People
This pillar allows us to explore the complex relationship between consumers and the people behind the business working as a team to deliver services and products, and how it is an integral part of any industry.
People born between 1996 and 2010 make up Generation Z and are often associated with the use of technology (McKinsey,2023). Francis and Hoefel (2018) refer to the generation as ‘digital natives’ due to the profound rise and improvements in technology throughout the years. The ease of access to consumption of media has been the most prevalent within Generation Z, how the internet influenced them growing up has set them apart from previous generations.
Many brands have had to adapt their marketing tactics to capture the new generation. The rise of social media and apps like TikTok proves its popularity to be an extremely useful tool in attracting consumers. Drapers (2023) states that 53% of Generation Z choose physical stores over online; however, this doesn’t reflect the size of the global influencer market which is estimated to be 21.1 billion U.S. dollars (Dencheva, 2023). The use of effective social media marketing has been incredibly influential in both online and in-store purchases made by Generation Z.
Table 1: Preference in shopping by Generation ( Drapers, 2023).
Pew Research Center tells us that Generation Z exhibits the most ethnic and racial diversity in comparison to previous generations (Parker and Igielnik, 2020). This makes inclusion one of the biggest values within the group. Therefore, it is fundamental that for a brand to appeal to them, they are represented in their products and services.
The global launch of Fenty Beauty in 2017 by Rihanna modelled how every brand should respond to differences in race and ethnicity. By making everyone feel represented by the product via campaigns, it heavily encouraged purchases to be made as the exhibition of inclusion was clear. Fenty Beauty made $100million within the first 40 days of launch, as a direct result of the connection Rihanna was able to build between the brand and people of all different paths of life (Pandey and Brown, 2021). The authenticity and transparency about the products displayed were one of the key people skills needed for the brand’s success. The significance of Fenty launching as a 100% cruelty-free brand with 40 foundation shades was a clear alignment between the generation’s and Fenty Beauty’s values for expression and individuality. Now known as ‘The Fenty Effect’ it inspired many other cosmetic brands to be just as inclusive and led by example in capturing the values of Generation Z in the campaigns.
Reference List:
Alli, L. (2022). “Diversity and Inclusion in the Beauty and Cosmetic Advertising and its Impact on Corporate Reputation” Available at: https://academicworks.cuny.edu/cgi/viewcontent.cgi?article=1142&context=bb_etds(Accessed: 15 October 2023).
Dencheva, V. (2023). “Global Influence Marketing Value” Available at: https://www.statista.com/statistics/1092819/global-influencer-market-size/#:~:text=The%20global%20influencer%20marketing%20market,record%2021.1%20billion%20U.S.%20dollars(Accessed: 15 October 2023).
Drapers (2023). “Gen Z and Millennials 2023: Understanding the next generation of shoppers” Available at: https://www.drapersonline.com/guides/gen-z-and-millennials-2023 (Accessed: 15 October 2023).
Francis, T., Hoefel, F. (2018).” ’True Gen’: Generation Z and its implications for companies” Available at: https://www.mckinsey.com/industries/consumer-packaged-goods/our-insights/true-gen-generation-z-and-its-implications-for-companies(Accessed: 15 October 2023).
McKinsey & Company (2023). “What is Gen Z?” Available at: https://www.mckinsey.com/featured-insights/mckinsey-explainers/what-is-gen-z (Accessed: 15 October 2023).
Moore, P. (2019). “Brand Humanization: Transparency vs Authenticity” Available at: https://www.socialmediatoday.com/news/brand-humanization-transparency-vs-authenticity/546046/ (Accessed: 15 October 2023).
Pandey, M., Brown, L. (2021). “Fenty Beauty: How make-up helped Rihanna become a billionaire” Available at: https://www.bbc.com/news/newsbeat-58084543# (Accessed: 15 October 2023).
Parker, K., Igielnik, R. (2020). “On the Cusp of Adulthood and Facing and Uncertain Future: What We Know About Gen Z So Far” Available at: https://www.pewresearch.org/social-trends/2020/05/14/on-the-cusp-of-adulthood-and-facing-an-uncertain-future-what-we-know-about-gen-z-so-far-2/(Accessed: 15 October 2023).
Taylor, S. (2020). “Highlighting Fenty Beauty’s diversity-based business model” Institute for Gender and the Economy Available at: https://www.gendereconomy.org/fenty-beauty-diversity-based-business-model/ (Accessed: 15 October 2023).
Images Reference List:
Diversity in People (n.d.). Available at: https://peregrineglobal.com/diversity-and-inclusion/ (Accessed 15 October 2023).
Drapers (2023). Preference in shopping by Generation (2023). [Online]. Available at: https://www.drapersonline.com/guides/gen-z-and-millennials-2023 (Accessed 15 October 2023).
Gen Z and Technology (2023). Available at: https://dealersupport.co.uk/appealing-to-gen-z-10-ways-to-tailor-office-product-offerings-for-the-next-generation/ (Accessed 15 October 2023).
Skin Colour Ranges (n.d.). Available at: https://www.elle.com/beauty/makeup-skin-care/a20967710/makeup-companies-40-foundation-shades-fenty-beauty-influence/(Accessed 15 October 2023).