Last week, I read about the growing popularity of the Stanley bottles that have grabbed the attention of Gen Z. I was shocked to know that the company’s sales skyrocketed from USD 70 million in 2020 to USD 750 million in 2023 – over 10x in just 3 years!
Be it the Stanley mug, the latest iPhone, or the Nike Air Jordans – Gen Z is not just shaping trends but defining how businesses are growing.
There’s a generational shift happening right before our eyes. Gen Z is poised to reshape industries, redefine consumer behaviour and leave a mark on the global economy.
I read a recent report that touted Gen Z’s global purchasing power to almost $450 billion! With such a high purchasing power, today’s trends are a window into how Gen Z approaches consumption—with a blend of trendiness, sustainability, and a keen awareness of brand values.
Gen Zers are a global force set to bring the most money to the consumer spending class by 2030. If you’re going to grow, you will have to cater, and with Gen Z, you will need to either build for or adapt to the needs of this generation.
I found this extremely interesting and decided to dive deep into the rise of Gen Z and how they are shaping the consumption story.
In this blog, we’ll cover –
- Inside the rise of Gen Z as a global spending force
- Drivers influencing the unique behaviour and consumption patterns of Gen Z
- Case studies on how Levi’s and Patagonia are adapting to win over Gen Z
Let’s begin.
The rise of Gen Z
Gen Z is roughly defined as anyone born between 1997 and 2012. Let’s have a look at the different generations and the names coined for them.
With a staggering 377 million individuals, Gen Z represents India’s largest generational group, surpassing even the millennials in size and influence.
Even globally, this generation represents the majority of the population.
Why does this matter?
Gen Z plays an integral role in consumption.
Currently, 1 in 4 Gen Z-ers are already in the workforce. By 2035, this number is set to nearly double.
Their growing workforce participation signifies not a mere demographic shift but a seismic change in purchasing power and cultural influence. The Gen Z This population will dominate global spending in the coming decade.
Gen Z’s impact on spending is increasing exponentially as direct spenders and as influencers of household purchasing decisions.
To put it directly, Gen Z influences consumer behaviour – from fashion choices to travel preferences. As a result, it becomes critical to understand how their behaviour impacts how brands approach everything from product development to marketing.
So, let’s understand what drives Gen Z’s choices.
The Gen Z consumer is digital-first and trend-focused, and they value authentic and sustainable brands and buy products pushed to them by social media.
Consumption patterns of Gen Z: What drives their choices
- Conscious consumerism
Gen Z values brands that take a strong ethical stand. They actively support social causes and expect brands to be transparent, sustainable, and inclusive. For instance, the “Boycott Maldives” movement in India pushed travel agencies like MakeMyTrip to withdraw Maldives packages temporarily.
Sustainability plays an integral role in what Gen Z is looking for in brands. Gen Z consumers are conscious of the environmental impact of their choices and seek out eco-friendly and sustainable products. 76% of Gen Zers expect brands to be transparent and genuine. They prioritise brands that demonstrate social responsibility, environmental sustainability, and inclusivity.
As per a report by NielsenIQ, Gen Zers prefer to buy sustainable brands, and they’re willing to spend 10% more on sustainable products. Founders and brands need to be careful that they aren’t simply investing (or overinvesting) in attributes Gen Zers merely claim they are prioritising. What they report and how they spend do not always align. - Focus on novelty and personalisation.
For Gen Z, consumption is tied to identity, and they seek personalised experiences that fit their unique needs. This generation is willing to pay more for customised products that reflect their individuality. Brands like Nike By You offer personalisation features for sneakers, catering to Gen Z’s desire for individuality and novelty. Additionally, Nike’s firm stance on social issues (e.g., their partnership with Colin Kaepernick) resonates with Gen Z’s emphasis on ethics and brand values.
The Gen Z demand for experiences that are both fun and tailored to their lifestyle stage has driven the rise of brands offering curated products, services and even recommendations.
It has become critical for brands to keep adapting to the evolving needs of consumers, providing ‘fresh’ and ‘fun’ offerings while not compromising on the needs of Gen Z – value, quality, and authenticity. - Omnichannel experience
Gen Zs prefer an omnichannel shopping experience, moving seamlessly between digital platforms, in-store experiences, social commerce, and direct-to-consumer models. In addition, Gen Z is very well-informed, shaping trends and setting new expectations for brands. So, brands need to be everywhere to fully unlock Gen Z spending, which means they need to really up their distribution channels and marketing!
