Discover how Gen Z’s unique values in sustainability, inclusivity, and digital savvy are driving brands to rethink strategies, create purpose-driven practices, and innovate like never before
What is the age of Gen Z? Generation Z comprises people born between 1996 and 2010. They’re unique as the first true “digital natives,” growing up with the internet, smartphones, and social media as a normal part of daily life. This generation’s identity has been heavily influenced by a digital-first lifestyle, climate concerns, economic challenges, and the impact of COVID-19. The wide age range within this generation means the older members are already in the workforce, while the youngest are still in school.
By 2025, Gen Z will account for approximately a quarter of the population in the Asia-Pacific region, solidifying its position as a powerful demographic force with wide-ranging influence on global markets, culture, and innovation.
Known for their unique characteristics and values, this generation is already reshaping societal norms and driving shifts across industries. According to a report by McKinsey & Company, Gen Z’s defining traits reflect a digital-native mindset, a desire for authenticity, and a commitment to social causes. Their influence is shaping everything from consumer behaviours to workplace expectations, making them a key demographic to understand for businesses and organisations aiming to stay relevant in a rapidly changing world.
Key Characteristics of Gen Z according to a report by McKinsey & Company :
- Digital Immersion: Gen Z is highly “online,” using the internet extensively for socialising, work, shopping, and entertainment.
- Social Media Presence: Platforms like Youtube and TikTok are central to their culture, where they contribute to trends and engage in global digital culture.
- Curated Online Identity: Gen Z values personalised feeds and sometimes prefers anonymity in their online interactions.
- Idealism and Social Commitment: They are committed to social issues, particularly diversity, equity, and environmental responsibility.
- Inclusive Consumers: They value brands that promote diversity, ethical standards, and sustainability.
- Advocacy for Sustainability: They are vocal about climate change and expect brands to adopt green practices and prioritize corporate responsibility.
- Raising Business Standards: Their expectations are pushing companies to meet higher standards in social and environmental practices.
Gen Z in the Workforce
Entering the workforce has posed challenges for Gen Z, including the COVID-19 aftermath, inflation, and rising living costs.
- Many Gen Zers juggle multiple jobs or freelance roles and are less optimistic about traditional milestones like homeownership.
- Only 37% of Gen Z respondents in a McKinsey survey believe the U.S. offers fair economic opportunities.
- According to a recent report, home prices have surged by 1,608% from 1970 to 2022, while the minimum wage is now 40% lower in real value compared to 1970. For perspective, a home priced at $100,000 in 1970 would now cost around $710,000 in 2022.
Compared to prior generations, Gen Z reports lower job satisfaction, with only a small percentage feeling recognised and rewarded at work.
Gen Z’s Fashion and Shopping Habits
Gen Z’s approach to fashion is characterized by a blend of fast fashion and sustainable practices. Known for their desire to stand out, Gen Z embraces ever-changing trends, often supported by fast-fashion retailers like Shein. However, they are also avid supporters of thrift shopping and vintage styles, aligning with their values of circular fashion and environmental awareness. Gen Z’s interest in unique and rapidly changing styles creates a demand for both fast fashion and sustainable options, reflecting the balance they try to strike between self-expression and eco-consciousness.
Shopping Preferences and Digital Influence
Gen Z has transformed retail, prioritizing convenience and access over ownership. They are more likely to subscribe to services, such as streaming platforms than to own products outright. This generation values ease of use, favouring mobile payments, app-based services, and streamlined online transactions.
Despite their digital inclination, they also appreciate in-store shopping experiences, with many brands finding success through hybrid online-first and in-store approaches. Gen Z is attracted to brands that align with their values, and they are quick to detect insincere sustainability claims.
Social media heavily influences their shopping choices, with online recommendations playing a major role in purchasing decisions. They navigate a vast array of information from influencers, friends, and family, shaping their preferences and habits. Ethical considerations often guide their choices, and many Gen Zers believe companies should actively contribute to social and environmental progress.
More on Gen Z – The Concept of Generations
A generation is more than just an age group; it’s defined by shared life experiences that shape individuals’ attitudes, values, and behaviours. Generations are often influenced by major historical events or societal shifts.
For example, the Greatest Generation was shaped by World War II, while millennials were influenced by the rise of the internet and the 9/11 attacks. Their worldview has been shaped by factors like digital technology, social media, and climate change, setting them apart from previous generations.
Mental Health Concerns
Despite their online connectivity, this generation faces significant mental health challenges. Studies show that:
- Gen Z reports lower emotional well-being and higher levels of mental health issues than previous generations.
- A majority of Gen Z respondents in a McKinsey survey expressed concerns about unmet social needs and limited economic opportunities.
This generation has grown up amid climate anxiety, economic uncertainties, and the disruptions of COVID-19, which contribute to a generally pessimistic outlook.
The Impact of Social Media on Mental Health:
Social media has both a positive and negative influence on the group’s mental health. Platforms can lead to issues like FOMO (fear of missing out) and poor body image, but they also offer a space for self-expression and connection.
Interestingly, this group isn’t necessarily using social media more than older generations, but younger users tend to experience more negative effects, especially if they spend excessive time on these platforms. Social media use among Gen Z reveals a nuanced relationship where the impact depends on individual usage patterns and mental health status.
How Gen Z Differs from Millennials
While Gen Z and millennials share some digital influences, the latter has its own distinct experiences and values. Gen Z is generally more pragmatic and cautious about the future, balancing idealistic goals with economic concerns.
They are also more likely to value inclusivity and community, as well as individual expression, and are highly active in social and political advocacy. Overall, they are more cautious and conscious of the challenges ahead, which affect their choices in education, career, and lifestyle.
Gen Z’s Values and Priorities
Climate change is a top concern for this generation, and they actively seek reform on both personal and global levels to combat environmental degradation. Movements like the Global Climate March, led by young activists such as Greta Thunberg, highlight their commitment to environmental issues.
Many Gen Zers are conscious consumers who prefer brands that demonstrate a commitment to sustainability and social responsibility. In a survey, 73% of Gen Z respondents indicated a preference for ethical companies, and nine out of ten believe businesses should address environmental and social issues.
Generation Z is a distinct group shaped by the digital age, economic challenges, and an evolving social landscape. Their values of inclusivity, sustainability, and individualism are reshaping industries and challenging traditional norms.
As this generation continues to grow and influence society, their expectations for ethical practices, inclusivity, and environmental responsibility are likely to drive significant changes across various sectors. Whether it’s their approach to work, shopping, or social activism, they are paving the way for a more connected, conscious, and digitally integrated future.
To read the detailed report by McKinsey & Company: Click here
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