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Discover your Gen Z playbook and reach more next-gen customers.

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Gen Z will soon be the driving force of retail. When coupled with Millennials, the two generations will account for<a href="https://afterpay-newsroom.yourcreative.com.au/wp-content/uploads/2022/03/Clearpay_NextGen_UK.pdf" rel="noopener noreferrer" target="_blank"> 39% of all retail spending in the UK by 2030.</a> And yet, studies show that many retailers aren’t ready to meet Gen Z’s needs and are struggling to provide the user experiences that digitally savvy Gen Zers demand.&nbsp;Retailers need to offer Gen Z a seamless experience in order to turn them into loyal customers, says Rich Bayer, UK Country Manager at Clearpay.The next generation of consumers learns about products via <a href="https://www.emarketer.com/content/how-gen-z-shopping-behaviors-influence-retail-media" rel="noopener noreferrer" target="_blank">social media</a> and engages with <a href="https://www.emarketer.com/content/role-of-mobile-apps-retail-media/" rel="noopener noreferrer" target="_blank">brand-specific apps and websites</a> while shopping.Bayer says that to connect with this demographic, which includes people ages 16 to 24, retailers should consider making a few simple changes, beginning with accessibility. “Gen Z wants to feel like it’s effortless to interact with the brand, browse and pay for goods,” says Bayer. “The easier and more convenient retailers can make each interaction, the more likely they are to satisfy Gen Z's needs.”&nbsp;

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"Gen Z wants to feel like it’s effortless to interact with the brand, browse and pay for goods."

In addition, Bayer shared three high-performing solutions that retailers can use to acquire, engage and nurture Gen Z customers.<h2>1 Leverage social commerce.</h2>Social commerce — which refers to shopping experiences via social apps — is imperative for next-gen consumers, whose banking and financial apps have always been just a click away from their social apps.Bayer anticipates that social media will continue to grow as a retail channel and he encourages brands to make the most of social commerce opportunities. “For younger consumers, social platforms are about so much more than socialising. It’s where they discover trends, do their research and find the brands that they want to buy from,” Bayer says. “The retailers that are thriving in this Gen Z world are the ones who have mastered the art of social selling by creating multiple opportunities for potential customers to engage with them.”&nbsp; &nbsp;

<h2>2 Offer flexibility.</h2>Younger shoppers are embracing flexible payment methods, such as buy now, pay later (BNPL). That’s because next-gen shoppers are increasingly credit averse, says Bayer.A study by <a href="https://afterpay-newsroom.yourcreative.com.au/wp-content/uploads/2023/10/The-Economic-Impact-of-Clearpay-to-the-UK-2023-Report.pdf" rel="noopener noreferrer" target="_blank">Clearpay and Oxford Economics</a> found that over half (53%) of BNPL customers prefer BNPL services to credit cards. This rises to 64% for Gen Z and 57% for Millennials, which is consistent with findings from a <a href="https://www.fca.org.uk/financial-lives/financial-lives-2022-survey" rel="noopener noreferrer" target="_blank">Financial Conduct Authority (FCA) survey</a> that a larger proportion of Gen Z UK adults has stopped using credit cards.“For Gen Z, it’s all about convenience and flexibility,” says Bayer. “Retailers need to be thinking about omnichannel experiences and they need to have a mobile-first mindset.”<h2>3 Extend offers and promotions to unlock loyalty.</h2>Loyalty is tough to earn – especially among next-gen customers. <a href="https://www.mckinsey.com/~/media/mckinsey/email/genz/2023/04/2023-04-04b.html" rel="noopener noreferrer" target="_blank">According to research from McKinsey</a>, 30% of Gen Z respondents in the US and the UK said that they’d revert to their ‘go to’ brand for a new product or service when making a purchase. However, 62% said they would consider other options, even if they had a favourite brand. That said, the No. 1 reason Gen Z will purchase from a brand again is if it offers good discounts and sales, according to Clearpay research. Some retailers provide these discounts through rewards-based loyalty programs and engaging gamification elements. And, according to Clearpay’s <a href="https://afterpay-newsroom.yourcreative.com.au/wp-content/uploads/2023/11/Festive-Forecast-UK-2023.pdf" rel="noopener noreferrer" target="_blank">Festive Forecast</a>, ‘Spend &amp; Save’ discounts work best amongst Gen Z consumers with 32% finding this marketing offer enticing.Next-gen consumers are engaging with retail technology differently than the generations before them. By understanding their shopping behaviors and purchasing decisions, brands can put that information to use and drive measurable impact and incrementality.&nbsp;To learn more about these strategies, and to read examples of retailers who have put these plans into action, download the latest Clearpay Playbook, From Trend to Recommend: The Retail Recalibrations that Will Attract Next-Gen Shoppers.

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All references to any registered trademarks are the property of their respective owners. Afterpay does not endorse or recommend any one particular supplier and the information provided is for educational purposes only.

