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At Afterpay, we believe New York Fashion Week (NYFW) should be for everyone. In September, we brought NYFW to the consumer through activations all across NYC, and this February, we brought NYFW coast-to-coast with activations in New York and Los Angeles. That’s why we’ve partnered with the organizers behind NYFW for the past two seasons to bring the experience to more consumers.&nbsp;﻿Last September, we brought NYFW to shoppers with activations throughout NYC, and for February’s Fall/Winter 2022 edition, we went bi-coastal with activations in NYC and Los Angeles. We also followed the trends, conversations, and purchasing behavior surrounding NYFW closely - helping retailers, designers, and other industry players better understand what’s in this season.&nbsp;Utilizing data from Afterpay shoppers and insights from our in-house consumer shopping&nbsp;psychologist, Shakaila Forbes-Bell, we unearthed five core insights that will shape the fashion landscape in 2022. 1. Illuminating Emerging TalentThe biggest stars at NYFW were small businesses. While major global fashion houses continue to have a major presence across NYFW events, emerging talent, diverse owners, and small luxury designers are taking a greater share of the spotlight–and we are here for it. At NYFW, this increased interest in small, diverse designers and businesses reflected growing consumer interest to support these brands in 2022. This trend is reflected in the market too. Since the start of 2021, the number of designer merchants featured on the Afterpay Shopping App has increased 70%, as more upscale labels seek to make luxury goods affordable and accessible to more consumers. Additionally, we’ve welcomed more than 24% more Black-owned businesses to the app over the same period, and last holiday shopping season more than half a million of our customers supported Black and female-owned businesses.&nbsp;2. Introducing “Wearapy”That’s clothing + therapy, and it’s a movement that has grown in recent months as people dress to showcase “more of their moods, memories, and selves,” says Forbes-Bell. Using fashion as a conduit for how the wearer feels, shoppers are practicing “wearapy” in two key ways. Creative layering evokes a sense of competence while giving the wearer more control over their outward image. Taken a step further, layering can combine “non-traditional or even clashing pieces and accessories to create a unique look,” says Forbes-Bell. A second trend embraces a maximalist trend to minimalism. Think cozy basics with loud prints, bold patterns, or interesting shapes to showcase personality without sacrificing comfort.3. Celebrating EveryBODYWear what you want, when you want. That’s the ethos behind gender fluid clothing and a recent spike in “sexy” clothing. While those two trends may seem incongruous, they’re both driven by a surge in body positivity. Consumers are purchasing low-cut denim and apparel with revealing cut-outs to celebrate the body in its natural state. This has been reflected in shopping trends, with a 34% increase since January in purchases of clothing with cutouts. Meanwhile, more designers are debuting unisex lines – with sales for unisex items up 154% year-over-year – or mixing and matching traditionally male and female pieces into fluid ensembles. Plus, merchants offering a gender inclusive category on Afterpay have increased 26% year-over-year. Research shows that such “non-conformist” dress styles can make the wearer appear more competent, and of a higher status.4. Embracing Form and FunctionFunctional fashion is on the rise, and it’s getting more stylish too. Think bucket hats, trail leggings, vests, and hip packs or slings. Sales of bucket hats alone were up 44% since last summer, as wearers opt for fashionable protective accessories while getting out and about. This trend is also driven by rising consumer interest in <a href="https://www.afterpay.com/en-AU/business/access/exploring-sustainability/small-business-sustainability" rel="noopener noreferrer" target="_blank">sustainability</a>, causing shoppers to seek out functional basics that will stand the test of time or serve double-duty to reduce excess consumption. These items don’t have to lack in style though, with collaborations like Gucci x Northface that allow consumers to take high fashion from the runway to the trails.5. Getting NostalgicWhether it’s ‘70s-era streetwear or mid-‘90s denim, consumers are revisiting nostalgic styles. There’s a reason for this, and it’s not just those Y2K TV show reboots. Studies show events like the pandemic give people a distorted sense of time, which has spurred interest in decade-blending styles. Purchases of low-rise jeans, for example, were up 115% in the month leading up to NYFW, and we expect this trend to bubble up in SS23 shows later this year (thanks, in part, to Bella Hadid!). Another body-positive staple is back too. Sales of the micro mini skirt were up 24% since last fashion season. Finally, streetwear is here to stay, despite some designers speculating that the look is on the way out. Consumers continue to gravitate toward streetwear brands and styles, including the aforementioned unisex category. Ready to help your business grow with Afterpay? <a href="https://retailers.afterpay.com/merchant-enquiry/" rel="noopener noreferrer" target="_blank">Reach out to our team</a> today to learn how.&nbsp;

Afterpay data reveals the top runway trends from NYFW Fall 2022

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Forget traditional recruitment methods. Here’s how to reach - and retain - young employees.

They are young; they’re well-educated; they’re technologically savvy – attracting and retaining Gen Z and Millennial workers to your job should be a crucial part of any employers’ recruitment strategy.&nbsp;Why? Not only are Millennials becoming the leaders of today, they’re the customers and consumers of today, too. Meanwhile, Gen Z are the leaders of the future – the changemakers who bring fresh perspective.&nbsp;So, how can businesses attract and retain the labor market’s newest next-gen recruits?First, it’s important for employers to understand the differences between the two cohorts, and to set aside any preconception they may have about them.

