By Jonathan Baker It’s common knowledge that Generation Z (or Gen Z) is unlike earlier demographics. Along with a strong sense of individuality that sets them apart from ‘their elders,’ this audience has a strong sense of pragmatism and caution. In an uncertain economy, this pragmatism and caution are being put into practice. Businesses must be in tune with this sense of caution and able to adjust their strategies to accommodate the new needs of this young audience. Choosing Frugality Over Frivolity Today, members of Gen Z are especially conscious of financial pressures that limit how and where they spend any disposable income. Rising living costs, entry-level salaries, and the challenge of balancing work and school have turned many Gen Z consumers into more budget-conscious shoppers. A recent Media Post article, citing findings from The Harris Poll, points out this Gen Z increasingly prioritizes affordability, wellness, and overall ‘low-pressure’ ways to socialize and entertain. Nearly three-quarters of Gen Z adults are reportedly choosing to stay at home for at least half of their weekends each month. Complementing this finding, 62 percent abstain from big weekend plans to avoid financial debt. Percentages like those listed above will impact specific businesses, particularly restaurants, bars, and nightlife spots. These are among the businesses that may need to adapt their strategies more aggressively. Gen Z is Exhibiting Discretion, Not Disengagement Importantly, Gen Z’s behavior should not be mistaken for disengagement from social experiences. The Harris Poll findings suggest that young consumers still value experiences and social connections. What has changed is their willingness to spend money on experiences that do not provide meaningful personal value. In many ways, Gen Z is becoming a generation of selective consumers rather than simply cost-conscious consumers. Redesign the Experience for Gen Z Tim Osiecki, director of thought leadership and trends at The Harris Poll, stated that hospitality brands and businesses must redesign their current operations to meet Gen Z where they currently are. This redesign would include practices such as lower prices, alcohol-optional programming, and adding daytime hours to their schedules. Gen Z’s desire for social experiences remains, but at a revised (read: reduced) price point. Businesses that follow through with these adjustments will not only keep their existing customer base but may attract new members of Gen Z as patrons. Gen Z’s growing emphasis on value, wellness, and intentional experiences could create challenges for some industries. But it may also open doors for others… Gen Z is Staying Healthy In contrast to hospitality-related businesses, those focused on maintaining health and well-being are predicted to find newfound popularity with Gen Z. Mr. Osiecki lists wellness, recovery, boutique fitness studios, coffee culture, and home entertainment as relatively low-cost social experiences that will benefit. Actually, these categories appear naturally aligned with many of Gen Z’s stated preferences. Gen Z may also help redefine what future generations aspire to. A healthy, affordable, low-maintenance lifestyle could become increasingly attractive as social values continue to evolve. Closing Thoughts The Media Post article features a quote from Mr. Osiecki that truly stands out: “The strategic move is to stop marketing the product and start marketing the community around it. Gen Z isn’t buying a class or a beverage. They’re buying a reason to show up.” While Generation Z is mentioned specifically, the meaning of this quote applies universally to all audiences and should be the foundation of every advertising and marketing strategy: Understand how your audience wants to connect and build experiences around that desire. Is your brand or business giving your customers ‘a reason to show up’? EGC Group can help. Contact us to learn how. Related reading: Spotify Owns Gen Z’s Time, But YouTube Owns Their Podcasts The Relationship Between Gen Z and AI