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Discover your Gen Z playbook and learn how to attract next-gen customers.

Discover how to reach more Millennial and Gen Z customers with Clearpay's Gen Z playbook

How to attract next-gen shoppers: tips and tactics

From trend to recommend: The retail recalibrations that will attract next-gen shoppers

Gen Z Playbook UK

Forget traditional recruitment methods. Here’s how to reach - and retain - young employees.

They are young; they’re well-educated; they’re technologically savvy – attracting and retaining Gen Z and Millennial workers should be a crucial part of any employers’ recruitment strategy.&nbsp;Why? Not only are Millennials becoming the leaders of today, they’re the customers and consumers of today, too. Meanwhile, Gen Z are the leaders of the future – the changemakers who bring fresh perspective.&nbsp;So, how can businesses go about attracting, hiring and retaining the labour market’s newest next-gen recruits?First, it’s important for employers to understand the differences between the two cohorts when recruiting, and to set aside any preconception they may have about them.

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<h2>The secrets to hiring Millennials and Gen Z</h2>1.&nbsp;Speed up your recruitment process&nbsp;Millennials and Gen Z have been dubbed the ‘on-demand generation’, having grown up with everything from food deliveries to movies available when they want it, where they want it. Having grown accustomed to instant gratification, they have little patience for long delays - and that includes slow recruitment processes.“Time to hire is important – you have to move fast,” emphasises HR leader<a href="https://www.linkedin.com/in/lucy-wilson/?originalSubdomain=au" rel="noopener noreferrer" target="_blank" style="background-color: rgb(255, 255, 255); color: rgb(0, 0, 0);"> </a><a href="https://www.linkedin.com/in/lucy-wilson/?originalSubdomain=au" rel="noopener noreferrer" target="_blank" style="background-color: rgb(255, 255, 255); color: rgb(17, 85, 204);">Lucy Wilson</a>, founder of<a href="https://www.linkedin.com/company/that-people-culture-co/" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(0, 0, 0);"> </a><a href="https://www.linkedin.com/company/that-people-culture-co/" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(0, 0, 255);">That People &amp; Culture Co</a>. “Consider the pace of the recruitment process; is it fast? Is the form easy to fill out? Can you do it on mobile? How long does it take to complete the process and how long till [you] make contact with them? Millennials and Gen&nbsp;Z don’t wait.”2. Get clear on your purpose&nbsp;Millennials and Gen Z care about purpose and values – so, as an employer, you need to be able to define and articulate your business’ mission, vision and values when recruiting.&nbsp;Three easy ways to ‘show the why’:<ul><li>On your website – either your main site or a special portal for candidates&nbsp;&nbsp;</li><li>A special handout pack outlining your vision and mission&nbsp;</li><li>Organise for candidates to talk to other employees&nbsp;</li></ul>3. Create an attraction strategy&nbsp;With employers grappling with retention rates due to the so-called <a href="https://hbr.org/2021/09/who-is-driving-the-great-resignation" rel="noopener noreferrer" target="_blank" style="background-color: rgb(255, 255, 255); color: rgb(17, 85, 204);">‘Great Resignation’</a>, it’s time to get crystal clear about what your workplace offers potential new recruits when hiring. Enter: the attraction strategy – a document that clarifies who you are trying to recruit, your key messages, and the job benefits you offer.&nbsp;That might include your culture, the job perks, tools or tech you offer and the career opportunities available.4. Recruit using platforms that Gen Z are using&nbsp;Don’t wait for Millennials and Gen Z to find you – go to them by using the platforms you know they’re on for job recruiting.&nbsp;Nearly half of all under-30s have a TikTok account for example, and some<a href="https://www.cnbc.com/2021/07/18/chipotle-target-using-tiktok-to-find-workers-in-tight-job-market-.html#:~:text=Chipotle%2C%20Target%2C%20WWE%20and%20Shopify,war%20for%20talent%20rages%20on." rel="noopener noreferrer" target="_blank" style="background-color: rgb(255, 255, 255); color: rgb(17, 85, 204);"> </a><a href="https://www.cnbc.com/2021/07/18/chipotle-target-using-tiktok-to-find-workers-in-tight-job-market-.html#:~:text=Chipotle%2C%20Target%2C%20WWE%20and%20Shopify,war%20for%20talent%20rages%20on." rel="noopener noreferrer" target="_blank" style="background-color: rgb(255, 255, 255); color: rgb(0, 0, 255);">employers</a>, like Target and Shopify, have experimented with using the video-sharing app to recruit young workers.Other options are to build a company presence for your business on platforms like TikTok and LinkedIn and, if you’re engaging recruitment agencies, ensuring that they are using these platforms on your behalf.&nbsp;5. Create an inclusive workplace - and recruiting strategiesInclusivity and diversity are key for Millennials and Gen Z – and it’s all-too apparent when companies are lacking in this area.“Diversity and inclusion need to be a part of your organisational hiring and professional development strategy. Millennials like everyone to be included across all minority groups – culture, race, gender, disability, neurological – as they believe everyone has value to bring,” explains Wilson.So, it’s important to use inclusive practices when recruiting.&nbsp;The 2021 Deloitte Millennial and Gen Z study encourages business leaders to “use systems and processes that are gender and colour-blind and think differently about the types of experiences and qualifications that might prepare people for specific roles.&nbsp;“That may include hiring for curious mindsets instead of specific skill sets, or seeking people who have demonstrated they’re agile, comfortable with ambiguity, and able to overcome adversity.”&nbsp;For example, removing names from resumes helps decrease gender and race biases when recruiting.Another technique is using appropriate skill-based tests, rather than relying on past education, to better give candidates an equal footing in the hiring process.&nbsp;Beauty business,<a href="https://www.thebodyshop.com/" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(0, 0, 0);"> </a><a href="https://www.thebodyshop.com/" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(0, 0, 255);">The Body Shop</a>,<a href="https://www.smh.com.au/national/no-resume-no-reference-the-body-shop-s-radical-approach-to-hiring-20211029-p594a8.html" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(0, 0, 0);"> </a><a href="https://www.smh.com.au/national/no-resume-no-reference-the-body-shop-s-radical-approach-to-hiring-20211029-p594a8.html" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(17, 85, 204);">has done away with resumes, references and background checks altogether</a> in an effort to provide more opportunities to single parents, young carers and homeless people. The company has streamlined their Christmas casual hiring process into three key questions: ‘are you legally authorised to work in the UK’; ‘can you lift up to 11 kilograms and work an eight-hour shift’; and ‘are you happy to work with customers?’&nbsp;6. Ask current employees in that generation&nbsp;No one knows Gen Z and Millennials better than those in that demographic, so ask current team members about what attracted them, how they and their friends that age search for jobs, why they like working at your company.7. Be honest&nbsp;This may seem obvious, but if you mislead a candidate in an interview about what it’s like to work at your company, they’ll find out – and fast.&nbsp;Gen Z and Millennials value transparency more than any other generation - and they are used to using technology to get the information they want.“If you say: ‘this is our employee experience’, they’re going to check that for themselves,” emphasises Wilson. “They’re researching, they’re going on [employment site]<a href="https://www.glassdoor.com.au/index.htm" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(0, 0, 0);"> </a><a href="https://www.glassdoor.com.au/index.htm" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(17, 85, 204);">Glassdoor</a>, they’re reading reviews – remember [Gen Z and Millennials are] very capable at finding information.”

