Being attuned to what motivates these young shoppers can help you tap into this growing market.
More than any other generation, Gen Z shoppers want to spend their money at companies in tune with their values, reports a survey from Businessweek/Morning Consult. So how do you become the shopping destination of choice for this customer? As a dance retailer, you already understand that Gen Z shoppers are not just digital natives, they’re social media natives (look for them on Instagram and YouTube). While millennials—whether dancers themselves or dance moms—are core customers at dancewear stores, coming up right behind them is Gen Z, which will top 61 million roughly 8- to 23-year-olds in the United States. Digging deeper into what motivates Gen Z shoppers can help you tap into this growing market.
What Matters to Gen Z
Gen Z consumers are more likely to support companies that promote social initiatives and have a social purpose, according to the study, which surveyed some 11,000 adults last year. Here’s how Gen Z consumers compare with other generations when it comes to specific social initiatives.
- 44 percent of Gen Z would pay more if a company were promoting environmental initiatives, versus 44 percent of millennials, 35 percent of Gen Xers and 32 percent of boomers.
- 42 percent of Gen Z would pay more if a company were promoting racial justice initiatives, versus 35 percent of millennials, 25 percent of Gen Xers and 22 percent of boomers.
- 40 percent of Gen Z would pay more if a company were promoting gender equality initiatives, versus 35 percent of millennials, 23 percent of Gen Xers and 19 percent of boomers.
- 37 percent of Gen Z would pay more if a company were promoting LGBT initiatives, versus 27 percent of millennials, 16 percent of Gen Xers and 13 percent of boomers.
The Takeaways for Your Business
Being a small local business may put you at an advantage when it comes to this values-driven generation. According to SCORE, the small business mentoring organization, small businesses donate 250 percent more than larger businesses to local nonprofits and community causes. They give to local charities (66 percent), support youth organizations (48 percent), aid local service groups and donate food or volunteer in soup kitchens.
As a dance retailer, you certainly support your local dance community—more than ever right now—and many of you have always contributed to broader social initiatives that are important to you, whether it is feeding hungry kids, adopting environmentally sound practices and products, or funding scholarships. Consider taking it another step: Open a conversation with your youngest customers about the causes they care about. Invite them to join with you to support social initiatives that matter to both of you, and then share that mission with your whole customer base. Doing good can also help your business do well.
Last updated May 2020.