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IN

PARTNERSHIP

WITH

THE

FUTURE

LABORATORY

Gen Z

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Gen Z Report

03

Welcome to Gen Z. (B.

1995–2012)

Gen Z are a generation shaped by social media and raised in the aftermath of the 2008 global financial crisis when they witnessed their parents suffer in the recession.

This has made them more cautious about spending, wary of credit cards and unlikely to use credit-orientated products.

Gen Z are less likely to choose traditional financial institutions that use drab branding and confusing jargon.

Finance is no longer regarded as a lifestyle constraint that needs to

Provenance

redit? What? Millennials turned away from credit cards, whereas

Gen Z are em

en Z aren’t even signing up (94% of Afterpay Gen Z

direct-to-con

ustomers link their account to a debit card). Instead hey are looking for low-commitment, straightforward

Real people

olutions that are budget-focused, customer-centric

Glossy, edit

nd empower rather than entrap.

advertising a

be overcome (via credit cards, loans or costly overdrafts), but as a lifestyle enabler that needs to be attended to in a proactive manner.

Gen Z seek brands that connect with them on an emotional level, alleviating financial stress while being aesthetically tailored to

real people i lexibility first en Z want to be able to turn on and off commitments

The environ

n their life and this is paramount when it comes to

Brands that

heir finances.

pollution will

their tastes.

25% of 18–24-year olds say they trust brands – a greater percentage than they trust the government, media, the Church, influencers and social platforms (2UM Agency, 2019).

inancial wellness is queen

I’ll show you

he overt display of wealth, or wealth-hoarding, is dead;

Privacy conc

eing financially in control is key, particularly as we

Z if the outco

pproach the other side of Covid-19.

data is used

et me entertain you

Australia is e

s the lines of entertainment, commerce and social

Wellness an

media blend into one, being able to shop directly from

labels are a h

ne platform is key.

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Gen Z Report

05

31% Health

What is most important to Gen Z?

57% Happines

Savanta Mental Health Report/The Future

Original Photography by Crawford Pas

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07

Photo by Will Spirit, 2020.

Gen Z Report

LEXIBILITY

IN

BOTH

LIFE

AND

like

But the gen

potify and Netflix, Gen Z want to maximise flexibility in

fast fashion

rowing

up

with

stop-anytime

subscriptions

heir lifestyle.

for convenie

hey prefer to rent, share or try buy-now, pay-later

Gen Z are w

ternatives to owning everything from clothing and cars

if it is used

but accept t

o furniture and bikes.

for it to be he global online clothing rental market was estimated to

convenient s

e worth A$1.62bn (US$1.12bn) in 2018 and is expected o reach a market value of A$4.06bn (US$2.82bn) by he end of 2027 (ResearchandMarkets.com).

Financial wellness, not financial anxiety. FINANCIAL

WELLNESS

I personally don’t like Gen Z are looking for low-commitment, straight-forward

They are also more entrepreneurial than previou

solutions to manage their wealth in the way they manage

generations, using side-hustles – trading on Depop o

their health.

peer-to-peer websites – to raise as much as A$14,45 (US$10,000) a year over normal incomes. 72% want t

They want apps that proactively monitor their spend,

start their own business.

the idea of getting a credit card but I do like to use Afterpay because there is no interest.

capture lifestyle data and advise on the best ways to Some 42% expect to work for themselves while 65% ar

save or optimise their finances.

confident they will experience more financial succes 94% of Afterpay’s Gen Z customers use their own

Will, Australia, 22.

than their parents.

money, linking their account to a debit card and use brands like Afterpay to manage their budget, minimise

Sources:

inconvenience and monitor their money in real time.

Northeastern University.

Afterpay,

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Depop,

Millennial

Brandin Photo by Na

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Gen Z Report

09

ESS

IS

MORE

WHEN

MARKETING

T

nstead of traditional gl

depictions of unattaina used in advertising, Ge

ooking for brands to re

normal and diverse peo magery, celebrating re

moments of the everyd

non-overtly edited way

They also ap

and lo-fi loo

of TikTok and

predicted tha

to reach Gen

They also ha

up scrolling

once, this ge

engages: bra

to capture th

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Fashion is a paradoxical industry for Gen Z: they seek an individualised aesthetic, but assemble it from brands that are peer-approved.