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<h2>Hiring Millennials: The secrets to recruiting Millennial and Gen Z Employees</h2>1.&nbsp;Speed up your recruitment process&nbsp;Millennials and Gen Z have been dubbed the ‘on-demand generation’, having grown up with everything from food deliveries to movies available when they want it, where they want it. Having grown accustomed to instant gratification, they have little patience for long delays - and that includes slow recruitment and hiring processes.“Time to hire is important – you have to move fast,” emphasizes HR leader<a href="https://www.linkedin.com/in/lucy-wilson/?originalSubdomain=au" rel="noopener noreferrer" target="_blank" style="color: rgb(0, 0, 0); background-color: rgb(255, 255, 255);"> </a><a href="https://www.linkedin.com/in/lucy-wilson/?originalSubdomain=au" rel="noopener noreferrer" target="_blank" style="color: rgb(17, 85, 204); background-color: rgb(255, 255, 255);">Lucy Wilson</a>, founder of<a href="https://www.linkedin.com/company/that-people-culture-co/" rel="noopener noreferrer" target="_blank" style="color: rgb(0, 0, 0); background-color: transparent;"> </a><a href="https://www.linkedin.com/company/that-people-culture-co/" rel="noopener noreferrer" target="_blank" style="color: rgb(0, 0, 255); background-color: transparent;">That People &amp; Culture Co</a>. “Consider the pace of the recruitment process; is it fast? Is the form easy to fill out? Can you do it on mobile? How long does it take to complete the process and how long till [you] make contact with them about a job? Millennials and Gen&nbsp;Z don’t wait.”2. Get clear on your purpose&nbsp;Millennials and Gen Z care about purpose and values – so, as when hiring, you need to be able to define and articulate your business’ mission, vision and values.&nbsp;Three easy ways to ‘show the why’:<ul><li>On your website – either your main site or a special portal for candidates&nbsp;&nbsp;</li><li>A special handout pack outlining your vision and mission&nbsp;</li><li>Organize for candidates to talk to other employees&nbsp;</li></ul>3. Create an attraction strategy&nbsp;With employers grappling with retention rates due to the so-called <a href="https://hbr.org/2021/09/who-is-driving-the-great-resignation" rel="noopener noreferrer" target="_blank" style="color: rgb(17, 85, 204); background-color: rgb(255, 255, 255);">‘Great Resignation’</a>, it’s time to get crystal clear about what your workplace offers potential new recruits when hiring. Enter: the attraction strategy – a document that clarifies who you are trying to recruit, your key messages, and the benefits you offer.&nbsp;That might include your culture, the tools or tech you offer, job perks and the career opportunities available.4. Use platforms that Gen Z are using&nbsp;When recruiting don’t wait for Millennials and Gen Z to find you – go to them by using the platforms you know they’re on.&nbsp;Nearly half of all under-30s have a TikTok account for example, and some<a href="https://www.cnbc.com/2021/07/18/chipotle-target-using-tiktok-to-find-workers-in-tight-job-market-.html#:~:text=Chipotle%2C%20Target%2C%20WWE%20and%20Shopify,war%20for%20talent%20rages%20on." rel="noopener noreferrer" target="_blank" style="color: rgb(17, 85, 204); background-color: rgb(255, 255, 255);"> </a><a href="https://www.cnbc.com/2021/07/18/chipotle-target-using-tiktok-to-find-workers-in-tight-job-market-.html#:~:text=Chipotle%2C%20Target%2C%20WWE%20and%20Shopify,war%20for%20talent%20rages%20on." rel="noopener noreferrer" target="_blank" style="color: rgb(0, 0, 255); background-color: rgb(255, 255, 255);">employers</a>, like Target and Shopify, have experimented with using the video-sharing app to recruit young workers.Other options are to build a company presence for your business on platforms like TikTok and LinkedIn and, if you’re engaging recruitment agencies, ensuring that they are using these platforms on your behalf when hiring. &nbsp;5. Create an inclusive workplace - and recruiting strategiesInclusivity and diversity are key for Millennials and Gen Z – and it’s all-too apparent when companies are lacking in this area.“Diversity and inclusion need to be a part of your organizational hiring and professional development strategy. Millennials like everyone to be included across all minority groups – culture, race, gender, disability, neurological – as they believe everyone has value to bring,” explains Wilson.So, it’s important to use inclusive practices when recruiting.&nbsp;The 2021 Deloitte Millennial and Gen Z study encourages business leaders to, when recruiting, “use systems and processes that are gender and color-blind and think differently about the types of experiences and qualifications that might prepare people for specific roles.&nbsp;“That may include hiring for curious mindsets instead of specific skill sets, or seeking people who have demonstrated they’re agile, comfortable with ambiguity, and able to overcome adversity.”&nbsp;For example, removing names from resumes helps decrease gender and race biases.Another technique is using appropriate skill-based tests, rather than relying on past education, to better give candidates an equal footing.&nbsp;Beauty business,<a href="https://www.thebodyshop.com/" rel="noopener noreferrer" target="_blank" style="color: rgb(0, 0, 0); background-color: transparent;"> </a><a href="https://www.thebodyshop.com/" rel="noopener noreferrer" target="_blank" style="color: rgb(0, 0, 255); background-color: transparent;">The Body Shop</a>,<a href="https://www.smh.com.au/national/no-resume-no-reference-the-body-shop-s-radical-approach-to-hiring-20211029-p594a8.html" rel="noopener noreferrer" target="_blank" style="color: rgb(0, 0, 0); background-color: transparent;"> </a><a href="https://www.smh.com.au/national/no-resume-no-reference-the-body-shop-s-radical-approach-to-hiring-20211029-p594a8.html" rel="noopener noreferrer" target="_blank" style="color: rgb(17, 85, 204); background-color: transparent;">has done away with resumes, references and background checks altogether</a> in an effort to provide more opportunities to single parents, young carers, homeless people. The company has streamlined their Christmas casual hiring process into three key questions: ‘are you legally authorized to work in the US’; ‘can you lift up to 11 kilograms and work an eight-hour shift’; and ‘are you happy to work with customers?’&nbsp;6. Ask current employees in that generation&nbsp;No one knows Gen Z and Millennials better than those in that demographic, so ask current team members about what attracted them to their job, how they and their friends that age search for jobs, why they like working at your company.7. Be honest&nbsp;This may seem obvious, but if you mislead a candidate in an interview about what it’s like to work at your company, they’ll find out – and fast.&nbsp;Gen Z and Millennials value transparency more than any other generation - and they are used to using technology to get the information they want.“If you say: ‘this is our employee experience’, they’re going to check that for themselves,” emphasizes Wilson. “They’re researching, they’re going on [employment site]<a href="https://www.glassdoor.com.au/index.htm" rel="noopener noreferrer" target="_blank" style="color: rgb(0, 0, 0); background-color: transparent;"> </a><a href="https://www.glassdoor.com.au/index.htm" rel="noopener noreferrer" target="_blank" style="color: rgb(17, 85, 204); background-color: transparent;">Glassdoor</a>, they’re reading reviews – remember [Gen Z and Millennials are] very capable at finding information.”

