What Brands and Retailers Should Know About Generation Alpha as the Youngest Digitally Native Consumers Steal the Spotlight

Here's what we know about Generation Alpha so far and how their patterns might change the retail landscape.

Generation Alpha may be young, but the emerging class of consumers is already revealing its purchasing power and impact in the consumer marketplace.

By the end of the 2020s, the oldest members of Generation Alpha will be entering the workforce, at which point their shopping patterns will become more clear.

Here’s what we know about Generation Alpha so far.

Who is Generation Alpha?

They are the first generation born entirely in the 21st first century, between the years 2010 and 2025. The oldest members of this group are about 13 years old, while the youngest ones have yet to be born. Most members of Generation Alpha are the children of millennials.

According to a report about Generation Alpha from McCrindle Research in 2020, this new generation will likely total more than 2 billion people by 2025, which will make it the largest generation in history.

How do they spend their time?

Generation Alpha is digitally native, so they spend a lot of time on the internet. The first members were born in 2010, the same year the iPad launched. Growing up with technology and social media has made them the most digitally savvy and connected generation thus far.

According to June research from the Institution of Engineering and Technology (IET), Generation Alpha is more inclined to spend their free time online. An IET survey of 1,000 parents of children aged between five and 13 found that 57 percent of children spend most of their free time online. Among 12 to 13 year olds, that figure rises to 67 percent and 66 percent. Additionally, 66 percent of children have now used virtual reality and 25 plan do so on a weekly basis.

According to February data from YPulse, a Gen Z and millennial market research firm, 79 percent of millennial parents said their kids use at least one social media platform. At 45 percent, YouTube was the most commonly reported social media platform used among Generation Alpha, with TikTok coming in second at 34 percent. Notably, one in five of millennial children surveyed said they don’t use social media yet.

How will they shop?

While Generation Alpha is largely too young to analyze their own shopping patterns at the moment, the generation has a strong impact on how their parents shop for them. According to July data from YPulse, millennials parents reported that their kids’ preferences would have the biggest impact on how they decided to shop for the back-to-school season.

This means that stores and brands that can effectively capture the attention of these young consumers will have a better chance of winning the sale from their millennial parents. Some footwear chains have already outlined strategies to capitalize on this. For example, DSW added kid-friendly displays and interactive experiences to their stores to engage these younger consumers. And the Caleres-owned Famous Footwear this year rolled out a back-to-school marketing campaign across all consumer touch points aimed specifically at the millennial family.

Generation Alpha’s spending will also likely be influenced by their upbringing in an unstable economic environment.

According to a 2022 report from Market research company GWI, the youngest generations in the U.S. are more likely to seek out advice before making money decisions. They also plan on buying stocks and investing in cryptocurrency.

How can brands win them over?

Like their older Gen Z counterparts, Generation Alpha is driven by a commitment to certain social values. For example, Generation Alpha has grown up with more diverse representation in media and marketing and has come to expect that from the brands it interacts with.

Additionally, according to data from GWI, 46 percent of teens — who represent the oldest members of Gen Alpha — are either interested in the environment or climate change.