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The current socio-political environment has created a critical period for brands and retailers. Young consumers lack strong brand loyalty and increasingly expect more from brands beyond their product offerings to compete among the plethora of options easily available across platforms and channels. This rapid shift in consumer spending also comes at a time of growing wariness among teens of marketing and branding efforts, as well as an increased demand for companies that are able to quickly respond and adapt to current events and viral trends in a way that appears authentic to consumers. Despite the fixed narratives surrounding them, teenagers are fluid in their demands and desires, oscillating between fast-fashion collaborations and sustainable clothing initiatives in equal measure.Understanding the paradoxes and intricacies of this generation is essential. By 2030, Gen-Z will make up the largest consumer segment worldwide, according to Euromonitor, so it is only natural that fashion and beauty companies should look to capitalise on this demographic and seed for the future. Solidifying customer relationships now by introducing young consumers to brands or products that offer unique or price-attractive value propositions may pay off later, especially at a time when many young people are home with their families. Gen-Z currently accounts for 7.5 percent of all household spend globally, amounting to $3.4 trillion in 2018, according to OC&C’s 2018 Gen Z report, making their opinions of brands and products particularly salient during the pandemic. “I see that trickle-up effect being strong now,” said Alixandra Barasch, assistant professor of marketing at New York University’s Stern School of Business. “Maybe that’s exactly when they’ll have the most influence.”What’s more, brands looking for approval and loyalty from Gen-Z may have more of an opportunity in the current climate. How brands respond to recessions and behave during crises often solidifies consumers’ relationships with them later. In the 2008 recession and the year that followed, for instance, brands like Nike and direct-to-consumer start-up Warby Parker were quick to make bold investments in targeting Millennials that paid off after the crisis, helping to cement younger consumers’ loyalty and spending power. However, attempts to appeal to the popularised values and aesthetics of this generation can miss the mark in highly visible ways — think Pepsi’s controversial ad with Kendall Jenner set in a protest march, or Victoria’s Secret’s “Perfect Body” campaign — particularly when those values are adopted in a tokenistic manner or appear at odds with the company ’s internal workings.In the age of corporate neutrality, many brands were successful without publishing reflections on systemic racism or integrating female empowerment into their marketing schemes. In the new era of brands-as-multi-hyphenate-communities, fashion players must go beyond the aesthetic dimension to cultivate a well-defined brand persona complete with a value set and perspective optimised for each platform and medium if they want to appeal to Gen-Z. Today, fashion and beauty companies are competing for teen wallet share not only with their direct competitors in the category but also with brands offering a growing spectrum of goods, services and experiences. Giants like Amazon, gaming programmes and experience-based purchases may become a bigger part of consumer spend, pushing brands and retailers to find unique ways of incorporating elements of goods and services outside of fashion and beauty into their offering or user experience.At the same time, the digital ecosystem that Gen-Z inhabits is becoming ever more fragmented, fast and complex. The perfect photo, video or influencer may work for one platform but fail on others. Different markets have starkly different expectations when it comes to digital content: contrast the speed and character of digital innovation in East Asia with that of Europe or the US and consider the demands of China’s distinct online ecosystem. The increasingly multifaceted nature of the Gen-Z market context must also suffuse brands’ supply chains, from how products are sampled and tested to what colour packaging is able to stand out on bathroom shelves and pop through an Instagram filter. An environment like this, compelling brands to constantly adapt, is inherently resource-intensive. “Trends that happened six months ago feel like it’s already been two years,” said Tiffany Zhong, founder and CEO of Gen-Z creator community platform Zebra IQ. “Things go viral so quickly that one day on social media feels like you’re consuming a month’s worth of content.”For brands to then try to keep pace with Gen-Z within such an environment becomes even more challenging. “Gen-Z wants to see brands tap into activism, absurdity and aesthetics all in one place,” said Cassandra Napoli, a strategist at trend forecasting firm WGSN Insight. “It’s more difficult to go viral and it’s more difficult to get noticed.”The nuances that brands need to consider when marketing to young consumers go beyond the substance and style of the message. Culture and geography also play a part. The Gen-Z market is an increasingly diverse consumer cohort representing an increasingly diverse range of perspectives around the globe. In the US, for example, Gen-Z Americans from Hispanic, Black, Asian and other non-white racial groups now account for approximately 25, 14, 6 and 5 percent of the Gen-Z population respectively, according to the Pew Research Center. In sum, this represents a significantly higher proportion of the population in America than in older generations of Millennials, Gen-X or Boomers.Moreover, since the youth population segment (those aged between 15-24) has been growing in Africa, Asia and Latin America, but not in Europe or North America (see Exhibit 3), fashion companies need to get better acquainted with Gen-Z consumer profiles across non-Western regions in order to tap into potentially attractive opportunities in key markets in these regions, such as Nigeria, India and Mexico. Market Opportunity2015201019951990Exhibit 3: The Fountain of YouthThe youth population (aged 15–24) has been growing in Africa, Asia and Latin America but not in Europe or North America.Total population aged 15–24 (1980-2020)(Thousands)