<h2>Secrets to retaining Millennials and Gen Z team members&nbsp;</h2>1. Flexible working&nbsp;Flexibility in terms of working arrangements, hours and tools are crucial – even more so following the pandemic, which has demonstrated the success of remote-working models.The<a href="https://www2.deloitte.com/content/dam/Deloitte/global/Documents/2021-deloitte-global-millennial-survey-report.pdf" rel="noopener noreferrer" target="_blank" style="color: rgb(0, 0, 0); background-color: rgb(255, 255, 255);"> </a><a href="https://www2.deloitte.com/content/dam/Deloitte/global/Documents/2021-deloitte-global-millennial-survey-report.pdf" rel="noopener noreferrer" target="_blank" style="color: rgb(17, 85, 204); background-color: rgb(255, 255, 255);">2021 Deloitte study</a> reinforces this, as Millennials and Gen Z participants both list flexibility/ adaptability as the most critical employee characteristic for successful businesses.&nbsp;&nbsp;Remember: flexible working isn’t just remote working or offering flexible hours, but includes investing in collaborative tools to connect remote staff.&nbsp;&nbsp;When creating flexible working policy, remember:<ol><li>Consider <a href="https://www.cipd.co.uk/knowledge/fundamentals/relations/flexible-working/factsheet" rel="noopener noreferrer" target="_blank">UK legal requirements </a>regarding flexible work practices</li><li>Trust your people</li><li>Role-model flexibility by managers and leadership</li><li>Communicate effectively</li><li>Acknowledge the adjustment</li><li>‘Log off and check out’ at home and in the office</li></ol>2. Invest in technology&nbsp;Great tools and technology are crucial in hiring and retaining digital natives. Stay up-to-date with industry tech trends and invest in AI tools if possible, suggests Wilson.&nbsp;“Gen Z often have way more tech knowledge than the people hiring them – they’re not scared to try things and break things. They’re growing up in a social environment and social media community” says Wilson. “The technology experience needs to be amazing.”For a small business, this might mean using software like Slack, rather than simply email, or offering logistics, inventory or marketing software that makes employees’ everyday roles easier.3. Clear communication&nbsp;“Millennials want direct access to leaders,” says Wilson. “They want less hierarchy, and they don’t want to be micromanaged. They want to come in, do great work, head off – and switch off.”Create opportunities for Millennials to have direct on-the-job access to leaders, such as regular informal group team meetings where questions are encouraged – either by submitting prior or asking on the day.&nbsp;&nbsp;&nbsp;Seemiller explains that Gen Z aren’t as concerned about direct access to leaders, but that “they want to be informed about the decisions leaders are making. As long as they’re informed about a decision, they’re good.”&nbsp;Weekly leadership blasts – either via text, emails or<a href="https://slack.com/" rel="noopener noreferrer" target="_blank" style="color: rgb(0, 0, 0); background-color: rgb(255, 255, 255);"> </a><a href="https://slack.com/" rel="noopener noreferrer" target="_blank" style="color: rgb(0, 0, 255); background-color: rgb(255, 255, 255);">Slack</a> – with updates and key info dot-pointed are also a great way to make team members feel as though leadership are keeping them up to date.&nbsp;4. Make your culture a focus&nbsp;Millennials and Gen Z care about culture and the environment they’re in. Creating positive, mental-health-led cultures boosts productivity and retention.&nbsp;&nbsp;&nbsp;“Prioritise mental health support and resources and create cultures where it’s OK to acknowledge stress,” recommends the<a href="https://www2.deloitte.com/global/en/pages/about-deloitte/articles/millennialsurvey.html" rel="noopener noreferrer" target="_blank" style="color: rgb(17, 85, 204); background-color: rgb(255, 255, 255);"> 2021 Deloitte study.</a> “Leaders need to destigmatise the conversation around mental health in the workplace and encourage their people to be transparent about their needs. Ultimately, this will help employees to feel healthier and happier and boost productivity.”

