Generation Z is coming of age and they’re using their allowances to make or break your business. In recent years Millennials have been all the rage. You love them, you hate them, but you want their business. They are the current most researched and marketed to generation, but there are some new kids in town. Generation Z is the demographic with birth years from 1996 to the mid 2000’s. As they are coming of age companies now have to devise their plan to earn the business of the most tech-savvy and trend-sensitive group. All things considered, there is one way to satisfy their need for instant gratification: drop shipping.
“Millenials on Steroids”
According to the National Retail Federation, “the global Gen Z population is set to reach 2.6 billion by 2020, [and] retailers need to create more interactive engagement around their brands to serve the ‘always on’, mobile focused, high-spending demographic.” Milennials and Gen Z share many defining traits such their desire for experiences over amassing material items. Generation Z just does it with a more digitized and global perspective. They were the first generation to grow up with technology such as smartphones, iPads and the like. Consequently, many of them cannot remember a time before technology. Therefore, a major key to success with this demographic is using the technology they trust to create a memorable experience. Easy to navigate mobile sites along with strong social media marketing will be the crux in getting, and most of all, keeping their attention. In addition, they have been over-exposed to advertisements and are the most easily swayed by “influencers” of YouTube and Instagram. Stores need to have access to an ever-changing supply of product to satisfy the impulsive “Gotta have it” mindset they posses. This is where drop shipping comes in to play.
Drop Shipping Explained
Shopify defines drop shipping as, “a retail fulfilment method where a store doesn’t keep the products it sells in stock. Instead, when a store sells a product, it purchases the item from a third party and has it shipped directly to the customer.” This is what made Amazon a multi-billon dollar marketplace. This system proves successful in that companies do not have to keep a large stock of items that may or may not sell on hand. The ability to stay flexible is what will contribute to their ability to market to Gen Z. When a new “must have” item hits the market, the product can onboard the site just in time for the consumer to press “add to cart.” In a demographic that is used to doing everything from paying a bill to ordering a car service from a click of a button, this is crucial.
Drop shipping and Generation Z are a match made in retail heaven. Because of the flexibility drop shipping allows, it lends a company the ability to identify a trend and quickly onboard it to its inventory. This is what will be key in satisfying the impulsive driven buyers that are Gen Z. As they age, their buying power will exponentially increase. In conclusion, the sooner that brands can create an experience for, and gain their trust, they will have loyal customers in the new kids on the block.