By 2030 ‘Generation Z’ and ‘Millennials’ will account for 48 per cent of retail spending in Australia. Young shoppers aim to be well-informed and hope to find the balance between affordability and quality.
Social media trends are the name of the game for Gen Z. Product novelty matters to them more than brand names. Many businesses market their products through social media influencers.
As jewellery retailers, it’s crucial to understand the products young Australians are buying and the characteristics and designs which appeal to their mindset the most.
Digital experience
It’s no secret young consumers today are tech-obsessed. Wherever possible, learn from the successes of streaming services that collect payment from 95 per cent of Gen Z’s pockets. This age group is more than happy to oblige with the subscription model.
It’s not just because lazing on the couch while binging your favourite shows is so enticing! They offer basic features or a trial program to new customers. Then they suggest the option to pay for a complete service.
Gen Z prefers digital services that are entertaining and informative. When it comes to software, and digital goods, businesses don’t need to sell a particular product. They need to keep users engaged and entertained with a service over the long term.
For non-digital brands and products, consider how apps can enhance the checkout experience. Loyalty program trackers or the option to order for pick-up increases digital visibility.
Local businesses
Gen Z uses ‘Buy Now Pay Later’ (BNPL) services to support small businesses more than Gen X or the Baby Boomers, meaning it’s important for your business to appeal to the local market.
Smaller businesses can offer experience-driven purchases that feel unique and tailored to them. As we return to a post-pandemic ‘normality’ the in-store shopping is set to regain popularity.
They’re also willing to pay extra for luxury items. Gen Z’s aversion to brand loyalty means they are attentive to the uniqueness of a product. Transparency and efficiency drive their product inquiries. This gives sales staff a chance to explain how a product suits them and meets the customer’s values.
Marketers commonly underestimate Gen Z’s desire for an in-store shopping experience. That said, 75 per cent of small Aussie businesses lack a marketing strategy for the demographic. Bricks-and-mortar stores can provide an individualised customer experience. Emphasising the social experience of shopping itself is essential to maintaining Gen Z’s interests.
Marketing
The smartphone generation are discerning and experienced consumers of tech. The key to standing out is a problem and solution approach. This doesn’t mean reinventing the wheel of personal computing or gaming consoles. Instead, market your business or product as merely being compatible with the wide array of gadgets Gen Z already owns.
Social media marketing and electronic products goes hand-in hand. Younger generations are more open to targeted ads and data collection than those previous.
Quick tips worth considering
Beyond the wider trends and patterns worthy of studying, consider some of the following pointers when it comes to preparing your store for the road ahead.
• Time: Consider marketing yourself as a time saver to customers. Time is money for younger generations. Marketing your product or services as efficient when compared to the time-consuming alternative will draw the attention of Gen Z. Know your niche and focus on social, interactive solutions.
• Refine your online presence: Business websites, online stores and social media pages need to be simple and engaging. Convenience is the most attractive feature of online shopping for Gen Z.
Make the journey from clicking to buying as short as possible. Make sure your social media profiles are up-to-date so algorithms suggest your products to the right customer.
• Community engagement: The non-financial aspects of your business are more important than ever. Gen Z customers want to know your brand stands for some sort of ‘ethical’ cause.
Community engagement as a business – whether it be sponsoring a local children’s sports team, a communal gardening project, or perhaps a fundraising drive for a worthy cause – showcases loyalty to the community surrounding a business.
When done in the right spirit, the community will reward your business with loyalty for years to come.
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