Go-to-Market Strategy for Startup

66.4% say they have purchased products that they first discovered on social media – a greater proportion than say the same in either the US or the UK. [Gen Z: The Future of Spending]

Almost half (47%) of Gen Zers use YouTube to research products before buying. Instagram (29%) and Facebook (21%) are much less frequented. [Momentive study: Gen Z social media and shopping habits]

A global survey completed at the beginning of 2022 revealed that Gen Z (and millennials) were the age groups that were the most interested in metaverse activities. Socializing with friends and playing games were identified as the most popular experiences, while nearly 40% of Gen Z participants indicated that they would be interested in attending a virtual concert of one of their favorite musicians.

Of all the generations, Gen Z shoppers are the most interested in exploring augmented reality (AR) shopping experiences. A survey completed at the beginning of 2022 showed that more than 90% of Gen Z participants were interested in using AR to see what a furniture piece will look like in their home.

While Gen Z still likes to shop in-store as well, a Squarespace survey revealed that most (60%) believe that how you present yourself online carries more weight than how you present yourself in person. In fact, nearly 60% of Gen Zers believe that it’s easier for them to remember the color of a website than what it is to recall the color of a person’s eyes. This means that it’s key that stores ensure they have a well-designed website and solid online presence.

Gen Z Spend the Most on Their Pets. Among other findings, Generation Z pet owns spend more on their pet than any other generation: $1,885 annually, on average. Millennials are a close second at $1,195, followed by Gen Xers at $1,100, with baby boomers bringing up the rear at $926.

A survey conducted in 2022, showed that 57% of Gen Z will opt in for email when it comes to brands reaching out to them. Their second preferred channel of communication is social media. (44%).

In Great Britain, female shoppers are more likely to belong to a type of loyalty program. Only 41% of Generation Z men in Great Britain are part of a loyalty program.

“Gen Z is highly social, online and offline, with greater conversational engagement than adults in most consumer categories,” said Engagement Labs CEO Ed Keller in a release.

48,79% of our respondents said they buy something when needed, while 32,68% said they make a purchase when there’s a sale. [Marketing to Gen Z]

Unlike their Generation X parents — the children of the mid-1960s through about 1980 — who valued status, name brands and luxury items, Gen Z members prioritize doing business with companies that have a commitment to social justice, the environment, mental health and other causes. They also want to spend their money on goods and services that are “unique, ethical and unlimited.” [5 Brands That Are Getting It Right With Gen Z]

Gen Z is a generation that is not afraid to stand behind their beliefs. They are not afraid of voicing their opinions across public forums and this behavior permeates their life choices too. Today, a company’s values and lived purpose influence not only their employer choices, but also their purchasing habits. [UNDERSTANDING HOW GEN Z PERCEIVES BRANDS DIFFERENTLY]

With nearly half of students more willing to purchase from a brand that gets representation right, there is an opportunity for brands and retailers to engage with Gen Z and drive sales. Almost two thirds (65%) said that brands could improve the online retail experience by letting them search for “gender neutral” clothing, without being forced to search “men’s” or “women’s” from the beginning. And while most consumers would not expect to pay more for gender-neutral items, some would be willing to pay more if the item was designed and marketed as non-gendered. [Nike, Asos, Old Navy are most inclusive brands for Gen Z, study says]

Gen Z loves these brands because of their strong ideologies centered around social change, inclusivity, social justice, and reasonable consumption. The marketing strategy of these brands involves various instruments, including classical advertising, but the key difference lies in their messaging. The message in their advertising is crucial.

Nike

The Oregon-based company scores high with Generation Z because of its casual apparel and fashionable footwear. But it isn’t just sweatshirts and sneakers that are driving Gen Z to Nike products. Instead, its advertising campaigns advocating for social change are resonating with teens and young adults.

Business Insider reported Nike’s success with the demographic, in part, is linked to high-profile marketing campaigns. One of those included an ad that featured Colin Kaepernick, the former NFL quarterback who has taken a stand on racial and social justice issues. Nike ranked No. 1 in the footwear category in the Taking Stock with Teens report in Fall 2020 produced by financial services firm Piper Sandler. [5 Brands That Are Getting It Right With Gen Z]

Nike masters the tribal strategy. This is how they did it. A brand needs to build a loyal tribe; and this tribe must have an appealing ideology in order to be self sustained.

