Table of Contents
Executive Summary
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- The issues
- The fundamental values of Gen Z differ – even from Millennials
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- Figure 1: Top five most important values Canadians should have, Gen Z vs Millennials vs older generations, June 2019
- The future looks uncertain as Gen Z strive towards financial stability
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- Figure 2: Stressors, Gen Z vs older generations, June 2019
- Gen Z shopping with their morals as they see brands representing who they are
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- Figure 3: ‘The brands I use reinforce the image I want to portray’ (% any agree), Gen Z vs older generations, June 2019
- Opportunities
- Inclusion and representation matter as the generation is diverse on multiple levels
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- Figure 4: Ethnic makeup, Gen Z vs older generations, June 2019
- Gen Z women: providing a sense of belonging in-person is a matter of mental wellness
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- Figure 5: Attitudes and impact of social media usage, Gen Z women vs Gen Z men, June 2019
- Big brands: build hobby-based communities to continue winning with Gen Z men
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- Figure 6: Attitudes towards big brands, Gen Z men vs overall June 2019
- What it means
The Market – What You Need to Know
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- Adult Gen Z comprise a tenth of the Canadian population
- Gen Z are the most ethnically diverse generation to date
Market Factors
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- One in 10 Canadians are adult Gen Z
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- Figure 7: Canadian population, by age group, 2018
- Gen Z are the most ethnically diverse generation to date
- Immigration is the primary driver of population growth
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- Figure 8: Distribution of foreign-born population in Canada, by region of birth, 1871 to 2036
- Gen Z are much more ethnically diverse than all older generations
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- Figure 9: Self-identification of ethnicity, by generation, June 2019
- More diversity means a different ‘face’ of ‘mainstream Canada’
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- Figure 10: “I am part of mainstream Canada” (% agree), by generation, January 2018
Key Players – What You Need to Know
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- Free and real content is winning
- Legacy brands hold weight with Gen Z men
- Commitment to values must run throughout the entire organization
- Traditional loyalty programs are missing the mark
- Remember, Gen Z are a product of their environment
What’s Working?
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- Free content is winning
- YouTube ranked as a top three favourite brand for Gen Z
- Streaming videos is a part of everyday life
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- Figure 11: Frequency of watching free videos, Gen Z vs older generations, January 2019
- Speaking of content, let’s get real
- TikTok is taking off with Gen Z
- Online video gaming is time worth spending
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- Figure 12: Attitudes towards gaming, Gen Z men vs overall, November 2018
- Surprise! Big brands are winning with Gen Z and Millennial men
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- Figure 13: Attitudes towards big brands, by age and gender, June 2019
- Scaling down products to adapt to modern interests: spotlight on Bose
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- Figure 14: Bose, March 2018
- Modernizing offerings to adapt to modern interests: spotlight on Garmin
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- Figure 15: Introducing the fēnix 6 series, August 2019
What’s Not Working?
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- Woke washing – values/ethics must cut across all business levels
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- Figure 16: “I care if brands/companies represent my personal values”, Gen Z vs older generations, June 2019
- Today’s ‘on display’ culture means commitment to values has to happen at all levels
- Spotlight on SoulCycle and Equinox
- Traditional loyalty programs are missing the mark with Gen Z
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- Figure 17: Influence and perceptions of loyalty programs, Gen z vs older generations, April 2019
- Gen Z men: Amazon Prime is upping the ante for all retailers
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- Figure 18: Select attitudes towards loyalty programs (% any agree), men 18-24 vs overall, April 2019
What’s Next?
