Generation Z, which Pew Research Center defines as being born between 1997 – 2012, has been the focus of attention as consumers just forming their own discretionary spending habits. According to financial services and investment banking firm Piper Sandler, teen discretionary income is up to $2,331, a three percent increase year-over-year.
These kids are quickly approaching their teens and their discretionary income spending years are just on the horizon. Now is a great time to look at the consumer profile defined by the generation's upbringing, the world they are coming up with, and how that will shape their future purchasing habits.
Most of Alpha’s parents are millennials, for whom being online often meant using the family PC and a modem line. But instead of using the home computer and dial-up internet, members of Gen A are screen natives, having been given an iPhone playing TikToks and YouTube unboxing videos since around infancy, pediatrician’s screentime recommendation be damned.
Members of Generation Alpha will be comfortable in a world where their personal trainers are virtual and AI-powered, and workouts happen in the metaverse. They could also potentially see carrying physical credit cards as antiquated as fax machines, as they’ll be comfortable with payment apps like Cash or integrated mobile solutions like Apple Pay. Even “virtual currency” like Robux might become a way to exchange goods and services or make peer-to-peer payments for Alphas.
Creative sandbox games have existed for some time, like Minecraft. But Roblox’s expansive universe, creative opportunities, community, and availability across practically every screen Alphas use pushed the company’s valuation over $18 billion as of the time of this writing. Roblox is a metaverse platform where kids can express their imagination and ingenuity but create and share with friends in an immersive space. Alphas are even becoming budding entrepreneurs on Roblox thanks to its virtual currency feature. They grew in popularity during the pandemic, but kids are still nuts over the platform, and as they grow up and the technology improves, Generation Alpha will evolve with it. Not only is Alpha the first digital native generation, but they will also be the first meta-natives.
Being raised by millennials, Generation Alpha is as accustomed to digital experiences as they are to their parents' purchasing decisions. Gen A is still a little too young to gauge its values, but, being raised on brands and products that are more socially and environmentally conscious, it’s not a stretch to imagine many will use their purchasing power to support the same brands they grew around.
Millennials and Gen Z might be “woke,” but given the current state of the planet and the enormity of climate and plastic pollution challenges, Alpha will be the generation that won’t be able to sleep on these mounting existential crises. Kids generally look to the preceding generation for fashion and music, but Gen Z also brings a strong sustainability sensibility, teaching Alphas the importance of going plastic-free, for example.
COVID also had a distinct impact on the kids and how it upended their lives. For the most part, adults made difficult adjustments in understanding the need for things like working from home and wearing masks in public. But the pandemic has now stretched to up to a third of Generation Alpha’s entire life. These kids lost their in-person social circles, spending even more time in front of screens as schooling went virtual. They were already growing up to be comfortable in virtual environments like Roblox, but COVID has accelerated that inevitability. Online shopping will be more sophisticated than current e-commerce options, and Alpha will expect a more immersive purchasing experience.
Of course, we still have a few years until this new cohort starts shaping its consumer profile. The oldest members of this generation are still kids aged ten and under. But we can begin identifying trends and influences based on their digital habits and the effect of their millennial parents.
Brands looking to get a headstart on marketing to Generation Alpha would be wise to focus on the social and ecological principles already being instilled into kids by Zoomers and millennials. Getting comfortable with virtual spaces and learning to leverage them to market to Alphas will also be critical. Some brands like Nike are already experimenting on platforms like Roblox. Just like millennials and Gen Z expect brands to have a presence on social media, Alpha will expect to find and interact with brands in metaverse spaces.
Source : https://thedieline.com
