Appealing to Gen Z in a Post-COVID-19 World

Appealing to Gen Z in a Post-COVID-19 World

July 15, 2020

By 2035, Generation Z will account for 40 percent of luxury purchases worldwide. This group, born roughly between 1997 and 2012, will be impacted by COVID-19 for their lifetime, since the pandemic occurred in the midst of their most formative years.

Like their Millennial counterparts, Gen Z  is comprised of digital natives who grew up prioritizing low prices, convenience and frictionless shopping experiences. However, COVID-19 has fundamentally altered these ideals. According to Vogue Business, Gen Z is now fixated on transparency, consistency and authentic attempts to lead societal change.

Transparency Starts at the Top

Increasing transparency starts with a top-down approach: if the retailer is not aware of the how their products are produced, the customer certainly won’t be. One of the best ways to keep organized is through an interconnected enterprise system that accounts for all of a retailer’s supply chain planning, sourcing and logistics.

A digital supply chain allows major retailers to connect with affiliates across the globe, keeping an updated production schedule that can pivot as needed. By effectively keeping track of inventory, customers, including Gen Z, are ensured to have transparent insight into the supply chain as they make a purchasing decision.

Reliability Against All Odds

Today’s digitally native consumers can easily compare options as they shop, making it more important than ever to be the most appealing choice. During the recent lockdown period, online orders have increased by 49%, and Gen Z has high expectations for delivery.

Additionally, 63% of Millennials and Gen Z customers expect their items to be delivered in less than four days. To reach these heightened expectations, maintaining logistics flexibility within the supply chain is critical. Some retailers are bypassing distribution centers, shipping directly to stores, consolidating assortment options and redirecting employees to delivery services to speed up the process.

Acknowledging the Bigger Picture

Consumer confidence is concerningly low. Buyers are tentative to spend their savings as the country plunges into recession, especially Gen Z. However, customers are more willing to spend their money if they feel it will leave a positive impact.

As retailers compete for the top spot coming out of the pandemic, the Gen Z vote will likely follow brand loyalty and the companies that demonstrated authentic corporate social responsibility. Some retailers, including many of our clients, have given back through donations or by redirecting production to support COVID-19 safety efforts. Adjustments like these require a careful assessment of the business model, which can be conducted more thoroughly when all elements of the companies offerings can be managed digitally.

Reaching Gen Z with NGC's Digital Supply Chain Platform

Eventually the world will open back up and the economy will recover, but for Gen Z, COVID-19 will impact the way they shop for their lifetime. The retailers that will resonate with this up-and-coming generation will be those that can easily and transparently pivot to fit their developing needs.

With NGC’s Digital Supply Chain platform, all aspects of the supply chain can be organized and adapted through a single cloud-based platform. NGC is eager to help retailers emerge from COVID-19 successfully and prepare for the future of retail. Contact us today for more information.