Just like last year’s fashions and iPhone, Millennials are being replaced by the latest and greatest batch of consumers, Generation Z (also known as The Founders), who are Gen Y’s younger siblings and children born between 1995 and 2009. While Millennials continue to be an important market for many retailers and brands, a new purchasing powerhouse should demand your attention. The oldest members of Gen Z are still teenagers, but they already wield a buying power of $44 billion and command the highest influence on family purchases in history. In fact, 93% of Gen Z parents surveyed said their children influence family spending and household purchases according to the Deep Focus’ 2015 Cassandra Report Gen Z.
Making up nearly 26 percent of the population gives you more than enough reasons to start paying attention. Just like with Millennials, retailers need to discover how to genuinely connect with Gen Z to build trust and loyalty. But beware – It’s been said that Gen Z can’t stand living in the Millennial’s shadow and there is quite a lot of differentiation between the two generations. To secure the favor of the up-and-coming generation of consumers, you have to know what makes them tick. Of course, figuring this step out requires an understanding of what Generation Z values and reacts to. This new retail journey requires disruptive thinking, digital business transformation and change management to prepare your stores and your employees. Even if Gen Z isn’t your current target audience today, they will be later– and now is the time to grab their attention.