Marketing to a Generation That Doesn’t Buy
Image Source: Carlos Monteiro / AdWeek
For years now marketers have been catering to millennial buying habits and planning for the next wave of Gen Z. In a study from McKinsey, “‘True Gen’: Generation Z and its implications for companies,” it was found that millennials prioritize consumption of experiences, like travel and festivals, while Gen Z-ers are seeking brands that align with their values around uniqueness and ethics. Hitting the mark with both consumer groups isn’t easy for brands, but despite their differences, one trend has emerged equally between them both.
According to new data released by Lab42 and reported on by Adweek, Gen Z and millennials are both equally invested in renting — not just the obvious, expensive items like apartments or jewelry, but everyday products, from tools to technology. To provide some context around how this trend is evolving among consumer groups, Lab42 also looked at the 39-49 demographic and 50+. While 64% of consumers aged 18-38 stated they rent instead of buy, only 20% aged 39-49 and 16% aged 50+ said the same.
When asked why they rent, 57% of all consumers surveyed cited testing before purchase and temporary solutions as their top reason. As for the most popular products consumers rent, those surveyed cited furniture (45%), gaming systems (37%), clothing and tools (both 35%) as leading categories.
Lab42’s data inevitably points to one question: how do brands start marketing to a consumer that doesn’t want to make purchases? The fashion industry has already started making moves to bridge the gap between traditional retailers and rental subscription offerings (see Infinite Style by Ann Taylor or Le Tote’s $75M purchase of Lord & Taylor). Will other big brands across sectors like high-tech take the hint? We’ll just have to wait and see!
Posted by Kate