How Does Generation Z Respond to Brands?

generation z’s relationship with brands

Described as ‘the most disruptive generation’, Generation Z is already on course to overtake the earnings of Millennials by 2031. This makes the generation born between 1995 and 2010 a highly sought-after demographic for businesses looking to maintain growth over the next few years.

How Does Generation Z Respond to Brands?

With Gen Z currently between the ages of around 10 to early 20s, they account for 2 billion of the world’s population. Perhaps more importantly for American businesses, Gen Z makes up 40% of consumers in the United States.

This means that businesses will need to understand how Gen Z relates to brands and technology in order to appeal to their tastes. The best way to achieve that is with data, and thankfully we have some recently published insight to analyze.

Gen Z’s Spending Influences

Data firm NowSourcing gathered information on Generation Z’s relationship with brands on behalf of Rave Reviews. They discovered that Gen Z predominantly spends their own money on clothes and shoes, books and music, app, toys and games. Events and outings were another popular spending influence for Gen Z.

The most popular brands among Gen Z were Netflix, Google and Youtube, with Amazon, Oreo and Playstation also very popular. Other brands popular with Gen Z were retail giants Walmart and Target, as well as Doritos and Nintendo.

Interestingly though, only 36% said they had a strong connection or loyalty to a particular brand.

The Diversity Generation

Another interesting aspect of Generation Z is how diverse they are. Today, 48% of Gen Z are non-white, with 22% having at least one immigrant parent, compared to 14% of Millennials.

Twice as many as previous generations are identifying as LGBT+, with 35% saying they know somebody who prefers gender-neutral pronouns.

Generation Z is also on course to become the best-educated generation, with 57% of recent high school graduates enrolling in a 2 or 4-year college. Only 44% live with a college-educated parent.

Generation Z Values and Ethics

How Gen Z perceives the world can have a big influence on how companies can market their products to them. The data suggests that the best way to attract Gen Z customers is to have an ethical product. This is because 65% say they research a product’s origins before buying it, including where and how it was made as well as what it is made from.

Over 90% of Gen Z say they prefer products that promote sustainable and ethical business practices. Also high on their priority list are inclusivity and overall shared principles. Over three quarters will also actively spread the word about unethical companies that they find to be macho, racist, or homophobic, as well as involved in scandals.

They are also using quite a diverse array of social media platforms, with TikTok, Instagram, YouTube, Snapchat and Discord some of the most popular. Less obvious forums include the Fortnite and Roblox games, as well as the Twitch streaming service.

Image: Depositphotos

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Gabrielle Pickard-Whitehead Gabrielle Pickard-Whitehead is a staff writer for Small Business Trends and has been a member of the team for 7 years. She is based in the United Kingdom and since 2006, Gabrielle has been writing articles, blogs and news pieces for a diverse range of publications and sites. You can read "Gabrielle’s blog here.".