It looks as though millennials may soon face competition as the generation to watch. According to a new study from HRC Retail Advisory, Generation Z is expected to make up nearly 40 percent of the population of North America by the year 2020 – easily making them the generation retailers must be paying attention to.
Not only do retailers need to gain a better understanding of the purchasing power of Generation Z in households, but they also need to address the need of the generation, HRC noted.
In order to gain insight into the growing influence of this group, who represent ages 10 to 17, HRC surveyed 31,000 participants in the U.S. and Canada. The survey included questions on their shopping habits as wells as the factors driving their purchasing decisions.
“Retailers must be nimble in order to effectively appeal to Generation Z consumers,” Farla Efros, president of HRC Retail Advisory, explained. “Resonating with this group at a young age can have a huge impact on retailers’ long-term consumer retention and brand loyalty. Social media and digital advertising will be dominant in marketing strategies targeted to Generation Z, but retailers must adopt these mediums in interactive ways to inspire and engage this emerging generation of consumers.”
Chain Storage Age reported that the most significant findings of the study include:
- Generation Z has a strong influence on the purchases of their parents – Nearly 82 percent of parents admitted their children impact their decisions to purchase products and services.
- The most visited social media platform by Generation Z is YouTube – More than half of respondents (54 percent) visit YouTube on a daily basis.
- Generation Z still considers malls not to be dead – Approximately 60 percent of those surveyed said they continue to shop or visit a mall at least once a month.
- Friends are the most influential to Generation Z – A significant portion of Generation Z respondents (62 percent) consider their friends to be the most instrumental impact on their buying decisions.
- Digital Is In Their DNA – The data revealed that half of the survey respondents admit to shopping once at least once a month.