Gen Z’s brand preferences: The end of experience economy? (2024)

In the ever-changing world of consumer behaviour, Generation Z is at the forefront, charting a new course in brand engagement. Moving away from the ‘experience economy,’ this generation shows a strong preference for brands that focus on ‘What?’ (solutions) and ‘Why?’ (purpose), rather than ‘How?’ (experience).

Gen Z’s brand preferences: The end of experience economy? (2)

As we navigate the complex tapestry of Generation Z’s (in this article we’ll be talking about Gen Z in North America and Western Europe) preferences and attitudes, it’s essential to contextualise their journey through recent years, each marked by distinct themes and experiences.

2021: The Year of Uncertainty: This year was defined by questions about the future and the world’s state. Gen Z grappled with the unknown, wondering whether the ‘normal’ they knew would return or if they would continue to navigate uncharted territories. This uncertainty shaped their desire for brands that offered stability and reliability.

2022: The Year of Possibility: Shifting from ‘what would be’ to ‘what could be,’ Gen Z began to envision a future filled with potential. Questions about thriving, representation, personal growth, and happiness dominated their mindset, reflecting in their brand preferences for those that symbolized possibility and aspiration.

2023: The Year of Experience: This year marked a transition to experiencing ‘what is.’ Gen Z, born between the mid-1990s and early 2010s, started to actively engage in new jobs, explore beyond their comfort zones, and travel, seeking brands that complemented these real-world experiences with authenticity and practicality. This digitally-native generation, is not just participating in the global marketplace; they are actively reshaping it with their unique perspectives and preferences rewriting the rules of engagement, challenging the long-celebrated ‘experience economy’ and pivoting towards brands that prioritise ‘What?’ (solutions) and ‘Why?’ (purpose), over the ‘How?’ (experience).

For a deeper insight, you may look up recent reports on Gen Z’s favourite brands. I’ve compiled a list of the top 20 not ranked brands, divided into ‘What?’ and ‘Why?’ categories, to illustrate this trend.

Gen Z’s brand preferences: The end of experience economy? (3)

Practicality and Simplicity Take Center Stage
Gen Z’s approach to consumption is marked by a desire for practicality and simplicity. This demographic looks beyond mere experiences, seeking brands that provide straightforward, useful benefits. Their preference reflects a wider societal shift towards minimalism, efficiency, and practical solutions in everyday life.

Clarity and Directness as the New Appeal
In a departure from elaborate marketing schemes, Gen Z favours brands that present clear, simple solutions to everyday challenges. This generation’s inclination towards brands with direct, unambiguous communication indicates a significant change in how companies should approach their marketing strategies.

Brand archetypes: Innocent, Caregiver, Hero, Everyman

Gen Z’s brand preferences: The end of experience economy? (4)

Impact Messaging
Gen Z is drawn to brands with a strong focus on social and environmental impact. They are attracted to companies that communicate their commitment to making a positive difference in the world, resonating with Gen Z’s values and desire to support meaningful causes.

Ethical Transparency
Brands that prioritise ethical practices and transparent operations strike a chord with Gen Z. This demographic values honesty and integrity, preferring companies that are open about their processes, sourcing, and contributions to social and environmental initiatives.

Brand archetypes: Sage, Magician, Jester, Ruler

Gen Z’s brand preferences: The end of experience economy? (5)

Brand archetypes: Explorer, Lover, Creator, Rebel

Interestingly, Gen Z’s engagement with brands Explorer, Rebel, Lover, and Creator archetypes — which focus on the ‘How?’ aspect — is much lower. This can be attributed to several key factors inherent to this generation’s values, preferences, and social context.

Preference for Stability and Security
Growing up during times of economic fluctuation and global crises, such as the COVID-19 pandemic, has instilled a desire for stability and security in Gen Z. Explorer and Rebel archetypes, which often symbolise adventure, risk-taking, and defiance, may not resonate as strongly with a generation seeking certainty and reliability.

Result-Oriented Mindset
As digital natives, Gen Z values efficiency and direct results. They prefer brands that offer clear, tangible benefits and solutions (aligned with the ‘What?’ brands) over those that emphasise the journey or experience (like Explorer or Creator).

Practicality Over Romanticism
The Lover archetype, focusing on idealism and passion, may not align well with Gen Z’s more pragmatic and results-oriented approach to brand engagement.

Community and Inclusivity
Gen Z is highly aware of and values inclusivity and community. The individualistic and sometimes solitary nature of the Explorer and Rebel archetypes may not appeal as much to a generation that values collective action and social cohesion.

Global Issues Over Personal Expression
While the Creator and Lover archetypes focus on self-expression and personal passion, Gen Z tends to prioritise brands that address broader global and social issues, aligning more with the ‘Why?’ brands.

Skepticism Towards Over-Romanticising
Gen Z is known for its ability to discern authenticity and is skeptical of brands that might over-romanticise or dramatise their image, which can sometimes be characteristic of the Lover and Creator archetypes.

Seeking Genuine Connections
This generation seeks brands that establish genuine, transparent connections. The sometimes abstract and idealistic nature of the Explorer and Lover archetypes might seem less authentic or tangible to them.

Preference for Tech-Driven Solutions
Gen Z’s affinity for technology and innovation makes them more inclined towards brands that offer technologically advanced solutions (aligned with ‘What?’ brands) rather than those focusing primarily on self-expression and experience.

Even in a year of active experiences, Gen Z continues to show a strong preference for brands that focus on ‘What?’ (solutions) and ‘Why?’ (purpose). This preference underlines a deeper inclination towards brands that offer tangible benefits and align with their ethical and social values, rather than those that merely provide an experience.

