PREMIUM GEN ZERS SHOPAHOLICS: RECOGNIZE TO WIN THEM

The cohort is an obvious target for high-end brands because premium shopaholics are most likely to be willing to pay extra to get what they want. To get their attention, brands need to provide a convincing story of why a product or service deserves to cost more. Small brands with limited awareness may struggle with the segment because they don’t offer the recognition that it desires. Brands that want to attract and retain premium shopaholics need to understand their psychology and behavior and tailor their marketing strategies accordingly.

Who is Premium Shopaholic

Gen Zers Premium shopaholics are a segment of consumers who have a high disposable income and a strong desire to purchase luxury goods and services. They are not motivated by price but by quality, exclusivity, and status. Premium shopaholics are often loyal to certain brands and retailers and seek personalized and customized experiences. They are also influenced by social media, celebrities, and influencers, who shape their tastes and preferences. Premium shopaholics are a lucrative market for businesses that can cater to their needs and wants, and offer them superior customer service and satisfaction.

Premium shopaholics are customers who have a high disposable income and a strong preference for luxury goods and services. They are willing to pay a premium price for products that offer quality, exclusivity, status, and personalization. They are not only motivated by their own needs and desires but also by social influences and peer pressure. They seek to impress others with their purchases and to express their identity and lifestyle through their consumption choices.

McKinsey reported that this segment represents 24% of the Gen Zers population in Indonesia.

How Brands Should Respond to Premium Gen Zers Shopaholics

Premium gen zers shopaholics love to shop. They take time to research and compare, mainly online, so that they can also purchase spontaneously. These segments extensively research before shopping and often make spontaneous purchases. Shopaholics spontaneously make decisions on what to buy based on recommendations they receive as part of the shopping journey. To get precisely what they want, they are willing to pay a premium, even willing to trade up when they can afford to. Additionally, premium shopaholics are conscious of how their consumption plays a social role: they want to fit in, but they also look for brands that help them stand out among their peers. Finally, premium shopaholics are active on social media. They are twice as likely as those in other segments to say getting “likes” on social media is important to them. 

Brands that want to attract and retain the premium gen zers shopaholics need to understand their preferences and motivations and tailor their marketing strategies accordingly. Here are some tips on how to do that:

• Create a sense of scarcity and urgency. Premium gen zers shopaholics are driven by the fear of missing out on something valuable or unique. Brands can create a sense of scarcity and urgency by offering limited editions, pre-orders, flash sales, waiting lists, countdown timers, etc. These tactics can stimulate the impulse to buy and increase the perceived value of the products.

• Be creative and innovative. Gen zers are always looking for new and exciting experiences and products. They are not loyal to any one brand or category, but rather to what satisfies their needs and wants at any given moment. Brands that are creative and innovative in their product development, design, and packaging can capture attention and interest.

• Emphasize quality. Premium gen zers shopaholics are willing to pay more for products that offer superior quality, performance, design, and functionality. Brands can emphasize quality and innovation by investing in research and development, using premium materials and technologies, showcasing testimonials and reviews, offering guarantees and warranties, etc. These tactics can increase the perceived value and differentiation of the products, and create a sense of trust and reliability.

• Provide personalized and customized experiences. Premium gen zers shopaholics value products that reflect their individuality and preferences. Brands can provide personalized and customized experiences by offering product customization, personal shoppers, loyalty programs, VIP services, etc. These tactics can enhance customer satisfaction and loyalty, and create a sense of belonging and exclusivity.

• Be interesting and interactive. Gen zers are a digitally native generation who is always connected and social. They rely on online platforms and influencers for information, inspiration and entertainment. They also love to create together and share opinions and feedback with brands and co-workers. Engaging and interactive brands across social media, e-commerce, and other digital channels can foster a sense of community and be part of the premium gen zers shopaholics. To drive a premium image, brands can collaborate with influencers, especially those with similar values and aspirations. The same. Brands can leverage social media and influencers by creating engaging content, pushing user-generated content, collaborating with influencers, sponsoring events, etc. This tactic can increase brand awareness and credibility, as well as develop a sense of community and social proof.

• Be authentic and relatable. Gen zers are a generation of diverse and individualistic consumers who value authenticity and self-expression. They want to see themselves reflected in the brands they buy from, and they want to feel understood and respected by them. Brands that are authentic and relatable in their messaging, storytelling, and representation can resonate with them.

(Source: McKinsey & Company, What makes Asia–Pacific’s Generation Z different?What makes Asia–Pacific’s Generation Z different?)

Edwin Jonathans - Brand Power Plus