Table of Contents
Executive Summary
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- Top takeaways
- Market overview
- Opportunities
- Financial brands can help Gen Z take care of their mental health by addressing their financial health
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- Figure 1: Priority changes since the COVID-19 pandemic, Gen Z vs overall, 2022
- Allow physical stores to shine with a little bit of digital sparkle
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- Figure 2: Online vs in-store shopping preferences, Gen Z vs Millennials vs overall, 2022
- Celebrate “flaws” to increase relatability
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- Figure 3: Traits that would make consumers feel better represented in advertising, Gen Z vs overall, 2022
- Challenges
- Gen Z are not yet responsible for all of their financial decisions
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- Figure 4: Expense and spending responsibilities, Gen Z, 2022
- Gen Zs show less optimism toward the future
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- Figure 5: Attitudes on future outlook, Gen Z vs Overall, 2022
- Key consumer insights
- Gen Z adults are focused on future financial goals
- For Gen Z, learning new skills is more important than ever
- Community involvement can count as self-care
- Gen Z adults prefer materials over experiences
Market Factors and Current Opportunities
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- Gen Z is more diverse and should be represented as such
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- Figure 6: Distribution of generations by race, 2021
- Figure 7: Distribution of generations by Hispanic origin, 2021
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- Figure 8: LGBTQ+ self-identification by generation, 2022
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- Figure 9: New way we're fighting discrimination on Airbnb, 2020
- Mental health cannot be ignored
- Pandemic uncertainty accelerated the growing mental health crisis – especially among Gen Z teens
- Social media also plays a major role in the mental health of developing minds
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- Figure 10: Toxic Influence: A Dove Film | Dove Self-Esteem Project, 2022
- Figure 11: Dove Instagram post, 2022
- Economic factors are only adding to Gen Z’s uncertainty
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- Figure 12: Consumer Sentiment Index, 2007-22
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- Figure 13: Perceived financial health by generation, 2022
- Figure 14: Employment status, Gen Z vs overall, 2022
- Beyond offering low prices, brands must teach Gen Z how to save
- Partnering with financial brands can show Gen Z how to build wealth
- Buy-now-pay-later options can offer more control, but aren’t without risk
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- Figure 15: Sezzle Instagram post, 2021
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- Figure 16: Sezzle Instagram post, 2022
Marketing to Gen Z: Fast Facts
Spending Priorities
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- Gen Z is still on the journey to financial Independence
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- Figure 17: Expense and spending responsibilities, Gen Z, 2022
- Expense responsibilities vary by gender
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- Figure 18: Expense and spending responsibilities, Gen Z men vs Gen Z women, 2022
- Gen Z men are embarking on independence earlier, financial guidance is needed
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- Figure 19: Realworld Instagram post, 2022
- Gendered differences extend past necessary expenses
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- Figure 20: Spending spree categories, Gen Z men vs Gen Z women vs overall, 2022
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- Figure 21: Downy Philippines Facebook post, 2021
- Entertainment matters most to Gen Z men
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- Figure 22: Spending spree, entertainment/gaming, Gen Z men vs Gen Z women vs overall, 2022
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- Figure 23: Mindcraft and Lacoste Instagram post, 2022
- Figure 24: Lacoste Instagram post, 2022
- Spotlight on Gen Z teens – Teen spending priorities
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- Figure 25: Teen spending attitudes – “better to spend on experiences rather than things” and prioritizing lowest price when shopping, 2022
Personal Priorities
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- Unsurprisingly, future goals are focused on gaining independence
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- Figure 26: Aspirations for the next five years, Gen Z vs overall, 2022
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- Figure 27: Realworld Instagram post, 2022
- Prepare Gen Z for home ownership
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- Figure 28: Aspirations for the next years – Purchase a living space, Gen Z vs overall, 2022
- Partner with home brands to build the relationship beyond the purchasing phase
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- Figure 29: Etsy | Why Buy Boring, 2021
Priority Changes Since the COVID-19 Pandemic
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- Financial and mental health have come into greater focus
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- Figure 30: Priority changes since the COVID-19 pandemic, Gen Z vs overall, 2022
- Financial institutions can help Gen Z tackle a common source of stress
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- Figure 31: SoFi Instagram post, 2020