<h2>Secrets to retaining Millennials and Gen Z team members&nbsp;</h2>1. Flexible working&nbsp;Flexibility in terms of working arrangements, hours and tools are crucial – even more so following the pandemic, which has demonstrated the success of remote-working models.The<a href="https://www2.deloitte.com/content/dam/Deloitte/global/Documents/2021-deloitte-global-millennial-survey-report.pdf" rel="noopener noreferrer" target="_blank" style="background-color: rgb(255, 255, 255); color: rgb(0, 0, 0);"> </a><a href="https://www2.deloitte.com/content/dam/Deloitte/global/Documents/2021-deloitte-global-millennial-survey-report.pdf" rel="noopener noreferrer" target="_blank" style="background-color: rgb(255, 255, 255); color: rgb(17, 85, 204);">2021 Deloitte study</a> reinforces this, as Millennials and Gen Z participants both list flexibility/ adaptability as the most critical employee characteristic for successful businesses.&nbsp;&nbsp;Remember: flexible working isn’t just remote working or offering flexible hours, but includes investing in collaborative tools to connect remote staff.&nbsp;&nbsp;Here are a few factors to consider when creating a flexible work policy:<ol><li>Make ‘all roles flex’&nbsp;</li><li>Trust your people</li><li>Role-model flexibility by managers and leadership</li><li>Communicate effectively</li><li>Acknowledge the adjustment</li><li>‘Log off and check out’ at home and in the office</li></ol>2. Invest in technology&nbsp;Great tools and technology are crucial in hiring and retaining digital natives. Stay up-to-date with industry tech trends and invest in AI tools if possible, suggests Wilson.&nbsp;“Gen Z often have way more tech knowledge than the people hiring them – they’re not scared to try things and break things. They’re growing up in a social environment and social media community” says Wilson. “The technology experience needs to be amazing.”For a small business, this might mean using software like Slack, rather than simply email, or offering logistics, inventory or marketing software that makes employees’ everyday roles easier.3. Clear communication&nbsp;“Millennials want direct access to leaders,” says Wilson. “They want less hierarchy, and they don’t want to be micromanaged. They want to come in, do great work, head off – and switch off.”Create opportunities for Millennials to have direct access to leaders, such as regular informal group team meetings where questions are encouraged – either by submitting prior or asking on the day.&nbsp;&nbsp;&nbsp;Seemiller explains that Gen Z aren’t as concerned about direct access to leaders, but that “they want to be informed about the decisions leaders are making. As long as they’re informed about a decision, they’re good.”&nbsp;Weekly leadership blasts – either via text, emails or<a href="https://slack.com/" rel="noopener noreferrer" target="_blank" style="background-color: rgb(255, 255, 255); color: rgb(0, 0, 0);"> </a><a href="https://slack.com/" rel="noopener noreferrer" target="_blank" style="background-color: rgb(255, 255, 255); color: rgb(0, 0, 255);">Slack</a> – with updates and key info dot-pointed are also a great way to make team members feel as though leadership are keeping them up to date.&nbsp;4. Make your culture a focus&nbsp;Millennials and Gen Z care about culture and the environment they’re in. Creating positive, mental-health-led cultures boosts productivity and job retention.&nbsp;&nbsp;&nbsp;“Prioritize mental health support and resources and create cultures where it’s OK to acknowledge stress on the job,” recommends the<a href="https://www2.deloitte.com/global/en/pages/about-deloitte/articles/millennialsurvey.html" rel="noopener noreferrer" target="_blank" style="background-color: rgb(255, 255, 255); color: rgb(17, 85, 204);"> 2021 Deloitte study.</a> “Leaders need to destigmatize the conversation around mental health in the workplace and encourage their people to be transparent about their needs. Ultimately, this will help employees to feel healthier and happier and boost productivity.”

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5. Promote career development&nbsp;&nbsp;Deloitte’s previous studies have shown that Millennials are more likely to leave an organization in two years or less if their leadership skills aren’t being developed.&nbsp;“It might seem like they’re quick to jump but consider the fast pace we expect them to operate at… yet we don’t mirror career advancement in the same way,” highlights Wilson. “The expectation is to operate at that pace, so organizations need to offer on-the-job learning and development at the same pace.”&nbsp;6. Build an experience strategy&nbsp;A good employee experience isn’t something that just happens, it’s built.&nbsp;“Your people-experience strategy should include your employees’ technological and digital experience, as well as their physical, professional development and cultural experience – but it has to be true to who you are as a business,” explains Wilson. “The drivers and attractions may be different for the two generations, but your people-experience strategy can be all encompassing to create a workplace people want to work at – and continue working at.”How do you build a people or employee-experience strategy? You can work with experts like Wilson, a people-experience strategist, or<a href="https://www.thestrategygroup.com.au/what-we-do/employee-experience-strategy/" rel="noopener noreferrer" target="_blank" style="background-color: rgb(255, 255, 255); color: rgb(0, 0, 0);"> </a><a href="https://www.thestrategygroup.com.au/what-we-do/employee-experience-strategy/" rel="noopener noreferrer" target="_blank" style="background-color: rgb(255, 255, 255); color: rgb(17, 85, 204);">start building your own</a> by looking at how your team's day-to-day experience at work plays out.

7. Review your policies&nbsp;Pointless policies – particularly around meetings, working methods, office hours, and remote working – are going to quickly become a thing of the past.&nbsp;&nbsp;&nbsp;Dr Corey Seemiller, professor of organizational leadership at Wright State University believes, “moving forward [after the pandemic], people aren’t going to put up with the old-school shenanigans, like the inflexibility around remote working, unless there is a good reason that’s being communicated to them. Gen Z – along with everyone else – are going to have a low tolerance for policies that don’t make sense to them. There’s currently this ‘get back to the office’ shift which doesn’t make sense [to Gen Z] and is contributing to the Great Resignation.”However, if you can adapt and focus on building a thriving, flexible, diverse and inclusive culture and workplace, you can greatly benefit from hiring and recruiting more Millennial and Gen Z staff.&nbsp;

