Generation Z:

The shopping and work habitsof retail’s chief disruptors

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At a glance
M

Contents
Chapter 1

eet Generation Z. Impatient, frugal and with ambitions tosave the world, the first generation of true digital natives
demand a simple retail experience and substantial discounts
from brands that have strong ethics. And yet, confounding
expectations, they might not be quite as attached to online shopping as
stereotypes suggest. Categorised as consumers born in 1996 or later, this
rapidly growing consumer demographic is shaking up retail in a big way.
Gen Z has never known a world without mobile technology. Compare
this with their older millennial cohorts who used floppy disks atuniversity and remember a time before Facebook, and this defines howeach generation acts both online and off.
Gen Z will comprise 32% of the global population in 2019, passing
millennials (31.5%) for the first time, according to Bloomberg data. This
Retail Week report, produced in association with prescriptive analytics
company Profitect, aims to help retailers better understand this groupas consumers and employees and offer guidance on how to harness the
spending power of a generation that could swipe before they could talk.

What makes Gen Z tick?

We’ll help you get to know this tech-savvy demographic throughin-depth research with 1,000 consumers, so you can find out:

Chapter 3n	
Gen Z’s shopping, technology and social media habitsnWhat influences them to choose a retailer and make a purchasen	How to create successful strategies to target this demographicn	How to engage Gen Z as part of the retail workforce

Gen Z are motivated by discounts, authenticity
and easy, tailored shopping experiences.
They want to shop in physical stores that offer
an experience.
Gen Z are aware of their digital footprint andthey want it to be positive.

Chapter 2

Shopping habits revealedOnline advertising and social media posts are
the best way to reach Gen Z shoppers.
Promotions and deals are the strongest
influencers for them to shop with a retailer, while
items being out of stock is the biggest turn-off.
Price is by far the biggest factor influencing theirpurchasing decisions, both online and offline.

Work habits uncovered Gen Z prioritise simplicity, convenience and theefficient use of technology.
 They favour written reports and to-do lists overmeetings with a manager.
 They prefer to receive tasks with simple, easyto-understand instructions.

Chapter 4

Winning over Gen Z

Methodology
Retail Week, in association with Profitect, surveyed 1,000 consumers
aged 18 to 22 in October 2018. This age range is classed as Generation Z.

 Recommendations from friends carry moreweight than advertising, so social media is key.
 Creating a seamless omnichannel experienceis crucial.
 Global case studies show that authenticity inmarketing campaigns is vital.

CONCLUSION

NEXT STEPS FOR RETAILERS Invest in the in-store experience.
 Embrace the return.
 Prioritise a strong omnichannel strategy.
 Invest in smart task-management solutions.

2 | December 2018

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THE GEN Z SNAPSHOT

Born in 1996 or later

32% of the global
population in 2019

Influenced heavily by priceand convenience

Prefer digital marketing
to print ads

Engage with online content for
more than 10 hours a day

22% more likely to use ad blockers
than the average UK adult

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December 2018 | 3

Retail week

foreword
ISOBEL CHILLMAN
creative strategist, retail weekDigitally savvy, demanding anddesperate for experiences, Generation Z are shaking up retail,both as consumers and workers.
Categorised as born in 1996 or later, this
rapidly growing consumer demographic
are becoming widely viewed as retail’s
chief disruptors. When it comes to digital
shopping, they’re accelerating the attitudes
and expectations first identified among
millennials.
Known as impatient wit h a shortattention span, and a willingness to hunt
for the perfect product or price, their levelsof loyalty are deemed to be far below that ofolder demographics. They demand instantinformation, instant communication, and –above all – instant gratification.
This Retail Week report, in association
with SaaS company Profitect, will uncover
the shopping, working and technology
habits of Gen Z, helping retailers to create
successful strategies to target this tech-savvy
and often misjudged demographic.
Born into a post-digital world, theirrelationship with technology is significant.
Learning to swipe before they could talk,technology sits at the centre of their lives
rather than being an accessory to it – animportant thing to note for retailers hiring
this age group.
More than half (56%) of the Gen Z
respondents surveyed for this report haveworked in retail, but only 30% view it asa career path they would like to follow.
Supporting Gen Z workers with the righttechnology is essential to changing theirview of the industry. For example, 39% of
those surveyed say a company app would
make working in retail easier or more fun.
Gen Z consumers are far more complicatedthan simply being the online-obsessed
drones they are made out to be. Their needfor instant gratification translates to their instore experiences too, which is the preferred
shopping method for a quarter of thisdemographic, with another 38% viewing instore and online equally.
Retailers targeting this age group need toensure they provide a world-class in-store
experience, as well as a seamless and simple
path to purchase online. Embracing theseideas quickly will be the key to keeping Gen Z
shoppers happy, engaged and spending.

