THE CORE OF GEN ZERS ARE THE IDEA OF MANIFESTING INDIVIDUAL IDENTITY

For decades, consumer companies and retailers have realized gains through economies of scale. Now they may have to accept a two-track model: the first for scale and mass consumption, the other for customization catering to specific groups of consumers, or to the most loyal consumers 'The Gen Zers'. In this scenario, not only marketing but also the supply chain and manufacturing processes would require more agility and flexibility.  

Singularity: Consumption as an expression of individual identity

The concept of singularity refers to a hypothetical point in time when artificial intelligence surpasses human intelligence and becomes capable of self-improvement and innovation. Some futurists and philosophers have speculated about the implications of such a scenario for humanity and society. One of the possible effects of singularity is the transformation of consumption patterns and preferences. 

Consumption is not only a means of satisfying material needs, but also a way of expressing one's individual identity, values, and aspirations. In a post-singularity world, where humans may interact with super-intelligent machines, upload their minds to digital platforms, or augment their bodies with biotechnology, how would consumption reflect their sense of self? Would they consume more or less, and what kinds of goods and services would they prefer? How would consumption affect their relationships with other humans and non-humans? These are some of the questions that draw on theories of consumer behavior, identity formation, and technological change.

The Rise of the Need for Personalization

Consumption, therefore,  becomes a means of self-expression—as opposed, for example, to buying or wearing brands to fit in with the norms of groups. Led by Gen Z and Millennials, consumers across generations are not only eager for more personalized products but also willing to pay a premium for brands that highlight their individuality and embrace causes those consumers to identify with. Although expectations of personalization are high, consumers across generations are not yet totally comfortable about sharing their personal data with companies. 

And here’s another thing for brands to start to consider, Gen Zers value brands that don’t classify items as male or female. For most brands, that is truly new territory. For brands, that kind of future raises many questions. How long will clothing collections grouped by gender continue to make sense, for example? How should brands market cars or jewelry in an inclusive, unbiased way? To what extent should the need for a two-speed business transform the internal processes and structure of companies? 

As the online and offline worlds converge, consumers expect more than ever to consume products and services at any time and any place, so omnichannel marketing and sales must reach a new level. For consumers who are always and everywhere online, the online–offline boundary doesn’t exist. This means we are entering the “segmentation of one” age now that companies can use advanced analytics to improve their insights from consumer data. Customer information that companies have long buried in data repositories now has strategic value, and in some cases, information itself creates value. Leading companies should therefore have a data strategy that will prepare them to develop business insights by collecting and interpreting information about individual consumers while protecting data privacy. 

(Source: McKinsey & Company, True Gen: Generation Z and its implications for companies )

Edwin Jonathans - Brand Power Plus