The colloquial phrase "what a time to be alive" has never felt more relevant than now. Brands are being challenged to connect with consumers on an emotional level that’s never really been seen before. Gen Z and Millennial consumers have been demanding brands to be better and become more humanized for years, but in light of COVID-19, auto brands will have to push themselves more than ever before to meet young consumers' expectations.
The radical changes observed in current marketing tactics are here to stay. Long after the COVID-19 pandemic chapter comes to a close, young consumers will still maintain high expectations for automakers and will only purchase from those who meet them.
What you need to know
Gen Z and Millennial shoppers have rapidly changed what it means to be a consumer in the year 2020. And now, with the impact of COVID-19, it will become all the more important to reach consumers on a more personal level. The auto market has been hit incredibly hard by COVID-19, and shopping behaviors may be reflective of those seen in the 2008 recession. Consumers will save during financially tumultuous times, but a certain subset of consumers will still need to purchase a vehicle. Auto advertisers need to fully realize that these younger consumers aren’t going to be satisfied with trite messaging. They are going to want to know what OEMs and dealers are doing to help the community around them, especially during COVID-19. Brands that can offer affordable vehicles, along with showing their humanity have the chance to win the loyalty of these demographics.
Key issues covered in this Report
The impact of COVID-19 on consumer behavior and the auto market.
The effects of a US and global recession on the auto industry
How Gen Z and Millennial consumers approach car buying
How to create awareness for new vehicles for these demographics
This Report was written June 29, 2020.
Definition
For the purposes of this Report, Mintel has used the following definitions:
Millennials: The generation born between 1977 and 1994. In 2020, Millennials are between the ages of 26 and 43.
Generation Z: The generation born between 1995 and 2007. In 2020, members of Gen Z are between the ages of 13 and 25.