<h2>Want to understand Gen Z and Millennials better?</h2>Here’s what you need to know about the workforce’s newest generation. They are values-drivenBoth groups share a focus on social change and accountability, according to the<a href="https://www2.deloitte.com/global/en/pages/about-deloitte/articles/millennialsurvey.html" rel="noopener noreferrer" target="_blank" style="background-color: rgb(255, 255, 255); color: rgb(17, 85, 204);"> </a><a href="https://www2.deloitte.com/global/en/pages/about-deloitte/articles/millennialsurvey.html" rel="noopener noreferrer" target="_blank" style="background-color: rgb(255, 255, 255); color: rgb(0, 0, 255);">Deloitte Global 2021 Millennial and Gen Z Survey</a>.&nbsp;“In the 10 years Deloitte has been conducting the Millennial Survey, Millennials and Gen Zs’ lives have changed, but their<a href="https://www2.deloitte.com/global/en/pages/about-deloitte/press-releases/in-its-10th-year-the-deloitte-global-millennial-and-gen-z-survey-reveals-two-generations-pushing-for-social-change-and-accountability.html" rel="noopener noreferrer" target="_blank" style="background-color: rgb(255, 255, 255); color: rgb(0, 0, 0);"> </a><a href="https://www2.deloitte.com/global/en/pages/about-deloitte/press-releases/in-its-10th-year-the-deloitte-global-millennial-and-gen-z-survey-reveals-two-generations-pushing-for-social-change-and-accountability.html" rel="noopener noreferrer" target="_blank" style="background-color: rgb(255, 255, 255); color: rgb(0, 0, 255);">values have remained steadfast</a>. They have sustained their idealism, their desire for a better world, and their belief that business can and should do more to help society,” said Michele Parmelee, deputy CEO and chief people and purpose officer at<a href="https://www2.deloitte.com/global/en.html" rel="noopener noreferrer" target="_blank" style="background-color: rgb(255, 255, 255); color: rgb(0, 0, 0);"> </a><a href="https://www2.deloitte.com/global/en.html" rel="noopener noreferrer" target="_blank" style="background-color: rgb(255, 255, 255); color: rgb(0, 0, 255);">Deloitte Global</a>.They are diverse<a href="https://www.pewresearch.org/social-trends/2018/11/15/early-benchmarks-show-post-millennials-on-track-to-be-most-diverse-best-educated-generation-yet/" rel="noopener noreferrer" target="_blank" style="background-color: rgb(255, 255, 255); color: rgb(17, 85, 204);">Millennials were the most racially and ethnically diverse, until Gen Z came along</a> – one factor that contributes to their drive for diversity and fighting against the status quo.&nbsp;&nbsp;They are educated<a href="https://www.nytimes.com/2015/08/02/opinion/sunday/were-making-life-too-hard-for-millennials.html" rel="noopener noreferrer" target="_blank" style="background-color: rgb(255, 255, 255); color: rgb(17, 85, 204);">Research reported by the New York Times,</a> found that while Millennials are the most educated, they’re the worst paid. It’s important to note that they have been greatly financially impacted by this century's most defining moments – global debts, 9/11, the Global Financial Crisis and following recession, and now the COVID-19 pandemic. <h2>How are Gen Z and Millennials different?</h2>They are motivated differently“Gen Z is motivated by relational factors – such as making a difference for someone, having an impact,” says Dr Seemiller. “Tell a Gen Z employee that the work they do is important, whatever it is, and it will motivate them.”“Whereas Millennials at that age were incentivized by accolades, benchmarks, doing well and moving up – the ‘if you do this, I will give you that’ motivation continues,” says Seemiller. “Gen Z wants to be rewarded too, but it’s not what drives them. Millennials just want to hit the mark and be given positive feedback in some way.”&nbsp;They learn differently&nbsp;Another key difference is the way they learn. Seemiller explains that Millennials are collaborative – they want to come together and work in groups. Whereas Gen Z are a ‘DIY generation’ – the self-taught YouTube generation.&nbsp;“Millennials want think-tank rooms, while Gen Z want a weblink to their online-learning program so they can sit in the corner with their headphones on. If Gen Z comes together, they want it to be purposeful – ‘why are we coming?’ – there should be a reason,” explains Seemiller.&nbsp;They have grown up with technology differently&nbsp;While both generations are ‘digital natives’, their experience is different. Gen Z have never lived in a world without tech – whereas older Millennials likely remember dial-up internet.One last thing? Forget the stereotypesDon’t believe everything you hear or read about Millennials and Gen Z. Professor Seemiller has been at the<a href="https://www.coreyseemiller.com/" rel="noopener noreferrer" target="_blank" style="background-color: rgb(255, 255, 255); color: rgb(0, 0, 0);"> </a><a href="https://www.coreyseemiller.com/" rel="noopener noreferrer" target="_blank" style="background-color: rgb(255, 255, 255); color: rgb(17, 85, 204);">forefront of Gen Z research</a> and says that in today’s post-pandemic era, it’s common for employers to believe that younger employees don’t want to return to the office and prefer digital communications.&nbsp;“Gen Z actually prefers face-to-face communication over other types of communication. Not just in-person, but video, too – they like to see expressions and have a conversation.”Another popular misconception is that Millennials are disloyal and tend to ‘job hop’. However Wilson says that when Millennials move between jobs, it’s less about a lack of loyalty and more about a mismatch in terms of their expectations of their employee experience and the reality of the organization’s values and culture. Economic conditions (and the need to pay off student debts) also often play a role.

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Hiring Millennials is different to other generations. Read our resources for recruiting Millennial and Gen Z candidates.

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Hiring millennials: tips on recruiting Millennials and Gen Z

Hiring millennials: tips on recruiting millennials in your workplace US

New research reveals consumer spend has exceeded pre-Covid levels

As summer finishes but Covid-19 lingers, the US retail landscape is looking better than expected. Consumers have seized the chance to replenish their wardrobes and revamp their homes after 18 months in lockdown – and Millennials and Gen Zs are leading the charge.In fact, according a new report from Accenture Strategy and Afterpay, retail spend by these two key groups is now more than 10 per cent above pre-Covid levels.<a href="https://afterpay-corporate.yourcreative.com.au/wp-content/uploads/2021/08/Afterpay_NextGen_report_AUS.pdf" rel="noopener noreferrer" target="_blank">The Next Gen Index</a>, which explores how consumers are spending and what they’re buying, also shows the popularity of BNPL is surging among Gen Z, up 330 per cent since January 2020.“Since restrictions started to lift back in January, consumer confidence has improved and jobs growth has picked up,” says consultant Atharva Karandikar of Accenture Strategy. “These macro trends are really helping retail.”Here are some of the top insights from Afterpay’s second Next Gen Index report into consumer spending:

<h2>Gen Z and Millennials’ spending power is growing</h2>Shoppers aged under 40 are becoming an increasingly powerful force in the economy. Currently, Gen Z and Millennials account for 32 per cent of the total retail spend in the US.However, that’s predicted to grow to 48 per cent by 2030 as more Gen Z (currently aged 9-24) enter the workforce.

<h2>Consumer spend has bounced back post-lockdown</h2>From a low in March 2020, spending has recovered from pre-pandemic levels – and has bounced back faster among younger generations. Gen Z and Millennial spend is up 14 and 12 per cent respectively on the period before Covid-19 hit.Gen Z accounts for 14 per cent of spending on Afterpay, but it’s the fastest-growing cohort, with spending increasing by 400 per cent in the past 18 months.“This reflects their increasing confidence, as they’ve been able to resume employment and socialising,” says Karandikar.

<h2>Young Americans are still buying fashion, but homewares is catching up</h2>Fashion still dominates purchasing using Afterpay: it accounts for 80 per cent of Gen Z spend and 70 per cent of Millennial spend.&nbsp;However, these younger generations are displaying increasing interest in buying for their homes and spending on recreation such as books, electronics and games. Home and recreation is the fastest growing category among Gen Z and Millennials; although it only makes up 4 per cent and 7 per cent of Gen Z and Millennial spending, it’s growing above 150 per cent year-on-year.

<h2>Gen Z and Millennials are championing small business</h2>Gen Z and Millennials account for almost two-thirds of spending through Afterpay on small and medium-sized businesses.What’s more, their spending on small business is increasing. Since January 2020, consumer spend has increased by more than 260 per cent for Gen Z and 180 per cent for Millennials.

<h2>Buy Now Pay Later (BNPL) and debit are on the rise</h2>BNPL is in the early stages of market penetration in the US, says Karandikar, but it is growing fast. BNPL payments have risen 230 per cent since January 2020 – and while Millennials remain the biggest users of BNPL, Gen Z is catching up.“Given the high rates of interest on credit cards, BNPL is a good option for these consumers,” adds Karandikar.

<h2>How retailers can adapt:&nbsp;</h2>Offer a seamless omnichannel experienceGen Z and Millennial consumers appreciate value for money, says Karandikar – a purchasing consideration that’s going to be even more pronounced as we emerge into the post-pandemic world.“They will research products online before going in store, and vice versa, which means merchants who can offer a seamless omnichannel experience will be well-placed to take advantage of the boom that will come once lockdowns end.”&nbsp;Ensure customers know you offer AfterpayMillennials were the first to use BNPL, but now Gen Z and older generations are jumping onboard. “Gen X and older aren’t necessarily driven by budgetary constraints, but a large payment seems psychologically easier to manage when it’s split into four payments,” says Karandikar. He adds that highlighting the Afterpay cost is an important sales driver.Buy Now, Pay Later options are hugely popular in the lead up to the holiday season because they help customers get what they need when they want. Ensure your customers know you offer Afterpay by promoting it across your channels, including social media, emails and website. Letting shoppers know they can split payments with Afterpay can help increase conversion rates and average order value – that’s why we recommend you include it where possible.

