New proprietary research from global consumer insight agency, InSites Consulting, reveals how brands can communicate and collaborate with this hyper-informed generation.
Accounting for one third of the global population, Generation Z have a collective disposable income expected to reach $33 trillion over the next decade. Brands cannot afford to ignore this generation; in fact, the future of businesses depends on them.
Gen Z (born between 1997 and 2012[1]) is an activist generation, a trait which comes to the fore in their expectations towards brands. In South Africa, they value brands that care about their own values as consumers (78%) and are authentic (75%) and inclusive (e.g. embraces all people regardless of race, sex or religion) (74%). In fact, 83% of Gen Z in South Africa believe that brands should help people to live a better life.
This desire to tackle social issues is also reflected in Gen Z’s purchase choices. Gen Z in South Africa are willing to pay more for brands that are black- or female-owned (55% and 48%) and use inclusive practices (77%). Moreover, they are willing to pay more for brands that try to have a positive impact on society (82%) and run their business in a sustainable way (78%).
Joeri Van den Bergh, NextGen expert at InSites Consulting, explains why brands should take note of this new insight into Gen Z: “This is a very important generation that will bring about change in society, not only because they want to, but because they have the skills to do so. Gen Z are much more vocal than their predecessors, but they are also vulnerable and are growing up in difficult times. They have an enormous need for guidance, especially from brands.”
Forty-five percent of Gen Z in South Africa feels stressed, which is mostly related to financial worries (58%), studies or jobs (54%), or family situation (45%). This is unsurprising given the current level of unemployment amongst young South Africans.
Despite this, there is an opportunity for brands to collaborate with this woke generation, on their terms: Gen Z in South Africa feel it is acceptable for social media sites and brands to use personal data to develop better products and services (71%) and service consumers better (71%). Meanwhile, 51% are willing to exchange some personal data for free services, discounts, or goodies.
Van den Bergh concludes: “The role of brands is more versatile than ever: as life coaches, as drivers of change and innovation, and as a means for Gen Z to express themselves. More than ever, brands have to stand for something meaningful and put that into practice.”
This new study will be unpacked further on Wednesday, 28 September at 10am SAST. Join Joeri Van den Bergh from InSites Consulting as he highlights how Gen Z consumers in South Africa are already shaping future behavior and influencing brands across fashion and beauty, financial services, automotive and more. To register, click here.
To explore the study in more detail, download the South African report ‘Ready for the Zoomers?’
[1] Due to ethical research guidelines in South Africa, the survey focused on 18 years and older (thus, 1997-2004).
