Gen Z has finally arrived to the main stage of the society. How is their shopping behaviors different from Millennials and what kind of business do they buy from? How is this going to impact fashion retail brands and retail store selling?
Fashion Consultant & Strategist Elle Von Jaeger is here to share some of her research findings and insights –
Gen Z is defined as those people born between 1995 – 2012. With the oldest of them reaching age 24, Millennials are starting to shy away and giving the limelight to the next generation – Gen Z. Gen Z differs from Millennials in many ways. According to Bloomberg, Gen Z will comprise 32 percent of the global population of 7.7 billion and outnumber Millennials in 2019. It is time for businesses to take actions – study infographics; learn more about their mindsets, behaviors and preferences; prepare your brand now to grab this market share before your competitors do.
Millennials vs Gen Z
Gen Z is true digital natives growing up with mobile devices and social media (Youtube is their #1 social media channel). They have shorter attention span and prefer individuality and unique styles they can show off on social media, rather than the brand names. Gen Z prefers being sold a cool PRODUCT (60%) over a cool EXPERIENCE (40%); Millennials prefer the opposite. Experienced the great recessions started in 2008, they are also more frugal and cautious in spending. Their in store purchase behaviors are heavily influenced by technologies: They use mobile apps and its features in retail stores. When it comes to communications while in store, texting is mostly used followed by Snapchat. They are also more socially conscious and would go out of their ways to buy products from businesses which will make “doing good (world peace, sustainability, climate change, energy etc.) and making the world a better place” a center part of their business, not just by giving to charities.
Good news is Gen Z still shop in stores for the convenience and shopping experience it offers. H&M has already been the top apparel choice in their teen ages. H&M has also taken some initiatives such as testing new concept stores and launching new brands that are more luxurious and sophisticated to enhance consumers’ store experience and adapt to their evolving needs. H&M’s Karlaplan new concept store in Stockholm has a contemporary visual appeal without the usual clutter you see at a H&M store.
Arket is H&M’s luxury brand with a vegetarian café inside. The sore sells beautiful homeware that you could also see at the café area. The café itself will attract new and return customers, keep them longer in the store with the increased likelihood they will shop in the store for clothing, as well as the homeware they saw earlier at the café.
Now is time for the retailer to grow with Gen Z as they start entering the work force as young adults. What does these psychographics of Gen Z listed mean for a retailer?:
Short attention span (8s): Gen Z want things quick and fresh. So let’s make fast fashion even faster! And give them the convenience of fast shipping, plus pick up and return in stores. The digital augmented shopping experience allows them to quickly find help and solutions with the absence of a busy sales associate.
Individuality and uniqueness: Gen Z prefer quality and styles that speaks of their uniqueness and personalities. Their frugal spending habits along with such styling preference means they will prefer quality over quantity, buy less but spend on higher quality items and rent or own second hand stylish pieces.
Digital savvy in store shoppers: mobile apps with near field communication features, AI virtual try-on apps and intelligent in store digital signage.
Social awareness and socialism: Gen Z will only spend on brands that reflect their values. They will ravenously research a company’s history to ensure it is socially and environmentally conscious, also animal cruelty free.
FOR IMMEDIATE RELEASE
Stockhom Sweden, Manhattan NY – March 15 2020 – In Oct 2019, Haus of Jaeger’s Managing Director Elle Von Jaeger presented a bold branding concept “Sustainable Fashion Capital of the World” first in Stockholm and then New York for the promotion of the Swedish fashion industry. This branding concept and slogan have now been used in Visit Sweden‘s press materials.
Visit Sweden is Sweden’s National Tourism Organization, promoting Sweden as a destination and as a brand to attract more foreign visitors. Visit Sweden forms partnerships with Swedish regions and other players in the Swedish tourism industry. Equally owned by the Swedish Government through the Ministry of Enterprise and Innovation, and the Swedish Tourism Industry through Svensk Turism AB, Visit Sweden is present in ten countries worldwide.
Visitsweden.com is part of Sweden.se – the official portal for general information about Sweden. Visit Sweden is one of five Swedish organizations with overall responsibility for providing information about Sweden to other countries. The other organisations are Invest in Sweden Agency, the Swedish Government Offices including the Foreign Ministry, the Swedish Institute and the Swedish Trade Council.
Familiar with the Swedish culture and that humble Swedes would never give themselves such an entitled label, Jaeger has decided to be the first person eating the crab: she made the bold move to present this whole branding concept along with the slogan to the Swedish fashion industry.
Unlike many other parts of the world where sustainability is more of a fab word associated with people who demonstrate forward thinking in social consciousness, Swedes truly and genuinely lives with it in their every day life.
Sweden also has an impressive fashion profile with well known brands such as H&M, Acne Studio, J.Lindberg. H&M is the second biggest fashion company in the world and now leading in the industry for its sustainability effort. On the other hand, despite these three brands are household names in the US, no one associate them as Swedish brands or recognize Swedish fashion. In comparison, they have more awareness of sustainability in Sweden.
Stockholm, capital and Sweden’s biggest city, has unusually high concentration of well dressed people on the street, much more than even the big four fashion capitals of the world: Paris, Milan, London, New York. #SwedishStreetStyle should be next on the hot search list.
It is on the basis of these observations that Elle Von Jaeger formed this “Sustainable Fashion Capital of the World” branding concept, as part of a bigger branding package to gain world recognition for the Swedish fashion industry and bring Swedish brands to international markets. There are more that certainly can be done for Swedish fashion.
Jaeger also raised the bar overall for a “Sustainable Fashion Forum” event she helped organizing in New York on Nov 21, 2019. Through her outreach, she has received a personal message from Diane Von Furstenberg herself within minutes and obtained attendance from Business of Fashion, Stella McCartney brand ambassador and sustainable influencers. She supported Swedish brands such as Dedicated Brand, re:newcell and House of Dagmar. Other partners of the event include H&M, FIT (Fashion Institute of Technology), Invest Stockholm, Visit Stockholm, the Consulate General of Sweden in New York.
Copyright @ Haus of Jaeger
“Sustainable Fashion Capital of the World”, when applicable to Swedish fashion and its industry, is the original branding concept and slogan of Elle Von Jaeger or Haus of Jaeger. We reserve the exclusive usage right of the slogan. Any third party shall not use the slogan without prior consent or accreditation.
About Haus of Jaeger
Haus of Jaeger is a premier, multi-division strategy consulting firm. We set our bars high in building a premier management consulting firm in luxury & fashion with top clienteles – leading luxury & fashion companies, established and emerging luxury brands, major media and online brands. Company leadership has experience with celebrity designers, luxury fashion brands and retail stores, leading fortune 500 media companies and is advised by McKinsey partner, Goldman Sachs strategy executive and serial entrepreneurs.
“Most brands haven’t yet achieved digital marketing excellence” – Boston Consulting Group report “Dressed for Digital: The Next Evolution in Fashion Marketing”
Unlike most consultancies or agencies in the industry, Haus of Jaeger is backed by Fortune 500, leading media industry companies experience and a strong digital marketing strategy background in marketing mix, cross channel, Ecommerce, targeting and analytics.
This is the biggest differentiator in marking us as a strategy consulting firm, in addition to our over 10 years of fashion/nonprofit industry experience, luxury brands, PR, celebrity and media relations, fashion media, global marketing communications, retail and creative directions services.
Following its launch this Spring 2020 in New York, Haus of Jaeger will also launch a second base in Stockholm this Summer/Fall 2020.
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