Inside the latest Afterpay report on Millennial & Gen Z shopping trends

Surprised to hear that Generation Z, aged 18 - 25, are among the most financially savvy people in the U.S.?

While Gen Zers are often considered trend-chasers, these young consumers are taking control of their finances at an earlier age than any generation that’s come before. How young? The average age a Gen Zer starts researching financial planning is just 13. And as the largest cohort of U.S. consumers, Gen Z’s interest in personal finances has significant implications for brands vying for their attention, loyalty, and dollars.&nbsp;To better connect with this generation, retailers first must understand the motivations behind their penchant for personal finance. Growing up in the wake of the 2008 global financial crisis and experiencing its effects on their families set Gen Z up to be financially conservative, with many naming money as their top source of stress. Couple that with the student debt crisis among Millennials, and you have a generation eager to get a head start on their financial futures.

Unlike Millennials, who are known to be collaborative, Gen Zers are fiercely independent and competitive when it comes to success in school, work, and life. This drive to get ahead brings with it anxiety: <a href="https://www.prnewswire.com/news-releases/gen-z-and-money-will-the-youngest-generation-of-adults-drive-fintech-300929738.html" rel="noopener noreferrer" target="_blank">72% of Gen Zers say they’re stressed about finances</a> and <a href="https://www.opploans.com/oppu/articles/gen-z-money-fears/" rel="noopener noreferrer" target="_blank">51% of Gen Zers </a>are afraid money will prevent them from doing what they want in life. Yet for all their worries, the Gen Zers that are investing their time and effort into their financial futures are set up to be powerful consumers--even more reason for retailers to start fostering connections with this generation now.&nbsp;As daunting as this may sound, Gen Z’s financial savviness offers real opportunities for brands to empower them by offering flexibility, control, and transparency in the shopping and spending journey. With <a href="https://www.visualcapitalist.com/why-gen-z-approaching-money-differently/" rel="noopener noreferrer" target="_blank">89% of Gen Zers</a> saying planning for their financial future makes them feel empowered, giving them the tools to spend responsibly lets them know you understand their desire to manage money wisely.Given the above, it should be no surprise that Gen Zers carefully balance what they need, what they want, and what they can do without. Overall, <a href="https://www.visualcapitalist.com/why-gen-z-approaching-money-differently/" rel="noopener noreferrer" target="_blank">72% of Gen Zers name cost </a>as the most important factor when making a purchase. <a href="https://www.visualcapitalist.com/why-gen-z-approaching-money-differently/" rel="noopener noreferrer" target="_blank">Sixty percent already have a savings account, and 54% have a checking account</a>, yet only<a href="https://www.visualcapitalist.com/why-gen-z-approaching-money-differently/" rel="noopener noreferrer" target="_blank"> 41% have a credit card</a>. Of the Gen Zers that use Afterpay in the U.S., more than ninety percent used a debit card for their purchase. That means they’re much less likely to overspend and risk going into debt, but also less likely to make the occasional stretch purchase. With that said, Gen Z is a credit-friendly generation--they’re just careful about falling into debt traps. <a href="https://fee.org/articles/when-it-comes-to-money-gen-z-is-way-ahead-of-millennials/" rel="noopener noreferrer" target="_blank">Sixty-five percent of Gen Z is credit active</a> and half have a credit score of 661 or above. (Only 39% of Millennials had the same score or higher!)Gen Z is more apt to trust lenders with transparent terms, built-in flexibility, and the ability to safely build credit. Traditionally, fee-heavy credit cards were the only realistic way to make a big purchase--like a new laptop for college or furniture for a first apartment--leaving debit-only customers without a means to get what they need. That’s the beauty of the Afterpay model, and why it has been so successful for customers and retailers. Afterpay partners are able to offer budget-conscious Gen Zers with an easy-to-understand installment plan, without the risk of debt or long-term credit commitments. That’s why a quarter of U.S. Afterpay users are Gen Z--and we’re proud to have them.&nbsp;

To learn more about the Gen Z consumer, check out our other stories throughout this blog.

Gen Z’s interest in personal finances has significant implications for brands vying for their attention, loyalty, and dollars.

Meet the Most Financially Savvy Generation: Gen Z

Gen Z was supposed to reincarnate retail--particularly brick-and-mortar shopping. This generation, like Millennials, favors experiences over things when it comes to where they spend their dollars.

Yet when they do shop, <a href="https://www.cnbc.com/2019/09/17/gen-z-shopping-habits-can-fuel-a-brick-and-mortar-resurgence-report-says.html" rel="noopener noreferrer" target="_blank">81% prefer to do so in stores</a>. In some ways, browsing a store is a way for them to disconnect from their digital lives while experiencing the thrill of finding a new dress or bag. This helped drive the growth of experiential retail, pop-ups, and more. Then COVID-19 hit.The goods news: Gen Z will return to their brick-and-mortar shopping habits.<a href=" https://www.afterpay.com/en-US/for-retailers/access/meet-gen-z-&amp;-millennials/gen-z-will-shape-the-future-of-retail-post-covid-heres-how" rel="noopener noreferrer"> But it may take time</a>. With states reopening across the U.S., this is an important moment for merchants to evaluate their “back to business” strategy and particularly how they target and engage influential Gen Z shoppers.&nbsp;In addition to the insights below, <a href="https://retailers.afterpay.com/genz-post-covid-download/" rel="noopener noreferrer" target="_blank">check out our full report </a>outlining Gen Zers return to retail post-COVID.

<h2>1. Overcommunicate (and listen)</h2>If you have a Gen Zer in your family, you know how connected this generation is. Between flipping through Instagram messages, posting TikToks, and firing off Snapchats, Gen Z is adept at communicating. Brands should be, too. Frequent, relevant updates to consumers not only keep your brand top of mind, but encourage dialogue with followers, email subscribers, or website visitors. Encourage your customers to ask questions, share how they’re doing, or provide suggestions. When Gen Zers know they’re being heard, they feel more invested in brands and will be more likely to spread the word to their peers.<h2>2. Personalize digital strategies</h2>Young consumers will flick past ads, emails and social posts they don’t find relevant in a split second. Personalization--from including their name to suggesting items based on recent purchases-- gives Gen Z a reason to pause and engage with your brand. This will be even more important in a post-COVID era. Personalizing digital communications is easy (there are countless plug-ins and tools today), but a surprising amount of retailers don’t.&nbsp;Expect a deluge of promotions and communications as stores continue reopening--and determine how your brand will stand out. Making an effort to engage consumers in a personalized way is a start.