This generation
demands instantinformation, instantcommunicationand – above all –instant gratification

Retail week connect: GENERATION Z
Creative Strategist

Isobel Chillman 020 3033 2996
isobel.chillman@retail-week.com
Commercial Production Editor

Abigail O’Sullivan 020 3033 2940
abigail.osullivan@retail-week.com
4 | December 2018

Contributors Helen Berry, Caroline Howley,

Emily Kearns

Business Development Director

Tom Jones 020 7715 6533
tom.jones@retail-week.com

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partner

Viewpoint
Guy Yehiav

chief executive, ProfitectAs outlined in this report, Gen Z are
telling us a story. Retailers creating
a better shopping experiencethrough investments in stores,
embracing returns, prioritising a strong
omnichannel strategy and investing insmart task-management solutions will findthemselves ahead of the competition andin a great position for future growth. But toservice and support Gen Z, a new approachis needed that takes advantage of the data
being generated and collected to serve thisemerging demographic.
At Profitect, understanding data andproviding actionable outcomes throughanalytics, rather than reports, is at thecentre of everything we do. With a dedicatedfocus on the retail and consumer packaged
goods market, we understand the immense
volume of data retailers and brands generate
on a daily basis. From SKU-level productinformation to point-of-sale data, our awardwinning solution processes more than
1.2 billion transaction data feeds daily.
Getting to the heart of the story is
incredibly difficult for retailers and brands.
Sorting through mountains of data anddaily reports causes tremendous strain on

the business. Often the amount of reports
and data analysis needed pulls employees
away from the necessary work required
to succeed — such as product design,
merchandising, marketing and more. It also
creates a significant amount of inefficiency
at the store if employees are stuck in theback room trying to analyse reports, rather
than assisting customers on the shopfloor
to increase consumer satisfaction and sales.
Profitect is proud to sponsor this exclusive
UK Gen Z survey because we believe using
data and providing actionable outcomes in
the form of prescriptive analytics tells theright story. Gaining a better understandingof the shopping and work habits of Gen Z is
the first step. Prescriptive analytics offers apractical approach to working with data andanalytics to capture the loyalty of Gen Z todrive sales and margin improvements.
Our prescriptive analytics solution,
currently in use by retailers such as Asda,
Boots and Abercrombie & Fitch, provides
retailers with the right actions to take inorder to minimise confusion around reports.
This empowers employees – from executives
to store associates – to focus on revenueproducing activities.

A new approachis needed thattakes advantageof the data being
generated

Profitect
Profitect’s prescriptive analytics solution leverages pattern detection and machine learning to identify opportunities that impact sales and margin. Profitecttakes retail and CPG company data to identify areas for improvement including: inventory accuracy, out-of-stocks, pricing accuracy, unsellable merchandise
and assortment discrepancies. Profitect customers typically realise a 2-5% increase in sales, better consumer experience, 10-15% basis point margin
improvement and labour productivity improvement within six months.
To learn more about Profitect visit www.profitect.com

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December 2018 | 5

Chapter 1: Whatmakes Gen Z tick?

Fans of discounts and tailored retail experiences, Gen Z
are practically minded, vocal and favour simplicity

