As Gen Z rises to become the most influential consumer group of 40% globally, brands face a pivotal choice: adapt to their demand for authenticity and ethics, or risk becoming irrelevant in a rapidly changing market. How can brands truly resonate with a generation that values authenticity above all?
As a millennial, I find myself straddling two worlds: one that appreciates a well-crafted campaign and another that craves authenticity. This split mirrors Gen Z’s approach to brands, where they look for real, meaningful experiences while also understanding the impact of marketing and branding.
Make no mistake, Gen Z will go the extra mile to determine if the company they purchase from practices authenticity through ethical marketing. In fact, this shapes the way many “Zoomers” consume.
70% of Gen Z consumers are willing to spend more on products and services from companies that are committed to social and environmental responsibility. (McKinsey)
Transparent Brands
Nearly one-third of Gen Z will block or unfollow brands on social media if they perceive them as insincere or profit-driven. This has huge implications for companies graded by Net Promoter Scores (NPS).
Along with this perception, respecting consumer privacy is more critical than ever. From talks of major browsers depreciating third-party cookies, to updates with the Federal Trade Commission’s efforts to protect and respond to how companies use consumer data, companies must be ready to obtain first-party data both transparently and consensually.
For a generation like Gen Z that values meaningful experiences and transparency, it is more important than ever to create trust by aligning with the values that are most important to this audience.
Building Trust and Loyalty
So, how do we do that? To build trust and loyalty with Gen Z, brands must align with their values. Studies show that Gen Z will purchase from companies that prioritize diversity, inclusion, and sustainable practices. Representation in advertising is not only wanted but crucial.
Diversity and Inclusion
Real-World Representation: Gen Z values brands that show diverse, authentic messages. For example, H&M and has made strides by featuring a wide range of models in their campaigns, representing different ethnicities, body types, and ages. This commitment to inclusivity aligns with Gen Z’s expectations and sets a benchmark for how brands should reflect real-world diversity.
Sustainable Practices
Corporate Responsibility: Companies need to showcase their dedication to sustainability and ethical practices. Ben & Jerry’s is a prime example, known for its active stance on environmental issues and social justice. Their transparency about sourcing and commitment to climate action strongly appeals to Gen Z, who value brands with genuine corporate responsibility. When promoting environmentally-friendly practices, be wary to avoid ‘greenwashing.’
Gen Z’s strong concern for environmental and social impacts plays a significant role in their purchasing power, which has risen to $450 Billion globally in 2024. By transparently communicating these efforts, authentically engaging with the community, and aligning with Gen Z’s values, brands can foster deeper connections and thrive in a socially conscious market. Embrace these shifts to meet Gen Z’s expectations and reflect genuine commitment through your brand’s practices.
And just when we thought Gen Z was the transformational generation, here comes Generation Alpha. Is your brand ready for what’s next?
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