ETHICAL-ANCHORED CONSUMPTION, THE NEW EMERGING BEHAVIOR AMONGST GEN ZERS

What if we could buy products that are good for us and the planet? What if we could support businesses that care about their workers and the environment? What if we could make a difference with every purchase we make? This is an emerging consumption behavior amongst Gen Zers. It is a way of purchase decision-making that values quality over quantity, sustainability over wastefulness, and responsibility over indifference.

The Emerging Consumption Behavior

Gen Zers, with vast amounts of information at their disposal, are more pragmatic and analytical about their decisions than members of previous generations were. This generation of self-learners is also more comfortable absorbing knowledge online than in traditional institutions of learning. Being born as digital natives, Gen Z consumers are mostly well-educated about brands and the realities behind them. When they are not, they know how to access information and develop a point of view quickly. If a brand advertises diversity but lacks diversity within its own ranks, for example, that contradiction will be noticed. 

Gen Zers is a generation that cares deeply about the impact of their consumption choices on the world. They are not only driven by price, quality, or convenience but also by the ethical values and social causes that brands stand for. They want to support businesses that align with their own beliefs and values and avoid those that harm the environment, human rights, or animal welfare. Gen Zers are also savvy and critical when it comes to evaluating the authenticity and transparency of brands. They do not fall for greenwashing or empty promises but rather look for evidence and actions that demonstrate a genuine commitment to ethical practices. Gen Zers are shaping the future of consumption with their ethical awareness and activism, and brands need to adapt and respond to their demands if they want to survive and thrive in the market.

McKinsey reported that seventy percent of Gen Zers say they try to purchase products from companies they consider ethical. Eighty percent say they remember at least one scandal or controversy involving a company. About 65 percent try to learn the origins of anything they buy—where it is made, what it is made from, and how it is made. About 80 percent refuse to buy goods from companies involved in scandals. 

How Does Ethical-Anchored Consumption Affect Brands? 

This is a concept that challenges most brands to think about how Gen Z make choices as consumers based not only on fulfilling their own desires, but also those of other people, animals, and the environment. This means being aware of the impact of their consumption patterns and making informed decisions consistent with their values and principles. Ethical-anchored consumption is not about giving up all that one can enjoy, but rather finding a balance between needs and wants and the well-being of others and the planet. It is a way of life that respects the dignity and rights of all living beings and promotes social justice and environmental sustainability.

Gen Zers make no distinction between brand ethics and reputation; they see brand ethics as something that cannot be separated easily from the quality of a product or service including its network of partners and suppliers. They want to support brands that share the same values and beliefs, and that make a positive impact on the world. They care about how the brand treats its employees, customers, suppliers, and the environment. They are unwilling to compromise on these aspects, even if it means paying more or waiting longer for their purchase.

For Gen Z, marketing and work ethics go together. Therefore, companies must ensure that everyone across the value chain is involved. For the same reason, companies should consider the marketing agencies that represent their brands and products carefully. Also, remember that consumers are increasingly understanding that some companies subsidize their influencers. Hence, the Instagram persona becomes more important as compared to 10,000 to 20,000 followers. Marketing in the digital age presents increasingly complex challenges as channels become more fragmented and constantly changing. The good news is that Gen Zers tolerate brands when they make mistakes if they are corrected. That path is more challenging for large corporations since a majority of our respondents believe that major brands are less ethical than small ones.

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

Edwin Jonathans - Brand Power Plus