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Is Your Brand Gen Z Ready?

Your complete guide to understand and connect with the digital natives in the mexican market.

Introduction

As members of the generation Z (born 1995-2021) grow and start spending on goods and services, it’s critical that retailers and business acknowledge that they are just not younger millennials. They have noticeable differences in how they relate to brands, what makes them do a purchase decision, what actually matters to them.

We’ve made this guide to help you have a better understanding of the first generation of humans who’ve grown up under the ubiquitous influence of the internet and other modern technologies. Digital natives think, learn and understand the world differently from people who have not been as exposed to modern technology.

This generation’s relationship with brands and advertising is entirely different than with previous generations. Brands have the challenge of going full speed ahead with the wants and needs of an hypercognitive generation very comfortable with collecting and cross-referencing many sources of information and with integrating virtual and offline experiences.

Who are they?

Since 2020, centennials are the world’s largest demographic. Known as the first generation of Digital Natives, but what does that even mean?

Centennials have used the Internet almost since they were born. Technology is intuitive for them; nobody teaches them how to use it, they experiment with it.

2018 State of Gen Z Study found that of the 1,000 members (ages 13 to 22) interviewed, 95% had a smartphone. Over half of these used their phones for five or more hours per day.

As you may already know, people use social media platforms (and the internet in general) for a wide range of purposes. Zoomers have a particular selection of social media platforms depending on the type of interaction or information they’re expecting to get.

While it is widely known that Gen Zers spend a lot of time on Instagram, this 2018 study by the Center for Generational Kinetics also found that Gen Z trusts YouTube ads more than any other type of advertising, including radio, print, and TV. Youtubers, especially those with a social media following ranging from a few thousand to 100,000, carry more influence over Gen Zers than traditional celebrities.

What matters to them?

Recently, Deloitte revealed the results of its Global Millenial and Gen Z Survey

Regarding their vision of organizations, 53% of millennials and 51% of Gen Z in Mexico consider that companies have a very or quite positive impact on Society.

Regarding the main concerns that both generations share about the main global challenges, in Mexico personal safety and crime top their list, followed by unemployment. Third, for millennials, there is health care and disease prevention, while for Gen Z, there is climate change and environmental protection.

Top three issues of greatest concern:

Social justice is also a very important topic among Gen Zs, as Deloitte’s 2021 Millennial and Gen Z Survey explains “A majority of young people believe we are at a tipping point on key societal issues including climate change, inequality, and discrimination.”

Last but not least at all, there’s a growing concern among this generation about privacy and data collection for various reasons. If you’re collecting data of any kind, be totally transparent and make clear how will you use this data and your brand’s compromise with the security of personal data. This can be a turning point for interaction and convertion.

How to reach them?

Let’s start with the basics, who do they trust the most?

While Morning Consult’s recent Influencer Report found that 52% of Gen Z trusts influencers they follow on social media for advice about products or brands, a whopping 82% trust their friends and family over any other source.

The second most trusted resource for Generation Z is product reviews on Amazon or similar sites. Leverage this knowledge by regularly posting genuine positive reviews from real customers to your social media accounts.

With 61 million Gen Zers entering the workforce, this research study reports that 68% of Gen Z read at least three product reviews before making a first-time purchase with their own money and even more surprising: 16% of Gen Zers read nine or more product reviews before making a first-time purchase with their own money.

When Gen Zers are looking for a product, they want the opportunity to shop through social media platforms when they go online. Your brand should have an impressive and immersive product experience exposed through social media.

And talking about products, let’s talk about the very act of consumption. Consumption has also gained a new meaning, as this McKinsey research about Gen Z concludes:

“For Gen Z—and increasingly for older generations as well—consumption means having access to products or services, not necessarily owning them. As access becomes the new form of consumption, unlimited access to goods and services (such as car-riding services, video streaming, and subscriptions) creates value. Products become services, and services connect consumers.”

Traditional consumer-goods companies should consider creating platforms of products, services, and experiences that aggregate or connect customers around brands. This allows a better and more personal relationship with consumers.

Finally, consumers increasingly expect brands to “take a stand.” The point is not to have a politically correct position on a broad range of topics. It is to choose the specific topics (or causes) that make sense for a brand and its consumers and to have something clear to say about those particular issues. In a transparent world, younger consumers don’t distinguish between the ethics of a brand, the company that owns it, and its network of partners and suppliers. A company’s actions must match its ideals.

Gen Z consumers are mostly well educated about brands and the realities behind them. When they are not, they know how to access information and develop a point of view quickly. If a brand advertises diversity but lacks diversity within its own ranks, for example, that contradiction will be noticed.

70% percent the respondent of the above mentioned research say they try to purchase products from companies they consider ethical. 80% percent say they remember at least one scandal or controversy involving a company. About 65% try to learn the origins of anything they buy—where it is made, what it is made from, and how it is made. About 80% refuse to buy goods from companies involved in scandals.

As reported in The New York Times, centennials’ attention span is very short, and they bounce rapidly among their smartphones, tablets and computers, with very low tolerance for traditional advertising. They are used to sensory overload, so they need much less time to filter through information.

The agency Publicis estimates that centennials’ attention span is just eight seconds, while millennials can concentrate for about 12 seconds. “To reach Gen Z effectively, you’ll need to communicate like they communicate. Gen Z expect to receive short and frequent messages, so you must deliver messages frequently and easily (both easier to understand and easier to digest). With centennials using a more intuitive, visual language than older generations (think emojis), you’ll also need to think about communicating through images,” says an article on Publicis’ “Tomorrow´s Target: Marketing to Centennials.”

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