How To Connect with Gen Z This Holiday

With 70% of Gen Z consumers saying they are monitoring their spending more closely this holiday season as a result of the pandemic, brands need to work harder to win their business. While most young consumers plan to shop in-store this year, global supply chain issues are forcing many to scramble across channels to get everything on their list. This creates an opportunity for brands to meet them where they are and embrace innovation to provide value. This means leveraging social commerce, expanding payment options, and exploring new shopping experiences.

Holiday shopping inspiration for 87% of Gen Z shoppers will come from social media this year, specifically YouTube, Instagram and TikTok, reinforcing the role of video in driving commerce. While Instagram Reels are now fully shoppable, many Gen Zers are gravitating to TikTok, driving views for products tagged #ChristmasWishlist2021 (+49 million views) and #Christmas2021 (+920 million views). Holiday gift guides from the New York Post and Entertainment Tonight have embraced the trend, featuring recommendations solely from TikTok creators.

With 80% of TikTok users having bought something on Black Friday last year based on what they saw on the platform, brands like Converse, PacSun, Lululemon, Old Navy, Kate Spade, American Eagle and Charlotte Tilbury hope to translate their popularity into sales.

In the holiday race for relevance and revenue, brands are embracing alternative payment options. This includes the fast-growing, buy-now-pay-later sector led by Klarna, AfterPay and Affirm. More than 20% of Gen Zers plan to use these services this year, coinciding with a rise in crypto-currencies. Nearly one in five Americans, or 46 million consumers, say they would be likely to make a purchase with cryptocurrency, with over half of current or former cryptocurrency owners coming from Generation Z. As the first major teen retailer to accept Bitcoin and Ethereum, PacSun is signaling their solidarity with younger audiences this season. Additional brands now accepting crypto include Starbucks, ETSY, Subway, Whole Foods, Nordstrom, and Gamestop among others.

As an alternative strategy to break through this season, some brands are releasing NFTs to connect with curious consumers who have never purchased one. American Eagle for example is helping purchasers acquire their first NFT by offering 12 designs created by emerging creators Liam Eisenberg and Amy Perez around the themes of good vibes, uniqueness, and individuality.

To commemorate the purchase, each NFT comes with a real-life collectible in the form of a patch. A total of 120 NFTs were released for $1each on Bitski, an NFT platform that accepts credit cards to simplify the process. By only releasing 40 NFTs per day for a total of three days, FOMO helped the collection sell out quickly.

Heritage golf brand Original Penguin (now a Gen Z favorite) is combining three trends to stand out: augmented reality, TikTok and NFTs. In a first-of-its-kind campaign, the brand will launch eight TikTok videos as NFTs featuring Original Penguin avatars. Three of which will be developed by the brand, and five will be created by TikTok influencers including dancer Ciara Christine, NYC photographer Andreas Verrios, artist Dayan Torres, Gabriella Anouk and golf reviewer Andy Carter. Consumers can visit OriginalPenguinNFT.com on their mobile device to view and bid on the penguins in an AR experience. Proceeds will be donated to the brand’s nonprofit partner, Free Arts NYC.

Recognizing that Gen Z values the social aspect of IRL shopping, Charlotte Tilbury recently launched “Shop With Friends.” Here, up to four people can participate in a video chat and browse products in a virtual shopping experience. The brand also brings in a bit of gamification, encouraging users to find and collect hidden keys for various rewards. With virtual shopping avatars in development for 2022 and stores planned for Fortnite and Roblox, future-focused brands like Charlotte Tilbury will have the upper hand as shopping evolves across social media and into the metaverse.

Case Study:

Armani Beauty

For Armani Beauty’s new product Lip Power, Moving Image & Content created an immersive, influencer-led, digital experience to build product excitement among younger consumers. Utilizing a web-based interface, attendees navigated their way through a number of events and interactive experiences showcasing the Lip Power product and encouraging attendees to discover their own power. 

Attendees from 13 different countries tuned in to enjoy ASMR videos, a live artistry masterclass with celebrity makeup artist Molly R. Stern, a L'Oreal Virtual Makeup Try-On Experience, an inspired performance by New York City Ballet dancer Lauren Lovette, and lastly, an empowerment panel featuring Meena Harris, Cleo Wade, and Barbara Palvin. 

In the News:

Time Magazine – Commentary by Quynh Mai, MI&C Founder & CEO

"Ryan is bar none the crown prince of YouTube"

– Quynh Mai, MI&C Founder & CEO

This article originally appeared in the November 16th, 2021 issue of Moving Image & Content’s agency newsletter. Subscribe here.