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5. Promote career development&nbsp;&nbsp;Deloitte’s previous studies have shown that Millennials are more likely to leave an organisation in two years or less if their leadership skills aren’t being developed.&nbsp;“It might seem like they’re quick to jump but consider the fast pace we expect them to operate at… yet we don’t mirror career advancement in the same way,” highlights Wilson. “The expectation is to operate at that pace, so organisations need to offer learning and development at the same pace.”&nbsp;6. Build an experience strategy&nbsp;A good employee experience isn’t something that just happens, it’s built.&nbsp;“Your people-experience strategy should include your employees’ technological and digital experience, as well as their physical, professional development and cultural experience – but it has to be true to who you are as a business,” explains Wilson. “The drivers and attractions may be different for the two generations, but your people-experience strategy can be all encompassing to create a workplace people want to work at – and continue working at.”How do you build a people or employee-experience strategy? You can work with experts like Wilson, a people-experience strategist, or<a href="https://www.thestrategygroup.com.au/what-we-do/employee-experience-strategy/" rel="noopener noreferrer" target="_blank" style="background-color: rgb(255, 255, 255); color: rgb(0, 0, 0);"> </a><a href="https://www.thestrategygroup.com.au/what-we-do/employee-experience-strategy/" rel="noopener noreferrer" target="_blank" style="background-color: rgb(255, 255, 255); color: rgb(17, 85, 204);">start building your own</a> by looking at how your team's day-to-day experience at work plays out.

7. Review your policies&nbsp;Pointless policies – particularly around meetings, working methods, office hours, and remote working – are going to quickly become a thing of the past.&nbsp;&nbsp;&nbsp;Dr Corey Seemiller, professor of organisational leadership at Wright State University. believes, “moving forward [after the pandemic], people aren’t going to put up with the old-school shenanigans, like the inflexibility around remote working, unless there is a good reason that’s being communicated to them. Gen Z – along with everyone else – are going to have a low tolerance for policies that don’t make sense to them. There’s currently this ‘get back to the office’ shift which doesn’t make sense [to Gen Z] and is contributing to the Great Resignation.”However, if you can adapt and focus on building a thriving, flexible, diverse and inclusive culture and workplace, you can greatly benefit from hiring more Millennial and Gen Z staff.&nbsp;