G

en Z grew up during the global
financial crisis. As children, they
watched as austerity hit, the worldtightened its belt and millennial
graduates struggled to find jobs – which
likely accounts for their frugal attitude.
According to our research, no factor willencourage young consumers to press the‘buy’ button faster than a hefty discount.
One often-presumed consequence ofyears of mobile technology access is thatGen Z are impatient – there is an immediacybehind their decisions, driving them
towards online shopping. Yet our findings
show that Gen Z aren’t repelled by physicalshops – they simply want their offline
experiences to be as easy and as tailored asthey have become accustomed to online.
“Retailers that leverage data to prioritise
in-store service will win out with Gen Z,”
says Guy Yehiav, chief executive of retailtechnology software company Profitect.
“The most successful retailers will
go a step further, making their stores adestination by adding new services such as
restaurants and designer pop-ups.
“By transitioning from just another retailstore to a neighbourhood hangout, Gen Z
shoppers are encouraged to spend moretime at the location and, by extension, spend
more money.”
The Irregular Report, published by Gen
Z think tank Irregular Labs, notes thatthe demographic favours brands that careabout people rather than profit, but adopting
concepts such as diversity to sell products
without living up to those principles willalienate these savvy shoppers.
Adam Flanagan, co-founder of Gen Z
consultancy firm Future Labs, warns: “If thebrand suffers any PR crisis that calls into
question this alignment of values, then there
may be an irreparable loss of trust.”
Founded by Flanagan and business
partner Harry Beard (who are 17 and18 years old respectively), Future Labs
is focused on helping brands appeal toteenagers strategically and digitally.
Beard notes that Gen Z want authenticity
from brands, which is why influencer
marketing speaks to this demographic.

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Online and tech preferences

Recent research from Adobe shows that Gen Z
are, unsurprisingly, the UK’s biggest content
consumers. They clock up an average of 10.6
hours a day engaging with content online,
compared with 8.5 hours for millennials.
Indeed, Beard notes that Gen Z are nevertruly offline. Being online is “an ongoingprocess where the Gen Z-er donates 30
seconds of their time frequently throughout
the day”, he says.
Despite this, Gen Z are fiercely protectiveof their online data. In order to avoid detection
by prospective employers in online searches,
they are also increasingly doubling up onsocial profiles, having a ‘rinsta’ (real Instagram
account) as well as a ‘finsta’ (a fake one).
Incognito social networks such as Sarahahand Minds are popular with Gen Z, allowing
them to reduce their digital footprint whileremaining present online.
This is a generation who are very awareof their digital footprint and want to be vocal
not only about negative experiences but
positive ones as well. In fact, survey results
show that nearly three quarters of Gen Z
consumers (72%) will leave a positive online
review of a retailer or product when they havea good shopping experience.
AI-powered software such as sentiment
analysis can comb through online data such as
reviews and comments, isolating buzzwords
and key themes that retailers value, such as
customer satisfaction and pricing.
“The data containing these key themes isthen analysed for consumer intent, creatinga rating score for stores and products basedon various KPIs. This insight gives retailers
an opportunity to create a better experience
for all shoppers,” explains Yehiav.
The software can detect subtle differencesin language to understand consumer
sentiment. Yehiav explains. “Think about
the phrases ‘I bought those cheap shoes’ and‘I bought those shoes cheap’. Although they
use the same words, one has a negative intent,
while the other a positive one,” he says.
Retailers that know how to mine review
data for sentiment analysis will have greater
visibility into what is happening in stores,
and can avoid a possible PR nightmare.

December 2018 | 7

Chapter 2:
Shopping habits
revealed

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They may be the switched-on generation, but Gen Z-ers
still value a real-life retail experience in a physical store

P

icture a Gen Z consumer during a
shopping spree and you may well
imagine them hunched over theirphone. Yet, while the demographic
has embraced online retail, our researchsuggests that physical stores still add
significant value. Indeed, 62% of thosesurveyed highlight in store as their preferred
shopping destination or equal to shopping
online, with just 38% of respondentsfavouring online shopping alone. Broken
down by gender, the results show that 45%
of males prefer to shop online, comparedwith just 31% of women.
But what will encourage frugal Gen Z
to part with their cash? Unsurprisingly,
discounts and offers are the biggest driver,

25%

30%

In store

In store andonline equally

In store45%
In store andonline equally

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What is yourpreferred method
for shopping?

24%

Online45%

with 30% underlining this as their top reason
to spend more. The results also suggest thatretailers should aim to capitalise on Gen Z’s
impulsive nature; almost a third citedbrowsing in store as their biggest driver forspending more money.
Yet it would be catastrophic to overlook
the online demands of these digital natives.
Online advertising via email blasts, web
ads and retailer websites (19%), and social
media posts from influencers and ads (13%)
are head and shoulders above print ads (5%)
when it comes to encouraging Gen Z to buy.
When the results for online advertising andsocial media are combined, digital becomes
the strongest influence on Gen Z at 32% –strongly indicating retailers need to present
a complementary omnichannel strategy,
seamlessly blending online and offline.
Retailers need to leverage data in aprescriptive way to enable them to offer
greater targeted marketing, drive customer

Online31%
December 2018 | 9

loyalty, and improve promotion execution.
We asked Gen Z for the two biggest reasons
they would shop at a particular retailer.
Some 59% cite good promotions anddiscounts as one of their reasons, while 42%name convenient location as a major factor.
Product quality (41%) follows close behind.

