Gen Z and Their Parents as BuyersA Quad Infographic Study

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OVERVIEWHOW TO CONVINCE THE PARENTSGen Z…who can figure them out? They speak in #s and emojis. They’re the most digitally connected, mobile-savvy individuals…EVER. And they’ll give you about 8 seconds to grab their attention. But give them seamless, superfast, easy-to-navigate mobile-to-retail experiences—online and off—and you’ve got a bead on a savvy consumer with hundreds of billions in retail spending influence! This guide will identify key behavioral aspects and preferences of the first post-digital generation, who expect responsive, 1-to-1 connections in 3…2…1… oops, you missed them.

• Gen Z accounts for roughly 25% of the U.S. population.1

• With an estimated $44 billion in spending power, Gen Z may have less in comparison to other generations,but with their social influence, they’re still a pretty big retail deal.2

• While Gen Z may primarily be teens, they have a significant influence over family spending.• Gen Z is 80% influenced by social media when making purchase decisions.3

• Gen Z uses mobile devices mostly for social and mobile apps. They pretty much shun PCs or laptops toresearch and shop.

• Gen Z-ers are social beings. To reach them, you have to virtually talk to them in the moment—literally. Beresponsive or don’t bother.

• The unique characteristics and savvy shopping behavior of today’s connected teen requires a rich multi-channel media mix to reach her in a meaningful way.

Source 1: https://www.macalester.edu/news/2016/08/get-set-for-generation-z/ Source 2: https://nrf.com/media/press-releases/despite-living-digital-life-98-percent-of-generation-z-still-shop-store Source 3: http://www.retaildive.com/news/gen-z-twice-as-influencedby-social-media-as-by-deals/505274/

#

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The Under-18s. The Post-Digital Generation. The After-95ers. Call them what you will, but Gen Z is a force. At retail & at home. Now & future. Sure, their nearly $44 billion in yearly disposable allowance may not seem huge, generationally speaking, but they influence $600 billion in what parents spend on the fam, too. Born in the age of connectivity and weaned on mobile, this gen grew up not sucking thumbs, but socializing with them. And those thumbs never stop. Which means retailers can’t, either. Complete channel connectivity is the new norm. And by 2020, Gen Z will make up 40% of the population. Ready or not, they’re here!

GEN Z

#WhoAreThey?

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Gen Z – A Snapshot

72 MILLION Age 2–19 in 2015

LARGEST COHORT IN AMERICAN

HISTORY

Source:https://www.macalester.edu/news/2016/08/get-set-for-generation-z/Source: https://nrf.com/resources/retail-library/uniquely-gen-z

Source: http://www.retaildive.com/news/how-generation-z-is-transforming- the-shopping-experience/438194/ and http://time.com/4130679/ millennials-mtv-generation/ Source: https://www.macalester.edu/news/2016/08/get-set-for-generation-z/

Source: http://adage.com/article/cmo-strategy/move-millennials- gen-z/296577/

9% WORK

FULL-TIME

24% WORK

PART-TIME

Homeland generationFounders

ALSO KNOWN AS

Post-Millennials

Centennials

The iGenerationPluralsReGen

55% Non-Hispanic Caucasians24% Hispanic14% African American4% Asian4% Multiracial or Other

25% OF U.S. POPULATION

BEST educated population in history

To Become

the

Source: http://www.retaildive.com/news/how-generation-z-is-transforming-the-shopping-experience/438194/

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Even though Gen Z has a fair amount of retail sway, they’re still dependent on their Gen X parents—also dubbed “The Slacker Generation.” Slacker or not, they’re no financial flakes. Independently minded, they grew up in the age of HHs with 2 working parents, economic collapses, housing bubble bursts, and the era of divorce. In other words, they learned to have a no-nonsense sense of money. And they’re passing that sense of resourcefulness to their kids…simply because they had to.