<h2>Want to understand Gen Z and Millennials better?</h2>Here’s what you need to know about the workforce’s newest generation. They are values-drivenBoth groups share a focus on social change and accountability, according to the<a href="https://www2.deloitte.com/global/en/pages/about-deloitte/articles/millennialsurvey.html" rel="noopener noreferrer" target="_blank" style="background-color: rgb(255, 255, 255); color: rgb(17, 85, 204);"> </a><a href="https://www2.deloitte.com/global/en/pages/about-deloitte/articles/millennialsurvey.html" rel="noopener noreferrer" target="_blank" style="background-color: rgb(255, 255, 255); color: rgb(0, 0, 255);">Deloitte Global 2021 Millennial and Gen Z Survey</a>.&nbsp;“In the 10 years Deloitte has been conducting the Millennial Survey, Millennials and Gen Zs’ lives have changed, but their<a href="https://www2.deloitte.com/global/en/pages/about-deloitte/press-releases/in-its-10th-year-the-deloitte-global-millennial-and-gen-z-survey-reveals-two-generations-pushing-for-social-change-and-accountability.html" rel="noopener noreferrer" target="_blank" style="background-color: rgb(255, 255, 255); color: rgb(0, 0, 0);"> </a><a href="https://www2.deloitte.com/global/en/pages/about-deloitte/press-releases/in-its-10th-year-the-deloitte-global-millennial-and-gen-z-survey-reveals-two-generations-pushing-for-social-change-and-accountability.html" rel="noopener noreferrer" target="_blank" style="background-color: rgb(255, 255, 255); color: rgb(0, 0, 255);">values have remained steadfast</a>. They have sustained their idealism, their desire for a better world, and their belief that business can and should do more to help society,” said Michele Parmelee, deputy CEO and chief people and purpose officer at<a href="https://www2.deloitte.com/global/en.html" rel="noopener noreferrer" target="_blank" style="background-color: rgb(255, 255, 255); color: rgb(0, 0, 0);"> </a><a href="https://www2.deloitte.com/global/en.html" rel="noopener noreferrer" target="_blank" style="background-color: rgb(255, 255, 255); color: rgb(0, 0, 255);">Deloitte Global</a>.They are diverse<a href="https://www.pewresearch.org/social-trends/2018/11/15/early-benchmarks-show-post-millennials-on-track-to-be-most-diverse-best-educated-generation-yet/" rel="noopener noreferrer" target="_blank" style="background-color: rgb(255, 255, 255); color: rgb(17, 85, 204);">Millennials were the most racially and ethnically diverse, until Gen Z came along</a> – one factor that contributes to their drive for diversity and fighting against the status quo.&nbsp;&nbsp;They are educated<a href="https://www.nytimes.com/2015/08/02/opinion/sunday/were-making-life-too-hard-for-millennials.html" rel="noopener noreferrer" target="_blank" style="background-color: rgb(255, 255, 255); color: rgb(17, 85, 204);">Research reported by the New York Times,</a> found that while Millennials are the most educated, they’re the worst paid. It’s important to note that they have been greatly financially impacted by this century's most defining moments – global debts, 9/11, the Global Financial Crisis and following recession, and now the COVID-19 pandemic. <h2>How are Gen Z and Millennials different?</h2>They are motivated differently“Gen Z is motivated by relational factors – such as making a difference for someone, having an impact,” says Dr Seemiller. “Tell a Gen Z employee that the work they do is important, whatever it is, and it will motivate them.”“Whereas Millennials at that age were incentivised by accolades, benchmarks, doing well and moving up – the ‘if you do this, I will give you that’ motivation continues,” says Seemiller. “Gen Z wants to be rewarded too, but it’s not what drives them. Millennials just want to hit the mark and be given positive feedback in some way.”&nbsp;They learn differently&nbsp;Another key difference is the way they learn. Seemiller explains that Millennials are collaborative – they want to come together and work in groups. Whereas Gen Z are a ‘DIY generation’ – the self-taught YouTube generation.&nbsp;“Millennials want think-tank rooms, while Gen Z want a weblink to their online-learning programme so they can sit in the corner with their headphones on. If Gen Z comes together, they want it to be purposeful – ‘why are we coming?’ – there should be a reason,” explains Seemiller.&nbsp;They have grown up with technology differently&nbsp;While both generations are ‘digital natives’, their experience is different. Gen Z have never lived in a world without tech – whereas older Millennials likely remember dial-up internet.One last thing? Forget the stereotypesDon’t believe everything you hear or read about Millennials and Gen Z. Professor Seemiller has been at the<a href="https://www.coreyseemiller.com/" rel="noopener noreferrer" target="_blank" style="background-color: rgb(255, 255, 255); color: rgb(0, 0, 0);"> </a><a href="https://www.coreyseemiller.com/" rel="noopener noreferrer" target="_blank" style="background-color: rgb(255, 255, 255); color: rgb(17, 85, 204);">forefront of Gen Z research</a> and says that in today’s post-pandemic era, it’s common for employers to believe that younger employees don’t want to return to the office and prefer digital communications.&nbsp;“Gen Z actually prefers face-to-face communication over other types of communication. Not just in-person, but video, too – they like to see expressions and have a conversation.”Another popular misconception is that Millennials are disloyal and tend to ‘job hop’. However Wilson says that when Millennials move between jobs, it’s less about a lack of loyalty and more about a mismatch in terms of their expectations of their employee experience and the reality of the organisation’s values and culture. Economic conditions (and the need to pay off student debts) also often play a role.

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Hiring Millennials is different to other generations. Read our resources for recruiting Millennial and Gen Z candidates.

