Businesses of the past and present focused more on profits, by providing goods and services that customers liked. It can be at the cost of environment, exploitation of weaker sections of society, unethical practices, creating health issues etc. The customer usually didn’t care- and so businesses also didn’t care.
But in the last few years, we have witnessed a shift. Customers are becoming more concerned and vocal about how companies produce what they produce.
This shift is a result of the new generation in the market. The Gen Z or customers who are currently aged 24 or less. They are considered as the generation of truth and openness. They do not follow the values of the other generations. They have their own values.
Their values, preferences and tastes are quite alien to the Generation Baby Boomers (customers aged 60 and above) and Gen X (customers aged between 40 and 60).
And interestingly, when compared to Gen Y or millennials (aged between 25 and 40) they are less idealistic, believe in savings and job security than higher salary.
The Gen Z is more open, more tolerant to differences, nature loving, more ethical. They seek the truth in matters without perhaps diplomacy and compromise. A trait that older generations might find unacceptable.
They are also more active in opposing companies, governments, establishments that are against their values.
It is important for businesses that plan to stay long in business to know the Gen Z, as they are the youngest and growing population. Ignoring them is digging own grave. Knowing what they like and don’t like will help businesses to,
- Design products and services that most suits them
- Source raw materials from places that their customer does not have a problem with
- Brand their products in ways that appeals to the new generation
- Market their products in channels that they like to use and are available
- Sell in a manner that appeals to them
- Get more new generation to work in their businesses
- Get more new generations to be interested in investing in their businesses
The list goes on as to why this new generation should not be ignored.
Among the various factors that Gen Z is concerned about is the ethical values and openness of companies to diversities. With the Internet and the information it provides at finger tips, they do study more about the companies and brands they use.
They prefer companies that,
- Are honest and not do cheat
- Does not exploit the nature nor people
- Does not discriminate against different people based on sex, religion or ideologies
- Does something for bringing goodness in the world
So if your business is not what they like, then be ready to close down in few years. As over the years, the percentage of Gen Z will increase in the market. And the percentage of other generations influenced by the Gen Z values will also increase.