What puts them off?

While just 7% of those surveyed cite a quality
customer service experience as a reason for
shopping at a certain retailer, when asked
what would stop them shopping at theirfavourite store, almost half (48%) say poor
customer service. Women are more likely totake bad service to heart, with 59% saying
they would abandon a brand after a poor
experience, compared with 36% of men.
The findings suggest that Gen Z simply
expect good customer service. Doing itwell might not keep them shopping withyou, but failures in this area will certainly
deter them. Even in store, Gen Z still expect
a tailored experience similar to what theyreceive online. The significance of positive
interactions between staff members andshoppers in physical stores, therefore, mustnot be underestimated.
This is another opportunity wheredata can lead to actions, Profitect’s Yehiav
explains. “If a retailer notices that a store hasa high rate of single-item transactions, it may
mean store associates are not upselling or
cross-selling,” he says.
“By harnessing data analytics of thesetransactions, store managers can adjust
employee schedules to pair colleagues withlower upsell numbers with those who have ahigher average number of items per basket. This
peer-to-peer training approach can quickly
increase the average number of items pertransaction overall, leading to a lift in sales.”The most cited reason for avoiding a
retailer is if items are constantly out of stock(48%). However, 67% also say that if they
checked the availability of a product online
and then visited the store only to find theitem out of stock, they would be annoyed but
willing to give the retailer another chance.
This suggests retailers must pay serious
attention to the accuracy of their inventory.
Interestingly, 17% of respondents claim
an in-store expert or consultant would be
the main driver for them to shop with aparticular retailer. Male Gen Z consumers
are almost twice as likely to rely on an instore expert, at 21%, compared with just

10 | December 2018

What influences you mostto spend more money?
30%
28%
19%

Discounts/
offersBrowsing
in store

Onlineadvertising

13%

Social media

5%

5%

Print
advertising

Word of mouth

The top reasons why
Gen Z consumers
would choose aparticular retailer:

The top reasons why
Gen Z consumers
would stop shoppingwith a retailer:

1 Good promotions and deals

1 Items constantly out of stock

2 Convenient location

2 Poor customer service

3 Product quality

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12% of women. Furthermore, 26% of male
Gen Z consumers highlight store associates
as a leading reason for adding more to theirbasket, compared with 17% of women.
Men are also more than twice as likely
as women to buy a product in store because
a personal assistant is available. Online
retailers must ensure that digital consultants
are available to provide this bespoke
guidance in the digital realm, leveraging
data from previous interactions with the
shopper to create a seamless experience.
The research also suggests that retailers
need to capitalise on the generation’s
impulsivity to encourage add-on purchases.
Some 55% of those surveyed cite ‘feelings at
the time’ as the top reason they would add
more products to their basket. Gen Z womenappear to be more impulsive than men, with
62% naming this as the number one factor,
while ‘in-store displays’ are the second biggest
reason for Gen Z consumers to buy more.
Loya lt y schemes, ma rket i ng a nd
ecommerce data can all help determine which
advertisements and displays will resonate
most strongly with Gen Z shoppers in store. It’s
also essential that retailers align their online
and in-store shopping experiences to ensurethat both channels offer the same high-quality
customer journeys.

What is the biggest
factor in deciding
whether or not to...

Money talks

buy a product in store?

Whether shopping online or in store, price
was found – by a clear distance – to be thebiggest factor influencing the purchasing
decision. Some 56% of respondents nameprice as the top factor when shopping online,
while 48% say the same when shopping instore. Again, Gen Z confound stereotypes
regarding their attachment to digital, withjust 5% naming convenience as the biggest
factor when deciding to buy online.
The results also revealed a potential quick
win for retailers surrounding returns. Some
59% of those surveyed say they would either
sometimes or always exchange a productfor something else. By taking a prescriptive
approach to data, and employing personalised
product recommendations, retailers could
look to win over the remaining 41%. Almost
half (48%) say that when they need to returna product bought online, they prefer to do soin store – giving staff another opportunity toupsell. By contrast, just 12% say a drop-off
point such as a locker is their favoured option.
This speaks to Gen Z’s demand for a simple,
convenient shopping experience.