Read our top tips on hiring Millennials and Gen Z in your workplace. Learn from experts and employers

Hiring millennials: tips on recruiting Millennials and Gen Z

Hiring millennials: tips on recruiting millennials and Gen Z

Hiring millennials: tips on recruiting millennials in your workplace UK

As the UK economy recovers from COVID-19, key generational differences are emerging in consumer spending.

According to new research from Accenture Strategy and Clearpay, Gen Z spending is now 7 per cent higher than before the pandemic, while Gen X (and older) have yet to reach pre-COVID spend levels.“This reflects the staggered emergence from lockdown restrictions in the UK in the first half of this year,” says consultant Atharva Karandikar of Accenture Strategy. “Younger workers in hospitality regained their employment, but I suspect there remained some reluctance to socialise among older people. It’ll be interesting to look at the consumer data since ‘Freedom Day’ [July 2021].”Here are some of the top insights from Clearpay’s second<a href="https://afterpay-corporate.yourcreative.com.au/wp-content/uploads/2021/08/Afterpay_NextGen_report_AUS.pdf" rel="noopener noreferrer" target="_blank"> The Next Gen Index</a> report into consumer spending:

<h2>Gen Z and Millennials’ spending power is growing</h2>Shoppers aged under 40 are becoming an increasingly powerful force in the economy. Currently, Gen Z and Millennials account for 25 per cent of the UK’s total retail spend.However, that’s predicted to grow to 39 per cent by 2030 as more Gen Z (currently aged 9-24) enter the workforce.

<h2>Younger generations are driving retail spend</h2>From a low in March 2020, spending by Millennials and Gen Z has recovered faster than that of older generations, and is now at or above pre-pandemic levels.“When the UK relaxed its restrictions, spending on restaurants, food and clothing increased among younger, more socially mobile people,” says Karandikar.

<h2>Young Britons are still buying fashion, but homewares is catching up</h2>Fashion still dominates spending using Clearpay: it accounts for 75 per cent of Gen Z’s spending and 65 per cent of Millennial spend.However, these younger generations are increasingly buying for their homes and spending on recreation, with books, electronics and games high on the list.Home and recreation spending is the fastest-growing category among young people; although it only makes up 5 per cent and 9 per cent of Gen Z and Millennial spending respectively, the category is growing above 300 per cent year-on-year.

<h2>Gen Z and Millennials are championing small business</h2>Gen Z and Millennials account for almost two-thirds of spending through Clearpay on small and medium-sized businesses.What’s more, this small-business spending is increasing. Since January 2020, consumer spend has increased by more than 900 per cent among these younger generations.Karandikar says that retailers can help drive conversions by ensuring marketing is targeted to those groups

<h2>Buy Now Pay Later (BNPL) is on the rise</h2>While BNPL still accounts for a small share of total consumer spend, it’s growing fast. Since January 2020, BNPL spend has grown by 360 per cent, compared to only a 4 per cent rise in spending on credit and debit cards.Millennials were the early adopters of Clearpay in the UK, and they still account for the majority of purchases. Older generations are catching up, however, with non-Millennial BNPL spending growing by 480 per cent in the past 18 months.

All references to any registered trademarks are the property of their respective owners. Clearpay does not endorse or recommend any one particular supplier and the information provided is for educational purposes only.

As the UK economy recovers from COVID-19, key generational differences are emerging in consumer spending. 

Inside the latest Clearpay report on Millennial & Gen Z shopping trends

Clearpay’s Bi-Annual Global Trend Report is finally here, showing how U.K. customers are choosing to shop this season.

The <a href="https://www.clearpayfashionbeautyreport.co.uk/trends/uk-trends" rel="noopener noreferrer" target="_blank">report</a> aggregates data points from their customer base of over 13 million global shoppers across a catalogue of 74,000+ brands and retailers in order to identify the season’s key trends and shopping patterns.

The research is unique in that it uses up-to-the-moment customer purchase data from some of our most powerful shoppers: Millennials and Gen Z. This allows us to gain insight into how the world’s highest-value demographic is spending its money.

So what have we learned over the past few months? Let’s take a look at a few key learnings.

<h2>The UK is an important market</h2>British consumers make up nearly two million of Clearpay’s overall customer base and have become the largest group of return shoppers in the last six months. Clearpay’s research shows that British customers enjoy shopping from mobile devices, generally in the evening, and mainly pay using a debit card. Recent purchases have also shown forward thinking with many shoppers buying fashion pieces that will transition into normal life once lockdown starts to lift.

<h2>What are customer’s buying?</h2>

AccessoriesNow that lockdown restrictions have started to ease in the UK and many are beginning to socialise again, consumers are looking for those added extras that really bring an outfit to life. Some of the most popular items are jewellery, charms and bangles, as well as denim and clogs. Sales of cardholders, wallets, larger totes and shoppers are also on the increase as shoppers prepare to venture into the outside world.