<h2>3. Innovate your online experience</h2>As with personalization, Gen Zers want opportunities to tailor or customize their experience with a brand. This can be as simple as creating an online profile and rewards program to “clubs” with special perks (which could be unlocked via subscription, after completing tasks like posting on social media, or after earning rewards points).&nbsp;Cutting-edge retailers are integrating tools to allow customers to curate their shopping experience--for good reason. <a href="https://nrf.com/research/what-do-gen-z-shoppers-really-want" rel="noopener noreferrer" target="_blank">48% of Gen Zers wan</a>t tools that would allow them to customize products for themselves, and 42% want the ability to create products on-site with a 3D printer (or, for now, online). Target Gen Z by integrating these community-building options into your eCommerce options, giving Gen Z a sense of ownership and community around your brand.&nbsp;<h2>4. Practice honesty and empathy</h2>This generation likes to be “real”--meaning, they appreciate honesty and candidness. Retailers facing extended shipping times or inventory interruptions would do well to simply tell that to their Gen Z customers, and do so across platforms--from Facebook and Instagram to TikTok and via email marketing.This approach is much more likely to earn respect and loyalty. Brands that have been successful in connecting with Gen Zers tend to empathize with their shoppers--whether about the woes of finals week (pre-COVID) or the fact that many young consumers today are missing graduations, birthdays, and more. This level of empathy helps Gen Z shoppers feel understood, engendering trust in the brand. As a result, shoppers will feel more comfortable visiting the brick-and-mortar locations of brands they know and trust.

<h2>5. Incorporate them in reopening plans</h2>Given the opportunity, <a href="https://nrf.com/research/gen-z-brand-relationships" rel="noopener noreferrer" target="_blank">41% of Gen Zers say they would like to submit ideas for product design. </a>Gen Zers who are asked for and share their opinions share <a href="https://nrf.com/research/gen-z-brand-relationships" rel="noopener noreferrer" target="_blank">twice as much positive feedback</a> than complaints. If you aren’t already, ask your customers for ideas and suggestions. While product development may not be top of mind right now, this trend provides opportunity to gauge interest and opinions on opening brick-and-mortar locations.&nbsp;Retailers will have to weigh the benefits of opening up only to face smaller foot traffic compared to before, and understanding whether Gen Zers feel comfortable shopping in person--and how--will be critical for merchants. This is also an avenue to help shape the in-store experience, from store visit reservations, curbside pickup, mask policies and more. You may find that young shoppers are willing to visit if capacity is limited to a certain number of people, but would stay away otherwise. Gen Z will talk, but retailers need to ask.

The pandemic--which has been one of the most significant global events in this generation’s life--has changed many a young consumer’s outlook on the importance of emergency savings and wise money management. They’ll still shop, but will opt for higher-quality (but affordable) items that last longer and are more versatile. They’ll also seek out options to buy now, pay later, like Afterpay, providing them with a means to get what they need without worrying about interest fees. Several brands have partnered with Afterpay over the past month to respond to this trend, and have been able to successfully boost sales by providing their Gen Z customers with payment flexibility and optionality.

Learn how Afterpay can help merchants target, engage, and convert Generation Z. <a href="https://www.afterpay.com/merchant-enquiry" rel="noopener noreferrer" target="_blank">Connect with an Afterpay team member today</a>!

Important moment for merchants to evaluate their strategy and how they target and engage influential Gen Z shoppers.

How to target the most influential shopping generation, Gen Z, in a post-COVID world

In 2015, Fortune called REVOLVE Clothing the “biggest, trendiest, most profitable E-commerce startup you’ve never heard of.”

Safe to say that this 500-brand-strong fashion and beauty retailer has broken well beyond “unknown” and is a go-to for Gen Z shoppers. We spoke with Co-Founder Mike Karanikolas to learn more about how REVOLVE scaled its E-commerce presence to build a loyal base of customers and brand advocates.

Afterpay: Two friends launched REVOLVE in 2003, and your growth since then has been phenomenal. How did you leverage social media marketing and influencers early on to establish the brand and drive growth?REVOLVE: We started working with influencers (who were referred to as bloggers back then) in early 2009 when Instagram hadn't even launched yet. We found that more and more people were going to blogs for style inspiration so we started working with some of the bloggers who are now influencing millions around the world. Aimee Song is a great example of someone we started working with in the early stages of influencer marketing and has come full circle with us partnering on the launch of her brand, Song of Style, together a year ago.&nbsp;Afterpay: What are some of the ways you leverage your digital platforms (such as your app) and social channels to connect with your customers where they are?REVOLVE: Being a socially driven company, this is one of the most important aspects of the business. Social media is where we're able to speak with our consumers first hand and connect with them in a deeper way. We're able to reach not only our customers in the U.S. but also globally.Afterpay: You acted quickly to respond to COVID-19 by pledging to donate 200,000 medical-grade masks to healthcare workers, and to date, have donated 150,000! Why was it so important to put your resources towards the cause, and how did your customers rally to provide support and #REVOLVEaroundourheroes?REVOLVE: It weighed heavily on us that frontline healthcare workers weren't properly protected in the fight against COVID-19, especially having loved ones in the field. Importantly, we also saw we could contribute more than just money - we could also contribute our expertise and supply networks.&nbsp;We leveraged our global resources and social media reach to help in obtaining critical PPE and get it into the hands of hospitals across the country who have been risking their lives every day to save our loved ones.Afterpay: The Revolve Ambassador program empowers customers to easily share their favorite REVOLVE products to earn credits. How has this program performed in terms of generating brand loyalty and love?REVOLVE: &nbsp;I think customers and fans of your brand are always going to be the best way to build and market your brand. And with today's consumer, this kind of authentic endorsement is more important than ever, so these efforts are a huge part of our success.Afterpay: How do your Style Experts create deeper engagement with your customers? Why are services like this important differentiators for brands seeking to engage Millennials and Gen Zers?REVOLVE: This is a small area of our business that we're really excited about and have had great success with. Service has always been an important differentiator for us since we founded REVOLVE, so this is just another way to build on this further.

REVOLVE scaled its E-commerce presence to build a loyal base of customers and brand advocates.

How REVOLVE Engages with Gen Z

If Millennials led the shift from shopping brick-and-mortar stores to online, Gen Z is driving the change from shopping websites to social media.&nbsp;

This shift is twofold: first, Gen Z is discovering new brands on social media, either via word-of-mouth from friends or influencers, or through ads on Instagram, Snapchat and other popular platforms. (Sixty percent of U.S. Gen Z shoppers use Instagram to discover new brands, found a Composed study, and <a href="https://www.business2community.com/brandviews/xsellco/6-massive-ecommerce-predictions-to-watch-out-for-in-2020-02269902" rel="noopener noreferrer" target="_blank">80% of Instagram users say the app helped them make a purchasing decision</a>). Second, this generation is actually shopping and buying products directly on social media channels--sometimes cutting out the online storefront altogether.&nbsp;That’s not to say that retailers should ditch online shops or list their entire line on social media. Think of this as a tactic to promote top-selling items, move your brand’s basics/essentials, or offer special promos. Just keep in mind that Gen Z has a very short attention span — it's only eight seconds long&nbsp;— so it’s important to keep your tactics engaging and concise.&nbsp;Essentially, selling on social media is an acquisition tactic. By making it easy to purchase mid-scroll, you’re bringing that user into your funnel with just a few taps. You can then send push notifications or emails driving them to your full online store--boosting visits and lifting your conversion rate over time.&nbsp;Not convinced? As of January 2020, <a href="https://www.facebook.com/business/instagram/shopping" rel="noopener noreferrer" target="_blank">130 million Instagram users tap a product tag every month, </a>according to the platform. Here are our tips to better leverage this social shopping phenomenon (to keep things simple, we’ll explore through the lens of Instagram’s shopping capabilities):

