z or Generation Z, comprises individuals born between the mid-1990s and early 2010s. They are digital natives who have grown up in a technology-driven era, and their unique characteristics and values are reshaping the business landscape. In this article, we will delve into understanding the next generation of consumers, exploring their defining traits, preferences, and implications for businesses.

Defining Traits of the Next Generation Consumers

  • Digital Natives − Gen Z has never known a world without the internet and smartphones. They are highly proficient in using technology, relying on it for communication, information, entertainment, and shopping. Gen Z's comfort with technology has resulted in significant changes in consumer behavior. According to a study by eMarketer, 90% of Gen Z consumers use their smartphones for shopping, with mobile devices accounting for a substantial portion of their overall purchasing decisions.

  • Diversity and Inclusion − Gen Z is the most diverse generation to date, valuing inclusivity, equality, and social justice. They expect brands to reflect these values and actively promote diversity and inclusivity in their messaging and practices. According to a study conducted by McKinsey, 70% of Gen Z respondents believe that companies should take a stand on social issues. Additionally, 85% expressed their willingness to boycott a brand if they disagreed with its values or actions.

  • Individuality − Gen Z places great emphasis on self-expression and individuality. They seek personalized experiences and products that align with their unique identities, rejecting one-size-fits-all approaches. A survey conducted by Google found that 73% of Gen Z respondents prefer brands that personalize their shopping experiences, while 58% are willing to provide personal information if it leads to a more personalized experience.

  • Socially Conscious − Gen Z is deeply concerned about social and environmental issues. They expect brands to take a stance on these matters and actively contribute to positive change. According to a survey by Deloitte, 87% of Gen Z respondents believe that companies should address urgent social and environmental issues, with climate change being a top concern. Furthermore, 70% stated that they are willing to pay more for products or services that promote sustainability.

Changing Consumer Preferences

  • Authenticity and Transparency − Gen Z craves authentic and transparent brand communications. They can easily spot inauthentic marketing tactics and are more likely to trust brands that are genuine, open, and honest in their messaging.

    Example − Glossier, a popular beauty brand, has gained a loyal Gen Z following by embracing authenticity. The brand encourages real and unfiltered images, showcasing diverse beauty standards and empowering individuals to embrace their natural selves.

    Glossier's approach has resonated with Gen Z, leading to significant success. In 2020, the company was valued at $1.2 billion, with 80% of its customer base belonging to Gen Z.

  • Social Media Influence − Gen Z heavily relies on social media platforms for information and inspiration. They trust recommendations from influencers and peers, making influencer marketing a powerful strategy to engage with this generation.

    Example − Gymshark, an athletic apparel brand, has successfully leveraged social media influencers to connect with Gen Z. By collaborating with fitness influencers and fostering a strong community on platforms like Instagram and TikTok, Gymshark has created a sense of belonging and authenticity that resonates with their target audience.

    Gymshark's influencer-driven approach has propelled its growth, with annual revenues exceeding £300 million in 2020. By leveraging the power of influencers, the brand has effectively captured Gen Z's attention and loyalty.

  • Seamless Digital Experience − Gen Z expects a seamless and personalized digital experience across various channels. They are early adopters of emerging technologies like augmented reality (AR) and virtual reality (VR) and appreciate brands that leverage these technologies to enhance their shopping experiences.

    Example − Sephora, a global beauty retailer, offers an interactive AR feature on its mobile app that allows users to virtually try on makeup products. This technology-driven experience appeals to Gen Z, allowing them to explore products in a fun and convenient way.

    Sephora's use of AR has not only enhanced the shopping experience for Gen Z but also driven business results. The brand reported a 200% increase in conversion rates for customers who interacted with AR compared to those who did not.

  • Social Responsibility − Gen Z is passionate about supporting socially responsible brands. They seek out products and services that align with their values, and they are more likely to support brands that demonstrate a commitment to sustainability, ethical sourcing, and social causes.

    Example − Patagonia, an outdoor clothing company, has long been recognized for its strong commitment to environmental sustainability. Its efforts to reduce waste, promote fair labor practices, and support environmental initiatives resonate with Gen Z's values and contribute to the brand's appeal.

    Patagonia's commitment to social responsibility has not only earned the loyalty of Gen Z but has also translated into business success. In 2019, the company reported $1 billion in sales, demonstrating that Gen Z's preference for socially responsible brands can have a positive impact on the bottom line.

Implications for Businesses

  • Purpose-driven Marketing −To connect with the next generation of consumers, brands must authentically align themselves with social and environmental causes. By integrating purpose into their marketing strategies, brands can demonstrate their values and connect on a deeper level with Gen Z.

    For example, TOMS, a footwear company, is known for its One for One initiative where, for every pair of shoes purchased, a pair is donated to a person in need. This purpose-driven approach has resonated with Gen Z, leading to brand loyalty and market success.

  • Personalization and Customization − Gen Z expects personalized experiences and products. Brands that can tailor their offerings and engage in meaningful conversations with this generation will gain a competitive advantage.

    Nike has embraced personalization through its Nike By You program, allowing customers to customize their shoes with various color options, materials, and personalized text. This approach empowers Gen Z to express their individuality and has been a key driver of Nike's success with this consumer group.

  • Influencer Partnerships − Collaborating with social media influencers who resonate with Gen Z can significantly boost brand awareness and credibility. Authentic influencer marketing campaigns can help bridge the gap between brands and this generation.

    For instance, Coca-Cola partnered with popular YouTuber Emma Chamberlain to create a series of engaging and relatable videos. This partnership allowed Coca-Cola to tap into Gen Z's love for authentic content creators and build a stronger connection with this audience.

  • Embracing Technology − Brands need to leverage technology to enhance the consumer experience. Investing in emerging technologies like AR, VR, and artificial intelligence (AI) can help create immersive and personalized experiences that appeal to Gen Z.

    Adidas, a renowned sportswear brand, incorporated AR technology into its mobile app, enabling customers to virtually try on sneakers. This interactive experience not only provides a fun and engaging way to shop but also aligns with Gen Z's preference for seamless digital experiences.


Understanding the next generation of consumers, Gen Z is essential for businesses looking to thrive in the evolving marketplace. This digitally native generation values authenticity, transparency, individuality, and social responsibility. By embracing these traits and adapting their strategies to meet the preferences of Gen Z, brands can build meaningful connections, foster loyalty, and drive future success. The examples provided demonstrate the effectiveness of strategies that align with Gen Z's preferences, underscoring the importance of understanding and catering to this influential consumer group. As businesses navigate the changing landscape, incorporating personalized experiences, purpose-driven marketing, influencer partnerships, and technological innovations will be key to capturing the attention and loyalty of Gen Z.

Updated on: 26-Jul-2023


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