• by Jack Loechner , Staff Writer @mp_research, April 24, 2018

According to IRI findings from two recent studies into the shopping attitudes, emotional drivers, and behaviors of Generation Z (aged 21 and under), insights for manufacturers and retailers to effectively communicate with this generation of consumers are invaluable. A few highlights include:

• 47% of older Gen Zers are active participants in their family’s grocery shopping
• 38% of Gen Z kids think it’s cool to get ads or promotions in their social media feeds for products based on their interests/shopping habits
• 66% of the Gen Z population said that “Feeling Good About Who I Am” is part of being healthy, and 62% cited “Staying Positive” as a major contributor to health
• Gen Z has little interest in, or patience for brands, that try to “sell them” without sincerely working to get to know them

In partnership with The Family Room LLC, these studies surveyed a cross-generational sample of this emerging population segment, and shows that a brand’s authenticity is more important to Gen Z than preceding generations. Findings also show that Gen Z’s preferences tend to have significant influence on the purchase behaviors of their household. 

Robert I. Tomei, president of Consumer and Shopper Marketing and Core Content Services for IRI, says “Gen Z is deeply motivated by authenticity and a brand’s emotional DNA, defined for the study as how completely a product or brand aligns with the values shoppers attribute to it. Because Gen Z shoppers rely more on brand recognition to make purchase decisions than their millennial counterparts, it is critical that manufacturers and retailers create transparent and authentic relationships with the Gen Z population early on to build loyalty as their purchasing power grows.” 

The research from IRI’s latest study, which builds on the initial Gen Z analysis released in September 2017, links the unique attitudes and behaviors of Gen Z to household purchase behavior data, providing CPG manufacturers and retailers with actionable insights that identify growth opportunities. In addition to the importance of authenticity, some highlights from the study include:

• Gen Zers are active participants in their family’s grocery shopping. IRI’s study found that 47% of older Gen Zers (aged 18-21) participate in their household’s grocery shopping. Further, parents say their Gen Z kids influence what they buy at the grocery store. 
• Personalization isn’t creepy — it’s cool. 38% of Gen Z kids think it’s cool to get ads or promotions in their social media feeds for products based on their interests/shopping habits. That’s much higher than their millennial counterparts (21% for young millennials (aged 22-30) and 30% for older millennials (aged 31-40). 
• Variety is a must. IRI’s study found that product variety (i.e., flavors) is very important to the Gen Z’s cohort that substantially influences the buying behaviors of their households. For example, in the cold cereal category, Gen Z households purchased 12.4 unique UPCs per household in the category compared with only 7.6 unique UPCs purchased by households without a Gen Z member. 
• A healthy lifestyle is broadly defined. 66% of the Gen Z population said that “Feeling Good About Who I Am” is a part of being healthy, and 62% cited “Staying Positive” as a major contributor to health. 
• They want to be a part of the feedback loop. IRI’s and The Family Room’s findings show that Gen Z has little interest in or patience for brands that try to “sell them” without sincerely working to get to know them. 

Lynne Gillis, principal of Survey and Segmentation for IRI, says (The GenZ population) “…truly wants to be a part of the innovation process. But they want purposeful, collaborative innovation… manufacturers and retailers must leverage the power of personalization… to reach Gen Z, the first generation that has no memory of life before the internet… “ concludes the report.

For additional informationabout GenerationZ, please visit here.