<h2>1. Get to know your options</h2>Social shopping is still an evolving channel, so expect features to change over the next few months. Instagram has big plans for its <a href="https://business.instagram.com/blog/testing-instagram-shopping-posts-as-ads" rel="noopener noreferrer" target="_blank">shopping functionality.</a> Over the next year, the company is predicted to roll out features like in-app checkout and shopping for creators. While the checkout feature is currently limited to a handful of partner brands, any company can currently tag specific items in a post. Tapping that item redirects users to the product page on your website, where shoppers can easily complete their purchase (and select Afterpay). It’s a good time to test the waters before going all-in on in-app checkout.<h2>2. Be creative with your shoppable ads</h2>While you can certainly post a product photo and call it a day, many brands are getting creative with their ads. On Instagram, users might scroll past a post that’s obviously an ad (think: a model wearing a t-shirt against a white background). They might pause and explore a flat lay shot or candid of people hiking a gorgeous trail. They can then tap your products (nestled in the flat lay or on the back of a hiker) to learn more and purchase. All to say: Social ads are an amazing opportunity to make the shopping experience more interactive and memorable, while pushing your marketing team to be creative (and have fun!).

<h2>3. Go beyond the static post</h2>Now that you’ve nailed the creative product shot, try more dynamic mediums like videos and Snapchat or Instagram stories. This is an amazing opportunity to show your products in motion, demonstrate how they’re used, or simply show off cool features.&nbsp;<h2>4. Serve up products to the shoppers most likely to buy</h2>Social ads have a superpower that traditional online storefronts don’t: <a href="https://business.instagram.com/advertising/#precise-targeting" rel="noopener noreferrer" target="_blank">the ability to target ads to specific shoppers</a>. With smart targeting, you can put the right products in front of the right people--making your ad campaigns more efficient to save you money in the long run. A large outdoor retailer, which sells thousands of products for different climates and activities, would do well to push wetsuit ads to people who live near the coast (and not in Florida, where the water might be too warm!). If your brand is collaborating with an artist for a special-edition shirt, you’d want to target it to shoppers that love art. And so on.&nbsp;Online shops also provide limited opportunities for collecting analytics. Sure, you can A/B test different product photos and see which pages get the most traffic, but ad platforms like Instagram offer robust backend analytics tools. Use these to test, adjust, and grow.

<h2>5. Know when to expand</h2>Some Gen Z shoppers buy on social platforms simply because it saves them time. If you could buy your favorite lip gloss while scrolling through your feed instead of navigating a full website on mobile, wouldn’t you? Once you have a better sense of how your shoppers interact with your ads, consider expanding the number of products offered on social channels. Again, be sure to test, learn, and keep content balanced. If you find that you’re losing followers, you might ask if your content is coming off as too promotional. And, don’t be afraid to ask your followers directly using a more informal medium like Stories: a simple “Do you want us to add more shoppable posts on IG?” can help you get the answers you need, while coming off as approachable and human.Shopping as we know it has changed dramatically--and it will continue to do so. We’re here to help you keep up with trends and ahead of the competition.

Does your business want to leverage Afterpay’s social media reach? Launch with Afterpay in as little as under three business days. Contact sales@afterpay.com today!

Gen Z is driving the change from shopping websites to social media.

How Gen Z is Leveraging Social as a Shopping Tool

What does it mean to be a socially responsible brand?&nbsp;Decades ago, companies ticked this box by donating a portion of profits to charities or engaging in cause marketing campaigns. Today, that’s simply not enough--and at worst, can be perceived as inauthentic. The brands that truly and authentically engage in social, environmental, and even political issues are those that win big with Gen Z consumers. And it’s becoming more important than ever.&nbsp;The shift from check-writing philanthropy to truly purpose-driven corporate social responsibility has been a long time in the making. Driven by Millennials engaged in social causes they care about, more retailers have paused to examine their values, practices, and impact on society and the environment. Those that take concrete actions to advance progress by putting a social mission at the heart of their business have been rewarded handsomely, with consumers choosing responsible companies over others, and paying a premium for their products.

Gen Z is only accelerating this shift, and they’re keen at sniffing out companies that talk the talk but don’t walk the walk. This generation has grown up with an understanding of the impact companies have on society, and are adept at researching brands before they buy: <a href="https://www2.deloitte.com/global/en/pages/about-deloitte/articles/millennialsurvey.html" rel="noopener noreferrer" target="_blank">nearly half of Gen Zers</a> have educated themselves on the environmental aspects of the brands they consume.While Millennials will opt not to patronize brands with business practices, values, or political viewpoints they disagree with, Gen Z takes things a step further. <a href="https://www.mckinsey.com/industries/consumer-packaged-goods/our-insights/true-gen-generation-z-and-its-implications-for-companies" rel="noopener noreferrer" target="_blank">More than 75% of Gen Z </a>will not only stop supporting brands they find unethical, but actively spread the word.&nbsp;Put simply, Gen Z has higher expectations of the brands they buy from. As an activist generation, they want to live their values. What they buy (and thus share on social media) must reflect their beliefs, and because of this, Gen Z is <a href="https://www.marketingdive.com/news/your-brands-real-offering-to-gen-z-is-community/572844/" rel="noopener noreferrer" target="_blank">three times more likely </a>than all other generations to say the role of business is to serve communities and society at large.&nbsp;Whether your brand has a clear social mission or is just starting on the journey, the following insights can help your organization meet the expectations of Gen Z shoppers.

<h2>1. Find your purpose</h2>Milton Friedman said the purpose of a business is to turn a profit. Today, the world’s business leaders have declared that view outdated, and at worst, harmful to a business’s long-term growth. In 2019, the Business Roundtable redefined the purpose of a corporation to serve all stakeholders, including communities and employees, not just shareholders. Having a purpose is no longer a nice-to-have, but a mandate.&nbsp;Defining your company’s purpose can be as simple as asking: Why were we founded? An athletics company was founded to give athletes the tools they need to perform. A clothing brand was founded to give buyers self-confidence and individuality. Find that germ of a purpose and align it with an authentic social issue. Using the same examples, that could be empowering youth athletes in underserved communities, and developing more sustainable (and fairly-produced) textiles used in apparel.