GEN Z

Let’s Meet Z Parents

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The Parents – A Snapshot

1965–1981

55 MILLION (Age 36–52 in 2017)

64%MARRIED43% suburban 71% homeowners

55% COLLEGEGRADS 53%

78% employed

46% LIVED IN SAMECOMMUNITY

5–15 YEARS

55% Caucasian26% Hispanic12% African

American8% Other

DIVERSE GENERATION

54%HAVE KIDS

77% 2+ children

$75K+ Income

College Planning

LIFE CHANGERS

Home ownership

teenagers

Career Advancement

Savings & Investments

Car Purchases

Source: Quad Customer Focus® 2017 Research Study

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Gen Z is nothing if not resourceful. There’s nothing they can’t digitally discover, do, or buy. And they’re very independent buyers. In other words, they want what they want, not what you think they want. That might be why in addition to allowances, gift cards top the list of ways they determine what to purchase. And if they don’t have the pocket money and gift plastic to finance their wants, they have ways of making parents “help” buy things.

GEN Z

What Drives the Z-conomy?

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with 75% saying they spend more than half of the money that is available to them each month

$44 Billion

59% of Gen Z depends on an allowance for their spending money Source: http://www.retaildive.com/news/gen-z-wants-more-in-store-tech/505667/

Gen Z receives on average $16.90 per week in allowance Source: http://danschawbel.com/blog/39-of-the-most-interesting-facts-about-generation-z/#sthash.jQngDH4U.dpuf

Consumers in the U.S. spent $829.5 billion on Gen Z-ers (2015) Source:https://www.fungglobalretailtech.com/press-releases/gen-z-to-be-most-image-conscious-demanding-consumers-in-history-says-new-fung-global-retail-technology-report/

Gen Z Access to Spending Power =

Source: https://nrf.com/media/press-releases/despite-living-digital-life-98-percent-of-generation-z-still-shop-store

Source: https://advertising.yahoo.com/insights/over-looked-influence-gen-x

GEN Z – The Spend

Parents Hold31% of Total Income Dollars

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Gen Z and their Gen X parents are both pretty smart shoppers...each in their own way. But Z-ers have figured out that the path to their parents’ wallets can be shortened by proactively helping discover a deal or clipping a coupon for them. And because a large section of Gen Z is credit-less (primarily under 18), giving them a seamless connection from online to in-store…their ultimate retail destination…is pretty smart, too.

THE PARENTS

The Path to the Parents

10

69%

Ad In

sert

s &

Circ

ular

s

68%

Dire

ct M

ail

TV A

ds

55%

Cata

logs

49%

Mag

azin

e Ad

s

41%

Radi

o Ad

s

40%

Inte

rnet

Ads

39%Em

ail S

olic

itatio

ns

38%M

obile

Tex

ts

44%

Ad In

sert

s &

Circ

ular

s

52%

Emai

l Sol

icita

tions

Mob

ile T

exts

Inte

rnet

Ads

Radi

o Ad

s

Cata

logs

Dire

ct M

ail

61%

53%

28%27%26%

GEN Z – Their Parents Advertising, Gen Z Shopping

Advertising Their Parents Love Advertising Their Parents Ignore

60%

Source: Quad Customer Focus® 2016 Research Study

GEN Z PREFERRED PURCHASE CHANNELS

Source: https://nrf.com/resources/retail-library/uniquely-gen-z

Web Browser App Phone

67%

In-Store

Mag

azin

e Ad

s

39%

TV A

ds

40%

22% 13%

STORE

67% 5%

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Source: Quad Customer Focus® 2016 Research Study

Coupon Usage by Their Parents

14%Magazine Ads

48%Direct Mail

In-Store Display

25%

GEN Z – How Parents View Coupons & Offers

70%Printed Ad Inserts & Circulars

When there was a coupon included

37% Email

20%MobileText

Catalogs

15%

31%Internet Ads

34% Newspaper

23%Mobile App

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Raised on digital, it’s safe to say nearly all tweens and teens carry a smartphone. So it’s no surprise that Gen Z is constantly on. But growing up in a world of endless infotainment options does have its limits. Hint: time. So Gen Z-ers have learned to quickly sift and winnow to make social work for them—beyond just Snapchatting and Tweeting. They rely on social friends and bloggers to inform. They also expect brands they love to connect with them too. Snapchat, YouTube, Instagram…to most, they may be “social,” but to Gen Z, they’re also retail.