Gen Z’s appreciation for the journey does not necessarily translate to a preference for experience brands. Instead, they seek substance, authenticity, and practicality in their brand interactions. They favour brands that contribute meaningfully to their lives, either through practical solutions or by aligning with their values and aspirations.

So, the experiences that Gen Z values are not just about enjoyment or luxury; they are about growth, learning, and making a difference. Brands that can create experiences aligned with these deeper aspirations are more likely to resonate with this generation.

Gen Z’s brand preferences: The end of experience economy? (2024)

FAQs

What does Gen Z want from brands right now? ›

Gen Zers are known for their social responsibility, dedication to social and political issues, and their demand for authenticity when it comes to brands and advertising. 53% of US Gen Zers want brands they shop at to support mental health, more than any other cause, according to a survey from ICSC and Big Village.

What is Gen Z attitude towards brands? ›

Brand archetypes: Innocent, Caregiver, Hero, Everyman

Gen Z is drawn to brands with a strong focus on social and environmental impact. They are attracted to companies that communicate their commitment to making a positive difference in the world, resonating with Gen Z's values and desire to support meaningful causes.

What are the consumer preferences of Gen Z? ›

Key findings highlight Generation Z's inclination towards brands prioritizing social values, environmental concerns, and sustainability, as well as their reliance on social media influencers and preference for personalized experiences.

What experiences do Gen Z prefer? ›

Roughly 60% of millennials, Gen Z would rather spend money on 'life experiences' like traveling, concerts now than save for retirement — are they making a big mistake? Forget retirement, there are some things worth experiencing no matter the price (did someone say Taylor Swift's Eras Tour?)

What is Gen Z's favorite brand? ›

One Company Tops Gen Z's Favorite Brands

The study found that Nike dominated the rankings by a landslide. It was the runaway favorite brand for all teens in both clothing and shoes. In clothing, Nike was the preferred brand for 35% of those polled, followed by Lululemon and American Eagle at 6% and 4% respectively.

Why is Gen Z obsessed with brands? ›

And finally, the majority (73%) of Gen Z shoppers prefer to buy from or advocate for brands based on their beliefs and values. Before making a purchase, they are more likely to research a brand's history, values and practices, and are often influenced by peer reviews and social media presence.

What does Gen Z value most in brands? ›

Embracing Diversity and Inclusivity

One of the defining characteristics of Gen Z is their commitment to diversity, authenticity, and inclusivity. They are passionate advocates for social justice and equality, and they expect the same values from the brands they support.

How brands are appealing to Gen Z? ›

To appeal to Gen Z, brands should adopt strategies that resonate with this generation, such as creating fun, engaging and shareable content. Since Gen Z grew up with social media, most enjoy sharing content that speaks to them.

Why does Gen Z follow people not brands? ›

What distinguishes an influencer's appeal is not just reach, but their ability to resonate on a personal level. Gen Zers gravitate toward influencers who exude authenticity, sharing real experiences rather than scripted endorsem*nts.

What products are Gen Z interested in? ›

Gen Z spending habits show they care the most about fashion, makeup and beauty products, technology, and their pets. This is perhaps due to their young age and few major bills.

What is Gen Z marketing trends 2024? ›

In 2024, we've adapted nostalgic marketing—once effective with older generations—for Gen-Z by infusing it with modern digital experiences. We blend classic brand elements with interactive augmented reality and socially-driven content, resonating with Gen-Z's love of authenticity and tech-savvy nature.

What products do Gen Z use most? ›

Products Gen Z Use the Most:

According to Klarna, the products that Gen Z shoppers spend on the most are clothing and shoes, groceries, beauty products, electronics, entertainment, pharmaceuticals, home and garden accessories, and automobile parts or accessories, among others.

What is Gen Z struggling with the most? ›

Gen-Z feels substantial anxiety and stress about jobs, long-term financial stability and major life steps, such as buying a home and starting a family.

What influences Gen Z the most? ›

15 influential events that shaped Gen Z are the following:
  • Terrorism and War.
  • Social Networking.
  • Smart Phones/Mobile First.
  • Great Recession.
  • Text Messaging.
  • Gun Violence.
  • Election of Barack Obama.
  • Shared Family Responsibilities.
Jan 14, 2024

What is the rise of the experience economy? ›

The value of experiences has taken precedence, with 78% of millennials choosing to spend money on an experience over products. The growth of the experience economy is being driven by a number of factors, including the increased accessibility of experiences, the rise of social media, and technological development.

What do Gen Z want from products? ›

While Gen Z'ers are price conscious, they aren't as price-centric as some previous generations. Products and brands need to show a mixture of value, quality and ethical practices to tap into the Gen Z wallet.

What does Gen Z want from luxury brands? ›

For Gen Zs, luxury brands are not just about the product itself, but about the entire experience that comes with it. They want to feel like they are part of an exclusive and elite group when they buy luxury items.

What do Gen Z want from brands on social? ›

Gen Z expects brands to be drivers of social change and looks for fair labor practices, inclusivity, and sustainability. There are several ways in which brands can create socially impactful content that focuses on how the people, environment and product are treated.

Top Articles
Latest Posts
Article information

Author: Carmelo Roob

Last Updated:

Views: 6403

Rating: 4.4 / 5 (45 voted)

Reviews: 92% of readers found this page helpful

Author information

Name: Carmelo Roob

Birthday: 1995-01-09

Address: Apt. 915 481 Sipes Cliff, New Gonzalobury, CO 80176

Phone: +6773780339780

Job: Sales Executive

Hobby: Gaming, Jogging, Rugby, Video gaming, Handball, Ice skating, Web surfing

Introduction: My name is Carmelo Roob, I am a modern, handsome, delightful, comfortable, attractive, vast, good person who loves writing and wants to share my knowledge and understanding with you.