Gen Z: Are Retailers Up to the Challenge?

Gen Z: Are Retailers Up to the Challenge?

 

bizmology.hoovers.com

bizmology.hoovers.com – The business world’s obsession with millennials appears to have reached a fever pitch. The Wall Street Journal recently reported on a booming industry of “millennial experts” (aka intergenerational consultants) billing corporations up to $20,000 an hour to decode millennials for them.

With so much attention lavished on those born roughly between 1980 and 2000, marketers are just beginning to focus on millennials’ younger siblings: Generation Z. According to the retail and brand consultancy Fitch, by 2020 today’s 14- to 19-year-olds will be the largest group of consumers worldwide, making up 40% of the US, Europe, and BRIC countries, and 10% in the rest of the world. It won’t be long before discerning, digitally-adept Gen Z’ers begin exerting their outsized influence on the retail scene.

The fact that many retailers are still grappling with how to attract millennial shoppers doesn’t bode well for their success with post-millennials. Understanding Gen Z’ers social and shopping behaviors is key to capturing this new wave of shoppers, says Fitch. Gen Z’s allegiance to digital and video communication and predilection for intimate experiences is a challenge for traditional retailers — department stores in particular.