A very recent article by Mckinsey presents research results of Gen Z characteristics, behavior, consumption, and purchase patterns and is an interesting insight. This research was based on survey data collected in three Brazilian cities, Recife, Rio de Janeiro, and São Paulo and also identified the differences between this demographic and their predecessors for the above belief characteristics and life-style.
The study revealed four core Gen Z behaviors: Gen Zers value individual expression, avoid labels, and mobilize for a variety of causes. They believe profoundly in dialogue to solve conflicts and improve the world. Their decision making basis is analytical and pragmatic.
Such behaviors influence the way Gen Zers view consumption and their brand relationships. Companies should be mindful of three implications for this generation.These are (i) consumption as access rather than possession; (ii) consumption as an expression of individual identity; and (iii) consumption based on ethical concern. This generational shift and the current technology is transforming the consumer landscape impacting all socioeconomic brackets and extending into the whole demographic pyramid. These shifts are creating emergent transformational possibilities which are challenging as well. Businesses must rethink, re-imagine, and redeploy how they deliver value to the consumer, re-balance scale and mass production against personalization, and practice what they preach when they address marketing issues and work ethics.
This need to re-balance scale against personalization is not new. In the 1980’s, flexible manufacturing systems (FMS) enabled the realization of shifting production from economies of scale to economies of scope. Large batch manufacturing was supplanted, where needed, by variable small lot manufacturing using advancements in computer technology, numerical control machining, and cellular manufacturing techniques. This created the concept of “mass customization“. The idea of personalization to the individual customer is similar and is, and will be, feasible due to the tremendous advances in computing technology.
In another generation, the majority of consumers will be digital natives. Assuming that the state of the world doesn’t change drastically, all types of businesses will have to be operating while addressing the above aspects: providing easy access to their products, personalizing products, and sourcing ethically. These requirements have tremendous implications on the supply chain, business and operational models, and skill and talent. Migrating from the current as-is to the future state will be challenging and time is short. Organizations should start thinking about these now, if not already.