CONSUMER TRENDS
Gen Z vs. Gen Alpha:
Unravelling the Consumer Behaviour of Tomorrow
Manuka Biologicals – 7 minutes read
In the fast-evolving landscape of consumer behaviour, brands must decode the generational nuances to stay relevant and appealing to new markets. Today, we delve into the unique consumer behaviours of Gen Z and Gen Alpha, uncovering how these digital natives are redefining the future of commerce.
Who Are Gen Z and Gen Alpha?
- Gen Z: Born between 1997 and 2012, Gen Z represents the first cohort to grow up immersed in the internet and social media. They prioritize authenticity, social justice, and digital convenience.
- Gen Alpha: Born from 2013 onwards, Gen Alpha is maturing in an era dominated by advanced technology, artificial intelligence (AI), and global connectivity. This generation is set to become the most educated and diverse yet. The word Alpha in Greek means ‘something new’, often alluding to someone that asserts dominance, perfectly encapsulating Gen Alpha’s bold nature.
Key Consumer Behaviors of Gen Z
- Digital Natives: Gen Z consumers are exceptionally tech-savvy, having grown up with smartphones and social media. They expect seamless digital experiences and quickly adopt new technologies. Talon. One reports that 74% of Gen Z spend their free time online, particularly on platforms like Instagram, TikTok, and YouTube.
- Value Authenticity and Transparency: This generation is sceptical of traditional advertising and prefers brands that are genuine and transparent about their values and practices. They support brands aligning with their personal values, especially those committed to social and environmental causes.
- Influence of Med Spas and Facial Bars: The beauty and wellness industry is thriving among Gen Z consumers. Facial bars and med spas attract this demographic by offering personalized, high-tech skincare solutions. According to the Kline Group, these services appeal to Gen Z by combining relaxation with cutting-edge treatments.
Key Consumer Behaviors of Gen Alpha
- Born into Technology: Gen Alpha is immersed in technology from birth, accustomed to interacting with voice assistants, smart devices, and AI-driven platforms. Their shopping habits are anticipated to be significantly influenced by these technologies, as highlighted by BeautyMatter.
- Parental Influence: Despite their young age, Gen Alpha has a considerable impact on their parents’ purchasing decisions. They are involved in family shopping, especially for tech products, toys, and fashion. WWD notes that this influence shapes how brands market to both Gen Alpha and their millennial parents.
- Spending Power and Trends: Gen Alpha’s spending power is already noticeable, with many receiving allowances or monetary gifts spent on digital entertainment, gaming, and trendy apparel. BBC analysis indicates that this generation gravitates towards online platforms and experiences that offer immediate gratification and customization.
- Desire for Multifunctional Products: Both Gen Z and Gen Alpha show a preference for multifunctional products that combine various benefits into a single solution. This demand reflects their fast-paced lifestyles and desire for convenience and efficiency.
- Mānuka Oil as a Multifunctional Solution: Mānuka oil, renowned for its antimicrobial, anti-aging, and antioxidant properties, aligns perfectly with the preferences of both generations. As consumers increasingly seek products that deliver multiple benefits, mānuka oil stands out in the beauty and wellness industry. Its antimicrobial properties make it an excellent choice for maintaining clear skin, while its anti-aging and antioxidant effects help protect and rejuvenate the skin. Incorporating mānuka oil into skincare products can attract these tech-savvy, health-conscious consumers by offering a comprehensive solution to their beauty needs.
Data-Driven Insights
- Social Media Usage: Both generations spend significant time on social media, but their platform preferences differ. Gen Z favours Instagram and TikTok, while Gen Alpha is more inclined towards video content on YouTube and interactive gaming platforms.
- Purchasing Influences: Gen Z is driven by peer reviews and influencer recommendations. In contrast, Gen Alpha relies on immersive digital experiences and parental guidance.
- Brand Loyalty: Authenticity and sustainability are crucial for gaining Gen Z’s loyalty, while Gen Alpha values brands offering innovative, tech-driven products and experiences.
Detailed Consumer Insights on Gen Alpha
Parental Positioning:
- 79% of Gen Alpha parents are millennials, the generation poised to be the richest in history.
- 49% of Gen Alpha parents estimate that half of all household spending is impacted by their child’s opinions.
- $45 is the average amount of pocket money the typical Gen Alpha child spends weekly ($2,340 annually), with 35% frequently buying beauty products.
- 95% of millennial parents learn about new brands, products, or services from their Gen Alpha child.
Mini but Mighty Money Managers:
- 90% of Gen Alpha are already earning their own money in at least one way.
- 73% receive money for positive reinforcement, such as rewards for good grades and behavior.
- 36% make money from online selling or reselling.
- 98% of parents are already teaching their children budgeting lessons, with 89% stating their child understands the basics.
- 41% of parents are creating investment strategies with their child.
- 39% share consumer apps/logins that allow purchases with their child.
- 37% share a finance app or banking account with their child.
Spending Savvy:
- 92% of parents say their child is great at finding interesting new products.
- 91% say their child loves to shop.
- 84% say their child surprises them with their shopping-savvy tactics.
- 76% believe their child is better at making consumer decisions than they were at the same age.
Conscious Consumers:
- 69% of parents believe their child understands the concept of corporate values.
- 66% state their child pushes them to give charitable donations.
- 69% say their child expresses preferences about social causes.
- 68% hear their child expressing preferences about diversity, 63% about sustainability, and 42% about politics or voting.
An Attentive Audience:
- 87% of parents say their child is attentive to specific retailers, including Amazon, Walmart, and Sephora.
- 69% state their child gravitates towards high-end and luxury brands.
- 64% say their child is likely to buy from the same specific brands.
- 40% claim they now buy more ultra-luxury brands due to their child’s influence.
Digital Is Desirable:
- 77% of parents say their child is a screen addict.
- 94% state they’re paying more attention to online influencers to understand how they impact their child.
- 64% are likely to look up products on social media due to their child doing so.
- 46% have begun following more influencers due to their child doing so.
- 54% say they are more likely to make purchases driven by social media or influencers as their child does so.
- 55% believe their children will eventually depend on AI to shop, with 35% having already done so.
- 37% have used try-on technology because their child has.
“We are only just beginning to understand this audience of pre-adolescents transitioning to teens but early observations are that they are a gateway, they have the attention of and influence over household leaders,” reads the DKC News report.
Not only are Gen Alpha impacting the industry with their own purchases, but they are also influencing their predominantly millennial parents, contributing further to the choice to spend disposable income in the beauty sector. The generation is much like Gen Z, socially conscious and tech-savvy, with a great breadth of knowledge on how to spend their money wisely.
“If captured, brands can form a connection that grows alongside these influential shoppers, creating impact for years to come. And in today’s age of unpredictability, the power of that potential is endless,” the report concludes.
Conclusion
Understanding the consumer behaviors of Gen Z and Gen Alpha is crucial for brands aiming to capture these influential markets. By embracing technology, authenticity, and personalized experiences, businesses can effectively engage with these younger generations and build lasting relationships.
Furthermore, incorporating multifunctional products like those containing manuka oil can significantly appeal to both generations. Manuka oil’s antimicrobial, anti-aging, and antioxidant properties make it a standout ingredient that meets the diverse needs of Gen Z and Gen Alpha consumers.
For more detailed insights, refer to these sources:
Talon.One: Gen Z Consumer Behavior
Kline Group: How Facial Bars and Med Spas Are Attracting Gen Z Consumers
BeautyMatter: How Gen Alpha Spends Its Money
BBC: Gen Alpha Spending Power and Shopping Trends