In my last posting, “Who Is Generation Z and Why Should We Be Worried?” I wrote about “Generation Z” and the disruptive impact it is anticipated to have on consumer products companies and retailers. I learned about Generation Z in a Business Insider article by Hayley Peterson entitled “Generation Z Is A Complete Nightmare for Retailers.”
As the title of her article implies, Peterson thinks Generation Z is going to turn retailing upside down. Here is why:
- They don’t have brand loyalty. They care more about the product than who makes it.
- They have major spending power. Their $70 per month allowance computes to $44 billion dollars.
- They have outsized influencing power, having a lot to say about what toys, food and clothing the family purchases.
- They have shifted their spending from products to food and beverages. They would rather spend time at a coffee shop than at the mall.
- They have left the malls (teen visits are down 30% over the last ten years).
Actually, I don’t find this information worrying as much as intriguing. They have money to spend; love great product no matter who makes it and feel no need to go cluster in groups and scare the mall walkers.
In fact this generation, according to the article, loves great product so much as they love to share it with their friends and family. So what can we learn from this; how about that we need to spend more time and money making great products and less time and money trying to remind consumers of our brands.
Sounds good to me; what do you think?