GEN Z

The Social-est Generation

13

95%

YouT

ube

69%

Inst

agra

m

Face

book

67%

Snap

chat

67%

Twitt

er

52%

Goo

gle+

37%

Pint

eres

t

33%

Tum

blr

29%

Twitc

h TV

Redd

it

Mus

ical

ly

Peris

cope

Mee

rkat

18%16%

14%

4%1%

GEN Z – Where Social Meets (and Beats) Retail

Gen Z Social Media Used

Gen Z Social Media They Can't Live Without

Source: http://www.adweek.com/digital/infographic-50-of-gen-z-cant-live-without-youtube-and-other-stats-that-will-make-you-feel-old/

Source: http://www.ibtimes.com/marketing-generation-z-millennials-move-aside-brands-shift-focus-under-18-customers-1782220

Gen Z Devices

Laptop iPad/iPod SmartphoneDesktopTV

24%GUYS WERE

more likely than girls to say they couldn't live without YouTube

50% YouTube

15% Snapchat

9% Instagram 9%

Facebook

6% Twitter

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SHOPPINGRECOMMENDATIONS HOW-TO INFO

Souce: http://www.adweek.com/digital/infographic-50-of-gen-z-cant-live-without-youtube-and-other-stats-that-will-make-you-feel-old/

Source: http://www.retaildive.com/news/gen-z-twice-as-influenced-by-social-media-as-by-deals/505274/

Source: http://www.retaildive.com/news/study-80-of-gen-z-purchases-influenced-by-social-media/447249/

Source: http://www.retaildive.com/news/gen-z-twice-as-influenced-by-social-media-as-by-deals/505274/

Source: http://www.retaildive.com/news/70-of-brands-use-instagram-influencers/506164/

YouTube YouTube

Instagram Instagram

Facebook Facebook or Google+

GEN Z – Where Social Meets (and Beats) Retail

24% 66%17% 9%

16% 6%

2 to

3x’s

21%

more likely to be influenced by social media than by sales or discounts

say that Snapchat influences their purchase decisions

80%

70%

of the generation is influenced by social media

when deciding what to buy

of brands use Instagram influencers

Source: https://marketingland.com/move-millennials-gen-z-now-largest-single-population-segment-219788

MOBILE APPS/FEATURES USED WHILE SHOPPING AT A RETAIL STORE

Text

Snapchat

Google Search

Phone's camera

Facebook

GEN Z

AVERAGE

50%

44%

36%38%

34%27%

33%31%

39%

15%

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Gen Z shoppers gravitate to companies that are honest, transparent and socially conscious. Company values play a growing role in choices, especially when two similar brands cost the same. Because value for Gen Z goes deeper than just price, if Brand A matters more than Brand B to them, they’ll choose it, regardless of cost.

GEN Z

Shopping Is Waaay More than Just Buying

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GEN Z’S INFLUENCE ON FAMILY SPENDING

Source: https://nrf.com/resources/retail-library/uniquely-gen-z

Source: https://nrf.com/resources/retail-library/uniquely-gen-z

Source: https://newsroom.accenture.com/news/generation-z-to-switch-the-majority-of-purchases-to-retailers-that-provide-the-newest-digital-tools-and-channels-accenture-research-reveals.htm

Source: http://www.businessinsider.com/study-generation-z-shoppers-prefer-physical-retail-stores-to-on-line-shopping-2017-1

