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Why Brands Should Pay Attention to Gen Z?

29 January 21

Generation Z, or Gen Z for short, refers to people who were born from 1995 to 2010. They are known to have traits such as idealistic, see racial and ethnicity as a positive thing, and embrace individual expression. They are exposed to the internet since they are young. These characteristics affect their relationships with brands. As consumers, Gen Z wants to be heard, and brands have to listen to know what is going on within the generation. For your brand to catch their attention, you have to understand the behaviour of this generation.

As for 2019, Deloitte Indonesia stated Gen Z made up 29.23% of Indonesia’s population, the second largest after millennials, above generation X (25.74%) and baby boomer (11.27%). By 2025, along with millennials, Gen Z will make half of the consumers in the Asia-Pacific region. For brands to attract this number, there are a few things to take into account. According to a research titled “Gen Z Brand Relationships: Authentic Matters” conducted by IBM Institute for Business Value, they prefer brands who are transparent and authentic. Brands must prove that they can be trusted and relevant. To gain Gen Z’s royalty, brands have to create engagements and opportunities for co-creation. For example, Voxi, a mobile network based in the UK, worked together with 60 youth to make content for their social media channels.

Brands’ social media need to upload more video contents. In 2020, McKinsey released an article that stated 70% of Gen Z in Asia-Pacific find out about new brands on video-based social media, such as Youtube and TikTok, at least once a month. With that being said, creating creative videos with stories to move people should be considered as part of branding strategy. 

Gen Z will not stay loyal to brands who can’t deliver. They want brands who are different and help them in expressing their personality. 44% of Gen Z said that they would like to send in their ideas for product design if they are given the chance. To stay up-to-date, brands have to be innovative. It can be done through conducting partnerships or collaborating with them to stay engaged. Milestone, as the leading brand agency in Indonesia, would love to assist you in formulating the branding strategy for your brand according to the current trends. Organizing the research on your target consumers would be important in preparing the suitable approach.