In the ever-evolving landscape of marketing, staying attuned to the preferences and behaviours of different demographic groups is crucial for success, says Keleabetsoe Rammopo, head of strategy at Penquin. Rammopo adds that understanding and engaging with Gen Z is an essential element of a robust marketing strategy.
GenZ, defined as individuals born between the mid-1990s and early 2010s, represents a significant portion of South Africa's population with 27.5 million people falling into this demographic.
As the oldest GenZ members are now 28 years old, there are high expectations for their economic activity, from purchasing homes to acquiring cars and more.
What distinguishes GenZ from previous generations is their unique approach to life's milestones.
Influenced by the country's economic conditions and the financial lessons learned from preceding generations, GenZ is rewriting the playbook for adulthood. Traditional norms, such as applying for mortgage bonds and car financing, are being redefined as GenZ seeks alternative paths to building their lives.
Notably, research reveals a shift in the average age of first-time homeowners and bulk car buyers. The average age for first-time homeowners has risen to 38-49 years, while most first-time car buyers fall within the 26-55 age bracket.
This data underscores the changing dynamics of how different generations approach significant financial decisions.
Understanding GenZ goes beyond acknowledging their economic impact; it involves recognising their preferences and values. GenZ individuals prioritise:
Unlike their predecessors, they are less inclined to commit to long-term contracts and prefer options that offer adaptability and freedom.
For instance, GenZ often opts for renting shelter instead of committing to a mortgage, and they embrace e-hailing services for transportation. This signifies a departure from the conventional paths taken by previous generations and highlights the need for businesses to adapt their offerings to meet the evolving demands of this dynamic demographic.
Being the first generation to grow up entirely in the digital age, GenZ is adept at navigating:
As seen on Media Update on 19 Dec 2023
As seen in African Business Quarterly
As seen in South African Lifestyle Magazine on 19 Dec 2023