Steven Heilbron | CEO | Capital Connect | mail me |

Generation Z, born between the late 1990s and early 2010s, is moving into the workforce and becoming one of the most influential consumer demographics. Retailers will need to adjust their strategies if they are to remain relevant for this highly educated, socially aware and digitally connected cohort.

Generation Z represents the retail customer of the future. In a young country such as South Africa, it’s especially important for retailers to understand this market if they are to grow their businesses.

Plug into social media

According to the Flux Trends 30/30/30 Report, Gen Z spends an average of 3.8 hours a day on social media, with Instagram and TikTok as the most popular platforms. What’s more this highlights the importance of plugging into social media to promote and advertise a retailer’s offerings to this population.

Social media campaigns should be interactive and visually appealing to cut through the noise.

Back into the real world 

Many members of Generation Z missed out on pivotal school and university experiences under lockdown. And, as such, they have come to value real-world experiences.

Retailers with aesthetically pleasing spaces, vibrant displays, unique décor, and interactive elements can turn their brick-and-mortar stores into destinations worth visiting and sharing on social media. In-person events like product launches and in-store workshops can turn an outlet into a community hub.

Support new ways to pay 

The Flux report paints a picture of a financially savvy generation. Retailers can appeal to them with flexible payment options like Buy Now, Pay Later (BNPL) services for bigger purchases. Furthermore, they should also embrace digital payment technologies such as mobile wallets to make transactions seamless and convenient.

Focus on sustainability 

Values are shifting among younger consumers, with many concerned about climate change and the environment.

Thrifty clothing and casual styles are more popular than high-end branded items. Retailers can appeal to Gen Z’s values by offering sustainable choices and highlighting eco-friendly practices.

Hustling on the side 

Many Gen Zs balance side hustles with their studies or jobs. Retailers can tap into this by offering products for their side hustles. Gen Z prioritises spending on electronics and technology, for example.

Bare necessities matter 

Flux’s research finds that many members of Gen Z live in multigenerational households and hold some responsibility for taking care of extended family. Their spending is short-term and focused on basic needs. Retailers should cater to this practical approach by ensuring a range of high-quality, affordable products that meet these basic needs.

To win over Gen Z customers, retailers must adapt to their digital lifestyles, entrepreneurial spirit and care for community and family. By understanding and addressing their unique preferences and behaviours, retailers can build lifelong relationships with their next generation of customers.

Fast access to capital is the key to reinventing your retail business, whether by buying the right inventory, refurbishing your store, investing in additional profit centres (APCs) or embracing e-commerce.

Related FAQs: Gen Z shoppers

Q: What strategies can brands use to connect with Gen Z shoppers?

A: Brands can connect with Gen Z shoppers by leveraging social media platforms, creating user-generated content and aligning their values with those of this generation. Engaging marketing strategies that resonate with Gen Z’s interests and preferences are crucial for building loyalty.

Q: How important is brand loyalty among Gen Z consumers?

A: Brand loyalty among Gen Z consumers is significant, as many Gen Zs tend to favour brands that align with their values and social causes. Brands need to foster this loyalty by creating authentic connections and maintaining transparency in their practices.

Q: How does marketing to Gen Z differ from marketing to Millennials?

A: Marketing to Gen Z differs from marketing to Millennials in that Gen Z is more tech-savvy and values authenticity over traditional advertising methods. While Millennials may respond well to influencer marketing, Gen Z is more inclined to trust user-generated content and peer recommendations.

Q: What role does social media play in winning over Gen Z shoppers?

A: Social media plays a crucial role in winning over Gen Z shoppers. They are digital natives who spend a significant amount of time on platforms like TikTok and Instagram, where they engage with brands that create relatable and shareable content. Brands need to adapt their media strategy to effectively reach this audience.

Q: Why is user-generated content effective in targeting Gen Z?

A: User-generated content is effective in targeting Gen Z because it showcases real experiences and fosters a sense of community. Gen Z consumers are more likely to trust and engage with content created by their peers, making it a powerful tool for brands aiming to connect with this demographic.

Q: What factors contribute to the purchasing power of Gen Z?

A: The purchasing power of Gen Z is influenced by their growing financial independence, as many are now entering the workforce and gaining spending power. Brands need to recognise this shift and adapt their marketing efforts to appeal to the values and preferences of Gen Z shoppers.

Q: How can brands create content that resonates with Gen Z?

A: Brands can create content that resonates with Gen Z by focusing on authenticity, creativity and social relevancy. They should prioritise storytelling that reflects Gen Z’s values, such as inclusivity and sustainability, to establish a stronger connection and enhance brand loyalty.

Q: What are some common mistakes brands make when trying to connect with Gen Z?

A: Common mistakes brands make when trying to connect with Gen Z include relying too heavily on traditional advertising, failing to engage with user-generated content and not aligning with social causes that matter to this generation. Brands need to ensure their marketing strategies are relevant and authentic to successfully reach Gen Z consumers.

Q: How can brands measure their success in winning over Gen Z?

A: Brands can measure their success in winning over Gen Z by tracking metrics such as engagement rates on social media, customer feedback and brand loyalty indicators. Additionally, analysing sales data and customer retention rates can provide insights into how well brands are connecting with Gen Z shoppers.