As South Australia’s Chamber of Commerce and Industry and peak body for commerce and trade, the South Australian Business Chamber is focused on supporting and growing businesses. We live it, we breathe it, every day.
Primarily, we focus on the business of business, and in turn, the stories I share from week to week speak to how we advocate on behalf of the business community.
Today, I am turning the dial and would like to talk about the priorities of our members, and the wider business community, and that is often, their customers. Whether it is B2B or B2C, no commercial organisation can operate without them.
Earlier this week, one of my marketing team presented me with a report, produced by Spotify called Culture Next, and wow, was that an informative read. I wholeheartedly embrace the opportunities presented by the Gen Z economy which this report focused on, particularly in the e‑commerce, retail, and entertainment industries, which I will point out, I have some history in.
First and foremost, shaping the outlook of this generation is the wakeup call that was 2020, and no, I am not only referring to the COVID-19 pandemic. Although significant, it was instead the ground swell of social change that swept across the globe that also shaped a turning point for many consumer brands and commercial organisations.
For the Gen Z market, their purchasing choices are no longer entirely determined by price or value for money. A recent report by Voxburner mentioned that 77 per cent of Gen Z shoppers will purchase from businesses whose values align with their own. As the former owner of a national retail business focussed on the youth consumer, this is something that I can identify with.
Now this market is not to be underestimated, raised on a healthy diet of social media and mobile devices, this generation, according to WP engine represents $150 billion in buying power and influences over $600 billion in spend worldwide, which in 2020 accounted for a rapidly growing percentage of total global consumers.
Unlike the generations before that maintained a level of loyalty to businesses, Gen Z who account for roughly 20 per cent of Australians, do not have a problem cutting off their relationship with a brand if it does not align with their shared values.
For many, attracting attention from this market will be challenging. Traditional marketing techniques no longer apply, and the construction of digital relationships formed on honesty and values reigns supreme. They want to see businesses be real, relatable, and raw, with spokespeople that go off script, reveal vulnerability and establish connections with customers making them feel like their products are not just making their own lives better, but improving the lives of others and the natural environment around them.
I write this article, not to impose instant change for South Australian businesses, but to encourage business owners to examine the opportunities available by being conscious of this market. Certainly, here at the South Australian Business Chamber, we are continually adjusting our services, particularly through SAYES, the South Australian Young Entrepreneurs Scheme, to build deeper relationships with this demographic.
These young entrepreneurs, shoppers and employees are the CEOs, influencers and the workforce of the not-too-distant future and pose exciting and challenging opportunities for business owners over the coming years. This only underscores that when in business, change is the only constant.
Originally published in The Advertiser — Tuesday 20 July, 2021