Nike is smart enough to learn from both Apple success and Pepsi fiasco. In many aspects, Nike manifesto is not far away from Apple 1994. To note, it follows the same rebel archetype of being unique, defeating the odds and being crazy enough to believe in his dreams. Nike also has the equity power and credibility to sustain the message. [Nike: Tribal Strategy for Millennials and GenZ]

Shein

Now, the brand’s success is due to many factors. Its affordable pricing is definitely the biggest selling point. Not to mention that they manage to release new collections at an extremely fast pace, giving a wide array of cute designs that would tickle the fancy of any fashion lover.

But if we were to talk specifically about Shein’s marketing strategy, they were one of the first brands to truly learn how to use TikTok. On their TikTok profile, you can see that between their regular product presentation videos, they also repost videos posted by those who either purchased or received items from them.

Shein hauls, in particular, are doing extremely well, as any related hashtags garner millions of views. [Marketing to Gen Z]

Starbucks

Starbucks won over millennials in the 2010s with its diligence to social media and a strong rewards program. It also succeeded by providing its customers, who increasingly were communicating by digital means, with a place to meet up with others, face-to-face. It has continued its momentum in the 2020s with a strong commitment to the environment. Starbucks is a founding member of the Transform to Net Zero Coalition, which pledges a net-zero carbon economy by 2050, has a sustainability training program for employees, is growing its plant-based offerings and is investing in renewable energy. Starbucks was No. 2 in the Piper Sandler survey in the restaurant category. [5 Brands That Are Getting It Right With Gen Z]

CeraVe

Skin-care line CeraVe has taken the social media route to becoming the darling of the Gen Z set. It topped the Piper Sandler study in its division, with 28% of respondents favoring CeraVe. It has done so by reaching Gen Z directly, building a customer base via TikTok influencers, according to a June 30, 2021, report from internet marketing firm Tribe Dynamics. As of the report date, posts with the #cerave tag had received 825.1 million views. [5 Brands That Are Getting It Right With Gen Z]

Ulta

In the beauty products division of the Piper Sandler survey, Ulta was preferred by 42% of respondents. Perhaps that is because it stocks many of the products that are Gen Z favorites — products that emphasize cruelty-free manufacturing or putting an emphasis on a natural, rather than a made-up look, for example. Gen Z consumers also want their cosmetics brands to take a stand on issues such as police reform and sustainability, The New York Times reported. [5 Brands That Are Getting It Right With Gen Z]

Apple

Gen Z perceives Apple as a "Tried & True" leader. They recognize Apple for being traditional, simple, straightforward, and a good value. However, among the General Population, Apple is recognized as "Cutting Edge" - a brand that is recognized for being innovative, unique, progressive, and dynamic. [UNDERSTANDING HOW GEN Z PERCEIVES BRANDS DIFFERENTLY]

Netflix

Like one podcast host said, "we don't watch a TV show or something, we watch Netflix". Netflix is a brand, Netflix is an ideology.

To become a favorite brand for Gen Z, it's essential to align with their complex values. This includes offering low prices and avoiding luxury positioning, allowing for self-expression through a wide selection or customization, and being sustainable and inclusive. The brand should emphasize core human values such as love, fulfillment, and making the world a better place, leading to motivational content.

The ideology must be altruistic, focusing on a positive future impact for the world rather than immediate personal gain for the customer. Gen Z values belonging to a group that supports solving global issues, not for personal status but for shared commitment.

Marketing Tactics

1. YouTube Shorts: Utilize this rapidly growing platform for organic reach.
2. TikTok: Leverage its popularity to engage with Gen Z.
3. YouTube: Create long-form videos to explain products, introduce founders, and provide detailed information. These videos won't directly sell but will help customers make informed decisions.
4. Charity Initiatives: Incorporate gamification and charity. For example, offer to donate a portion of t-shirt sales to a charity, with options for customers to choose the organization, or conduct Twitter polls to engage the audience in charitable decisions.
5. Starbucks Integration: Film TikTok videos in Starbucks, as it is a favorite brand among Gen Z.