Source: https://newsroom.accenture.com/news/generation-z-to-switch-the-majority-of-purchases-to-retailers-that-provide-the-newest-digital-tools-and-channels-accenture-research-reveals.htm

Source: http://www.retaildive.com/news/gen-z-wants-more-in-store-tech/505667/

Source: http://www.retaildive.com/news/study-gen-z-more-likely-than-millennials-to-buy-luxury-brands/446623/

60% Clothes and Shoes

48% Events and Outings

63% Eating Out

77% Food and Beverages

76% Furniture

41% Books and Music (physical coies)

55% Personal Care

37% Digital Streaming

66% Travel

30% Toys and Games

20% Apps

61% Electronic Goods

47% Sports Equipment

73% Household Goods

GEN Z – An Influential Force at Retail

2/3say QUALITY is the most important factor

All about the LUXURY items!

71%46% check in store to get more information

before making an online purchase

interested in automatic-replenishment programs

55% GIVE THEIR TIME TO BRANDS THEY CONSIDER TO BE ECO-FRIENDLY OR SOCIALLY RESPONSIBLE

60% use their

smartphones to look up

information in-store

73% are interested in curated subscription-type offering for fashion

52% would transfer loyalty from one brand to another if the brand’s quality is not up to par

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GEN Z

Although Gen X is smaller in size and spending power than Boomers or Millennials, they’ve had a powerful impact on their Gen Z kids…and the retail playground.

A Contrast

AGE 2–19 in 2015

AGE 36–52 in 2017

72 MILLION Population1

55 MILLION Population1

Technolholics

COUPONSUse Apps &

Social Media3

COMM PREFEmail and Text

Digital Immigrants

95% Own Smartphone2

SIGNATURE PRODUCTPersonal Computer

SIGNATURE PRODUCT

Nano-Computing, 3-D Printing, Driverless Cars

COUPONSUse Digital & Print

COMM MEDIAEmail and Text

COMM PREFERENCE

Facetime

Gen X Source 1: U.S. Bureau of Labor Statistics , 2015; Source 2: Nielson Data Gen Z Source 1: https://nrf.com/media/press-releases/despite-living-digital-life-98-percent-of-generation-z-still-shop-store Source 2: Nielson Data Source 3: https://www.forbes.com/sites/deeppatel/2017/07/02/5-things-gen-z-looks-for-when-making-purchases/#19c3dd2a4ea8 Source (unless otherwise noted): http://fourhooks.com/marketing/the-generation-guide-millennials-gen-x-y-z-and-baby-boomers-art5910718593/

GEN Z – Gen Z vs. Their Parents

THEIR PARENTS

$2.4TRILLION Est. Spending Power1

$44 BILLION

Est. Spending Power1

97% Own Smartphone2

COMM MEDIAHandheld

Devices

ABOUT THE RESEARCHWe compiled the information in this paper after reviewing myriad research reports on demographics and media habits of Generation Z (Americans born between 1995 and 2015). Even though their parents control a significant amount of their spending, the shopping habits and media preferences of Generation Z should not be ignored.

ADDITIONAL SOURCESUnderstanding Gen Z's Mobile Expectations In Today's New Shopping Era (Forbes 5/17/17)https://www.forbes.com/sites/jefffromm/2017/05/17/understanding-gen-zs-mobile-expectations-in-todays-new-shop-ping-era/#19a8f6397766

Retailers: Don’t Forget About Gen Z This Holiday Seasonhttp://www.millennialmarketing.com/2016/11/retailers-dont-forget-about-gen-z-this-holiday-season/

Move over Millennials – Here Comes Gen Z (Ad Age)http://adage.com/article/cmo-strategy/move-millennials-gen-z/296577/

Generation Z Driving Influence on New Consumer Spending Patternshttp://www.businesswire.com/news/home/20161121005253/en/Generation-Driving-Influence-New-Consumer-Spending-Patterns

GEN Z – A Quad Infographic Study

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