How Retailers Can Meet Gen Z’s DemandsOctober 31, 2019
Gen Z is the youngest generation and its members are already making a big impact on retail revenue. The generation is identified as the 86 million people born between 1997 and 2016, and it is expected to represent 40% of all shoppers by 2020. Today, this generation currently influences $600 billion of family spending.
Gen Z’s Impact on Retail
Influencing Family Spending
According to NRF’s Fall 2019 Consumer View Report, Gen Z is involved in about a third of family purchases. Typically, they assist in viewing products in store and online, and they often directly add items to a parent’s shopping cart. When they spend their own money, they tend to purchase entertainment products, including apps, books, music, toys and games.
Placing Importance on Price Over Brand
The youngest generation can be fickle, placing a high importance on price. In fact, price is their primary motivator when deciding where to shop, according to Business Insider. This obsession with price makes them less loyal to brands; they do not use brands to define their identity the way past generations have done.
Feeling Pressure to Buy New Clothes
The survey from Business Insider additionally found that because Gen Zers frequently document their lives on social platforms, they often feel pressure to always have new clothes. Members of Gen Z are fervent about authenticity, and they reflect their unique personality in what they wear. Additionally, this generation is passionate about sustainability, prompting many to shop from resale or rental websites.
Meet Gen Z’s Demands With NGC
Retailers can address these shifts in consumer demands with digital solutions. Responding quickly to consumer trends, managing quality control and maintaining social responsibility are all possible with a digital supply chain.
Respond Quickly to Shifting Consumer Demand
The steps between design and purchase ultimately determine the return on investment of a product. Traditionally, supply chains were siloed, with long lead times between steps. Today, digital supply chains can help reduce siloes and enable companies to make faster decisions.
Digital supply chain solutions such as NGC’s Andromeda PLM®and Andromeda SCM® help accelerate design and production schedules, allowing retailers to design closer to the latest trends and make faster, better decisions that will attract Gen Z consumers. Retailers that use Andromeda® can access real-time sales data, enabling them to continually adjust production, canceling products of styles with weak sell throughs or increasing production times on items experiencing a high demand.
Ultimately, speed is essential for keeping up with consumer sentiment, and retailers who can’t keep up risk losing customers, particularly those in the fickle Gen Z generation.
Maintain Social Responsibility
Gen Z considers ethical sourcing and corporate social responsibility (CSR) as key factors in making purchase decisions. That’s why NGC’s Andromeda Vendor Compliance is so important for helping retailers ensure that vendors comply with their standards for CSR and Good Manufacturing Practices. Andromeda Vendor Compliance helps companies evaluate, manage and report on vendors across their supply chain. This allows retailers to avoid costly litigation, reduce downstream risks and costs of non-compliance, and win market share by building and maintaining a positive public image.
Ensure Quality Control
For a generation looking for authentic style and quality, it’s essential for retailers to protect their brand. Quality will catch a consumer’s eye, inspiring them to purchase. NGC’s Andromeda Quality Control helps retailers maintain consistent quality by improving auditor efficiency, identifying defects before goods leave the factory, and resolving quality problems faster -- reducing the risk of chargebacks and increasing consumer satisfaction.
How Retailers Can Be There for Gen Z
As the youngest generation ages, its members’ preferences will become status quo in the retail environment. It is essential for retailers to implement solutions that help meet the demands of Gen Z today, so they can be prepared for many years to come. To learn more about how NGC’s Andromeda platform can help you, please request a demo here.