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buy a product online?
56%

Price
Delivery time
Reviews
Returns policy
Convenience

15%
13%
11%
5%

48%

Price
Ability to try
before you buy

21%
19%

Convenience
Personal
assistance
Returns policy

9%3%

December 2018 | 11

Chapter 3:
Work habits revealedAs more Gen Z-ers reach working age, what can retailers
do to attract and retain these prospective employees?

T

he research sheds light on how
workplaces will operate when more
Gen Z-ers reach employment age.
More than half of Gen Z respondents
have worked in retail and 30% say theywould consider the sector in the future.
Convenience is key, with some 54%
saying they would choose to work at aparticular retailer if it was located close
to t heir home, school or university.
Meanwhile, a quarter of respondents nameapprenticeships and graduate schemes as
one of their top two reasons for choosing towork at a certain retailer. Gen Z, it appears,
seek guidance from their employers andgravitate towards brands that make it easy
for them to work there.
The rewards for organisations that go outof their way to attract Gen Z talent could besignificant. Accenture reports that 56% of
Gen Z employees expect to stay at their firstjob for three years or more.
For employers looking to attract Gen Z,

they need to be mindful that simplicity is key
for this practically minded demographic.
We found that 44% currently receive theirwork tasks via meetings with their manager,
but that just 20% favour this way of working.
More than half (53%) would ideally receive a
written description of their work tasks withan even split when it comes to a preference
for a physical or digital document. In
addition, 39% say a company app would
make working in retail easier or more fun.
Employers looking to retain Gen Z
talent can therefore do so by ensuring the
instructions and reports given to these
employees are prescriptive and easily
understood, as clear communication willencourage efficiency and productivity.
According to Yehiav: “The best way toengage these digital natives as employees isthrough the use of innovative technology.
Brands need to ensure their employees feel
productive throughout the day, with clear
actions on what to tackle and when.”

How do you prefer to receive your work tasks?
I prefer a physical written descriptionof what I need to do27%

I prefer a digital written descriptionof what I need to26%

I prefer speaking with my manager

20%

18%
I prefer to view a video on what to do 3%
I prefer to receive a report
I have to decipher 7%

I prefer to decide what to do by myself

Chapter 4:
Winning over Gen Z

14 | October 2018

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Tapping in to the values of this influential generation, as wellas their need for authenticity and omnipresent brands, is key

One bra nd well k now n for its
successful targeting of Gen Z is
Boohoo – the fast-fashion company
that posted a rise in pre-tax profits
of 97% from 2016 to 2017, at a time when
UK retail sales were dropping at the fastest
rate since 2010.
When it comes to targeting Gen Z
shoppers, Boohoo’s strategy centres around“speed and agility”, ensuring it is first to
market with the latest styles, with hundredsof new products, trends and capsulecollections launching weekly.
Meanwhile, Superdrug embraced Gen Z's
inclusive attitude when it opened a ‘Beauty
without bias’ pop-up shop, containing
make-up products for both men and womenin one seamless space. Patrick Megarry,head of marketing at Superdrug, says: “Weare seeing gender lines blurred with our
younger customers.”
Future Labs’ Beard insists brands targeting
this age group will need to focus their strategy
around authenticity, as only genuinely
authentic campaigns will appeal to Gen Z
shoppers. Placing ethics at the heart of theirlong-term strategy will be key for retailers.

Experiential strategies

As Boohoo points out, Gen Z “live andbreathe social media”. “It’s important we
as a brand reach out to them in this space
using our Instagram, for example, whichhas 5.8 million followers. We collaborate
with relevant influencers that our customer
relates and aspires to.”
Superdrug, meanwhile, has increased its
influencer meet-and-greets, with more than
8,000 experiential events held in store eachyear. The retailer also sponsored 2018 reality
TV show Love Island – a frequently trending
topic. It also appeals to the generation’s
zeal for bargains through its loyalty card,
insights from which are used to tailor the
consumer experience.
Superdrug’s Megarry explains: “For Gen Z
it is all about personalisation and our Health& Beautycard is a perfect way for us to get

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to know them and their shopping habits,
which in turn enables us to offer a bespoke
personalised experience.”
Yehiav also touts the importance of aseamless omnichannel journey in driving
loyalty. “Picture a Gen Z shopper,” he says.
“Realising she has nothing to wear to a lastminute dinner invitation, she goes online
and buys an outfit to pick up in store afterwork. In her email confirmation, the retailer
includes a 20%-off coupon for in-store use
only. Once in store, she sees a clutch thatmatches her outfit and, with the coupon,she grabs it and adds it to her bill. The
importance of an effective omnichannel
experience cannot be overstated.”

