For marketers, millennials have been the prime focus of late as their baby-boomer parents move on to greener pastures.
But according to market intelligence firm Numerator, the smart money’s on their younger siblings, Generation Z. Roughly spanning the pre-teens through twenties, Gen Z is already shaping up to be a financial and cultural powerhouse, with 4 million of them entering adulthood every year.
These so-called “millennials on steroids” are unique in their shopping and spending habits, the researchers said, so retailers and manufacturers must discard any millennial precepts if they hope to tap into Gen Z’s projected $143 billion in spending power.
Based on insights from its 500,000-strong InfoScout OmniPanelMarketers, Numerator says marketers can prepare for this next demographic surge by beefing up their mobile commerce and social media efforts, and yes, also sprucing up their brick-and-mortar stores.
As children of the smartphone era, Gen Zers are more likely to receive influential advertising through their mobile devices than through a computer, the firm observed. What’s more, social media assumes a much broader role for this group than just connecting with friends; this demographic uses Tumblr, Snapchat and Twitter to also build relationships, find news and current events, and discover new products and services, Numerator said.
At the same time, Gen Z is also more inclined to engage with in-store and special event experiences, and is less enamored with online shopping than their older brethren. In fact, e-commerce only captures 7.4 percent of Gen Z’s total spend, Numerator found.
The researchers’ advice: “A quality in-store interaction combined with a well-placed mobile and/or social ad could be impactful in attracting new Gen Z buyers.”