GENERATION Z IN POWER
“iGen” makes up one-fifth of the U.S. population and is the most racially diverse
People born after 1996 are quickly killing off industries,
NEW YORK— Millennials have been accused of killing so many products and industries — taxis, land lines, snail mail — that it’s become a media trope. But millennials are old news. Today, businesses and marketers are desperately anticipating the murderous whims of generation Z, the demographic born after 1996.
Sometimes called “post-millennials” or “iGen,” generation Zmakes up more than one-fifth of the U.S. population and is the most racially and ethnically diverse group in the nation’s history. They’re true digital natives who report being online “almost constantly,” according to a 2018 study by Pew Research Center. (Psychologists have said their technology use has produced a national mental health crisis.)
More than 70 per cent of genZers influence their family’s spending, according to a 2017 report from International Business Machines Corp. and the National Retail Federation. With that kind of sway and billions of dollars in spending power, they have businesses scrambling to understand their desires.
Their relationship to money, it turns out, has been shaped by the Great Recession, one expert said.
“Their expectations are lower, they’re not as confident,” said Jean Twenge, a professor of psychology at San Diego State University who has studied the generation. “They’re not viewing the world through rose-coloured glasses.”
They are less optimistic about economic opportunity and student debt. As a result, generation Z likes to play it safe. “They are more risk-averse than previous generations in terms of both attitudes and behaviour,” Twenge said, pointing to a study she authored that found today’s teens are less likely to have sex or drink. Still, they also prioritize wealth and material goods. “In psychological terms, it’s a shift toward extrinsic values — money, fame and riches — rather than toward intrinsic values, like relationships and community feeling,” Twenge said.
The generation already wields a deadly combination of economic power and social media clout. A disparaging tweet from Kylie Jenner earlier this year about teen-dominated app Snapchat wiped out $1.3 billion in Snap Inc.’s market value.
But if a tweet has the capacity to move that kind of capital, how else will this generation move markets and shape industries?
Given their love of digital life, the first expected victim of teen spending preferences is brick- and-mortar retail. America’s malls have been closing at a record pace as e-commerce becomes the preferred mode of shopping for millennials and gen-Zers.
More than two-thirds of U.S. malls saw a decrease in national retailers in 2018, according to a report from property research firm Green Street Advisors LLC.
Print magazines of all kinds are seeing newsstand sales decline. But teen magazines have struggled more than others to reach their intended audiences.
A Boston University School of Medicine study found that athletes who participate in youth football before the age of 12 have more behavioural and cognitive issues than those who begin playing later.
In response to mounting research concerning the risks, California State Assembly members introduced a bill to bar tackle programs before high school — and similar legislation has popped up in other states.
American teens are four times less likely to use cash than the general public and only use cash for 6 per cent of their transactions, according to data from teen debit-card company Current.
And the majority of people under 30 prefer to use cards over cash, even for transactions less than $5. Unsurprisingly, money-transferring apps are seeing continued growth.
There’s only one thing we know today’s teens will kill with 100 per cent certainty: articles about millennials killing industries.