The Spending Behavior of Gen Z
At a certain point in time, companies and organizations were carrying out studies and research on how fascinating the millennial generation was. Some businesses strived hard to earn the loyalty of millennials, and of course, their highly influential powers. Also, it was a large percentage of the population during the study of millennials. Now millennials are no longer the target, welcome Gen Z.
The focus is currently on the latest generation known as the Gen Z-ers or Generation Z. After all, they already account for 30% of the global population.
Gen Z is now the biggest consumer cohort in the United States, accounting for $143 billion in the United States. In China, they are the generation most willing to spend. An average Chinese Gen Z spends $7,000 a year on luxury goods and technology even before they turn 21.
Furthermore, close to 90% percent of today’s parents believe that their children are influencing household spending, and now it is time for brands to invest in an in-depth understanding of this large impact generation.
Research on generation z suggests that their buying power revolves around certain factors. These factors include:
Also, as stated in the previous point, they depend on reviews online and opinions of the online communities to determine any purchase they make. Note that they have the voice and platforms to be heard.
They are all about seeing the realness in marketing, and this includes proof plus a culture to back up their claims of company values.
They go for smaller groups of close-knit followers and not searching for a large following.
To Wrap It Up
Gen Z is already one of the most powerful consumer population in the world. In terms of spending, they have already topped the millennials. With their power and willingness to spend, companies should pay more attention and cater to Gen Z's desire.
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