With a buying power exceeding $500 billion, Gen Z teens and young adults have at their disposable a spending ability that is comparable to the GDP of countries like Belgium, Poland, Sweden, Thailand and Venezuela, according to “Looking Ahead to Gen Z: Demographic Patterns and Spending Trends,” a new report from Packaged Facts.
The report provides a comprehensive look at Gen Z (defined as encompassing ages 13-24), which comprises 52 million Americans and represents 16 percent of the U.S. population. Between the money they have and the money their parents spend on them, this upcoming generation already is having a significant impact on the American economy.
Gen Z’s potential as consumers is a factor which retailers should not overlook, says Packaged Facts. While they grew up with modern technology, many Gen Z consumers employ a more “old-fashioned” approach to shopping: 67 percent prefer to make a purchase in a store as opposed to shopping online, or to shop using an app, the report found.
Brick-and-mortar clothing retailers may want to consider targeting them as significant consumers as Gen Z seems to favor shopping for clothes and shoes. Young men in this generation spend 53 percent more money on apparel than their Millennial counterparts. Gen Z also enjoys experiencing entertainment outside of the home more than their Millennial counterparts, with many regularly attending movies and concerts or other live performances, possibly because they are much less likely to have children.
“Gen Z is anything but monolithic or expected,” says David Sprinkle, research director for Packaged Facts. “A common thread between the diverse array of Gen Z kids seems to be their tendency to weave social media, and digital experiences into their physical, everyday lives. For a brand to be big with Gen Z, having brick-and-mortar store locations and a strong online presence are both essential to generating business and buzz.”
The full report is available to purchase here.