What's Happening?
Gen Z, defined as individuals born between 1997 and 2012, is projected to become a significant economic force with an estimated spending power of $12 trillion by 2030. Contrary to common misconceptions, Gen Z is characterized as a generation of considered shoppers who prefer to explore brands through both in-person and online experiences before making purchases. Research indicates that 95% of Gen Z does not consider themselves impulsive shoppers, presenting an opportunity for retailers to establish deeper connections. The cohort is influenced more by expert voices like dermatologists and makeup artists than by traditional influencers. In the beauty sector, Gen Z prioritizes skincare, followed by hair care, makeup, and fragrance. The generation values sustainability, transparency, and aesthetics, and is open to experimenting with products.
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Why It's Important?
The growing economic influence of Gen Z is reshaping retail strategies, particularly in the beauty industry. As this generation becomes a dominant consumer group, businesses must adapt to their preferences for sustainability and transparency. Retailers that successfully engage with Gen Z stand to benefit from their substantial spending power. The shift away from impulsive buying towards informed decision-making suggests a need for brands to focus on building trust and providing educational content. This trend could lead to increased demand for products that align with Gen Z's values, potentially driving innovation in product development and marketing strategies.
