CHICAGO–(BUSINESS WIRE)–IRI®, a fast-growing, global leader in innovative solutions and services for consumer, retail and media companies, and The Female Quotient, an organization advancing equality in the workplace through cross-industry collaboration, today published a new white paper, “Understand Me, Don’t Define Me,” with insights and recommendations for marketers on how to prepare to win with Gen Z, a new, powerful generation of shoppers that account for 20% of all U.S. consumers and $143 billion of direct buying power.
“Gen Z presents tremendous opportunities for brands and retailers, but these digitally native, fiercely independent consumers approach shopping with very different expectations than prior generations,” said Lynne Gillis, principal, Survey and Segmentation Practice, IRI. “Gen Z expects brands to be authentic and understand them as unique individuals to earn their dollars. It’s a challenge to build loyalty among a generation whose digital prowess enables them to constantly discover and experiment, and who value the freedom to continually reinvent themselves. To win, brands must understand Gen Z’s fluid needs and motivations, develop authentic, purpose-driven brand messages, and prioritize connecting with shoppers on the digital platforms – like TikTok, Snap, and YouTube – that most influence them.”
“Across the brand we examined, those that connect with Gen Z drive, on average, 14 times greater dollar growth opportunity than that seen for other generations, underscoring how critical a keen understanding of Gen Z is for businesses seeking growth,” added Jennifer Pelino, executive vice president, IRI Media Center of Excellence. “Our study leveraged IRI’s unparalleled, omnichannel purchase data assets alongside research from our partners at The Female Quotient and Influential, because mixing qualitative and quantitative data is key to gleaning actionable insights about a population that does not want to be defined.”
IRI’s and The Female Quotient’s white paper includes specific insights from an in-depth study of the performance of eight New Product Pacesetter brands among Gen Z versus other generations, based on IRI purchase data, and supported by a robust quantitative survey. Key highlights for marketers include:
- Think Discovery, Not Loyalty: Discovery has an outsized role in shaping Gen Z’s brand and shopping experiences as they begin their lifetime journey of shopping – and those marketers who are sensitive to the enjoyment that stems from the process of discovery are more likely to capture the attention of Gen Z. More than half of Gen Zers say they love to try different brands, compared with only 35% who say they are brand-loyal – when they find something they like, they stick with it.
- Connections and Influences: Connecting through social media and sharing product discoveries is a powerful part of Gen Z’s path to purchase. Fifty-nine percent of Gen Z shoppers say organic recommendations from family and friends are more likely to influence an actual purchase than any other way that Gen Z may learn about a product or brand.
- Gender in Marketing: Representations of gender have a minimal impact in driving choice for Gen Z shoppers. Only 13% of female presenting Gen Z respondents aged 17-23 said that, everything else being equal, they would buy a gender-neutral product over a gender-specific product. Qualitatively, Gen Z respondents consistently said that a focus on gender neutrality or fluidity, unless authentically a part of the brand’s essence, would not resonate with them in a way that drove purchasing.
“Our research shows overwhelmingly that Gen Z is looking for brands that take the time to get to know them, and embrace the continuous evolution in their preferences,” said Janis Gilman, head of research at The Female Quotient. “In continuing our research – both qualitative and quantitative, in partnership with IRI – we can enable brands to anticipate, respond to, and innovate on the needs of this powerful new generation, while serving our mission of promoting equality and authentic change that Gen Z so deeply embraces.”
IRI’s and The Female Quotient’s complete white paper, “Understand Me, Don’t Define Me,” is available for download on IRI’s website.
IRI is a leading provider of big data, predictive analytics and forward-looking insights that help CPG, OTC health care organizations, retailers, and financial services and media companies grow their businesses. A confluence of major external events — a change in consumer buying habits, big data coming into its own, advanced analytics and personalized consumer activation — is leading to a seismic shift in drivers of success in all industries. With the largest repository of purchase, media, social, causal and loyalty data, all integrated into an on-demand, cloud-based technology platform, IRI is empowering the personalization revolution, helping to guide its more than 5,000 clients around the world in their quests to remain relentlessly relevant, capture market share, connect with consumers, collaborate with key constituents and deliver market-leading growth. For more information, visit www.iriworldwide.com.
About The Female Quotient
The Female Quotient (The FQ) is dedicated to advancing equality around the world. The FQ provides companies and business leaders with the research, tools, and experiences to create equitable workplaces. Through best-in-class programming and content, we foster powerful conversations around DE&I. Our destination-turned-movement, the Equality Lounge, has become a catalyst for change at major events and industry conferences around the world, including the World Economic Forum (Davos), Consumer Electronics Show (CES), and Cannes Lions, where The FQ creates a global stage to connect and elevate women. For more information, visit: www,thefemalequotient.com.
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