Gen Z is frugal - learn how you can appeal to them anyway
Companies are facing a new problem as Gen Z enter adulthood and become decision makers—they are frugal with spending. That doesn't mean they don't spend, but that they look for value more than their older counterparts.
Why? Simply because they've seen bad financial constraints with the 2008 recession. They've seen parents being laid off, having to make tough financial choices, and let go of comforts. It has made them more realistic and practical about spending and saving.
This is apparently more strongly in Japan, which had faced five technical recessions. I'm Europe the employment situation remains dire.
Not only is this affecting the bottom lines of many companies in the FMCG, luxury, automobile and other sectors, but it is also forcing the industries to change their modus operandi.
There is one saving grace, which can attract Gen Z as well as serve a higher purpose of saving our planet—sustainability. The generation is looking at companies' ethics, morals, operations, management and more. Value and sustainability are what attract them, and companies could benefit by accommodating these interests before it's too late.
Read more here.