How Gen Z is rewriting the rulebook on brand building

It's no secret that Gen Z consumers (those born between the mid-1990s and mid-2010s) are rewriting the rulebook on brand building. Gen Z is the first generation to have never known a world without the internet and smartphones.

Before social media and the digital world, consumers often had little choice in the brands they purchased from. They were more likely to work with brands they already knew or to ask friends and family for recommendations. These days, there are likely thousands of brands fighting for the attention of your target audience which means that consumers have the power to be picky.

So, if you are not building a brand that speaks to Gen Z in a meaningful way, then you are going to be left behind pretty quickly.

Why should you care about Gen Z?

First of all, why should you care about the purchasing behaviour of Gen Z if they aren't included in your target audience? If you are a business owner who isn't working with Gen Z yet, you might be turning a blind eye to the changes that are happening in the branding world. But, the reality is that the next generation of young adults is growing up quickly and their spending power is only increasing. If you are not working with them now, you probably will be soon enough.

It's also important that we are listening to young consumers because they have a major influence on the behaviours of other generations. They are the ones educating their parents on how to purchase online and about important issues that are impacting the next generation. They are leading the way and are not afraid to voice their thoughts and opinions.

5 ways that Gen Z are rewriting the rule book on brand building

1. Brands need to lead with their values

With plenty of options on the table, Gen Z is more conscious about choosing brands that align with their values. They want to feel good about their purchasing behaviour, and they want to support brands that are making a positive impact. For many young consumers, sustainability is a significant part of the purchasing decision, with 73% of Gen Z consumers willing to pay 10% more for sustainable products. A brand’s ethics and behaviour concerning environmental and socio-political issues are important decision-making factors for this generation, and they will take the time to research the brand before choosing to purchase.

So how can business owners make sure they are catering for this generation of values-based purchasers? The first step is actually doing the work when it comes to your vision, mission and values, AKA your brand DNA. In my brand strategy projects, this is the first step in the process. I believe that understanding your 'why' is a fundamental step in building a brand that can successfully attract the right type of client. When you can infuse this message throughout your communications, you will start to attract those who believe in your mission and who want to be a part of your story.

2. Authenticity is everything

Authenticity is a buzzword that gets thrown around a lot in the branding world. But what does it really mean and how important is it? Authentic branding is all about staying true to who you are as a founder and as a brand, even when you're behind a screen. It's about being open and honest about what your company stands for, your story and what's going on behind the scenes. The next generation doesn't want to see a faceless brand and stock photos plastered everywhere. They want to see the heart and soul of the brand, they want to know what the brand is on a mission to achieve, and why they should choose to work with that brand over other alternatives.

On the brand chats podcast, I spoke with Milly Bannister, an award-winning founder, Gen Z specialist and creative director who is thriving in the social impact space. She is the founder and Managing Director of Allknd with her personal and brand digital content reaching more than 5 million young Australians each year. In this podcast episode, Milly shared her insights into building a brand for Gen Z and expressed the importance of authenticity. Through her branding efforts, she has noticed a major shift in how young Australians engage with brands that are willing to be authentic and honest, predicting that this will become even more significant over time.

3. Social media is not going anywhere

It's no surprise that the younger generation is spending more time on social media compared to any other generation, using it as a tool to find new brands, research brands and make purchases where possible. So, if you are ignoring the power of social media then you are only going to be left behind.

The reason that TikTok is so popular for Gen Z is that it is a space where brands can be authentic and raw. TikTok users want to see the office banter, the founder talking to the camera, products being used, and tips being shared. They don't want to see airbrushed photos, they want to see exactly what's going on behind the scenes. Brands that are nailing this approach are the ones that are leading the way, building loyal communities and driving sales through authentic brand-building.

One of my favourite examples is Fayt the Label, where CEO Brittney Saunders is not afraid to share exactly what goes on behind the scenes, in the warehouse and with her team. She has created an entertaining and relatable space for her audience to connect.

4. Personal branding is more important than ever

Personal branding has been a hot topic for years, but its importance continues to grow within the hearts of Gen Z. In line with a craving for authenticity, the younger generation (and older generations too), want to see the faces that sit behind the brand. Modern consumers start to wave red flags when they are researching a brand and can't put the pieces of the puzzle together. One of those important pieces includes your personal brand.

Milly spoke about this in our podcast chat, sharing her personal branding story and how pivotal it has been in her career. She believes that everyone who wants to gain credibility or leadership in their industry should be building a personal brand to build trust and influence. And, the earlier you start, the more time you have to build relationships, credibility and community.

5. Personalisation will win hearts

Although older generations didn't previously think too hard about personalisation, now 53% of Gen Z want brands to offer personalised or customised products. We have seen this through the success of Crocs, a brand that allows its fans to completely personalise their shoes to express their individuality. The same goes for service-based businesses, whereby consumers want to feel as though they are getting a completely personalised experience where they are working alongside people who also believe in their values and goals.

Even if you already offer personalised services, it's always worth stepping back to review how you can be more innovative in this space. When you go the extra mile with personalisation and share the love in unique ways, your clients will share the love too. They'll spread the word online, share videos and make glowing recommendations when you make them feel as though they are an important part of your community.

Embracing change and evolution in branding

Navigating the branding landscape with Gen Z at the forefront means that as a business owner, you must be ready to pivot and adapt. It's time to say goodbye to some of the traditional forms of brand building so that you can future-proof your business.

Brand building is now about building from the heart, putting your values at the forefront, sharing your story authentically and showing up to make meaningful connections with those who spend a large chunk of their day online. It's about building a brand that is personal and also giving your audience a personalised, unforgettable experience that they will rave about.

Let's face it, if you ignore what the next generation of young consumers is craving, you will simply be left behind.

Listen to my chat with Milly Bannister about building a brand that resonates with Gen Z on Spotify.