While Gen Z expects brands to be omnipresent, they rely heavily on social media creators for product discovery. Platforms like Instagram, YouTube, and Snapchat play a significant role in shaping their purchase decisions. As per a NielsenIQ report, 70% of Gen Zers rely on creator channels for product discovery, with platforms like Instagram, Snapchat, and YouTube shaping their purchasing decisions. Take brands such as Glossier and Fenty Beauty, which have effectively engaged Gen Z through creator-driven marketing on these channels, ensuring they meet the audience wherever they are. - Instant gratification and access
Gen Z’s need for immediacy has pushed the growth of services like Blinkit and Zepto, which promise ultra-fast deliveries. We all heard reports of die-hard Apple fans ordering the new iPhone through quick delivery apps while standing in lines outside the store! Gen Zers have grown up in a time of instant gratification, with commonplace conveniences like one-click checkout and same-day delivery. Brands courting Gen Z must continue to find ways to meet expectations with fast and easy shopping experiences.
Another exciting aspect is that Gen Z is more interested in access than ownership. Driven by flexibility and functionality, Gen Z would much rather use Ola and Uber than deal with the effort of buying and maintaining a car. This preference underscores their focus on experience and utility over long-term commitments.
I found this very interesting data – Gen Z researches more than millennials before buying. This generation is more pragmatic with their consumption as they evaluate a broad range of information before purchases.
- Immersive experiences
Gen Z is the first generation to have grown up with access to the internet and smartphones. They are highly tech-savvy and heavily rely on digital platforms for shopping. As technology grows, tech-savvy buyers have moved on to the next step – immersive shopping. Gen Z seeks immersive shopping experiences, with 77% desiring technologies like augmented reality (AR) for virtual try-ons and interactive visuals. Brands like Nykaa and Lenskart are tapping into this trend, offering AR experiences that allow users to try on products, enhancing engagement and convenience virtually.
Brands will increasingly have to embrace emerging technologies – like AI and augmented and virtual reality. Virtual shopping with friends is another area of expected growth. A recent study found that almost one-third of Gen Z shoppers are interested in virtual shopping with friends. In the next five years, shopping in virtual stores is expected to grow by 229%, while virtual shopping with friends may rise by 141%.
These trends and behaviours are shaping how products and services are being consumed. Building brands or catering to Gen Z represents a new frontier in brand-consumer relationships. Companies must either create or transform themselves to adapt to this new generation.
Let’s take a look at two companies that have adapted to cater to Gen Z –
The Levi’s case study
Even major brands need to keep up to sell to the next generation. The Gen Z wave made Levi’s, a 150-year-old company and the largest denim brand in the world, change its overall brand narrative. Recognising that Gen Z values authenticity and social consciousness, Levi’s shifted its marketing strategy to highlight the brand’s heritage and commitment to sustainability.
Levi’s blended ‘nostalgia’ and ‘sustainability’ into one campaign, grew its content needs by over 500% through active community management and customised gifting outreach to creators and launched its “ Buy Better, Wear Longer” campaign.
This campaign went viral amongst the Gen Z for 3 reasons-
- Since 62% of Gen Z shoppers prefer sustainable brands, the campaign was aptly built around sustainability.
- Engaging young influential faces like rapper Jaden Smith and Manchester United star Marcus Rashford. They also picked sustainability-focused influencers for uniform messaging.
- Levi’s positioning itself as a brand that cares about its environmental footprint
This campaign helped Levi’s stand out amongst Gen Zers, aligning Levi’s brand values with their own to win their loyalty.
The Patagonia case study
Patagonia, an outdoor apparel and equipment company, is known for its environmental activism and commitment to quality. With a 50-year commitment towards sustainability, Gen Z is 62% more likely to engage with this brand.
While Patagonia’s brand already resonated with its Gen Z consumers, they have taken additional steps like radically transforming its ownership structure and business practices to stay relevant. Some of their key initiatives are
- Thrifting their own products– Since apparel brands sell new clothes, it is very unusual for companies to resell their own products. The Worn Wear program allows customers to purchase used Patagonia products, highlighting their commitment to recycling over profitability.
- 1% for the planet– Patagonia’s founder, Yvon Chouinard, has donated 1% of the company’s annual sales to good causes, putting forth a strong message of their commitment to giving back.
- Taking activism to another level– The company has increased its involvement in activism and is shifting from pure advertising towards activism promotion. Their “Vote the a**holes out” and “The President stole your land” campaigns have garnered global recognition, and they were able to strengthen their brand identity.
In summary
The Gen Z wave isn’t just another demographic shift – it’s arguably the biggest wealth-creation opportunity of our generation. As someone who has spent over two decades managing wealth and identifying market-moving trends, I can confidently say we’re standing at the cusp of a $2 trillion opportunity.
As we look ahead, it’s clear that Gen Z is not just the next generation—they are the future market leaders and wealth creators. Their purchasing power, values, and digital-native mindset are already reshaping industries globally. For businesses, the message is clear: adapt or be left behind.
Companies that invest in understanding Gen Z and building around their values will be the ones that survive and thrive.
Disclaimer: The information contained herein is for informational purposes and should not be interpreted as soliciting, advertising, or providing any advice.