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- Career goals reflect changing times
- The issue of balance may become a greater focus
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- Figure 19: Experienced stress and anxiety in the past year, Gen Z vs older generations, May 2019
The Consumer – What You Need to Know
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- Gen Z are in a unique lifestage
- Gen Z are financially minded and uncertain about the future
- In-person time matters
- The fundamental values of Gen Z are different than older generations
- Reliance on tech leaves them feeling more isolated
Getting to Know Today’s Gen Z
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- Most aren’t adulting yet so mindset will be more self-oriented
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- Figure 20: Key demographics: student status, living independently, coupled and parent status, Gen Z vs older generations, June 2019
- Attracting Gen Z by meaningfully linking broader interests: spotlight on Amazon Prime
- Student status makes traditional loyalty programs a challenge
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- Figure 21: Perception of financial situation, Gen Z vs older generations, June 2019
- Raise the game by supporting causes that matter
- Diversity is the norm, inclusivity matters
- Gen Z are the most ethnically diverse generation to date
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- Figure 22: Ethnic makeup, Gen Z vs older generations, June 2019
- Impact: diversity creates opportunities, but some ‘traditions’ need to be re-examined
- Lifestyles are also more diverse, inclusion needs to go beyond the rainbow logo
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- Figure 23: Identifies as being part of the LGBT+ community, Gen Z vs overall, June 2019
- Improving business practices to be more inclusive: spotlight on MasterCard and Lyft
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- Figure 24: True Name, June 2019
Stressors and Goals
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- Gen Z are financially minded and uncertain about the future
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- Figure 25: Goals hope to achieve in next five years, June 2019
- Uncertainty looms, opening up opportunities for financial institutions
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- Figure 26: Stressors, Gen Z vs older generations, June 2019
- Weighed down by financial concerns, Gen Z women feel behind
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- Figure 27: “My life isn’t where I thought it would be at this point” (% any agree), Gen Z women vs overall, June 2019
- Consider incorporating mental health as a component of financial education
- Let’s talk about money management: spotlighting SoFi
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- Figure 28: Money Talks Story #1 – Sophia + Imran, December 2018
- Figure 29: Money Talks Story #2 – Alyssa + Keith, December 2018
- Women and money: spotlighting Visa
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- Figure 30: Money is Changing: The Cost, February 2019
- Figure 31: Money is Changing: Pay equality in Hollywood, February 2019
Favourite Activities
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- In-person time matters
- Tech reliance doesn’t necessarily mean a preference for alone time
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- Figure 32: Attitudes towards socializing (% any agree), Gen Z vs older generations, June 2019
- In-person time with friends and family are favourite activities for Gen Z
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- Figure 33: Activities enjoyed the most (any rank), Gen Z vs older generations, June 2019
- Activity preferences differ for Gen Z men and women
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- Figure 34: Activities enjoyed the most (any rank), Gen Z men vs Gen Z women, June 2019
- Gen Z women: in-person social time counts for more, possibly out of necessity
- Showcasing togetherness: spotlighting Corona
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- Figure 35: Together, March 2019
- Friends that watch together stay together: consider promoting ‘binge’ nights
- Building communities from common interests will win over Gen Z men
- If you build it, they will come - consider promoting video game meet ups
Connecting with Gen Z Values
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- The fundamental beliefs of Gen Z are unique from all other generations
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- Figure 36: Top five most important values Canadians should have, Gen Z vs Millennials vs older generations, June 2019
- Emphasis on a willingness to change – in their words
- Gen Z are a product of their time: they’re paying attention and thinking critically
- Diversity is the norm - differences are embraced, not ‘tolerated’
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- Figure 37: ‘Sense of community’ and ‘tolerance’ as the most important value Canadians should have, Gen Z vs older generations, June 2019
- Gen Z hold a more global view of people and categories
- It’s personal - brands represent who they are
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- Figure 38: ‘The brands I use reinforce the image I want to portray’ (% any agree), Gen Z vs older generations, June 2019
- Brands that ‘walk the walk’ are noticed – in their words
- Gen Z are paying attention to social and environmental issues
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- Figure 39: Issues concerned about, Gen Z vs Millennials vs older generations, June 2019
- Affordable education and diversity matter to Gen Z…
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- Figure 40: Trixie Mattel Presents Home of the Brave: Getting Ready, June 2019
- …so does climate change and waste reduction
- Finding ways to close the loop: spotlight on Adidas
- Choosing commitment to values over profits: spotlight on Patagonia
Impact of Living ‘On Display’
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- Greater digital connection leaves Gen Z feeling more isolated and judged
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- Figure 41: Attitudes and impact of social media usage, Gen Z vs Millennials vs older generations, June 2019
- The impact of living ‘on display’ is hitting Gen Z women harder
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- Figure 42: Attitudes and impact of social media usage, Gen Z women vs Gen Z men, June 2019
- Gen Z have less ‘anchor’ points for self-identity
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- Figure 43: Correspondence analysis – Symmetrical map – Generational perspectives, June 2019
- Building communities around other ‘identity anchors’ will matter
- Bonding over loss: spotlight on Pet Loss Café
- Want to work out your mental health? Spotlight on the Fika emotional fitness app
Appendix – Data Sources and Abbreviations
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- Data sources
- Consumer survey data
- Consumer qualitative research
- Correspondence analysis
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- Figure 44: Generational perspectives, June 2019
- Abbreviations
- Terms
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