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AQ #40: Gen Z Unboxed (Part-1) - Decoding the Next Generation of Consumers❣️

Discover key insights and actionable tips to effectively market to Gen Z, the digital natives reshaping the consumer landscape.

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I send this edition to you from the vibrant and cosmopolitan city of Mumbai in India. The summer is just about peeking here, and our days are spent mostly indoors in the comforts of our aircons. The heat and weather in general this year is unprecedented in many parts of our country.

Is it summer at your place too yet? How is it treating you? I would love to know if you care to reply and let me know.

We also have something else adding to the heat at Aha! Quotient. Today, we’ve our first ever guest post by Ankit Singh Chauhan.

As I did a mini-series on all things related to marketing to Gen Z recently, it occurred to me what could be better than getting the first hand perspective from a Gen Zer themselves. Hence, I got Ankit onboard who works closely in my team and is building a career in MarTech.

He intends to put out a whole series on Gen Z Marketing with his on insider spin on it for us in the weeks to come.

Your feedback will help us define the direction of this.

So please write to me with what you think about this initiative and how do you like the idea of getting guest authors to contribute to the newsletter.

Let's dive right in this introductory edition by Ankit!

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Gen Z Marketing: The New Frontiers

By 2025, Gen Z is expected to account for 40% of global consumers, with an estimated spending power of over $140 billion in the U.S. alone.

That is just one data point when it comes to how much sway Gen Z has in the marketplaces, and therefore it is critical for brands to be equipped to understand and relate to this dynamic demographic.

Gen Z, born between 1997 and 2012, creates a customer landscape like no other generation could ever do. They are the real digital natives, many of their behaviors, preferences, and values have such a strong difference from Millennials and Gen X. To know all these elements about Gen Z is a must for modern marketers.

It is with the knowledge of what makes this generation tick that great brands are forged, loyalties gelled, and lead the market in a fast, ever-changing one. We have developed a miniseries to bring fresh insights and innovative ways of effectively connecting with Gen Zers.

For foundational concepts, refer to our previously published mini-series Marketing to Gen Z 

Characteristics that Set Gen Z Apart

Gen Z is not just tech-savvy; they are tech-native.

Technology comes easily to Gen Z, as they’re born into it, and integrates into their lives with much ease.

Mental health and wellness are talked about the most. Many of them visit therapists and take self-care to higher levels than ever before.

The way they shop mirrors an awareness that goes for quality rather than quantity, and there is a considerable leaning towards sustainability and ethically sourced products. Environmental concerns have been a talking point for a long time, so many of the Gen Zers would always prefer to go with brands that take care to be eco-friendly.

The digital consumption habits of Gen Z are changing. The cohort uses social media to discover products, but they prefer the authenticity of content and peer reviews as opposed to aggressive advertising. Matter of fact Gen Z consumers browse through social media, with most of them leaning towards brands associated with their preferences on social issues.

Gen Z prefers video content, with platforms like TikTok, Instagram and YouTube as their go-to sources for entertainment and information.

By understanding these unique characteristics, modern marketers should tailor their strategies to better resonate with Gen Z, creating campaigns that are not only effective but also genuinely engaging.

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The Ever-evolving Digital Landscape

The digital footprint of Gen Z is large, ever-evolving, and changing rapidly. While Instagram and TikTok remain highly used common platforms, spaces like BeReal and Discord are gaining traction.

BeReal encourages users to post real, unfiltered photos once a day, fostering authenticity and spontaneity.

Discord, initially popular among gamers, has expanded into various communities, providing a space for Gen Z to connect over shared interests through voice, video, and text.

Gen Zers are very sensitive about digital privacy issues and keen on platforms that put their security first.

Coming of age amidst numerous data breaches and privacy scandals, they are careful about what they share online. Therefore, brands staunchly committed to the protection of and transparency about their data practices will be able to win the trust and loyalty of Gen Z.

For Gen Z, technology is an integral part of daily life.

From using online platforms for education to streaming entertainment and engaging in social activism, technology permeates every aspect of their existence.

This generation’s comfort with technology drives their demand for innovative digital experiences, such as augmented reality (AR) and virtual reality (VR). Brands have to be on their toes with constantly innovative levels to keep pace and offer exciting, immersive, and interactive experiences in harmony with these tech-savvy customers.

For more on engaging Gen Z in the digital landscape, read —> Digital Strategies for Gen Z.

Beyond Tech: Authenticity and Loyalty

Authenticity isn't some chimera; it is a core value for Gen Z. In fact, they can mostly chase the sheep from the goats with very little effort. It means brands have to be really authentic and practice honesty in communication without gimmickry.

Gen Z appreciates brands that are relatable, human, and transparent in their operations.

If there is one factor that will make Gen Z trust a brand, it's transparency. Brands that are transparent about their practices, from sourcing materials to corporate social responsibility initiatives, earn Gen Z’s respect and loyalty.

Several brands have successfully connected with Gen Z by embracing authenticity and transparency.

For instance, Mamaearth, an Indian brand, has built a strong following among Gen Z consumers by promoting natural, toxin-free products and maintaining a transparent dialogue about their sourcing and production processes, even going to the length of planting trees with every purchase.

Similarly, Chumbak, known for its quirky lifestyle products, has resonated with Gen Z by sharing authentic stories and behind-the-scenes content that highlight their brand values and creative process.

Speak Thy Language: Engaging Gen Z on their Terms

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