LOYALTY RESEARCH, THEORY & SURVEYS

McKinsey on what is Gen Z?

Article covers key characteristics and preferences for Gen Z vs. Millennials and preferred shopping habits.

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McKinsey & Company.

McKinsey & Co pubished a view on definition of Gen Z. Read here.

Key takeaways: 

• Generation Z refers to people born between 1996 and 2010. The generation spans a wide range: the oldest Gen Zers have jobs and mortgages, while the youngest are still preteens. Globally, Gen Z is growing fast: Gen Zers will make up a quarter of the population of the Asia–Pacific region by 2025.
• Digital Nartives: They are the first generation to grow up with the internet as a part of daily life. in Asia, Gen Zers spend six or more hours per day on their phones. Digital natives often turn to the internet when looking for any kind of information, including news and reviews prior to making a purchase. 
• Social media: Having grown up with social media, Gen Zers curate their online selves more carefully than those in prior generations have, and they are more likely to turn to trends of anonymity, more personalized feeds, and a smaller online presence, even as they voraciously consume media online. Video-sharing social media sites have seen a meteoric rise as Gen Z comes of age. TikTok currently rules trends, feelings, and culture for Gen Zers, who make up 60 percent of the app’s one billion–plus users. Gen Zers flock to corners of the internet where they can discuss their passions and interests with those who share them—from gaming to K-pop—bonding with both people they know in real life and ones they’ve only met online.
• ESG & Values: Gen Z is also generally known for its idealism—they’re part of a new wave of “inclusive consumers” and socially progressive dreamers. Generally speaking, Gen Zers believe in doing their part to help stop the intensification of climate change and to establish greater equity for all. More than any other generation, Gen Z collectively demands purpose and accountability, the creation of more opportunities for people of diverse and underrepresented backgrounds, and rigorous sustainable and green practices.
• Mental health: Gen Z is facing an unprecedented behavioral health crisis: US Gen Zers surveyed by McKinsey report the least positive outlook and the highest prevalence of mental illness of any generation. 
• Gen Z vs. Millennials: Those on the cusp of Gen Z and the millennial generation—people who were born shortly before the turn of the millennium—are sometimes referred to as “Zillennials” or “Zennials.” That includes older Gen Zers who’ve been in the workforce for a few years and young millennials who identify more with Gen Z. However, Gen Z generally has its own formative experiences distinct from those of most millennials. Here are some ways American Gen Zers differ from their older counterparts:
  • They are generally more pragmatic, with both complicated idealism and worries for the future. Gen Zers dream of personal career fulfillment but expect economic struggles.
  • They have less positive life outlooks, with lower levels of emotional and social well-being than older generations.
  • They are more interested in belonging to an inclusive, supportive community.
  • They are more individualistic, with a stronger sense of personal expression.
  • They are more politically and socially active, advocating for what they believe on social media
• Shopping patters: 
  • Gen Z loves expressive clothes, wants to stand out rather than fit in, and has an ever-changing style—what was in a month ago might already be out. This is supported by fast-fashion retailers supplying accessible ways to switch it up. This may seem at odds with the generation’s values of sustainability, but the speed at which Gen Z trends change and their desire for unique style can sometimes overcome their eco-scruples.
  • Gen Zers also love thrifting and vintage styles—which are much more in line with their calls for circular fashion. Fashion resale has experienced massive growth thanks to Gen Z resellers and influencers. 
  • Consumption is about access rather than ownership—Gen Zers subscribe to streaming platforms instead of buying films or music. This trend extends beyond entertainment—even to services like car shares or luxury-clothing rentals.
  • Gen Zers accept that their tastes might change, and they are more likely to spend on experiences that enrich their day-to-day lives than millennials, who are more likely to splurge on luxury.
  • Members of this generation care about ease of use: mobile pay, app-based services, and simple online transactions are important, and brands have found major success by restructuring to suit Gen Z tastes.
  • Gen Zers like brick-and-mortar stores more than millennials do but still want a great online shopping experience. Some brands have even found success through online-first launches, often supported by Gen Z consumers.
  • Ads are everywhere; Gen Zers experience brands “at every moment” as they move through their digital and physical worlds.

Source: McKinsey & Co.