5 Ways Brands Can Support Gen Z through the Cost-Of-Living Crisis

A lot of us are feeling the squeeze at the moment, and that is especially true for gen z.

Financial security is rarely the norm for 18-25-year olds, and increasing inflation is compounding this – with research from Deloitte finding the cost-of-living crisis has overtaken climate change as gen z’s leading concern.

This new reality means gen z-ers must tighten the purse strings, with less income to spend on non-essential items like fashion, beauty and tech, as new UNiDAYS research shows an over 40% increase in spending on basic grocery shopping.

While brands must accept this means less to spend on their products, they can also react to the changing landscape by offering understanding and support to gen z customers.

With gen z already accounting for 40% of all consumers, making effort to support this apex consumer not only demonstrates a brand’s empathy today but also represents a savvy future investment.

Everyone has a price – and for gen z finding the goods they love at an affordable one is key.

As the first digital-native generation, gen z are price-conscious and will scour the internet to find a brand’s best offer – in fact, nearly a third say they are waiting for items to go on sale before buying.

A 2021 survey of UNiDAYS’ panel of 20m+ students globally also showed 95% of those polled always keep an eye on a bargain, and 92% regularly used discount codes.

While inflation and supply chain pressures mean brands can’t offer discounts year-round, adopting the right pricing strategy and upweighting discounts during key calendar moments, like Freshers Week, is crucial to winning gen z’s loyalty, with 82% loyal to brands offering regular discounts.

Price aside, gen z are driving the movement to liberalise personal identity. They are more likely to identify as LGBTQ+ than past generations, and want brands to support, recognise and celebrate this.

UNiDAYS’ 2022 Fashion Report found 61% of gen z think mainstream fashion overlooks minority groups, including non-binary and trans people. Meanwhile, nearly two thirds believe brands should improve the online shopping experience and provide options to search for gender-neutral clothing.

Here, Asos’ Collusion range, which champions unisex designs and inclusive sizing, has been a guiding light since 2018 – and now other brands are wisely following suit.

While the cost of living continues to rise, gen z will not sacrifice living their true selves. They want brands’ offers to reflect this and be accessible to everyone in society. In turn, seeing their world shine within brand offers strengthens their relationship with brands driving long-term affinity.

However, understanding gen z doesn’t stop with identity. This is a generation of activists and campaigners, keyed into the political climate and ultra-passionate about social issues. As such they demand brands meet exacting standards.

During the infancy of their adult lives, they want brands to empower their voices by tackling issues, such as climate change, that matter most to them. Gen z care about sustainability more than any other generation, with UNiDAYS research showing that two thirds (68%) want clothes manufactured to the highest ethical standards. 

Tackling these issues head on demonstrates understanding to gen z and delivers confidence that the world is progressing towards their desired future. Brands like Levi’s are actively displaying their support by embodying gen z’s values and amplifying their voices, to empower a generation of consumers.

But be warned: words are not enough. Shouting about social issues will not win over gen z unless it’s backed by meaningful action.

Gen z consumers are no fools. They are often sceptical of brand motivations when it comes to inclusivity, with 57% stating they come across as tokenistic.

In addition, only a third of those we surveyed feel brands champion sustainability in the right way. Gen z will not tolerate unethical practices at any stage of the supply and manufacturing process and will call out half-hearted attempts at “greenwashing” from brands.

Supporting gen z means diving in the deep end and taking an end-to-end approach to analysing how your brand tackles an issue. No short cuts allowed!

We all feel most comfortable in our daily routine so brands must target live in gen z-er’s day-to-day.

When it comes to shopping, their first instinct is to look online with 97% saying they now use social media as their top source of shopping inspiration – spending nearly an hour a day on TikTok alone.

Here influencers have the power to alter brand affinity. The right influencer can connect with their gen z followers on a personal level, offering trusted shopping recommendations and cost-effective tips that support them through times of financial insecurity. 

The best influencer partnerships bridge the gap between brands and gen z by demonstrating shared values helping consumers feel supported while driving affinity with the brand.

By becoming part of their day-to-day brands give themselves a chance to be accepted, if they are doing their bit to support!