While every industry has been busy keeping an eye on the millennials and their behavioural patterns as business opportunities , a whole new generation with a fresh mind-set is fast emerging , ready to push the millennials into the background . Welcome to the world of Generation Z – a brigade of youngsters born post-1990 and now entering the workforce , exerting their preferences and beliefs . So even as the retail industry is still trying to figure out how to capture and retain the attention of the millennials , a new challenge that is different and complex has already reared its head ! Many retail analysts believe that the ‘ Millennial ’ cohort is really two generations – Generation Y ( born between 1978-1989 ) and Generation Z ( born between 1990-1999 ; some even prefer to include only those born post-1995 ). According to estimates , Gen Z represents about 60 million people in the US and about 2.6 billion people worldwide . As of today , this group makes up a quarter of the US population and by 2020 , will account for 40 % of all consumers . Understanding them will be critical for companies wanting to succeed in the next decade and beyond . In
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the meanwhile , media and market research companies have already labelled them as “ screen addicts ” with the attention span of a gnat ( a recent study suggests that Gen Z attention spans have shrunk to eight seconds ).
No wonder , many analysts also refer to them as ‘ Net Gen ’. On a personal level , Gen Z seeks immediate validation and acceptance through social media , since that ’ s where all their peers are and where many of the important conversations happen . “ Never before has there been a generation incapable of remembering the world without the internet ,” said Goldman Sachs analyst , Christopher Wolf , in a presentation recently . However , ironically , these are the same people who are also looking to differentiate themselves professionally . Research suggests that Gen Z is also the ‘ entrepreneurial generation ’ who like the idea of working for themselves , the majority of them being riskaverse , practical and pragmatic . Significantly , these youngsters are also very cautious about their privacy and are less inclined to share information without understanding the consequences .
According to Goldman Sachs researchers , this bunch of highly
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According to estimates , Generation Z represents about 60 million people in the US and about 2.6 billion people worldwide . As of today , this group makes up a quarter of the US population and by 2020 , will account for 40 % of all consumers . |
informed , but restless consumers will be the biggest influencers for retail trends in the future . “ That ’ s because ( their ) diversity , fluency with technology and conservative attitude toward money will have profound social and economic implications ,” reasons Wolf . In fact , the diversity of this generation is the most dynamic in the history of the US . Research provided by Frank N . Magid Associates suggest that Gen Z comprises a mix of 55 % non-Hispanic Caucasian , 24 % Hispanic , 14 % African-American , 4 % Asian and 4 % multiracial people . This interesting mix of cultures and influences will also be reflected in their retail choices .
Having seen how their elders struggled through the recession , Gen Z is very conservative in its financial approach , a major difference from the millennials . It is a group that will rely on debit payment systems , and not credit cards . According to a market research by The Center for Generational Kinetics , 29 % believe personal debt should be reserved for a few select items and 23 % believe it should be avoided at all costs . The focus is on getting maximum value
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