Many of us have come to equate millennials with youth or core consumers and still believe our knowledge of this generation fully represents today’s 18-34-year-olds. However, with millennials aging, and the face of America ever-changing, we are beginning to see clear delineations within the younger consumers that are so key for convenience stores.
In fact, the 21-and-under consumers who constitute Gen Z have grown up in a much different world than their generational predecessors, giving them perspectives and values distinct from millennials. With a proclivity toward acceptance, inclusion and empowerment, this group leads the country in tech-savviness and multicultural diversity. Do these younger and more multicultural consumers really warrant the attention of operators? The answer is unequivocally yes. Understanding what is important to and unique about these shoppers is the first step in building a loyal customer base for the next several decades.
Unlike millennials, Gen Z consumers have lived their entire lives surrounded by advanced technology. They adopted smartphones at a younger age than millennials and half already admit to feeling addicted to their devices. Furthermore, growing up in a world with constant access and social connectivity has predisposed Gen Z to “cautious pragmatism” while online, whereas millennials lean toward optimism and oversharing. These habits and outlooks have fostered more discerning attitudes and even higher expectations of authenticity from companies.
The rise of Gen Z has come hand in hand with major shifts in population diversity, which has strongly influenced their key values of diversity and equality. In fact, Gen Z will be the last generation with a Caucasian majority.
Additionally, the growing proportion of Hispanic c-store consumers view the world and themselves differently than their parents and grandparents did. Today, Latinos tend to feel more informed by their cultural heritage than strictly defined by it. They feel more comfortable challenging expectations to establish their own “third way” norm that balances an acceptance of their heritage with a welcomed place in broader society. This cultural fluidity is a cornerstone of Gen Z Hispanic consumers and requires a much more nuanced approach than merely messaging in both Spanish and English.
Currently, these 81.8 million Gen Z consumers boast a buying power of $43.6 billion. Yet, Gen Z has been raised with an inclusive parenting style and was involved in household decision-making from a young age. This has fostered a confident generation whose influence reaches beyond just the Gen Z wallet and into the trillions of dollars spent by older consumers in the marketplace today. Furthermore, shifting cultural norms have made way for a group even less concerned with fitting in than previous generations. Gen Z consumers instead feel more empowered to embrace their identity and stand out in a crowd. They appreciate opportunities to explore in real life, including flavor varieties amongst food and beverage products.
In 2017, Snapple expanded its variety offerings with Takes 2 To Mango Tea, delivering on one of the fastest-growing flavor profiles and maintaining the authentic quirkiness that is at the foundation of the brand. Now, Snapple is bringing all the same flavorful goodness with a new on-the-go PET package to empower consumers to take Snapple wherever they go.
Operators who acknowledge Gen Z as the actualized consumers they believe themselves to be, evolve their multicultural approach and focus on authenticity will more effectively recruit and maintain loyal shoppers in the years to come.
This post is sponsored by Keurig Dr Pepper