I was talking on the phone with my son this morning, which in itself is a positive given that he is 27 and most Gen Zers prefer any means of communication that does not involve directly engaging with another human. We were discussing his next career opportunity, and he was weighing the merits of a work-from-home job (isolation) or a sales gig that would take him in front of people (engagement).
I predicted he would choose the former as I was lamenting how his generation constantly walks around hiding their faces behind hoodies and sunglasses while stuffing their ears with ear pods (lamenting = complaining). He admitted that many of his contemporaries prefer to engage with society at the bare minimum. He traced it back to COVID-19, which thrust people into isolation, depths from which many have not yet emerged. (I warned you six years ago that these lockdowns would have lasting effects.)
Anyway, just when you thought all hope was lost, help is on the way. The bad news is that help is a ways off. It’s coming from the next generation, Gen Alpha, the oldest of which is 16. These are the children of the Millennials. They are the first generation who will be entirely born and shaped in the 21st century and will be the largest generation in history with over 2 billion individuals. They’re going to be very important to you one day.
Obviously, they’re not your customers of tomorrow—it’s more like next week or next year. But know they are a lot different than Gen Z. Case in point: Gen Z experienced the rise of social media, while Gen Alpha was born into a world where digital integration is seamless. Gen Z was shaped by the aftermath of 9/11 and the financial crisis, while Gen Alpha is shaped by rapid technological advancements. Gen Z values experiences over possessions, while Gen Alpha is expected to demand more personalized and immersive experiences. The latter is going to be critical for you.
Believe it or not, Gen Alpha is already beginning to have an impact on retail. A report authored by Melissa Gonzalez of MG2 Advisory, which focuses on retail evolution, reveals interesting research. For example, Gen Alpha is shaping and inspiring purchases made by the adults in their lives. While adults ultimately hold the buying power, 70% of Gen Alpha report that adults in their lives often purchase items they suggest, supporting they not only influence household buying decisions but are also shaping trends and brand loyalty across generations. They are active participants in deciding what to buy, sharing what they have learned online. This is why store environments cannot afford to overlook the range of age groups moving through their spaces, because even without a credit card, Gen Alpha is already shaping how brands and stores show up.
Your store experience will be important to this generation. Unlike so many who favor purchasing online today, 73% of this generation said they prefer shopping in-store to fully immerse themselves in a brand’s environment. They value hands-on experiences that let them explore products, validate purchases and connect with the brand on a deeper level. (Did someone say room viewer?)
You will need to connect with them from a technology standpoint. With fluency across smartphones, tablets, computers, digital worlds, virtual reality and AI tools, they are quickly surpassing Gen Z and Millennials in their expectations for ease and efficiency. Their cultural and commercial influence is accelerating, making it essential to understand what they will expect from brands and retailers in the years ahead.
Here are a few bullet points from the MG2 research:
- While Gen Z values ethical, sustainable and inclusive brands, Gen Alpha favors personalized, immersive and tech-integrated experiences.
- 66% of Gen Alpha rely on clear in-store signage to guide their shopping journey, reflecting the simplicity they have come to expect from their online engagement.
- Gen Alpha discovers brands through a blend of real-world influence and constant digital input. Friends remain their most trusted source, yet their ease with digital platforms explains why YouTube and TikTok are closely behind.
- Accustomed to speed, access and simplicity online, they expect physical environments to meet those same standards. Store layout, opportunities to test and try and overall look and feel emerge as meaningful value drivers, amplified by the presence of friendly, supportive staff.
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