CURATED READS FOR GEN Z—AND THEIR Z-CURIOUS COLLEAGUES

first up

Welcome back—this week, we’re getting festive. The US holiday season is here, and Gen Z is ready to spend some serious cash.  

In the US, many of us will soon be sitting down to Thanksgiving dinner: turkey, mashed potatoes, stuffing, mac and cheese, cranberry sauce, and pumpkin pie. And after the big feast, it will be time for the next big treat: Black Friday.

Rather than being up at 4 a.m. fighting for the best deals at a brick-and-mortar big-box retailer, you might be online shopping from the comfort of your couch. Either way, plenty of Gen Zers will be ready to spend, according to McKinsey’s latest Consumer Pulse Survey from senior partner Kelsey Robinson and partners Colleen Baum and Tamara Charm. But the US holiday shopping season doesn’t start when the clock strikes midnight on November 25—it’s already begun.  

’Tis the season to spend  

Coming on three years of COVID-19-cautious holidays, Gen Zers are ready to splurge and celebrate. If they have the cash to spend, Gen Zers are going to spend it. Fifty-six percent of US McKinsey survey respondents report that they started their holiday shopping in October, which is earlier than usual. They just couldn’t wait; 66 percent of Gen Zers reported feeling eager or excited for the 2022 US holiday season—more than any other generation and up 28 percent from 2021. 

One survey found that 48 percent of Gen Z respondents are planning to capitalize on “buy now, pay later” services for the holidays to avoid hurting their bank accounts. Some are low on cash (19 percent), but the rest may be ready to take advantage of any deals this holiday season has to offer.

Retailers are ready    

Retailers have caught on that Gen Z wants to shop. We’re seeing price-match promises, longer return windows, and membership discounts that are too good to pass up. Also, social media is now a one-stop shop. Eighty percent of Gen Z shoppers are looking to social-media platforms such as TikTok and Instagram to find gifts, and 41 percent are looking to actually buy gifts on these platforms. Many consumer-facing brands will likely be cashing in on influencer and social-media marketing this holiday season. 

However, just because Gen Z is looking to splurge doesn’t mean they’re buying everything in sight. In a McKinsey podcast, McKinsey partner Bo Finneman and colleagues shared that Gen Z is a bit more particular about their spending than other generations. Gen Zers are holding brands accountable by looking for companies that support causes they believe in, such as sustainability. Additionally, this generation is willing to opt for more expensive luxury items, but they value uniqueness more than other generations. A luxury item might not be a name-brand bag but rather an item that stands out among the noise of fast-fashion retail.

In addition, inflation is a big source of stress for many Gen Zers. In Europe, about 75 percent of young people say that inflation is influencing their holiday-shopping decisions, spurring them to put together some practical wish lists. Money, household items, and food and beverage all made the top ten items on young Western European’s lists. But even if they have a tight grip on their wallets in some regions, don’t count Gen Z out of the holiday fun.   

Happy holidays, and happy shopping! 

VISUALIZE IT

Younger generations are holding companies accountable through greener consumer decisions, creating a possible €650 billion annual opportunity for European companies.

Wait, don’t scroll 

Conscious consumption. Health and sustainability are now top priorities for many consumers. How will food producers and retailers keep up with this postpandemic demand? 
 
Adapting to inflation. Apparel companies are taking a hit from inflation and rising supply chain costs. But an agile pricing strategy can help retailers ADAPT—or adjust, develop, accelerate, plan, and track—by controlling costs and retaining loyal customers.

Old habits die hard. Coming out of the pandemic, will US consumers stick to new behaviors or go back to old habits? See how Americans are viewing online shopping, home improvements, and more. 

NOT US; STILL GREAT

Pizza or turkey? Drought, inflation, and bird flu have led to an increase in the cost of turkey: an impressive $1.99 a pound, up 84 cents from last year. Gen Z might be opting for more affordable meals instead of the traditional fare this Thanksgiving. [Bloomberg]

Low on eggs. Amid a bout of bird flu, the UK is currently experiencing egg shortages that are predicted to last past Christmas. Find out how the poultry industry and people in the UK will cope. [Guardian]

These present times. Inflation, tightening budgets, and possible job loss have led American Gen Zers feel pressure to spend more than they can afford this holiday season, according to one survey. [Bankrate]

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— Edited by Hanna Carney, editor, New York