Every year, market researchers slice and dice the vast army of consumers by generation, studying them for their retailer clients who use the data to create and target marketing and advertising programs. One of the challenges in getting it right is that time marches on—the generations are constantly evolving.
For example, Gen Z consumers are commonly referred to as a group when, in fact, the age range is said to be from 12 to 27—an unlikely mix. The next oldest generation is the Millennials, roughly aged 28 to 43. Same 15-year spread, and also an unlikely grouping.
So, in the past couple of years, social scientists have begun using the term "Zillennial" or "Zennials" to describe those born between 1990 and 2000—24 to 34 years old. I was thinking about all this recently when it hit me that I was just 26 when my wife and I bought our first home. We’d been married only a couple of years.
Today, we have a 21-year-old son. Given how much the pandemic disrupted the economy, social lives, and culture, it’s hard to imagine how the average 26-year-old could do the same today.
On the other hand, there’s growing evidence that owning a home may not have the allure it did when I was a young retail executive and recently married.
As we noted here recently, the concept of “underconsuming”—only buying what you absolutely need—has been trending lately among twenty-somethings. They are increasingly attracted to authenticity—real books, vinyl records, denim—and seem to have a disdain for conspicuous consumption.
Small wonder. In so many ways, Zennials have had a raw deal since 2019. The youngest were in college when the world closed down, schools locked their doors, and classes went online. Many who were starting out or in the early years of their careers found themselves working instead in fast food restaurants, big-box stores, or at work-from-home gigs for minimum wage. Then they quit.
Similarly, in 2019, older Zennials were just about to turn 30, an age when people typically start to focus on careers, settling down, maybe building a business. The shutdown killed social life. Venture capital investment plunged. Business opportunities that might have produced the next Steve Jobs or Bill Gates dried up.
Since the old rules no longer apply, where do merchants find these younger consumers, and how do they engage with them? Increasingly, social media platforms like TikTok are becoming storefronts where younger consumers are exposed to content created by influencers.
According to a report by Fiverr, a platform that connects freelancers with people and businesses, more than half of American Gen Zers expect to find gifts this holiday season on TikTok Shop alone. A third said they will shop for gifts seen on Facebook and Instagram ads.
Merchants are paying attention. According to Fiverr, nearly 60% of retailers are using social media ads. Nearly 70% plan to use AI to compete with dominant e-commerce brands for younger shoppers.
The survey reported, “Demand is up for experts with AI skills, digital marketing, and social media to maintain loyal customers and reach new audiences.” Social media marketing is complex but is becoming an effective way to reach new customers and establish brand loyalty.
Experts say platforms like TikTok and Facebook tap into Zennials' desire for a more personal, authentic way to discover and buy products. Social media platforms leverage entertainment, a sense of immediacy, and a connection that online shopping can’t duplicate. To put it another way, young consumers respond to opportunities to experience a sense of community that the pandemic took away.
As retailers and brands try to navigate this newly charted territory, I wonder if they have “all the skill sets” necessary to be successful in an environment that seems to be constantly changing, with a consumer base that is highly dynamic as well.
One approach would be to engage them authentically and ask them what they want and how to serve them, rather than trying to observe them and interpret their intentions.
Subscription Required.
