Why Gen Z is Important for Business
Gen Z is an incredibly significant demographic for businesses to market to because they're quickly becoming one of the most influential consumer groups. With over 2 billion individuals worldwide — representing about 30% of the global population¹ — they're a massive demographic group, and their spending power is only increasing as they enter the workforce and gain more financial independence.
Because Gen Z is the largest and most diverse generation in history, they wield significant buying power. According to a report by Knit, Gen Z standalone buying power is around US$44 billion and its buying power influence is US$600 billion.² With that in mind, it’s an easy leap: As this demographic continues to enter the workforce and become financially independent, their purchasing power will only continue to grow.
But sheer numbers aren’t the only factor that make Gen Z a crucial target audience. They're also a very influential population, with strong opinions and values that are shaping the cultural and social landscape in many ways. They’re the generation leading the charge on sustainability, diversity, and social justice issues. Businesses that fail to align accordingly risk being left behind.
Equally significantly and as we mentioned earlier, Gen Z represents a generation that has grown up in an era of constant technological change. As a result, they're perpetually connected and able to adjust digital course readily as new technologies emerge, with social media and online platforms playing a central role in their lives.
Businesses that can successfully engage with Gen Z on those channels have the potential to build deep, long-lasting, loyalty-rich relationships that can very literally and monumentally sway their bottom line for the better.