CWith the aging of the population and changes in purchasing habits, crucial clues are unfolding for various sectors. While age continues to influence preferences, the power of the younger generation to influence other generations is undeniable.
Generation Z, the emerging protagonist, shows remarkable changes, from a decrease in alcohol consumption (-23.9%) to a growing preference for vegetable protein. Their focus on convenience and prepared foods pose challenges and opportunities for brands as they must prepare their communication and distribution channels. However, brands must go beyond age, considering the diversity of habits and habits acquired within each generation. Segmentation according to attitudes and buying patterns becomes vital to attract new consumers and expand the product portfolio in some sectors.
Most telling is that Generation Z drives nearly 70% of shoppers to follow in their footsteps.In the last year, we have witnessed how global “macro forces” have impacted brands' businesses, and Generation Z is dragging all generations into its consumption pattern. Not surprisingly, 68% of consumers say that Generation Z influences their purchasing decisions, marking a 7-point increase over the previous year. In the 59+ age group, the baby boomers, there is a 13-point increase in this influence.
Consumers of all ages seek a constant relationship with brands, starting with the purchase decision, and their need for trust grows in times of vulnerability. In summary, understanding buyers and non-buyers goes beyond understanding market opportunities, it opens a new door to explore different communication and service channels for multitarget customers.
There are findings with gigantic potential. For example, traditional shopping behaviors continue to transform and it is no longer just younger shoppers who are transacting on their phones and looking to have their products delivered within an hour; consumers in their 40s and 50s are also doing so frequently. “Always-on shoppers” are leaning toward subscriptions and often favor shared access to products over outright ownership. This implies a sea change to the marketing we've known so far, especially in the way shoppers interact with brands. This has given rise to new business models such as online rental sites (Rent the Runway for fashion) and streaming services.
But this is not all, Generation Z's influence extends far beyond of consumption patterns to the way young people discover products. Print and billboard advertising is giving way to social media, with Instagram and TikTok being the epicenters for inspiration, especially in sectors where appearance plays a crucial role, such as fashion and beauty. The very interesting phenomenon is that user-generated videos on TikTok can catapult even Generation X and baby boomers.
Another important fact is the way in which people buy. Transactions that used to be impulsive, mainly among young people and women, are now the new norm, with the 58% of consumers doing more research before purchasing and buying less on impulse than a year ago. Concern for health, environmental and country-of-origin impact has become a key criterion for the64%, 55%, and 77% of consumers, respectively.
For those focused on performance and KPI's there are also generational changes. The traditional purchase funnel has lost effectiveness, with 78% of consumers now discovering brand loyalty after the first purchase. Safety emerges as the overriding demand, with a 73% increase in the search for brands that increase the feeling of safety, compared to a modest 9% in 2022, and this data will surely be decisive in gaining and retaining customers.
Faced with this scenario, brands must tune their behavior with actions that respond to the changes that generations have left along the way. The ultimate goal is to remain relevant in the midst of revolutionary transformations of form and substance; and this implies an essential challenge: media, messages, products, payment methods and user experience can be unified, but brand strategy remains autonomous and will determine the goal of differentiation.
Por Diego Jiménez
Publicado en P&M. https://www.revistapym.com.co/articulos/opinion/60721/diego-jimenez/71645/la-huella-de-los-mas-jovenes-en-el-consumo