Spring dressesWhile loungewear items such as hoodies and sweatpants are still being snapped up rapidly, consumers have now also turned their attention to spring dresses. Dubbed the Freedom Frock, dresses in fun, flattering shapes and bright feel-good colours and prints are reflecting the end of lockdown and a more optimistic mindset. The Cottagecore dress is also on the rise with voluminous frills, floating chiffon and tiered silhouettes making a comeback.

Fragrance and SwimwearEven though international travel isn’t back on the agenda for Brits just yet, an increase in fragrance sales is showing a desire to be transported elsewhere. Scents that remind shoppers of exotic, faraway places and nostalgic happy memories are proving most popular. With that said, many shoppers are still thinking ahead to holidays with swimsuit purchases on the rise. The most popular styles are underwired one-pieces paired with high-waisted bottoms, and asymmetric swimsuits that really enhance a woman’s curves.

FootwearEven though restrictions are easing, consumers are still remaining pretty sensible when it comes to their footwear purchases. Plimsolls are one of the most popular styles as children go back to school, followed by summer silhouettes including espadrilles and clogs. The trend for practicality is still strong, however, with slides and trainers remaining popular.

Changes in shopping habitsThe pandemic has had a huge impact on consumer attitudes and shopping habits and Clearpay’s research shows that 3 in 5 of global customers are now more likely to buy items locally while 12% are more likely to support black and minority-owned businesses. 50% are also looking for quality over quantity and 45% are likely to save their money rather than spend it. This shows that retailers will have to work harder to earn their loyalty and keep them interested with strong social fresh and interesting product offerings.

Clearpay’s Bi-Annual Global Trend Report is finally here, showing how U.K. customers are choosing to shop this season.

Clearpay’s Spring/ Summer 21 UK Trend Report

Engaging effectively with customers is something every brand seeks to do well, but when it comes to the increasingly powerful Gen Z, brands may need to adapt their approach.&nbsp;

Set to represent<a href="https://www.forbes.com/sites/forbesbusinessdevelopmentcouncil/2020/03/20/a-simple-secret-to-satisfying-gen-z-listen/#9403b824d9ae" rel="noopener noreferrer" target="_blank"> 40% of global customers</a> this year, this youthful market is notoriously tough to crack with social and environmental matters as the heart of their buying decisions and their expectations of brands higher than ever.

Gen Z-ers are also seriously digitally savvy and have grown up expressing their feelings online but according to<a href="https://www.voguebusiness.com/consumers/gen-z-reinventing-social-media-marketing-tiktok-youtube-instagram-louis-vuitton" rel="noopener noreferrer" target="_blank"> Vogue Business</a>, concerns of ‘cancel-culture’ and privacy are leading them to move away from open and exposed networks to more private platforms and closed groups.This was reflected in a<a href="https://www.voguebusiness.com/companies/keeping-it-private-how-brands-nurture-micro-communities" rel="noopener noreferrer" target="_blank"> 2019 survey</a> that revealed 60% of respondents said that talking in private groups means that they share more openly.

So how can brands adapt to this change and start to engage with Gen Z in a deeper and more meaningful way? The creation of micro-communities is one idea that is proving to be very successful for many brands.

Let’s look at five ways that these can be implemented.

<h2>1.	Secondary social media accounts</h2>Secondary social media accounts on platforms such as Instagram create a private space for selected customers with niche interests to foster more intimate and honest dialogues. Members can request to join secondary accounts from a brand’s main account and, once accepted, freely communicate with others and enjoy valuable targeted content. It also provides brands with a good opportunity to ask for honest feedback and gain invaluable insights in a more private setting.

<h2>2.	Gain loyalty with closed Facebook groups&nbsp;</h2>Closed Facebook groups allow loyal customers to feel part of a select community and engage with others in an authentic way. You can add to the feeling of exclusivity by asking prospective members to answer a few questions in order to access the group and to follow certain etiquette when accepted. Into The Gloss is one of the most successful case studies and boasts a Facebook community of approximately 19k members. The main rule of the group is that all comments and shares must be beauty related.

<h2>3.	Partner with micro-influencers</h2>Micro-influencers are favoured by Gen Z as they are seen as more authentic and relatable than celebrities and big name influencers. They also have very engaged followers which makes it easier for brands to target future customers with niche interests and shopping behaviours.<a href="https://drive.google.com/file/d/1gLJpEbKBjn9Td7KXK3wDK6dg1LX5wjbw/view" rel="noopener noreferrer" target="_blank"> Research shows</a> that Gen Z also engage better with real people and are more likely to make a purchase based on their recommendation.

