Why Gen Z May Be the Most Important Generation of Consumers by@brianwallace

Why Gen Z May Be the Most Important Generation of Consumers

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Gen Z includes individuals aged 10-22, which encompasses around 2 billion people worldwide and 40% of U.S. consumers. By 2031, Gen Z's income will account for one-quarter of the world’s total income, outweighing the currently dominant Millennial generation. Gen Z prefers products that promote inclusion, sustainability, and ethical business practices. In 2020, the trust that these young people placed in large corporations dropped by 10%. With so many young consumers on social media sites, mobile-first marketing becomes an essential part of successful business models.
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Brian Wallace

Founder @ NowSourcing | Contributor at Hackernoon | Advisor: Google Small Biz, SXSW

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Gen Z includes individuals aged 10-22, which encompasses around 2 billion people worldwide and 40% of U.S. consumers.  By 2031, Gen Z’s income will account for one-quarter of the world’s total income, outweighing the currently dominant Millennial generation.  For companies and businesses, it seems clear that this demographic should be the main focus of outreach efforts.

Currently, Gen Z’s favorite brands are Google, Netflix, and YouTube, respectively.  Clearly a technology-focused generation, young people are integrated to the digital world more than any other generation.  With so many young consumers on social media sites, mobile-first marketing becomes an essential part of successful business models.

But not any company can just hop on this media bandwagon and hope to succeed.  Gen Z consumers make their purchasing decisions based on how company values align with their own.  In 2020, the trust that these young people placed in large corporations dropped by 10%.  It is clear that Gen Z will buy from brands they can trust, as over 60% of these young people research products before buying from a company. 

Gen Z prefers products that promote inclusion, sustainability, and ethical business practices.  If a business model has values that align with their own, this generation will pay even more money for that product.  And with nearly half of all teens spending most of their day online, promoting a relatable business on social media is essential to reaching this target demographic.  The interconnectedness of modern technology allows for businesses to grow in a new way, and it just so happens that Gen Z is the most important consumer group with the strongest connection to the digital world. 

Gen Z has seamlessly connected social media with their own business practices.  49% of young people get their news and information from social media sites, and two out of three are interested in making a purchase through social media directly.  It seems clear that the importance of an online presence for a business is paramount.  And with 44% of Gen Z consumers purposefully interacting with posts to influence the algorithm and reach the content they are looking for, businesses are able to find and connect with Gen Z consumers that they can connect with.

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