The impact of Generation Z—the initial cohort of genuine digital natives—is growing. Check out our latest research on Gen Z in America and Gen Z in Asia.
Even before the term “influencer” was coined, young individuals held sway by setting trends. Now, a new crop of influencers has emerged. Members of Gen Z—roughly those born between 1995 and 2010—are authentic digital natives, having been exposed to the internet, social networks, and mobile technology from a very young age. This has shaped them into a hypercognitive generation comfortable with processing vast amounts of information from various sources and blending online and offline experiences seamlessly.
With global connectivity on the rise, generational changes may soon outweigh socioeconomic disparities in shaping behavior. The youth today exert significant influence across age and income groups, impacting consumer habits and brand relationships. In Brazil, Gen Z already constitutes 20 percent of the population. A recent joint survey by McKinsey and Box1824, a consumer trends research agency, delved into the behaviors of this new generation and their influence on consumption patterns in Brazil. Combining qualitative insights from major cities with quantitative data across socioeconomic strata, the study aimed to grasp how Gen Z’s perspectives might ripple through society and consumption habits.
Our findings from the survey highlight four core behaviors of Gen Z, all rooted in their pursuit of truth. They prioritize individual expression over labels, engage in various causes, advocate dialogue for conflict resolution and societal improvement, and approach decision-making and institutions with analytical pragmatism. This is why we call them “True Gen.” In contrast, millennials, dubbed the “me generation,” emerged during times of economic prosperity, emphasizing self-focus, idealism, confrontation, and less acceptance of diverse viewpoints.
These behaviors shape how Gen Z perceives consumption and brand relationships. Businesses should consider three implications for this generation: viewing consumption as access rather than ownership, as a means of expressing individual identity, and as an ethical consideration. Coupled with technological advancements, this generational shift is reshaping the consumer landscape across socioeconomic strata, influencing the entire demographic spectrum. The emerging possibilities and challenges for companies demand a reassessment of value delivery, balancing scale with personalization, and aligning marketing rhetoric with ethical practices.
Encounter True Gen
Generations reflect the context of their emergence. Baby boomers expressed ideologies through consumption, Gen Xers pursued status, and millennials prioritized experiences. For Gen Z, the quest for truth—both personal and communal—underpins consumption patterns. This generation embraces diverse expressions of identity, fostering freedom and openness to understanding others.
‘Undefined ID’: Personal Truth Expression
I value freedom, evolving myself each day more, especially with the internet.
—22-year-old woman, São Paulo
I appreciate unisex items! Gender divisions in stores and brands seem outdated; fabric doesn’t have a gender.
—22-year-old woman, Goiânia
For Gen Z, identity isn’t confined to one stereotype; it’s about exploring various facets over time—an identity nomadism, if you will. Despite high religiosity, they exhibit openness to themes diverging from traditional beliefs, such as diverse sexual orientations and family structures.
Gender fluidity symbolizes this “undefined ID” but extends beyond it. Gen Zers, constantly connected and exposed to vast information, see the self as a realm for experimentation and evolution. They prioritize defending causes related to identity, showing heightened interest in human rights, racial and ethnic matters, LGBTQ+ issues, and feminism.
‘Communaholic’: Connecting to Different Realities
Each of us has a unique style, yet we embrace and understand everyone’s uniqueness.
—16-year-old man, Recife
Gen Z champions inclusivity, blurring lines between online and offline friendships. They fluidly navigate communities, driven by shared causes rather than economic backgrounds. Gen Zers readily belong to multiple groups, demonstrating flexibility in affiliations.
‘Dialoguer’: Embracing Diverse Perspectives
Gen Z values dialogue and tolerates differing views within institutions and families. They engage with traditional institutions despite conflicting personal beliefs, advocating for pragmatic change through discourse rather than rebellion. They’re also more forgiving of corporate shortcomings, expecting prompt responses to complaints but remaining engaged with companies that align with their values.
‘Realistic’: Seeking Truth in Pragmatism
I prioritize practicality over dreaming. Work is work.
—22-year-old woman, Salvador
Gen Z, armed with extensive information, approaches decisions pragmatically. They prioritize staying informed and in control, shaped by economic uncertainties. Unlike idealistic millennials, Gen Zers prioritize job stability over high salaries, favoring regular employment over freelance opportunities.
Gen Z: Consumption and Business Implications
The behaviors discussed here not only influence all generations but also reshape consumption paradigms. Three key trends—consumption redefined as access, expression of individual identity, and anchored in ethics—emerge from the intersection of technology and behavior.
Consumption Reimagined: From Ownership to Access
Gen Z’s pragmatic outlook redefines consumption, valuing access over ownership. They scrutinize purchases and the act of consumption itself, favoring unlimited access to goods and services. Collaborative consumption gains traction, offering avenues for additional income in the gig economy. Businesses must adapt by offering access-based services and rethinking traditional product-centered models.
Singularity: Identity Manifestation through Consumption
Gen Z drives consumption as self-expression, demanding personalized products and associating with brands that reflect their values. Consumers across generations increasingly seek individualized offerings and ethically aligned brands. As the online and offline realms merge, omnichannel marketing must evolve to meet consumer expectations, with data analytics driving personalized experiences.
Consumption Anchored in Ethics
Consumers, especially Gen Z, expect brands to take ethical stands, with transparency and authenticity paramount. Businesses must align actions with ideals across the value chain, as consumers demand ethical accountability. Marketing must reflect genuine commitment to causes, with influencer partnerships and data privacy considerations becoming increasingly important.
As consumer attitudes shift, businesses face challenges in adapting to evolving expectations. However, embracing these changes presents opportunities for innovation and growth. The journey begins with acknowledging and embracing the evolving landscape, guided by the ethos of True Gen.
