Don’t Let Gen Z Disrupt Your Supplement Brand Strategy
Generation Z (Gen Z) is just a more extreme version of Millennials, right? No cap I used to think the same thing a few years ago, but Gen Z is a completely different animal, and your supplement brand better be ready for it…
What’s a Gen Z Anyways?
Let’s talk basic U.S. generational consumer stats…
Gen Z comprises of anyone born between 1997 and 2012
Gen Z makes up a quarter of the population
51% of Gen Z is white, 14% is black, 25% Hispanic, 5% Asian, and 4% Mixed
Gen Z already has an estimated $143 billion in annual spending power (~10% of Millennial spending power)
Gen Z Isn’t Important Yet…
Why should your supplement brand even care about a generation that has 90% less spending power compared to Millennials and over half can’t even responsibly purchase a sub-category of products in the industry (aka sports nutrition)?
It’s a valid question, but is business strategy about skating to where the hockey puck has been or is it about anticipating where it’s going next? Supplement brands (especially sports nutrition) has become the inspirational epicenter for the entire CPG industry. The best of these brands are the trendsetters. Because of that, supplement brands are often the first sub-categories of CPG industry to pivot their marketing strategies and reach out to the latest generation of young, spendy consumers.
To be honest, if your supplement brand isn’t thinking about Gen Z already…you’re behind!
Gen Z Insights Glow Up
Vibe Check? You good? Don’t worry you haven’t taken an L yet…I’m finna give you a major Gen Z insights glow up! [How did I do with my Gen Z slang?]
OK…so I don’t want to give a broad generalized statement, but it is what it is…
Gen Z is a group of diverse, hyperconnected, short-attention span influencers who could become your most important customers.
If you win them, you win them and their friends. It’s a huge opportunity.
Let’s break that generalized statement down a bit further…
Diversity
Gen Z practices tolerance, has learned to listen, and better at accepting differences, which is essential being the most culturally diverse generation to date in America. With one-size-fits-all approaches becoming even less effective, supplement brands will need to start thinking differently when seeking to reach Gen Z audiences. That starts internally, as all businesses (including supplement brands) will be judged by Gen Z in part by diversity, equity, and inclusion (DEI) metrics. It’s important to note that meeting DEI metrics shouldn’t be about “looking the part”, as having more varied perspectives on strategies, that come from authentic diverse voices, unlocks massive value within the organization.
Hyperconnected
Gen Z are true digital natives. The majority of Gen Z has little to no memory of the world as it existed before smartphones. That means these devices are basically an accessory that’s permanently connected to their hand. Gen Zers are radically inclusive and don’t distinguish between virtual and IRL friends. Because of that, Gen Z looks for immediate validation and acceptance through social media, since that’s where all their peers are and where many of the important conversations happen.
Since Gen Z has grown up alongside the internet, they are exceptionally familiar with how companies build and market their own brands. They “carefully curate” their online presence, so basically they are already brand managers for their personal brands. This means they’re extremely aware of being “sold to.”
Short Attention Spans
Gen Z has grown up in a world where their options are limitless but their time is not. As such, Gen Z has adapted to quickly sorting through and assessing enormous amounts of information. The filters, self-created or technology layers like trending pages, helps them easily decide things that deserve their attention. Once something has demonstrated attention-worthiness, Gen Z can become passionately committed and focused.
Authenticity & Gen Z
What cuts through the noise like a hot knife in butter?
More than any other generation, Gen Z craves authenticity. Gen Z is more aware of brands’ values and likely to stop buying from a brand if they don’t feel connected to those values. The generation also expects brands to deliver on their promises, and they’re not afraid to look for alternatives when they don’t. Additionally, Gen Z buyers are more aware of how brands are addressing social and environmental issues, so don’t be surprised when they demand concrete evidence from brands that attempt to use claims to target them.
Gen Z Key Purchasing Drivers
With Gen Z expected to greatly impact supplement brands for at least the next two decades, here is a helpful list of key drivers (outside of authenticity) that determine initial purchases…
Price = While some social identities might glamorize consumerism, Gen Z is quite risk-averse, practical, and pragmatic. They want the “best deal,” and that comes from value derived from the quality of the product, ease and convenience of the purchase, and what friends are saying about it.
Social Credit = Gen Z puts a lot of stock in what others say, so online ratings and reviews are an important part of the shopping experience. When a friend or family member recommends a product, the credibility factor increases exponentially.
Design Aesthetics = Gen Z favors heavily visual social platforms and are an image conscious cohort.
Entertainment = Gen Z isn’t consuming less television, it’s just on smaller screens that has revolutionized content, commerce, and the intersection of the two.
Speed & Ease = Everyone wants convenience but Gen Z wants an end-to-end intuitive and low-friction (or ideally, no-friction) shopping experience. That includes the promise of an easy return process.
Loyalty used to be defined as buying the same brand over and over. It was commerce-driven, but Gen Z wants a two-way relationship with brands. It isn’t only about commerce, as Gen Z expects a deeper value exchange between them and brands.
Final Thoughts
It’s critical that supplement brands recognize these generational differences and meet Gen Z where they are in the customer journey. Remember to make the shopping experience as effortless, quick, and convenient as possible. Don’t hide behind the corporate vail, as researching brands is a key part of Gen Z consumerism…so social proof is king. It’s time for functional CPG brands to finally start talking in a language Gen Z will understand and appreciate.