Marketing to Gen Z: Why Is Gen Z A Prime Target For Your CPG Brand?

Many brands focus their campaigns on Gen X and millennials.

Though, now is the time to start targeting your campaigns towards Gen Z. Why? This is because many individuals in this category are now young adults who may have limited purchasing power at the moment, but it is consistently rising.

Also, their consumer patterns will determine the retail landscape of the future.

What Exactly Do You Need to Know When it Comes to Gen Z?

a)  In-store shopping preferences

What sets Gen Z customers apart is that they don’t just want to make a trip to a store to buy something – they’re looking for experiences.

A recent report from PwC shares that Gen Z consumers don’t really enjoy shopping at retail stores with traditional formats. They are most likely to look for additional reasons to justify a trip to a store.

For instance:

  • 22% are looking for personal shopping services.
  • 15% want additional services, like a spa or coffee bar.
  • 40% look at a store visit as a source of fun.
  • 42% prefer automated checkout options as well as other digital, self-serve experiences.

b)  Online shopping expectations

We all know that this generation is quite tech-savvy.

They’re ‘always on’ and rely heavily on technology. According to research published by IBM Institute for Business Value, more than 74% of Gen Z consumers say they spend their free time online.

Not only that, 66% of Gen Z consumers, have more than one internet-connected device.

This is why it is absolutely essential for CPG brands to work on their online presences and e-commerce offerings.

Even during the pandemic, many Gen Z customers were indulging in online shopping. A student-focused agency, Amplify, shares some interesting insights into Gen Z buying patterns!

They shared that while Gen Z men were spending more, women were shopping more frequently, with almost half (45%) shopping online at least once a week.

It’s All About Experience

We’ve ascertained that Gen Z consumers are looking for enhanced experiences – both online and in-store.

However, many retailers don’t seem to be providing these experiences.

For instance, a survey conducted by Nielsen on behalf of American Express Canada highlights that an underwhelming percentage of retailers invest in marketing tactics that interest this generation.

Up until last year, only 15% of retailers were investing in sampling and 23% were offering unique in-store experiences.

Experience matters – it is worth adding experiential technologies to your mix, creating engaging social spaces, offering opportunities for customers to customize the products, and delivering more personalized experiences.

IKEA, for instance, is looking to test a much smaller store concept in downtown Toronto, projected to open within the next two years.

Retail Insider shares that the rationale behind creating smaller formats is to meet the needs of Generation Z and Millennial customers in diverse urban communities.

When it comes to changing your processes to meet the requirements of Gen Z customers – you can rely on us! With our experience in retail merchandising, we can not only provide you with strategic but also execution support. Contact us today to learn more. Call 1-877-421-5081 or visit

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