uniquely gen z

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UNIQUELY GEN Z

JANUARY 2017

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GEN Z’S INFLUENCE ON HOUSEHOLD SPENDING

In the U.S. alone, consumer spending on Gen Zers totaled a whopping USD $829.6 billion in 2015. *

60%

55%

41%

20%

30%

48%

61%

63%

37%

47%

77%

66%

73%

76%

Influence family spending

Clothes and shoes

Books and music (physical copies)

Apps

Toys and games

Events and outings

Personal care

Electronic goods

Eating out

Digital streaming

Sports equipment

Food and beverages

Travel

Household goods

Furniture

77%

77% of Gen Zers say they influence their families’ food and beverage purchases.

Gen Zers have significant influence on family spending.

* “Gen Z: Get Ready for the Most Self-Conscious, Demanding Consumer Segment.”Fung Global Retail & Technology. August 29, 2016.https://fungglobalretailtech.com/research/gen-z/

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Gen Zers are an online generation, but also spend substantial amounts of time with friends and family

74%Spend time online

Watch TV and movies

Hang out with my friends

Spend time with my family

Try to earn extra money

Read books, magazines, newspapers

Exercise or keep �t

Participate in extracurricular activities

Learn new things

Volunteer

Participate in religious activities

Participate in organized group activities

25%

7%

8%

44%

44%

44%

29%

23%

23%

6%

22%

TECHNOLOGY IS SECOND NATURE TO GEN ZAs the first true digital natives, Gen Zers have never known a world without the Internet and mobile devices.

Gen Zers expect to move seamlessly between physical and digital worlds, and are less tolerant of technical glitches than Millennials.

How Gen Zers spend their free time.

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Those ages 19 to 21 make up the dominant group of Gen Z smartphone users, while younger Gen Zers more often have access to a desktop computer.

Mobile/smartphone

75%Laptop computer

45%Desktop computer

30%Tablet

10%Xbox/gaming console

8%Interactive/smart TV

3%Wearable devices

1%

Mobile/smartphone

75%Laptop computer

45%Desktop computer

30%Tablet

10%Xbox/gaming console

8%Interactive/smart TV

3%Wearable devices

1%

GEN Z’S MOST FREQUENTLY USED DEVICESMobile phones are the device of choice for Gen Zers.

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Texting dominates device activities and technological-performance expectations are high among this group.

Do schoolwork

Text and chat73%

Access entertainment

59%

Play games58%

36%

Learn newthings

28%

Shop and browse

17%

GEN ZERS USE DEVICES FOR A WIDE- RANGING MEDLEY OF ACTIVITIES

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QUALITY AND BRAND STANDARDS

Two-thirds of surveyed Gen Zers said quality is the most important factor when choosing one brand over another.

It matters to me that the brand sells high-quality products

66% agree:

46% agree:

45% agree:

My friends’recommendations and opinions matter to me when I am choosing a brand

65% want:To get a lot for their money, with discounts, coupons and a rewards program

I choose brands that are eco-friendly and socially responsible

Very few products to ever be out of stock

66% want:

The store experience to be fun so they won't get bored

56%want:

Question: Thinking about the brands you like, to what extent do you agree with the following statements? Percentage who said “important” or “very important.”

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AVAILABILITY, VALUE AND EXPERIENCE

65% want:To get a lot for their money, with discounts, coupons and a rewards program

Very few products to ever be out of stock

66% want:

The store experience to be fun so they won't get bored

56%want:

Gen Zers tend to care more about retail basics than about the “bells and whistles.”

Question: Think about what makes you decide where to purchase a product. How important are the following to you?

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PERSONAL INFORMATION

Establishing trust with Gen Zers is vital when engaging with them as future customers. Before they share, they expect brands to be transparent about how their personal data will be stored and used.

My purchase history

62%My contact details

42%My online history

28%My photos and videos

28%My location

27%My health and wellness information

27%My personal life information

21%My payment information

18%

Offer secure storage andprotection of personal data

Provide clear terms and conditionsfor using my information

Explain clearly what data will becollected and how it will be used

61%

43%

39%

Gen Zers’ preference for protecting their personal information.Personal information Gen Zers said they’d be willing to share with a brand:

My purchase history

62%My contact details

42%My online history

28%My photos and videos

28%My location

27%My health and wellness information

27%My personal life information

21%My payment information

18%

Offer secure storage andprotection of personal data

Provide clear terms and conditionsfor using my information

Explain clearly what data will becollected and how it will be used

61%

43%

39%

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GEN ZER SOCIAL MEDIA USE

Gen Zers use social media mostly to share with friends. Social media is an important tool for Gen Zers; however, they restrict their posts to a tight circle of family and friends.

72%Comments on my friends posts

My photos and videos

My opinions

Blogs, articles or news

Reposts of other people’s content

Links to songs/playlists

My location

Reviews of products/restaurants, etc.

62%

45%

36%

31%

31%

23%

20%

Which of the following have you shared on social media in the last month?

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HOW GEN ZERS GET MONEY TO SPEND

Make moneyonline

Receive an allowance

59%

Workpart-time

24%

Receive moneyas gifts

22%

22%

Work formyself

16%

Work full-time9%

Motivated, creative and tech-savvy, Gen Zers have applied their entrepreneurial skills to create a new array of careers in the digital world –– using new capabilities that enable them to innovate.

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HOW GEN ZERS PREFER TO MAKE PURCHASESShopping in a store

Using a web browser

Usingan app

Callingby phone

67% 31%

22% 54%

35%

Most of the time Some of the time

20%5%

13%98 percent of Gen Zers make their purchases in bricks-and-mortar stores.

This may be due in part to the age of younger Gen Zers and lack of access to credit cards.

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Methodology:To understand what drives Gen Zers in choosing a brand, we surveyed 15,600 consumers aged 13 to 21 in 16 countries across six continents. We asked them about their digital habits, preferences in choosing a brand

and priorities in making purchases. We analyzed responses by age group, gender and market (growth versus mature). In addition, we conducted interviews with 20 senior executives in the consumer industry.

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