Effective engagement

For brands that are utilising influencer
m a rket i n g, Fut u r e L a b s’ Fl a n a ga n
recommends handing creative control to
the influencer themselves, noting “it’s theircreativity that has led to them engaging withGen Z”. Working with influencers in thisway results in a more authentic campaign.
The first thing brands must realise whenlooking to engage Gen Z is that each memberof the demographic is “their own person”,
and there are no one-size-fits-all values, says
Flanagan. However, he notes, Gen Z seem toplace more importance on the values they
do hold than previous generations and thisis reflected in the brands they choose to shopwith or work for.
The search for authenticity also means
brands need an intrinsic knowledge of youth
culture – what’s trending, which influencers
are doing well and what causes are Gen Z
supporting? These are the types of subjects
brands need to understand inside-out forsuccessful engagement.
“Winning the loyalty of the critical Gen Z
demographic may seem challenging, but it
doesn’t have to be,” says Profitect’s Yehiav.
“Smart investments in the right technology
and an analytical understanding of Gen Z’s
expectations will capture the loyalty of thiskey demographic and drive results.”

December 2018 | 15

case study:
Asos and UncommonIn collaboration with Uncommon Creative Studios,
Asos launched clothing brand Collusion in October,targeted at 16- to 20-year-olds. The collection – whichis ethically sourced, gender fluid, animal-free andmore size inclusive – aligns perfectly with Gen Z’svalues. What’s more, it feels authentic.
Behind the collection is an emotive campaigncelebrating diversity. It highlights 100 stories from agroup of Gen Z-ers who are poised to turn 18, combinedin a six-minute film. Each is asked: “What do you wish
for in the year you come of age?”
The trailer describes the campaign as a “portraitof a generation”, and the new brand as “for the
coming age”. It depicts young people speaking
about embracing differences and the downsides ofsocial media, with the name ‘Collusion’ meaning ‘toplay together’.

So how has this collaboration managed to succeedon the authenticity scale where so many others havefailed? Not only does the campaign contain the storiesof 100 Gen Z-ers, but Asos and Uncommon worked withteenagers to ensure the label represents what Gen Z
really want from their clothes. They understand that toeffectively engage with this demographic, members of
Gen Z – who they describe as “an audience who demandsomething different from the fashion industry” – must
be intrinsic to the process.
The collaboration doesn’t end there: as the “constantly
evolving” brand develops, more Gen Z-ers will be invited
to “reimagine and reshape” the collection. Asos explains:“The line-up of students, stylists, activists, image-makers,
authors and YouTubers – each with their own influential
online voices and diverse followings – have taken thelabel to places it could never have gone alone.”>>	Align your brand with Generation Z’s values and need for authenticity>>	Work with the target demographic to understand how to engage with them>>	Constantly evolve as a brand in order to maintain a presence with this group16 | December 2018

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case study:
Axe CanadaAnother brand that has successfully put Gen Z at
the heart of its proposition is Axe Canada, with
its widely applauded #PraiseUp campaign. The
first step in the body spray brand’s strategy wasto survey its target audience – men between the ages of
15 and 25 – on their values surrounding masculinity.
It found that men within this age group are more
inclusive and accepting than their older peers, despite
the fact that 70% of them had been told that a ‘real man’behaves in a certain way.
It also revealed that Gen Z men are more likely to
express affection and emotion, and underscored theimportance of supportive male friendships.
Intended to combat harmful stereotypes surrounding
masculinity, #PraiseUp challenged its audience
to video themselves complimenting their friends, andto post it on social media. To encourage Gen Z-ers

to take part, Axe also brought in sports influencers
Kyle Lowry of basketball team the Toronto Raptors
and baseball star Marcus Stroman of the Toronto
Blue Jays.
Dan Alter, senior marketing director for personalcare at Unilever, which owns Axe, says: “Our brand’sbold new direction celebrates modern masculinity.
We’re committed to taking action and empowering
youth to find their magic.”
By gaining an insight into its audience throughoriginal research, the brand was better able to connect
with male Gen Z-ers, engaging with them on anemotional level.
Using its social media ‘challenge’, it then put thisaudience at the heart of the campaign – ensuring thebrand was engaging with Gen Z, rather than imposing
on its consumers.

