Why retail needs a whole new strategy to target Gen Z

Retailers need to learn how to craft a brand voice that not only speaks to Gen Z but also actively listens and responds to their values.

The post Why retail needs a whole new strategy to target Gen Z appeared first on Inside Retail Australia.

Retailers’ ability to understand and connect with Gen Z will be critical to their success in the coming years. But many brands are simply copying and pasting their millennial marketing playbook for the next generation, according to Ypulse senior content marketing manager Anastasia Pelot.

So it’s no wonder that 50 per cent of Gen Z say that brands “don’t get them”, she said.

Speaking at the World Retail Congress in Paris last month, Pelot said that retailers need to learn how to craft a brand voice that speaks to Gen Z and actively listens and responds to their preferences and ideals, fostering a loyal and engaged customer base.

Despite all the stereotypes about Gen Z, this cohort of consumers can not be oversimplified into a cliche, and Pelot drove home the point that “they are anything but a homogenous group”.

Merging conversational commerce and core values

Gen Z is the most diverse generation with 50 per cent of the cohort identifying as people of colour and they are the largest LGBTQ+ identifying group – which means diversity is not a ‘nice to have’ – it’s part of their identifying values.

“Merging conversational commerce with their core values is really the key to engaging in a very authentic way with Gen Z,” stated Pelot.

However, Pelot cautioned that retailers and brands cannot merely say they stand for a cause, they need to show value alignment throughout every marketing touchpoint.

“When we talk about the brands that get Gen Z, and their core values, when we say ‘get Gen Z,’ we’re not talking about whether you understand micro trends like cottagecore,” said Pelot.

“We’re talking about whether you understand how they’ve grown up really does affect their mindset – their anxiety about the future, their insecurities about their finances, they’re questioning whether they should invest because they don’t know if the future will exist.”

However, the potential upside for brands that can demonstrate that they get Gen Z is significant since this demographic has upended the marketing funnel, taking the millennial approach of brand ambassadors and referral codes and raising “word of mouth” marketing.

“So whether they think the brand has a bright future, whether they think the brand expresses who they are, whether they would recommend the brand to their friends… is incredibly important because they’re a very word of mouth generation,” said Pelot.

Their path to purchase relies more on product recommendations from peers rather than traditional advertisements and sponsored influencer posts.

This makes conversational commerce a tool that retailers cannot overlook if they are trying to reach and convert a Gen Z audience.

Unpolished content creates authentic engagement 

While millennial aesthetics defined the branding of an entire class of direct-to-consumer brands including Glossier, Warby Parker, Away, Outdoor Voices and Casper, the branding package of sans serif fonts, millennial pink, geometric websites and witty copy has not and will not translate to the next generation, according to research by Ypulse. 

“Gen Z tells us that they just want to see brands creating content, that’s not perfect, that’s not polished but that fits in with what they’re already seeing in those spaces,” said Pelot.

Spot-sticker brand Starface is an example of a brand that cut through the medical jargon of the acne industry to create a pimple patch that was all fun and had no stigma.

“All of these may seem like just ‘good to knows’ but brands need to understand these so that they can figure out how to connect with Gen Z in a way that doesn’t feel pandering, in a way that doesn’t feel like they’re being talked down to,” explained Pelot.

“There are great ways to embed their core values in every interaction – you can be fun, you can hop on trends but that better be backed up with how you show your brand values and how they align with Gen Z’s values.”

Julie Schott, co-founder of Starface, has built an empire of Gen Z-fluent brands that offer products targeting coming-of-age problems that are generally surrounded by stigma and taboo; Starface pimple patches, Julie birth control and Blip nicotine gum.

“It’s important to understand where Gen Z is coming from, what they’re talking about and how they’re talking about it,” concluded Pelot.

The post Why retail needs a whole new strategy to target Gen Z appeared first on Inside Retail Australia.