While most of Gen Z isn’t yet in the workforce, they — and their future spending power — have been on brands’ minds for years. According to Hana Ben-Shabat, founder of Gen Z research firm Gen Z Planet, as a demographic, they possess close to $300 billion in direct purchasing power.
That includes allowances for the young Gen Zers, but most of the money comes, as one would expect, from the members of the group aged 16 and older. In fact, a lot of things about Gen Z are as one would expect. They shop in stores, like hanging out in malls (perhaps because that’s one of the only places kids have to go) and use their phones in stores and outside of them.
Their top five favorite brands, according to Ben-Shabat, are Nike, American Eagle, Adidas, Levi’s and Under Armour. In addition to apparel, they buy in categories with small-ticket items, like beauty and personal care, and they enjoy spending on entertainment and experiences.
Nora Kleinewillinghoefer, a principal at A.T. Kearney who co-wrote a report on Gen Z for the firm, noted that a quarter of respondents in the demographic said they had spent on beauty and personal care in the last six months. Overall, entertainment and experiences, and health and wellness were top spending categories for the consumers in the generation. Spending on electronics was lower, which Kleinewillinghoefer noted was probably because the expenses are higher (though 30% of Gen Z shoppers in her study bought something they couldn’t afford).
Read more about how to get on the GenZ wish list this holiday season on the Retail Dive website HERE