<h2>2. Examine practices </h2>A retailer that supports diversity and inclusion through its marketing and consumer engagement better have a diverse and inclusive leadership team and company culture. Before taking a public stance or integrating social issues in external activities, ensure your house is in order. It may take time to reform company culture or audit your supply chain, but these are worthy investments.&nbsp;If you haven’t already, define values that will guide your practices. Ensure those values align with why your company exists, who you hope to serve, how you operate, and what you offer to consumers and society beyond just products. And then, ensure those values are lived each and every day.

<h2>3. Talk about your journey</h2>There’s an important step on the social responsibility journey that many companies leave out: Communicate about your progress. It’s okay to acknowledge what your company is doing wrong on the path to fixing it. Unlike previous generations, Gen Z is surprisingly forgiving of brands that address their missteps or areas for improvement. They would rather support brands that openly work towards bettering society than those that cover up failings. Even Patagonia, the poster child for ethical and responsible companies, clearly explains the areas in which the company falls short by using environmentally-harmful materials in certain products. Patagonia then explains how they’re working to remedy shortcomings not only for their own betterment, but to help the apparel industry as a whole move forward.

<h2>4. Build community around your causes</h2>Community is one of the defining factors of Gen Z, and they’re redefining what it means to come together in society. <a href="https://www.mckinsey.com/industries/consumer-packaged-goods/our-insights/true-gen-generation-z-and-its-implications-for-companies" rel="noopener noreferrer" target="_blank">Sixty-six percent of Gen Z say communities </a>are defined by causes and interests, not by socioeconomic factors. This applies to brands, too--Gen Z are more apt to be loyal to brands that bring diverse groups together via shared causes as opposed to retailers that market to specific demographics and try to “force” community building. Rather, Gen Z wants to be equipped with the platforms and tools your brand offers to build their own communities and engage in the issues and causes that matter to them. <a href="https://www.marketingdive.com/news/your-brands-real-offering-to-gen-z-is-community/572844/" rel="noopener noreferrer" target="_blank">Nearly half of Gen Zers</a> want to participate in a brand’s social impact initiatives, and 56% want brands to provide them with resources to make a difference on their own.&nbsp;

<h2>5. Speak up on the issues that matter</h2><a href="https://newsroom.spotify.com/2019-06-03/everything-you-wanted-to-know-about-gen-z-but-were-afraid-to-ask/" rel="noopener noreferrer" target="_blank">Sixty-six percent of Gen Z </a>say brands should be part of the political and social debates of today, including promoting progressive values and playing a meaningful role in society. But, remember that while words are important--Gen Zers say brands should focus on messaging related to honesty, equality, and freedom--actions are non-negotiable. Companies that claim a stance or take a position are expected to back that up with concrete actions that Gen Z can join them in.

<h2>Looking ahead: social responsibility post-2020</h2>COVID-19, of course, has only heightened the need to be a socially responsible company. Throughout the pandemic, and now the Black Lives Matter movement, Gen Z has felt called to embrace their individuality and stand up for what they believe in. <a href="https://www2.deloitte.com/global/en/pages/about-deloitte/articles/millennialsurvey.html" rel="noopener noreferrer" target="_blank">Nearly three-fourths</a> say they intend to take actions that have a positive impact on their communities, and they expect companies to do the same.<a href="https://www2.deloitte.com/global/en/pages/about-deloitte/articles/millennialsurvey.html" rel="noopener noreferrer" target="_blank">Sixty percent say they will make an effort to buy more</a> from businesses that took care of their workforces and positively affected society during the pandemic. Today and tomorrow, the role of a brand will continue to evolve to play a greater role in society--not only because Gen Z expects it, but because retailers have the power to make a real, lasting difference. That’s a purpose worth working towards.

Gen Z is only accelerating this shift, and they’re keen at sniffing out companies that talk the talk but don’t walk the walk. 

How brands can meet the expectations of socially responsible Gen Z shoppers

Independent. Savvy. Driven. Authentic. These traits define Generation Z in all aspects of their lives, from school and careers to how they shop.

Gen Z consumers have high expectations of themselves, and that applies to the brands they buy from, too. They not only want to be understood by brands, but to see their values reflected in the entire consumer journey, from product design and in-store experience to marketing and promotions.&nbsp;

Above all, Gen Zers want retailers to keep it real: <a href="https://www.targetmarketingmag.com/post/7-steps-to-advertising-to-the-emerging-gen-z-consumer/" rel="noopener noreferrer" target="_blank">63% of Gen Z want to see marketing from “real” people</a>, not celebrity endorsers. Gone are the days of airbrushing, glamor shots, and big-name celebs. This can be a double-edged sword for marketers: using real instead of high-priced celebrities is certainly more cost-effective, but defining, finding, and engaging with authentic influencers and spokespeople is a challenge unto itself.&nbsp;With more than a quarter of Afterpay users falling into Generation Z, we’re in constant pursuit of data, insights and trends to help our retail partners forge deeper connections with the nation’s most powerful consumer group. Read on for three top tips to “get real” with Gen Z marketing.

<h2>1. Understand who Gen Z trusts</h2>“Real” people don’t all have to be fellow Gen Zers. This generation considers their favorite influencers and bloggers real, authentic, and trustworthy. Unlike traditional spokespeople, these individuals are creating much more than just sponsored content, including sharing the unedited, “raw” parts of their life with followers. This works, because the most successful influencers weave promotional content into their life, instead of pushing overt advertisements. Rather than trying to make a sale, good influencer marketing is more like an insider tip or suggestion--like they’re filling their audience in on something they love.&nbsp;

<h2>2. Give Gen Z a role</h2>Including real reviews in marketing is a powerful tactic. (That’s why we at Afterpay love sharing comments from our fans--what they say is better than any marketing copy we could come up with!) Gen Zers are adept at researching products, so by the time they’re considering making a purchase, you can bet they’ve scoured reviews. If your marketing content doesn’t match up with what real customers are saying, Gen Zers will keep scrolling. Come up with creative ways to use existing comments, reviews, and testimonials in your marketing materials, from print ads to social videos.&nbsp;

3. Reflect Gen Z’s realityThere’s a growing movement to feature unretouched models in advertising imagery. <a href="https://adage.com/article/wp-engine/gen-z-doesnt-want-buy-your-brand-they-want-join-it/2163281" rel="noopener noreferrer" target="_blank">79% of Gen Zers will trust a company more if the images it uses are not photoshopped, and 84% will trust a company more if it uses actual customers in advertising</a>. Aerie’s wildly successful ‘Real’ campaign features real women of all body shapes and sizes, completely unretouched. From billboards to magazine spreads, Gen Zers saw women just like them--cellulite, stretch marks, scars, and all--wearing Aerie undergarments. Not only was the campaign praised for its authenticity and stance against decades of unrealistic and unhealthy beauty standards, but it won over Gen Z consumers in a big way. The campaign has continued to evolve, including actual Aerie consumers with disabilities, mental illnesses, body hair, and more. In selecting individuals to represent your brand, the more diversity, the better: Gen Zers strongly believe that who they see in marketing materials should reflect the reality of the world around them.&nbsp;

Generation Z consumers have high expectations of themselves, and that applies to the brands they shop with. 