The new Generation of consumers is the Generation Z people. Now all 22 or younger, Gen-Zers are expected to account for about 40% of the consumers by 2020. Therefore, it is important that retailers are able to understand the taste and preferences of the Gen-Zers, and in response come up with more effective marketing campaigns to reach out to them.


As compared to the traditional consumers, Gen-Zers are more interested in participating in social activism and working for their success. Therefore, firstly, the advertisement should involve messages that catches their attention. If Gen-Zers help to produce the message, they will be more responsive to it. Secondly, Gen-Zers believe in practicing social responsibility. Studies have shown that Gen-Zers are more interested in racial, gender and income inequality, as well as environmental issues. In Singapore, Corporate Social Responsibility (CSR) is a widely used term. Known to be a Clean and Green city, Singapore authorities take wastage very seriously. For example, to reduce food wastage, the Save Food Cut Waste (SFCW) campaign was introduced, teaching organizations about the environmental and social impacts of food wastage. The organization in charge of this, Zero Waste SG, worked with culinary schools such as ITE College West to organise the Save Food Cut Waste Recipes Competition for culinary students, which aims to engage the students in developing recipes for leftovers at home. To reduce plastic disposables, the Position Paper was published. In the paper, the current situation and problem, consideration and responses are discussed. The Bring Your Own Bag Campaign was introduced to reduce plastic bag usage. For example, customers who bring their own bag will get 10 cents off NTUC Fairprice purchases. This incentivises thrifty customers to not use plastic bags, reducing plastic bag usage. These initiatives were well received by the younger generation, which were more environmentally-friendly.


To reach out to the Gen-Zers, the communication channel also have to be changed. As compared to using traditional media platforms, social media is more commonly used now. Most social media platforms have built-in-data analytics tool, which enable customers to track the progress, success and engagement of ad campaigns. Social media has also allowed businesses to interact with their customers directly, building relationships and communities online. This can act as a medium for word-of-mouth as users can offer product recommendations, referring their friends and families. This can help build up the consumer base of the business.


The new generation of consumers are also extremely receptive to loyalty programs. However, there are some points that businesses have to take note when coming up with the rewards: Firstly, 31% of Gen Z shoppers prefer members-only events, and 80% of Gen Zers chose free delivery. Retailers trying to appeal to this segment using loyalty programs should focus on the practical perks.


Therefore, in face of the huge competition, it is imperative that businesses have good foresight and understand the techniques to appeal to the new generation of consumers. This will allow them to remain competitive and relevant.

Categories: Business Articles