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This shopper marketing report from PSFK outlines key strategies that help brands and retailers connect with an advertising-adverse generation of consumers.
The rise of Generation Z, born between 1997 and 2012, marks a shift in consumer behavior and expectations. This demographic, now comprising a quarter of the population, is characterized by their desire for authenticity, community and social impact. In contrast to previous generations, they are digital natives who have grown up in a world of social media and instant gratification, and as a result, they respond far less to traditional advertising and marketing strategies.
Gen Z is also a socially conscious and environmentally aware generation. They are deeply concerned about the state of the world and are looking for brands that align with their values and beliefs. They expect brands to take a stand on social and environmental issues and to positively impact society. They also place a high value on transparency, authenticity, and community. They want to know where their products come from, how they were made, and what the brand stands for beyond the products or services they offer.
In response to these wants and needs, brands and retailers are shifting their focus from traditional marketing to more authentic and community-driven strategies. They are leveraging social media and other digital platforms to connect with Gen Z in a more personal and meaningful way. They are also adopting new business models such as resale, rental, and subscription to offer more sustainable and flexible ownership options. They are involving Gen Z in product development and positioning them as collaborative stakeholders. They are also building brand communities that celebrate shared values and identities.
This report delves into the unique characteristics and values of Gen Z, and how brands and retailers can effectively engage with this demographic. The report is divided into three sections:
The Gen-Z Landscape section provides an overview of the cultural and societal influences that shape Gen-Z’s perspective and behavior. The Opportunity Levers section examines the key areas where brands and retailers can connect with Gen-Z, such as sustainability and social impact, community building, and transparency. The Brand & Retailer Strategies To Engage Gen-Z section explores the specific tactics and approaches that successful brands are using to build deeper connections with Gen-Z, such as involving them in product development and offering fluid ownership options.
This report, written by leading trends and innovation agency PSFK, is designed to provide brands and retailers with a comprehensive understanding of Gen-Z and the strategies they can use to effectively engage with this consumer group.
Brands and retailers are engaging with and rewarding their Gen Z customers in new and innovative ways, positioning them as collaborative stakeholders in the product development process.Amp Up The Immersive World Experience
As Gen Z continues to navigate the metaverse and virtual worlds, brands and retailers are creating playful and engaging spaces to enhance their experience.Design Digital Identities
With virtual spaces taking on greater timeshare among Gen Z, brands and retailers are recognizing the importance of creating services and platforms that allow consumers to design their digital identities and own items in those spaces.
Web3 project .SWOOSH Studio welcomes creators to help co-create products with NIke. Four winners will be picked from submissions to work with Nike designers to bring their concepts to life in a virtual creation. There's a cash prize, and as Nike gets closer to launching their collection, there is the possibility Nike will also add the creation to their collection and allow the co-creators to earn royalties from it. It's a first step to unlocking true co-creation across our Nike community where our members can benefit alongside us.Spotify merges gaming, co-creation and music in virtual world
Spotify Island, a branded plot of virtual land on popular gaming platform Roblox, allows music fans of all generations to interact with the music streaming platform in a whole new way.Highstreet X 8-Bit Streetwear Transforms Clothes Into Metaverse Portals
Streetwear brand 8-Bit’s apparel can be found in Neiman Marcus (global), Saks Fifth Avenue (global), Harvey Nichols, Selfridges, Harrods, Bloomingdale’s US, Fred Segal, Beymen, and more, both in-store and online. During an August, 2022 drop, these department stores became portals to Highstreet World. By purchasing 8-Bit garments, customers were able to digitally clone themselves and their clothing into the Highstreet World metaverse through the use of a key infused into each limited-edition garment. The key, in the form of a QR code, can be scanned to guide customers through the process. Additionally, customers also receive a starter pack of $HIGH tokens, the native currency of Highstreet World, to further enhance their experience in exploring this new digital frontier.