2020 Vision: 20 Things You Need To Know About Gen Z Before 2020
Spending. Stress. Spotify.
Before you can say “OK Boomer”, the next decade will be here.
To help you enter 2020 with a more enlightened and empathetic view of Gen Z, here are 20 things you need to know before the new year begins…
1. Of the 3,000 Aussie Gen Z students we interviewed recently with Pollinate, 90% said: “It’s important that I learn real world/job ready skills when studying.”
2. Also from Pollinate’s nationwide research: 68% of Gen Zs are “stressed about life in general”.
Why?
- Uni’s expensive, so there’s a fear of failing/getting your money’s worth.
- Once they’ve graduated, landing a job is competitive and good roles are scarce.
- On an existential level, there’s that whole identity thing of figuring out who you are and what you wanna do.
3. As with all us other RRP-dodgers, our demographic actively seeks out discounts — but they only start to get really excited once they see 20% Off.
4. Eighty-one per cent of the 3,000 students interviewed around the country said they did product research online but would make the purchase either in-store or online—whichever had the best price.
As one University of Melbourne student pointed out during an October focus group: “It’s always the price point that matters when you’re shopping online because no one’s there to convince you to get it and you’re not touching the product and trying it out for yourself.”
5. For some students, online is the entry point, with the actual purchase occurring in-store. Two Melbourne undergrads told us:
“I spend a lot of time online shopping but don’t actually buy online that much. I look at stuff, then once I’ve figured out what I want, I’ll try to find it in-store.”
“I like shopping in stores because it’s more like an event for me and my friends.”
6. “Although four out of five respondents identify as bargain-hunters, the student discount culture isn’t nearly as established in ANZ as it is in the UK and US — UNiDAYS’ big sister markets. We need to do better at making student offers as clear to this audience as possible,” according to UNiDAYS APAC GM Prue Thomas.
7. “If I go out and spend $20 on lunch, I know that’s one hour of work—it kills me.” When it comes to making purchases, student shoppers are more judicious than you may think and will frame buying decisions in terms of hourly wages.
8. A ‘discount’ is perceived more as a ‘saving’, with the conclusion being that if you save $50 on clothes, that means $50 more in disposable income: a ‘save now to spend later’ approach.
9. What percentage of the 3,000-strong Pollinate panel gets stressed out by spending too much money? That’d be 81%.
10. Research from our New York office shows that 78% of students say the number-one thing they shell out money for (once tuition and bills are paid) is food. While the geography differs, the sentiment and behaviour doesn’t: local students we spoke with spent similarly on food.
11. When asked if they were “concerned with how other people perceive them”, 63% of the Pollinate group responded yes.
12. Gen Z have access to so much information and digital stimuli; they’re surrounded by so much branding and sociocultural noise; they have access to so many tools for creative experimentation—content creation isn’t a job for them, it’s their default mode.
“They’re buoyed by creative freedom in communication and a penchant for efficiency,” according to the JWT Intelligence report (in partnership with Snap Inc.) from June.
Gen Z are fast, fun, and also happen to be your audience. So, how can you compete in the content game? Try collaborating instead.
13. Earlier this year, Spotify paid upwards of $200 million to acquire podcast production house Gimlet. While Gen Z isn’t the most engaged podcast demo at present, they adore audio, so it’s worth exploring the podcast space. Especially now that Spotify’s got personalised podcast playlists.
Did we mention you can find our podcast, The BuZZ, on there?
14. One of our 100+ partners recently asked us: “In the case of two brands offering a similar product, what makes students choose to shop with one brand over another?”
Real and relatable positioning will give you an edge.
“Clothing brands are now using models that aren’t your typical model body shape. They’re trying to incorporate a lot of different body types in campaigns. It’s helpful to see clothing on someone like you,” a University of Melbourne marketing student told us.
If a brand’s values match those of a student shopper, they’re more likely to choose them over a competitor e.g. one Uni of Melbourne student shops at Uniqlo over better-priced fast-fashion alternatives because the company aligns with her stance on sustainability.
15. Another partner enquired: “What is more important to students: a discount or a GWP?”
The preference is: discount (ideally, a student exclusive), then GWP, then loyalty/rewards program.
Don’t underestimate the value of delivery and/or returns, though…
“I think it’s a big drawcard if companies have free returns or shipping,” a Melbourne student told us.
16. Streaming is beloved. Our various interviews found Spotify to be the app of choice for Gen Z, while the 2019 YouGov BrandIndex findings showed that Netflix is the most positively talked about brand among Aussies aged 18 – 34.
17. Across all our categories — Food + Drink, Beauty, Lifestyle, Fashion, Health + Fitness — from March 2018 to March 2019, members saved an average of $15.55 per transaction with us.
18. During an interview session at this year’s Youth Marketing Australia (YMA) Conference, Commerce/Arts student Millie Dalton told us that, apart from more money, the one thing that’d make student life easier is “more time in the day. I like to exercise and be outside. Between work, study, and other commitments, I find it a bit of a struggle to find time to get out, be active, de-stress”.
19. Biomedical Science student Kyle Williams also joined us onstage at the YMAs. Referring to Gen Z stereotypes, he said, “The biggest misconception is that we love tech and it’s the only thing we’re good at. We’re humans. We like to connect organically—not just message each other through screens 24/7.”
20. One final Kyle gem to end: “Short attention span is another stereotype that comes up a lot. I think we’re just better at filtering and making quick decisions about what we like and don’t like. We’ve got so much stuff coming at us all the time, we’d overload if we took it all in.”
