Gen Z and Hispanic and Black parents will walk away from offensive and disrespectful brands, especially those that offend any racial group, according to a new survey.
The research carried out by Culture Marketing Council: The Voice of Hispanic Marketing (CMC), reveals that brands and companies must think beyond price, and focus more on “cultural literacy and social responsibility” to retain Gen Z and their parents as consumers.
“Gen Z is a diverse generation that feels a sense of unity with other minority segments and understands that hate and racism are the biggest issues they face together,” explained CMC Research Chair Nancy Tellet, Founder, Brand & Consumer Navigator at PureClarity LLC. “As a result, when they see brands acting in a way that doesn’t align with their values or that is culturally obtuse, they walk away and spread the word. Offending Gen Z and their parents can be akin to brand implosion.”
SERVING THE MULTICULTURAL MAJORITY
According to CMC’s comprehensive study on Gen Z and their parents, entitled IT’S TIME: Ready (or Not) for the Multicultural Majority, “brands that offend can kiss Gen Z and their parents goodbye”. More than half of people survey (aged 13-49) have quit a culturally illiterate brand, saying it “offended them or disrespected their values”. That number skyrocketed to 72% among Black female parents.
But the top reason that Gen Z and Hispanic and Black parents have quit a brand is disrespect for their own or another racial group (this issue ranks third among non-Hispanic White parents). Additionally, nearly a third of teens will quit a brand if it offends the LGBTQ+ community, compared to just 15% of their parents. Other issues for brand breakups include animal cruelty and sustainability issues.
Image credit: Pexels
OFFENSIVE GAFFES
Brands can no longer rely on price alone to woo Gen Z and their parents, according to the study. Around 92% of Gen Z and their parents agree some things matter more than price. Issues such as trust, reliability, healthy/organic products and style are more important. Teens often distance themselves from brands that commit offensive gaffes because those brands reflect poorly on their social media personas.
When it comes to food, nearly a third of Gen Z and their parents say healthy/organic matters more than price. Nearly one out of two parents buy healthy/organic foods and beverages just for their kids and not themselves – this number jumps to 62% among Hispanic parents. In addition, building relationships with Hispanic teens is critical to brands as they are more likely to make their own choices due to their heightened family responsibility role, which includes bill paying and purchasing.
WORD OF MOUTH STILL REIGNS
Companies/brands need to be aware that Gen Z values “word of mouth” and then shop online when considering a purchase. Word of mouth is most important followed by advertising and online inspiration. In the final path to purchase phase, 74% of Gen Z and their parents go online, primarily to search for more information or head to a marketplace sales site.
Brands wooing teens “should supercharge their marketing via solid social media strategies and influencer endorsements”, if they aren’t already, advised CMC. Social media fashion and lifestyle influencers have the most influence when it comes to young consumer purchasing behaviours. Hispanic teens and Hispanic adults aged 25 to 49 are 55% and 44%, respectively, more likely to try a product endorsed by an influencer, than a traditional advertisement compared to 37% of their non-Hispanic counterparts. When the celebrity or influencer is known to be unpaid, that number increases to 69% of Hispanic teens, 59% of Hispanic adults, compared to 48% of their non-Hispanic counterparts.
CULTURAL VALUES
Only take calculated risks if you know your consumers’ cultural values first, advised CMC. Nike using Colin Kaepernick in their ads was a calculated risk based on knowing that their customers value “freedom of speech/right to protest” over patriotic symbols. And sales did not suffer. When Walmart and Dick’s Sporting Goods took steps to address gun violence by tightening their restrictions and removing some types of firearms and ammunition from their stories, they saw no ultimate negative bottom-line impact. In fact, 67% of multicultural people aged 13 to 49 and 53% of non-Hispanic White consumers said they were more likely to shop in these stores after this move.
Finally, remember “Gen Z is all about style, savings and sustainability”, added CMC. Around 74% of Gen Z and their parents (aged 13 to 49) love thrift bargains. For many teens, style counts more than price, especially among non-Hispanic Blacks, to the tune of 43% compared to 37% non-Hispanic Whites and 33% Hispanics. Teens are also adding affordable vintage to their style, coupled with low priced clothing/accessories fuelled by “thrifting fervour” at retailers like Shein, Asos and Zara, noted the report.
Click here for more information on the report.
Find out why the majority of consumers prefer to buy from brands with diverse and inclusive advertising, as confirmed by a recent survey. Click here to read more.
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