Gen Z Report

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11

ECLECTIC

hey

care

about

&

FRUGAL

sustainability

but

FASHION

also

about

media, with b

onvenience, which means they buy from small labels as As a group

ell as fast fashion.

to embrace he ability for Gen Z to shop from Instagram, TikTok or WeChat is no longer a luxury or fad, so digital integration

pre-owned

department s

spiking as ne

f retailers and payment platforms is a must.

opportunitie nlike Millennials, who prefer ‘authentic’ or ‘craft’ labels,

merchandise

en Z will combine those small labels powered by social

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Gen Z Report

13

Gen Z will the effects pandemic th

Like Millennials and the financial crash of 2008

Gen Z’s finances and outlook for years to come. reported that the pandemic has made them re-as making cuts and prioritising savings.

They remain socially minded, and have tried to b brands during the pandemic.

A backlash against privilege and the elite is grow

culture will be drastically altered because of it. A and elitism have quickly become dépassé.

89% believe it’s necessary for brands to do som

Covid-19. 84% believe brands have just as muc everyone else to help stop the spread (YPulse).

Under-25s were 2.5 times more likely to have been

adversely affected by the lockdown (Institute for

Illustration by Samuel Rodrigue, 202

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15

Photo by Clarisse Meyer, 2020.

Gen Z Report

Brand Australia appeals to Gen Z because it reflects their open, easy, egalitarian, can-do, no-hassle mindset. Martin Raymond, co-founder, The FutureLaboratory.

Australia is coming into its own as a cultural exporter. Among Gen Z globally, Australia is acknowledged as

Cult global Gen Z icons such as Kylie Jenner and Haile

leading the way in beauty and wellness brands, thanks

Bieber donning Australian label Bec & Bridge, and Bel

to the alignment with an active outdoor lifestyle and a

Hadid and Selena Gomez embracing Dion Lee’s design

sun-drenched health culture.

have helped shine a spotlight on Australia as a ne cultural force.

Direct-to-consumer and Australian beauty brand Sand & Sky became an overnight success with its single product – the Australian Pink Clay Purifying Face Mask – when it blew up on social media during Covid-19, as young women clamoured to post photos of themselves wearing the distinctive pink mask.

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Gen Z Report

Macrotrends Rising.

17

ANTI-STATUS

MONEY

As part of our research into Gen Z, we identified the

en Z are reassessing the role of money and ownership

following long-term trends, or behavioural shifts set to

n their lives. They reject overt displays of wealth, and

dominate their thinking for the next 3–5 years.

avour flexibility and financial wellness over wealthoarding. The impact of COVID-19 will potentially speed his movement up making them more financially aware nd responsible.

COMMUN

A new wav

transforming

entertainmen blend social

creating on p

PROGRAMMABLE

REALITIES

riven by the power of human imagination and machine earning, new tools such as virtual reality and augmented eality are extending Gen Z’s experience of the world. heir blended physical-digital world offers a new way of ngaging with brands – and with each other.

Photography by Siviwe Kapteynr, Andy Hatton and

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Gen Z Report

19

Macrotren are go.

KEY

TAKE-OUTS

he Macros

nti-Status Money

FOR

R

Incoming Micros

Clarity

Debt-protectors Flexible, budget-focused, centric financial products rather then entrap.

Honesty

Financial Wellness

They now view wealth in th that many of us view healt

Photo by Wesley Tingey, 2020.

ommunity Commerce

Simplicity

Direct-to-consumer

They value brands which h

emotional relationships wit

Transparency

Anti-aspiration Advertisin

They value brands that rep

and diverse people in thei

Secondary Waste They want retailers to thin

like circular economy bran

rogrammable Realities

Trustworthy

Privacy Hardware

They’re happy to trade dat

Each of our macrotrends also ushers in a

but want transparency in r

number of related microtrends that have very clear and useful messages for retailers to consider and act upon.

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