>>	Survey your brand’s audience to target them effectively>>	Appreciate the value of social media or entertainment influencers>>	Don’t be afraid to take a bold and more modern direction to tap in to Gen Z

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December 2018 | 17

case study:
SUNNYDA

fter receiving widespread criticism fromconsumer groups regarding the additives used tomake SunnyD – including accusations that thedrink made one child turn yellow – the brandrelaunched in 2009 as a healthy drink option, with noartificial preservatives or added sugar.
But with sales declining substantially in recent years,
as consumers opted for healthy or low-sugar alternative
beverages, this year SunnyD made a decided shift in its
marketing strategy.
Traditionally targeting mothers of children and youngteens, the brand’s most recent ad launched in August
2018 – its first national campaign since 2015 – and targets
Gen Z consumers directly.
Rather than competing with other beverages on healthbenefits, the brand has instead chosen to target its key
demographic’s teen sensibilities, focusing on diversity

and individuality. Revamping its logo, website and social
channels with a more youthful tone at the same time, thecampaign is running via paid social platforms geared
towards Gen Z, such as MTV, Spotify and YouTube.
Extra-short ads, running six seconds or less, allow thebrand to reach mobile-minded younger consumers.
Featuring the new brand tagline, ‘Boldly original’,
the videos show a diverse group of teens drinking
SunnyD in between activities ranging from acrobatics
to being flown around by drones, with original musicfrom DJ Kass, whose song Scooby Doo Pa Pa went viralin early 2018.
Targeting Gen Z’s love of content and needfor authenticity, the campaign included behindthe-scenes interviews with the featured teens,supplemented by interactive digital, social andinfluencer companion content.

>>	Target Gen Z’s key sensibilities, such as individuality and diversity>>	Utilise relevant marketing platforms and ensure campaigns are mobile-ready>> Publish additional material alongside the main ad

18 | December 2018

In association with
Pantone Colors
Green: 377C
Blue: 294PC
Orange: 7412C

NEXT STEPS FOR RETAILERS
Profitect chief executive Guy Yehiav outlines four steps retailers can take toengage with, and appeal to, Gen Z in order to drive sales and margin improvements

Invest in the in-store experience

Embrace the return

As noted in this report, only 37 % of respondents indicate they prefer to shop
online only. Retailers that prioritise product assortment and quality in-store service– both of which can be optimised by prescriptive analytics – will win with Gen Z.
In-store shopping should feel like an experience, not a transaction.

Returns are a pain point for many retailers because of additional supply chain costs,
wear and tear, or seasonality. However, 48% of Gen Z respondents prefer to return instore and, once there, retailers have a prime opportunity to upsell and cross-sell.
Some 59% of Gen Z-ers indicate that when they return something, they often
exchange it for something else – retailers that leverage consumer data can profit on
their returns by offering the right promotions when Gen Z shoppers go back to stores.

Prioritise a strong omnichannel strategy

Invest in smart task-management solutions

Almost two thirds (65%) of Gen Z-ers indicate they check if a product is in stock
before visiting a store, with 15% saying that if they saw an item was available only tothen discover once in store it was out of stock, they would never shop at that retailer
again. Inventory accuracy is crucial to ensuring a satisfying shopping experience.
By pulling actionable insights from inventory data, the root cause of the problem
can be identified, allowing retailers to send store managers opportunities for
improvement. The right solution will deliver results quickly.

Retail is a stronghold for entry-level jobs with Gen Z-ers, with 56% of respondents
either currently or previously working for a retailer or grocer. But 58% of those
respondents claim the reports they work with are too complicated to understand,with an additional 25% feeling unclear on how to act on them. By adopting
prescriptive analytics, retailers can push simple, easy-to-understandinstructions or assignments to employees, improving labour costs, retention
and operational efficiencies.

In association with
Pantone Colors
Green: 377C
Blue: 294PC
Orange: 7412C

December 2018 | 19

RetailWeek

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In association with
Pantone Colors
Green: 377C
Blue: 294PC
Orange: 7412C