Could Gen Z lead to the end of brands?
However, brands have been smart about this by overpricing their items only to sell them at a discount, while still making a profit.
They are very fiscally pragmatic and practical with their money. They are looking for value.Jason Dorsey, a Gen Z consultant
Price is the primary motivator for 60 percent of Gen Z. Many of them say they cannot afford nicer brands, as they would rather have money in their bank accounts.
Having said that, they are interested in buying more clothes and other items because they feel the social media pressure of always being seen in or with something new. However, they still wanting to save. This balancing act sees them hunting for discounts and driving a hard bargain for brands.
What this means is that brands will continue to find it increasingly difficult to get Gen Z to stay loyal to them. This only leads them in one direction: brands need to imbibe other aspects that attract this generation, such as sustainable fashion and environmentally friendly business operations.
Brands also need to work harder to earn and maintain the trust of this generation, or simply offer a unique model that serves their needs for new clothes and accessories.
Gen Z is also vary of commitment, which is seeing business models that allow short or no commitments, such as monthly rental apartments and anytime cancellation subscriptions, become popular.
Brands need to change their operation modes to allow rentals and buy back schemes in order to stay relevant to the Gen Z, who are increasingly making up a larger part of the consumer market.