- Gen Z is eager to learn; brands should be eager to teach them
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- Figure 32: Prioritizing “learning new skills” more since the COVID-19 pandemic, Gen Z vs overall, 2022
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- Figure 33: Kostministeriet Facebook post, 2020
- Use the latest technology to help Gen Z men become more involved in activism
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- Figure 34: Prioritizing “staying informed about current issues” and “keeping up with new technology more” since the COVID-19 pandemic, 2022
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- Figure 35: The People of Crypto Lab Instagram post, 2022
Prioritizing Self-care
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- Help Gen Z celebrate all of life’s little moments
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- Figure 36: Changes in self-care priorities since before the COVID-19 pandemic, Gen Z vs overall, 2022
- Food and drink brands are especially well positioned to offer self-care moments
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- Figure 37: Vosgeshautchocolat Instagram post, 2022/21
- Promote social activism as a form of self-care
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- Figure 38: Changes in self-care priorities since before the COVID-19 pandemic – Getting more involved with my community, Gen Z vs overall, 2022
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- Figure 39: Longwalks Instagram post, 2022
Sense of Control and Outlook on Personal Future
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- Set Gen Z up for future success to help counteract uncertainty
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- Figure 40: Attitudes on future outlook, Gen Z vs Overall, 2022
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- Figure 41: Mindright Instagram post, 2022
- Spotlight on Gen Z teens – Teens show greater optimism toward the future
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- Figure 42: Select teen attitudes – Optimism about the future and missing out on experiences due to the pandemic, 2022
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- Figure 43: Chatime Australia Instagram post, 2022
- Aging is a greater concern for Gen Z women
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- Figure 44: ‘I am okay with the idea of aging’ (any agree), Gen Z women and Gen Z men vs overall, 2022
- Marketers are responsible for showcasing more realistic and attainable beauty
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- Figure 45: Dove Instagram post, 2022
Marketing to Gen Z – Shopping Preferences
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- Gen Z can help keep the heat on in-person shopping
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- Figure 46: Online vs in-store shopping preferences, Gen Z vs Millennials vs overall, 2022
- Offer more sustainable options to satisfy Gen Z’s desire for low-cost tangible goods
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- Figure 47: Select shopping preferences, 2022
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- Figure 48: Buy Better. Wear Longer | Levi's®, 2021
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- Figure 49: Madewell Instagram post, 2022
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- Figure 50: Nuuly Instagram post, 2022
- Figure 51: Crocs Instagram post, 2021
- Brands need to help grow the financial confidence of Gen Z women
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- Figure 52: Preferences in price and quality, Gen Z women vs Gen Z men, 2022
- Financial brands are in the best position to offer guidance
- Buy-now-pay-later options can expand the purchasing power of Gen Z women
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- Figure 53: Klarna Instagram posts, 2020/21
Marketing Relatability and Representation
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- There’s still work to be done in terms of relatable advertising
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- Figure 54: Traits that would make consumers feel better represented in advertising, 2022
- “Flaws” of all sorts should be celebrated
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- Figure 55: Lila Moss Instagram post, 2022
- Greater representation in ads is imperative to resonate with Gen Z women
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- Figure 56: Traits that would make consumers feel better represented in advertising, by gender, 2022
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- Figure 57: All Our Moves, 2021
Future Opportunities and Strategies
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- Meeting the needs of Gen Z through the lens of the Identity Trend Driver
- Challenging gender norms can help validate personal identity
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- Figure 58: Bonds Instagram post, 2022
- Meeting the needs of Gen Z through the lens of the Wellbeing Trend Driver
- Address consumer mood as the focus on mental health increases
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- Figure 59: Dose Instagram posts, 2021
- Meeting the needs of Gen Z through the lens of the Technology Trend Driver
- Embrace technology to help build Gen Z’s confidence
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- Figure 60: Long Game Instagram post, 2021
- Figure 61: Truist Instagram post, 2021
Appendix – Data Sources and Abbreviations
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- Data sources
- Consumer survey data
- Consumer qualitative research
- Direct marketing creative
- Abbreviations and terms
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