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The marketing playbook that worked for millennials isn't quite cutting it anymore. Generation Z, those born between 1997 and 2012, has fundamentally changed the dynamic between brands and consumers. It's not another shift in demographics; it's an entire rethinking of what brand loyalty looks like in the digital era.
Consider this: Gen Z's consumer spending is rising at twice the rate of earlier generations' spending when they were the same age, and by 2035, individuals from this generation are projected to contribute an additional $8.9 trillion to the global economy (McKinsey, 2025). Moreover, traditional marketing strategies consistently fall flat with this demographic. Why is that? Gen Z has fundamentally transformed the concept of brand interaction.
The authenticity imperative
In contrast to previous generations, who were often influenced by polished advertisements, Gen Z possesses what researchers describe as an "authenticity radar". The 2024 Edelman Trust Barometer Special Report indicates that 84% of individuals worldwide report needing to have something in common with a brand in order to use it. For Gen Z, the percentage is higher.
This generation has grown up watching corporate missteps unfold in real-time on social media. They've developed an almost instinctive ability to detect performative activism or hollow marketing speak.
The solution isn't to abandon messaging altogether but to ensure your brand's actions consistently align with your stated values.
In an open world, younger consumers do not separate the brand's ethics, the owner company, and its system of partners and suppliers (McKinsey, 2018). All touchpoints should demonstrate true commitment to the values you proclaim.
Community over commerce
This may be the most dramatic of all the changes in Gen Z's brand attitude: they want community. Of Gen Z shoppers, 62% desire to find community in their buying, according to recent studies. They're not merely purchasing goods; they're becoming part of movements, standing for causes, and identifying with their peer group.
Successful brands are establishing environments where Gen Z can connect with like-minded people who care about their values and interests. For example, consider the beauty sector.
Brands that have been successful with Gen Z are the ones who have managed to establish communities around self-care, mental health, and true self-expression.
Indian brands such as The Souled Store, boAt, and Campus Shoes, to name a few, have successfully resonated with Gen Z by building communities rooted in self-expression, lifestyle, and cultural relevance. What sets them apart is not just what they sell, but how they make young consumers feel seen, heard, and represented.
The Souled Store taps into fandom culture, offering apparel inspired by everything from anime to cricket, giving Gen Z a way to wear their identity on their sleeve, literally.
boAt has turned earphones and speakers into fashion accessories, smartly leveraging India’s creator economy and music-loving culture to build a tribe around audio.
Campus Shoes, meanwhile, has democratised streetwear by offering trendy, athleisure-style sneakers at accessible price points, aligning perfectly with Gen Z’s desire for style without compromise. These brands understand that today’s youth aren’t just buying into a product; they’re buying into a story, a culture, and a feeling of belonging.
The social media revolution
According to Later's 2024 study, 73% of Gen Zers spend over three hours a day on social media; however, most brands fail to notice that for this generation, social media serves not only as entertainment but also as their primary research tool. Social media has overtaken search engines as the leading online channel for product and brand research among Zoomers.
This shift necessitates a comprehensive revamp of content strategy. Gen Z prefers not to be disrupted by advertisements; instead, they seek to discover brands organically through ad-free content that adds value to their lives. User-generated content, behind-the-scenes peeks, and real storytelling always trump overt advertising with this age group.
The best brands recognise that Generation Z uses social media as a proving ground for authenticity. They read comments, see how brands engage with criticism, and again, look to see if companies walk their talk.
Values-driven cecision making
Old-school brand loyalty, founded on such things as price, ease, or habit, just doesn't work with Gen Z. Most Gen Z consumers consider their shopping choices an extension of who they are and what they stand for, thus preferring companies that share their ideals and exhibit real social conscience and openness.
This generation will hold brands accountable for speaking out on issues that matter most to them, ranging from environmental responsibility to social justice. But there's an important caveat: the stand must be genuine and supported by substance in action. IIf a brand promotes diversity but lacks actual diversity within its organisation, that contradiction will eventually be exposed (McKinsey, 2018).
The transparency advantage
Gen Z has been raised with unfiltered access to information. They are able to look up a brand's entire history, supply chain methods, and leadership roster with just a few swipes on their phone. This overwhelming transparency also presents an opportunity.
Brands that are transparent about their operations, values, and commitment to social responsibility and communicate these aspects clearly to their audience are likely to earn the trust and loyalty of Gen Z.
This involves being truthful about your struggles, highlighting your journey of improvement, and acknowledging when you do fail.
Creating authentic connections
The brands that will be successful with Gen Z are the brands that really get this generation's very specific relationship with technology, community, and values. They're not shopping for products but looking for partners to help them co-create the future they desire to live in.
To succeed, one must transcend old-fashioned demographic targeting to value-based community building. It entails the production of content that informs, entertains, and inspires instead of just sells. Above all, it involves a sincere commitment to causes and values that are important to this generation.
As one marketing expert put it, "This is a generation that cares deeply about issues like mental health, social justice, and climate change, and this reflects in their purchasing decisions."
The potential is vast for brands that are willing to adopt authenticity, transparency, and real purpose. Gen Z is the future consumer market and is creating it now. The brands that gain their trust and loyalty today will be the ones shaping tomorrow's marketplace.
(Our guest author, Abhishek Chakraborty, is a marketing and communication leader currently heading Brand Communication and PR at Oriflame India)