Young spenders

The purchasing power of Gen Z gets stronger every day. With a staggering global cumulative annual spending power of $360 billion, this demographic has become a prime target for brands.

The internet has greatly shaped their upbringing, and the COVID lockdown years have further shaped their distinct shopping preferences. To appeal to Gen Z (those born between 1997 and 2012), we take a closer look at four innovative type of concept stores that offer unique shopping experiences tailored to this younger generation.

Web3
Gen Z are digital natives and always open to try new technology. Statistics show that Gen Z lead consumer interest in the metaverse and 35% of them are interested in shopping in a virtual mall.

Showcasing trends - Siam Discovery
Siam Discovery in Bangkok has launched a future lab to showcase innovative trends. The third edition of their metaverse event, "Fight for the Future”, features multiple metaverse experiences. Located on the ground floor of the shopping mall, it showcases boxing gear and accessories from Thailand-based brand Fairtex. In addition, visitors can access the mall's virtual experience through the app and enter the Sandbox metaverse, where they can create avatars and explore Jinta Valley.

Gaming
With Gen Z spending 25% of their leisure time gaming (WARC), it is no surprise that malls and brands are experimenting with incorporating gaming elements into their spaces to create a hangout space that appeals to this generation.

Gaming community hangout – Selfridges
Selfridges is making a concerted effort to attract Gen Z consumers. In 2021, the store established a gaming corner that blends digital and physical experiences using technology. The gaming corner serves as a hub for events, including coding workshops, PC-building classes, live artist personalisation sessions with Controller Modz, and in-store gaming PC building. These initiatives aim to create a destination for gamers to hang out and largely appeal to Gen Z.

Sustainability
Gen Z value brands that contribute to the sustainability agenda. They want to use their purchasing power to support a positive impact on the world, thus, brands who do good appeal to Gen Z's desire to make a difference, foster a sense of purpose, and provide an opportunity to participate in social and environmental initiatives.

Socially aware – Patagonia
Patagonia​ has established itself as a popular and trusted brand among Gen Z consumers, who value both sustainability and quality in their purchasing decisions. Through its environmental activism, participation in the 1% for the Planet program, Fair Trade Certification, and sustainable business practices, Patagonia has taken many steps to benefit society. The owner has also recently decided to give any future profit not reinvested in running the business to fighting climate change. They also designed their pop-up stores completely waste-free which turned out to be a hit for Gen Z and provide customers with a hands-on, immersive experience that highlights the company's values and initiatives.

Individuality
Gen Z values individuality and self-expression more than previous generations largely from the fact that they have grown up in a world of technology. They focus on their personal brand, and value authenticity and independence. The lost time they experienced during lockdown further strengthen their extreme tastes which differentiate from the other generations.

Y2K style – Balenciaga
Balenciaga's combination of the Y2K style and its recognition for innovative, high-quality fashion has made it a favoured brand among Gen Z. The unique Y2K aesthetic, with bright colours, eclectic patterns, and retro elements, speaks to Gen Z's expressive nature and their urge to stand out and make a statement with their style. In 2022, Balenciaga showcased its commitment to this aesthetic by opening a London store decked out in pink faux fur to celebrate its Le Cagold handbag line. The French word "Cagole" refers to someone with over-the-top style and encapsulates the Y2K ethos of bold colours, logos, and bling that Gen Z values.

An omnichannel strategy is a must for brands looking to reach Gen Z consumers. This generation collects information from a range of channels, both online and offline, before making any buying decisions. Brands that effectively utilise each touchpoint in the customer journey, from media presence to in-store experiences, are better positioned to engage Gen Z.

Additionally, given Gen Z's inclination to support brands that align with their values and beliefs, incorporating bold Y2K aesthetics, self-expression style, gaming, and metaverse elements can also play a crucial role in attracting this generation.

Emily Lin