Photo: Getty Images/mixetto
Do retailers need to start paying serious attention to Generation Alpha?
Generation Alpha may be about to take over as the biggest disruptor of retail as members of the youngest generation enter their teenage years.
“We already see them having a lot of influence on purchasing even beyond their own spend and pocket money,” Mark McCrindle, the Australian social researcher who coined the term Generation Alpha, recently told NACS Magazine. “They are influencing parental purchasing decisions — ‘kidfluence’ as it’s being called. They understand the pop culture. They’re on the websites, and they know what the latest trends are. They’re growing up in society where in many ways young people have more power than they used to.”
Generally seen as individuals born from the mid-2010s through the mid-2020s, Generation Alpha is expected to have more than two billion members by 2025, making it the largest generation in history.
Much of the recent Gen Alpha discussion has explored their digital savviness and potential to drive the success of the metaverse.
Research last year from Cassandra by Big Village found 64 percent of seven- to 12-year-olds would rather be a YouTube social media influencer than the President of the U.S. When asked how they introduce themselves, 58 percent of them said as a gamer, with 82 percent agreeing they can figure most things out if they have access to technology.
Beyond social media, mental health was found to particularly weigh on the minds of Gen Alpha. With many spending critical development years living through a pandemic, major movements promoting diversity, equity and inclusion (DEI), and an eco-crisis, Generation Alpha was also found to be more socially aware than past generations.
In a recent blog entry, Susan Reda, VP, education strategy at the National Retail Federation, noted that, given their gaming inclination, Gen Alpha want to be active participants and play a part in finding solutions, suggesting “they will want to have relationships with brands and not just passively consume.”
She also inferred that their early exposure to world issues will elevate the importance of environmental, social and governance concerns. Ms. Reda wrote, “In other words, this generation, which is already more diverse than any that came before, will expect inclusion and equality to be the norm and experiences to be culturally diverse.”
- Will Generation Alpha Take the Lead? – NACS Magazine
- New Research From Cassandra by Big Village Dives Into The Values and Identity of “Gen Alpha” – Cassandra by Big Village
- 10 Retail industry predictions for 2023 – National Retail Federation
- Alpha Generation Is One World Consumption – Newsweek
- Generation Alpha: Everything Brands Need To Know – Shopify
BrainTrust
Georganne Bender
Principal, KIZER & BENDER Speaking
Karen S. Herman
CEO and Disruptive Retail Specialist, Gustie Creative LLC
Gene Detroyer
Professor, International Business, Guizhou University of Finance & Economics and University of Sanya, China.
Discussion Questions
DISCUSSION QUESTIONS: What advice would you have for retailers or brands about preparing for the emergence of Generation Alpha as consumers? What predictions heard so far about Gen Alphers make the most and least sense?
It isn’t a matter of paying attention. Specifically, it is a matter of looking at the trends as the generations age. As Ms. Reda said, “…this generation, which is already more diverse than any that came before, will expect inclusion and equality to be the norm and experiences to be culturally diverse.” We could have said the same if we had explained the previous generations as they were coming of age. The operative words are “more” and “faster.”
Retailers must understand that tomorrow isn’t going to be the same as today. Retailers must be futurists. It will be better if they act too early rather than too late. Alpha’s savviness will morph up to those older parents, and even grandparents as it has with previous generations.
Pay attention to Alphas? Recall prior generations and the changes they created in the business world. Now the Alphas, which are definitely already raising questions and demonstrating their thoughts and desires, are walking into stores. The biggest lesson we can learn is to get ready to welcome some big changes in our businesses, and if so, cultivate a great new customer base. Just pay attention.
There is a danger in not paying attention to kids, but most companies don’t and end up playing catch up. This is why I have always said companies need a VP of Pop Culture. There’s too much to miss that can affect business.
Alphas will change everything. We also heard this about Gen Z and Millennials, and probably about Gen X and Boomers before that. But this time we really need to pay attention. When kids en masse say they’d rather be a social media influencer than President of the United States, we’re in trouble. Then again, they ARE kids.
If your company targets Gen Alpha, invest in gamification (Roblox), YouTube, TikTok and magnetic influencers. This generation lives online and seems hypnotized to follow viral trends among their social networks.
These kidfluencers demanded hot chocolate bombs in December 2020 and crave MrBeast’s latest food launch.
Gen Alphers cannot conceive of an internet-free world. While it seems bizarre to us, it makes sense that they strive for YouTube fame rather than the Oval Office.
Every company should have their pulse on cohort trends, including the new Alpha generation. The stat that caused me to pause was the 62% saying they’d rather be a YouTube influencer than President of the US. I realize this is one data point, but it’s a pretty significant one that should rock the C-suite offices. If companies aren’t already thinking about how to leverage this young new generation, they’re going to find themselves in a serious hole.
Today you can be POTUS and a YouTube influencer.
Generation Alpha is made up of digital natives who use technology as a tool to learn, play, explore and shop. Smartphones and connected devices are shopping tools and the metaverse is a retail environment. Brands and retailers must take a holistic view of this existing retail landscape. This view needs to relate to all consumers as “kidfluence” is a genuine factor and does affect consumer behavior already.
Same as in the preceding emergent generations. Avoid predictions, do your homework, learn the relationship to the brand, and evolve the brand to meet future consumer demands.
But learning about generation Alpha is only one of the variables you will need to prepare. Learn how to reach the “always-on” consumer. In fact, depending on the category, always-on consumers could be your most profitable consumer target. Learn what currently works for them and nurture the process.
So a collection of people all the
backbetter side of fifty think it’s the oldsters that are being ignored … surprise! (Not that I disagree: am I supposed to be impressed by what a seven-year-old thinks?)I think this topic rather misses the point: most products tend to age-specific (certainly in a general way, if not precisely). Sure there is a concept called “lifetime customers,” where the relationship was important from youth even if the actual buying was well down the road; but that tended toward related products, like GM’s car family, where someone in their twenties would start out with a low-priced model and work their way up as they aged (and presumably became wealthier); or department stores, where the products changed but the relationship stayed the same. But what if you’re selling skateboards, or hearing aids? Target appropriately.
Generation Alpha has a significant influence on purchase decisions because they have access to all the resources they need to make those decisions. Retailers should develop strategies to get the most returns out of this generation, cultivating influencers with whom Gen Alpha can connect with can be a way to set new trends.
In my opinion, if retailers want to reach out to Gen Alpha, they have to become more discoverable on platforms where this generation is most active.”