Store Brands Industry Forum on Consumer Trends: Understanding Gen Z

Defined as those born between 1997 and 2012, Generation Z is becoming a growing consumer base as the group ages.

At the recent Store Brands Industry Forum on Consumer Trends, Morgan Drummond, senior director of Private Label at Misfits Market, and R.J. Hottovy, head of Analytical Research at Placer.ai, detailed the shopping trends of the group.

“There’s a good portion of them that are in the work force and earning more money… they have all this untapped spending power,” said Drummond. “And we’re starting to see this sizable portion of Gen Z that is still in school. This is the most racially and ethnically diverse generation to date, and with that, this generation has quite literally grown up with the internet at their fingertips.”

According to the experts, this experience with the internet has shaped the way many Gen Z shoppers buy products.

“This is really the first generation where omnichannel commerce is all they’ve ever known,” said Hottovy. “Which has opened up brand discovery and the way they get products. In a lot of ways that’s really changed how the retail store has developed.”

Hottovy added that among retailers, mass merchants have been able to connect with Gen Z, citing a balance to be struck between value and younger consumers wanting better-for-you, sustainable products. 

“Really they care about the product itself, and sometimes the retail venue becomes secondary,” he said. “The categories that do really well with this group are some of the mass merchants. Target, Amazon, in some cases Walmart does very well with this generation… groups like Target have done a great job capturing this group. They like brands that are very authentic.”

The full event can be viewed on-demand here.