Whiplash Team, September 30, 2024
Purpose-driven brands that connect with Generation Z
Generation Z has revolutionized the rules of the game in the world of marketing and branding. While they value a brand’s purpose, they remain price-conscious. To win over this new generation of consumers, brands need to be authentic, inclusive, and transparent.
Generation Z, born between 1995 and 2010, has grown up in a world marked by digital immediacy, cultural diversity, and increasing concern for the environment and social causes. This generation not only seeks products and services but demands that brands take an active role in society.
According to a study, 72% of Generation Z is willing to spend more money on products from brands that support social or environmental causes. This underscores the importance of building a brand narrative that aligns with genuine values and purposes.
A clear example is the clothing brand Patagonia, which has positioned itself as a leader in sustainability and social responsibility. From campaigns against excessive consumption to its garment repair policy, Patagonia has managed to connect with this generation by showing a real commitment to the environment. Its authenticity has allowed it to be valued by Generation Z, even though its products are not the cheapest, due to the positive impact they have on the world.
However, despite this prioritization of purpose, price remains a decisive factor for Generation Z consumers. It’s not enough to have a noble cause; brands must also offer affordable products to avoid alienating a segment of consumers highly aware of their spending.
The challenge of balancing purpose and price
Generation Z is pragmatic. They want to feel good about their purchases but are also more sensitive to price than other generations. This presents a unique challenge for brands: how to maintain purpose consistency without sacrificing price competitiveness?
Primark, the fast-fashion chain, is an example of how some brands are balancing this act. Despite operating in a business model traditionally criticized for its environmental impact, Primark has taken steps to improve its image through its “Primark Cares” campaign. The company has launched a more sustainable product line and promised to improve its labor practices and reduce ecological impact.
Although there is still much work to be done to convince Generation Z, the combination of low prices and an effort to align with consumers’ ethical concerns is a strategic move to stay relevant.
Authenticity: the core of brand identity
A key aspect of attracting Generation Z is authenticity. For this generation, brands perceived as artificial or dishonest quickly lose their appeal. Authenticity is not just about claiming that the brand has values but demonstrating them in every interaction with the customer.
Nike is an example of a brand that has successfully achieved this. Its “Dream Crazy” campaign with former NFL player Colin Kaepernick, who was criticized for protesting racial injustice by kneeling during the national anthem, had a significant impact on Generation Z. By taking a clear stance on a controversial issue, Nike showed that its values aligned with those of many young people, for whom diversity and social justice are fundamental.
However, being authentic does not only involve taking political or social stances. It also refers to how a brand handles its daily communication and social media presence. Brands that use a close and transparent tone tend to connect better with this audience. Platforms like TikTok have allowed brands to show a more informal and human side, which is attractive to Generation Z consumers. Brands like Chipotle have mastered this dynamic, creating entertaining and relevant content that reflects their authentic personality.
Inclusivity is non-negotiable
Diversity and inclusivity are essential aspects for Generation Z. This demographic group, which has grown up in a multicultural and diverse environment, expects brands to reflect this reality. Marketing campaigns that do not show diversity or are not inclusive risk being seen as outdated or even offensive.
Fenty Beauty, Rihanna’s makeup line, is an excellent example of how inclusivity can be a key differentiator. Since its launch, Fenty Beauty has offered a wide range of foundation shades, catering to women of all ethnicities and skin types. This not only addressed an unmet need in the beauty market but also sent a powerful message about the importance of representation. The brand not only won over Generation Z but also set a new standard in the industry.
How brands can adapt to Generation Z’s expectations
To connect and persuade Generation Z, brands must be more than just providers of products or services. This generation seeks authenticity, purpose, and accessibility. Brands like Patagonia, Nike, and Fenty Beauty have demonstrated that by being authentic and aligning with their consumers’ values, they can earn their loyalty. However, they must not lose sight of price. The challenge for brands is to strike a balance between these factors, offering affordable products without compromising their principles.
The path to winning over Generation Z is not easy, but those brands that manage to successfully navigate the complex demands of authenticity, purpose, and price will be better positioned for the future.
