People
In this current era, businesses will need to implement different adjustments across various aspects in order to adapt to emerging trends and effectively align with the preferences and values of today’s generation (Mitterfellner, 2023). Generation Z, in particular, exhibits certain characteristics that set them apart from preceding generations of consumers. Notably, they represent the first generation to have been raised as digital natives, having been constantly immersed in technology and the internet during their entire lives (Moran, 2022). Hence, Gen Zers exhibit a significant dependence on technology as a means of doing product research, pricing comparison, and decision-making processes, mostly through the utilization of online platforms. The constant access to internet and social media has also increased the awareness of generation Z towards global concerns. Consequently, they have a higher degree of environmental and social awareness, resulting in a notable preference towards goods and services that are in accordance with their principles (McKinsey, 2023).
According to Pollard (2021), the purchasing power of Generation Z has experienced a significant increase, rising from $143 billion to $360 billion over a span of four years, and is expected to constantly grow over the next few decades. Hence, it is essential for brands to monitor them closely. In order to effectively engage with the highly technological generation of customers, businesses must comprehend and adapt to the dynamic landscape of technology. This can be achieved by making investments in technological advancements to enhance customer service and optimizing shopping experience. A prestige beauty company, Shiseido, for instance, has implemented an artificial intelligence makeup advisor which enables customers to virtually test out products prior to making a purchase (Douglass, 2022).
Figure 1. Generative AI implemented by Shiseido which acts as a makeup advisor for customers (Global Cosmetic Industry, 2022).
In addition, it is important for businesses to prioritize sustainability in their business plans by including sustainable materials and adopting environmentally-friendly manufacturing techniques. This is particularly crucial due to the growing eco-consciousness of Gen Z, who have high expectations for brands to have an active part in addressing environmental concerns (Shaw, 2023). Inclusivity is another aspect to be considered in a business strategy. This can be achieved by developing products that address the specific needs and preferences of a wide range of customers. Fenty, for instance, launched 40 different shades of foundation that address a variety of light to dark complexion tones. Furthermore, it produces specialized shades designed to cater to the unique needs of those with albinism (Shama, 2021).
Figure 2. 40 different foundation shades produced by Fenty Beauty which supports the company’s “beauty for all” mission (FNZ, 2020).
For a business to achieve success, it is essential to possess interpersonal skills, particularly social interaction and networking abilities. Being able to engage in social interactions will enable a business to get insights into customer preferences, thus facilitating the development and marketing of products that align more effectively with those needs.
Reference List
Douglass, R. (2022). Shiseido debuts AI Makeup Advisor in collaboration with Revieve. [online] FashionUnited. Available at: https://fashionunited.com/news/business/shiseido-debuts-ai-makeup-advisor-in-collaboration-with-revieve/2022040746955.
McKinsey (2023). What is Gen Z? | McKinsey. [online] www.mckinsey.com. Available at: https://www.mckinsey.com/featured-insights/mckinsey-explainers/what-is-gen-z#/.
Mitterfellner, O. (2023) Luxury Fashion Brand Management and sustainability: Unifying fashion with sustainability. New York: Routledge.
Moran, G. (2022) Drapers, Gen Z and Millennials 2022 https://www.drapersonline.com/guides/gen-z-and-millennials-2022
Pollard, A. (2021). Gen Z Has $360 Billion to Spend, Trick Is Getting Them to Buy. [online] www.bloomberg.com. Available at: https://www.bloomberg.com/news/articles/2021-11-17/gen-z-has-360-billion-to-spend-trick-is-getting-them-to-buy?leadSource=uverify%20wall.
Shama, A. (2021). Fenty Beauty and 10 other Inclusive Beauty Brands in the World. [online] Prestige Online – Thailand. Available at: https://www.prestigeonline.com/th/style/beauty/fenty-beauty-and-other-inclusive-beauty-brands/.
Shaw, J. (2023). Why Gen Z Values Sustainability: Tips for Marketing to the Eco-Conscious Generation. [online] Kadence. Available at: https://kadence.com/why-gen-z-values-sustainability-tips-for-marketing-to-the-eco-conscious-generation/#:~:text=To%20appeal%20to%20Gen%20Z.
Image References
FNZ (2020). Find your perfect foundation match with these inclusive beauty brands. [online] FashioNZ. Available at: https://www.fashionz.co.nz/find-your-perfect-foundation-match-with-these-inclusive-beauty-brands/.
Global Cosmetic Industry. (2022). Revieve and Shiseido Release AI Makeup Advisor. [online] Available at: https://www.gcimagazine.com/brands-products/color-cosmetics/news/22159597/revieve-and-shiseido-release-ai-makeup-advisor.