5 Things Gen Z Will Spend Money On & Why Marketers Need to Care
Millenials and previous generations are notorious for being loyal to brands, ourselves included. However, Gen Z’s are more interested in products that offer best bang for buck, meaning they want the best value.
So what will Gen Z’s be spending their money on now more than ever? Let’s dive right in.
1. Tech & Gadgets
You might think that since you’re not in this category, this audience won’t be your target market. However, this age group can be persuaded to make large purchases that provide a fun experience or can improve their everyday lives. However, just because they are willing to splurge on the larger ticket items, they need a lot of convincing before they hand over their credit cards. This age group practically lives on social media 24/7, so brands will need to be creative when it comes to generating content for this age group to consume, to demonstrate why they need the product, or how it can make their lives better.
2. Products On Sale
Who doesn’t love a good sale? Studies and purchasing behaviors hint that in order to get Gen Z’s to invest in a product or service, what they’re buying needs to be incredibly valuable to justify the purchase. In fact, this age group is so conscientious of spending that they would rather have money in the bank than be broke. With the rise of Buy Now, Pay Later, although Millenials are first adopters, Gen Z is leaning into it completely as more and more brands offer this option for shoppers. If you’re trying to market to this age group, consider partnering with popular influencers, as Gen Z’s put a lot of stock into product reviews, and also what’s being used by the people they follow.
3. Health & Wellness
The next generation is more concerned about mental and physical health than the generations that came before them. Especially during the pandemic, people are putting their wellness before everything else. You’ll notice a lot of fitness influencers have emerged online, more fitness gadgets have also flooded the market, and the overall promotion of a “healthier lifestyle”. Therefore, brands in the health and wellness sector have a massive opportunity to market to Gen Z’s. However, this also means it will be extremely competitive and more difficult to stand out from other brands.
4. Local Businesses
The pandemic has affected a number of small businesses, which unfortunately led to closures because they simply struggled to survive. However, it isn’t all bad news, because Gen Z’s are more willing to support local businesses than go to big name stores. If you’re able to create a strong bond in the community, generate content that shows transparency and authenticity, and also be clear with how their information is being used (privacy being a huge topic nowadays), then you have a lot of opportunity to grow your business.
NFTs, Bitcoin, Stonks, it’s all you really hear with Millenials and Gen Z’s. Nowadays, everybody has a side hustle or has found ways to earn passive income. Aside from making purchases, Gen Z is also likely to invest in their education to help with advancing their future earnings. Due to their need for financial stability, many in this age group believe that a good education will lead to a great job with high pay. If your product isn’t necessarily geared towards education, highlight how your product or service can improve their education or learning experience.
Ultimately, in order to market to Gen Z, think about how your product can provide better value to this age group. As long as you’re able to convince this age group of why they need your product/service and how it can improve their lives, you’ll be able to win their business.