22 October 2019
Gen Z are beginning to enter the housing market. By 2020, they will represent 40% of consumers and have an estimated spending power of $143bn in the US alone, over double that of Millennials. As they begin to buy and rent homes of their own, brands and retailers should question how Gen Z might shift the landscape of the homeware market?
Who are Gen Z?
Currently aged 7 – 24 (born after 1995) they are a pragmatic, independent and persistent generation. As a result of watching their parents struggle through a recession, they are financially driven and highly motivated in their pursuit of success. A staggering 22%, that’s almost one in four Gen Zs (aged 13-21) already earn money online, with one in three teens in the UK using the app DePop to buy and sell goods. Smart brands like IKEA are already collaborating with powerful Gen Z influencers like Virgil Abloh, to drop limited edition collections which sell out immediately.
So how do Gen Z differ from their Millennial predecessors?
They are a generation of social activists and they care deeply about the planet. As the most ethnically diverse generation yet, their willingness to embrace different cultures means they are able to pick and choose from a wide variety of global reference points when it comes to finding inspiration. They value diversity in all forms, and their focus on inclusivity and rejection of outdated values or even traditional family structures, sees them embracing gender neutral colour and design. One of the core values of this cohort is their creativity and need to express themselves and their individuality. Together, all of these factors will have an impact on colour, design and material trends within the home.
As digital natives, they are growing up with a world of information at their fingertips, so global skill sharing, enabled by ‘YouTube’, has encouraged a new generation of DIYers. A recent poll even revealed that they are more competent than their Millennial predecessors at DIY and are more willing to tackle chores like changing a lightbulb or bleeding a radiator themselves, in order to save money and resources.
This could all be good news for the Home & Interiors industry, however, brands need to educate themselves on the mindsets and motivations of this complex generation if they hope to target this new audience effectively.
Understanding the catalysts that drive trends is crucial for knowing what will influence new consumer groups. To understand how to tailor this insight into your sector and unlock opportunities for your brand contact us at email@example.com.
Overall a great day which involved getting everyone's thoughts, ideas and reservations down on paper. I am looking forward to seeing how this information will be overlaid with the vital trend insights we need to drive new product development and long-term business growth.
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