Shopping More, But Trusting Less: Understanding the Post-Corona Gen Z Consumer

Today, the Gen Z consumer is shopping more online, trusting brands less and taking control of their future with side hustles that include becoming creators for brands whose values align with theirs. Within these behavioral changes are opportunities for future-focused brands to drive growth and deepen relevance with what has become the largest generation on earth.

Representing 32% of the global population, Gen Z had now surpassed both millennials and Baby Boomers. They have $143 billion in spending power and increasingly, that spending is happening online. According to YPulse, 82% of young consumers say they are spending more online than before the pandemic and 64% plan to continue doing so. While Covid-19 accelerated digital adoption across generations, some of the most sizable shifts (including the rise of social commerce) were led by Gen Z. The number of US social commerce buyers grew by 25.2% in 2020 reaching 80.1 million, a trend that’s expected to continue well beyond 2021.

Winning over Gen Z consumers is no easy feat however as 57% say they are less loyal to brands now than before the crisis. Nearly a third say that they unfollow, hide, or block brands on social media at least weekly – a higher percentage than any other generation. Strategically integrating UGC is one way brands are building trust and engagement. Nike did this well in a TikTok campaign where the audience had a chance to win a pair of #MagicBoots by uploading a video of their best football trick to impress creator Ben Black. The branded hashtag campaign reached 317M video views, generated 160k video entries, and boosted Nike’s following by 215k.

While provocative storytelling like Proctor and Gamble’s recent short film on racial justice called "The Choice" is a strong start to amplifying their values, brands need to back up their content with actions that show a deeper, ongoing commitment. This could include creating campaigns that are inclusive from the start, such as collaborating with BIPOC and/or LGBTQI Gen Z creators across a range of follower sizes. This speaks to their passion for entrepreneurialism and authenticity while being significantly more effective than brand-led messaging alone.

With 86% of Gen Z and millennials saying they would post sponsored content for money, and 54% open to being an influencer if given the opportunity –– it’s time for brands to shift their thinking from selling to Gen Z and consider selling through Gen Z.

This article originally appeared in the May 11th, 2021 issue of Moving Image & Content’s agency newsletter. Subscribe here