Generation Z, born between the late 1990s and early 2010s, is moving into the workforce and becoming one of the most influential consumer demographics. Retailers will need to adjust their strategies if they are to remain relevant for this highly educated, socially aware and digitally connected cohort.
Steven Heilbron, CEO of Capital Connect, a fintech that offers fast and flexible business funding to South African retailers, says Generation Z represents the retail customer of the future. In a young country such as South Africa, it’s especially important for retailers to understand this market if they are to grow their businesses.
Heilbron outlines some key trends emerging in this segment of the population:
Plug into social media
According to the Flux Trends 30/30/30 Report, Gen Z spends an average of 3.8 hours a day on social media, with Instagram and TikTok as the most popular platforms. This highlights the importance of plugging into social media to promote and advertise a retailer’s offerings to this population. Social media campaigns should be interactive and visually appealing to cut through the noise.
Back into the real world
Many members of Generation Z missed out on pivotal school and university experiences under lockdown. As such, they have come to value real-world experiences. Retailers with aesthetically pleasing spaces, vibrant displays, unique décor, and interactive elements can turn their brick-and-mortar stores into destinations worth visiting and sharing on social media. In-person events like product launches and in-store workshops can turn an outlet into a community hub.
Support new ways to pay
The Flux report paints a picture of a financially savvy generation. Retailers can appeal to them with flexible payment options like Buy Now, Pay Later (BNPL) services for bigger purchases. They should also embrace digital payment technologies such as mobile wallets to make transactions seamless and convenient.
Focus on sustainability
Values are shifting among younger consumers, with many concerned about climate change and the environment. Thrifty clothing and casual styles are more popular than high-end branded items. Retailers can appeal to Gen Z’s values by offering sustainable choices and highlighting eco-friendly practices.
Hustling on the side
Many Gen Zs balance side hustles with their studies or jobs. Retailers can tap into this by offering products for their side hustles. Gen Z prioritises spending on electronics and technology, for example.
Bare necessities matter
Flux’s research finds that many members of Gen Z live in multigenerational households and hold some responsibility for taking care of extended family. Their spending is short-term and focused on basic needs. Retailers should cater to this practical approach by ensuring a range of high-quality, affordable products that meet these basic needs.
Says Heilbron: “To win over Gen Z customers, retailers must adapt to their digital lifestyles, entrepreneurial spirit and care for community and family. By understanding and addressing their unique preferences and behaviours, retailers can build lifelong relationships with their next generation of customers.”
“Fast access to capital is the key to reinventing your retail business, whether by buying the right inventory, refurbishing your store, investing in additional profit centres (APCs) or embracing e-commerce. With Capital Connect, you can ‘click & borrow’ up to R5 million opportunity capital from our app and the funds will be in your bank account within 24 hours. To cater for retailer’s cashflow needs, the loan can be repaid in small daily instalments, making funding affordable,” concludes Heilbron.
ABOUT CONNECT
About the Connect Group (www.connected.co.za)
The Connect Group of companies provides merchants with financial technology solutions that connect them to cash, capital, card and prepaid value-added products and services. Our purpose and passion is to enable our clients to grow and maximise their business potential.
Our cash management and payments division, Cash Connect, is Africa’s #1 retail fintech cash management provider* and manages in excess of R120 billion a year on behalf of a diverse national client base. It is an approved service provider to blue-chip companies including Spar Group, Shell, Engen, Pick ‘n Pay and OK.
Capital Connect – Retail Business Funder of the Year in the 2021 Fintech Awards –provides SME retailers with quick access up to R5 million business funding in just 24 hours, enabling retail merchants to capitalise on business opportunities.
With Capital Connect, merchants can:
- Use the Stock-up Calculator to calculate potential profits from bulk buys.
- Download the Connected App to Click & Borrow. Download: Android I iOS
Other group divisions are Card Connect which specialises in card acceptance solutions, and EasyPay MoneyMarket, which enables merchants to offer money transfers, gaming vouchers, prepaid services, bill payments and more at the point of sale.
Connect is owned by Lesaka Technologies, a South African fintech company with a primary listing on NASDAQ (NasdaqGS: $LSAK) and a secondary listing on the Johannesburg Stock Exchange (JSE: $LSK).
*2022 Africa Excellence Awards (MEA Markets/AI Global Media Ltd)
ABOUT LESAKA TECHNOLOGIES, INC
About Lesaka (www.lesakatech.com)
Lesaka Technologies, (Lesaka™) is a South African Fintech company that utilizes its proprietary banking and payment technologies to deliver superior financial services solutions to merchants (B2B) and consumers (B2C) in Southern Africa.
Lesaka’s mission is to drive true financial inclusion for both merchant and consumer markets through offering affordable financial services to previously underserved sectors of the economy.
Lesaka offers cash management solutions, growth capital, card acquiring, bill payment technologies and value-added services to retail merchants as well as banking, lending, and insurance solutions to consumers across Southern Africa.
Lesaka has a primary listing on NASDAQ (NasdaqGS: $LSAK) and a secondary listing on the Johannesburg Stock Exchange (JSE: $LSK).
Visit www.lesakatech.com for additional information about Lesaka Technologies (Lesaka ™).
