Generation Z is the first generation to grow up with the Internet and digital technology. They are often referred to as 'digital natives', 'internet generation', 'second-dimensional generation', or 'media natives'. The Economist previously described Generation Z (typically defined as those born between 1997 and 2012) as a generation with higher education, proper behavior, but also greater pressure and frustration compared to previous generations.
Currently, there are approximately 65 millionZ generations in the USA, accounting for 20.7% of the total population. As more and more Z generations enter adulthood, they will occupy a larger share of the workforce; it is expected that by 2030, the Z generation will hold 30% of the job market and gradually become the main consumer force in the USA.
"As the saying goes, 'the world belongs to the young'. What are the characteristics of this generation? How will this affect the consumer habits of Americans? What investment opportunities exist?
1. The Z generation is actually the most frugal generation in the USA.
The American Z generation was born in an era of slow economic growth, so they are not as extravagant as the previous generation. According to Influencer Marketing's survey, the Z generation usually saves one third of their income.
One of the methods the Z generation uses to reduce living costs is shopping at discount stores. According to statistics, 48% of the Z generation prefer discount shopping, and the browsing volume under the #tiktokmademebuyit topic has exceeded 6.7 billion times, making affordable online beauty brands more popular among the younger generation.$e.l.f. Beauty (ELF.US)$like these, cheaper online beauty brands are more likely to be favored by the younger generation.
However, at the same time, Generation Z still chooses to shop at physical stores and is accustomed to purchasing a large number of products at discount stores.$Costco (COST.US)$In the past two years, the number of Sam's Club members aged 27 and below has increased by more than 60%. Compared to previous generations, Generation Z prefers cheap goods and tends to choose food with lower unit costs.
2. Generation Z is immersed in social media.
Social media platforms are important arenas for young people's entertainment, search, socializing, and shopping, among which Instagram Reels is a popular choice for content creation by young people in the United States.$Meta Platforms (META.US)$It is worth mentioning that Generation Z's information retrieval preferences are shifting from traditional search engines like Google to social media platforms.
2. Generation Z is immersed in social media.$Reddit (RDDT.US)$Meta platforms are community-based internet platforms. On Reddit, users can discover new and diverse topics through the posts from the subreddits they subscribe to and the content recommendation mechanism of related communities.
3. Generation Z loves streaming media.
$Netflix (NFLX.US)$And$Spotify Technology (SPOT.US)$It is the favorite way for young people in the United States to watch programs and listen to music, providing highly personalized experiences.
In addition, with the decrease in the number of times the younger generation watches traditional television, this also brings new market opportunities for sports streaming services. Fox, Warner Bros. Discovery, and$Disney (DIS.US)$旗下的 ESPN 已宣布计划于今年秋季晚些时候创建一个新的“超级平台”，将三者的体育转播权整合到一起，从而打造有史以来最强大的体育流媒体服务，以吸引通常较低频次观看电视的年轻观众。
4. 独居的Z世代更倚重宠物提供的情绪价值
一项在美国完成的调查显示，Z 世代的宠物主人在宠物身上花费最多，平均每年高达1885美元。千禧一代紧随其后，不过这个群体在美国宠物主人中所占比例最大（32%）。Gwi 的报告显示，就Z世代“铲屎官”首选零售商而言，$Chewy (CHWY.US)$越来越受欢迎，被选中的概率增长18%。
5. Z 世代更偏好数字支付
安永最近的一项调查显示，美国Z世代在所有年龄段中采用数字支付方式的人数最多。他们喜欢快速简便的支付体验，对数据隐私暴露的担忧程度较低。Cash（由其母公司$Block (SQ.US)$and Apple Pay.$PayPal (PYPL.US)$It is the most popular cashless payment method among young people.
In addition, Generation Z tends to use debit cards instead of credit cards, and they are gradually becoming accustomed to Buy Now Pay Later services. Discovery's research shows that the Buy Now Pay Later usage rate among Generation Z is as high as 40%, and some financial platforms, such as [platform name], already offer similar services. $Affirm Holdings (AFRM.US)$ are already mature in providing similar services.
6. Sports gambling has been widely accepted by Generation Z.
As some states in the United States begin to relax gambling regulations, sports gambling is becoming increasingly popular among the Z generation. For people aged 21-26, the number of people betting through mobile devices has increased by 16%, while the number of people betting in casinos has increased by 14%. The heavy advertising has played an important role in this trend, contributing to the expansion of user base for platforms such as XYZ online gambling. $DraftKings (DKNG.US)$ The massive ad placements have played an important role in this trend, contributing to the expansion of user base for platforms such as XYZ online gambling.
Editor/Emily