<h2>4.	Speak to customers using WhatsApp Business Group Messages&nbsp;</h2>The WhatsApp Business service helps brands to speak privately with customers and is also a favoured form of communication by Gen Z. A recent<a href="https://insights.fb.com/morethanamessage/" rel="noopener noreferrer" target="_blank"> survey</a> by Facebook IQ found that 65% of Gen Z-ers prefer messaging over email and calling, and 53% said they are more likely to shop with a business they can contact via a chat app. According to<a href="https://www.voguebusiness.com/consumers/gen-z-reinventing-social-media-marketing-tiktok-youtube-instagram-louis-vuitton" rel="noopener noreferrer" target="_blank"> Vogue Business</a>, a growing number of brands are also creating bespoke short-form content designed to be shareable via WhatsApp.

<h2>5.	Engaging during the COVID-19&nbsp;</h2>There’s no shying away from the impact of the Covid-19 pandemic and according to a recent<a href="https://drive.google.com/file/d/1gLJpEbKBjn9Td7KXK3wDK6dg1LX5wjbw/view" rel="noopener noreferrer" target="_blank"> Future Labs report</a>, Gen Z is set to be one of the demographics hit hardest – both financially and emotionally. Brands should help to support Gen Z through this period of increased loneliness and isolation by making them feel special and part of something larger, while also reflecting the value of community in how they communicate as a brand.

Vogue Business recently reported that authentic content that focusses more on daily routines - such as ‘behind the scenes’ videos - has proven popular during lockdown while stories and posts that promote lavish lifestyles and wealth hoarding are far less successful and even receiving a backlash. The latest<a href="https://drive.google.com/file/d/1gLJpEbKBjn9Td7KXK3wDK6dg1LX5wjbw/view" rel="noopener noreferrer" target="_blank"> YPulse research</a> shows that 52% of Gen Z-ers will feel more comfortable about going out and enjoying themselves once there is a vaccine, reflecting their values of health and wellbeing over financial prosperity.

Engaging effectively with customers is something every brand seeks to do well. 

Five ways to engage more effectively with Gen Z

Born between 1995 and 2012, the youngest members of Gen Z are only just turning 8 while their older counterparts are nearly 25.

And, while they may still be young, Gen Z are already overtaking Millennials in their influence.

One of the biggest differences is the way that they engage with marketing content. While airbrushed and aspirational may have once readily been accepted by Millennials, research shows that Gen Z are actively turning their backs on the unobtainable in favour of more authentic, real content.

So how can brands take a more authentic marketing route and build a better rapport with Gen Z? Let’s take a look at a few essential trends and ideas.&nbsp;

<h2>Create content that matters</h2>Recent Future Labs<a href="https://drive.google.com/file/d/1gLJpEbKBjn9Td7KXK3wDK6dg1LX5wjbw/view" rel="noopener noreferrer" target="_blank"> research</a> shows that Gen Z are more engaged with brands that align with their values on improving society, the environment, race, culture and gender diversity.<a href="https://3blmedia.com/News/Gen-Z-Next-Conscious-Group-Consumers" rel="noopener noreferrer" target="_blank"> According to a study done by 3BL Media</a> and an article published by<a href="http://forbes.com/sites/steveolenski/2018/07/28/5-ways-brands-can-engage-gen-z-on-social-media/#776c1a6b6129" rel="noopener noreferrer" target="_blank"> Forbes</a>, 90% of Gen Z-ers would buy products from a company that is authentically addressing social and/or environmental issues, and 94% of them believe that companies have a responsibility to address critical issues.

Gen Z also seeks to learn as well as be entertained so brands should talk about timely topics through valuable, rich content. Fair pay and working conditions for garment workers, sustainability, and the safe reopening of stores during the Covid-19 pandemic are all issues that Gen Z are particularly concerned about right now and expect their opinions and questions to be addressed by the brands they shop with.

<h2>Place safety above profit</h2>The impact of COVID-19 has left many Gen Z-ers feeling isolated and worried about their future, so it’s little surprise that they haven’t reacted well to influencers and brands shown to be profiteering or promoting unobtainable lifestyles and wealth hoarding during the crisis.

<a href="https://www.voguebusiness.com/consumers/marketing-to-gen-z-during-covid-19" rel="noopener noreferrer" target="_blank">Vogue Business</a> also reports that in a survey undertaken by DoSomething in mid-March, 75% of Gen Z respondents said the number one action they wanted to see from brands was the assurance of employee and consumer safety, while 73% said they want brands to protect their employees financially. Informative articles, behind-the-scenes videos and interviews with team members on Instagram, Facebook and youTube are a great way of showing the real faces behind a brand as well as instilling greater trust in business practices during Covid-19.

<h2>Represent more realistic beauty standards</h2>According to<a href="https://www.genzinsights.com/its-time-to-re-think-your-gen-z-marketing-strategy" rel="noopener noreferrer" target="_blank"> Unidays</a>, 63% of Gen Z customers in the UK prefer to see real people in advertising whereas only 37% of Millennials feel the same. The latest<a href="https://drive.google.com/file/d/1gLJpEbKBjn9Td7KXK3wDK6dg1LX5wjbw/view" rel="noopener noreferrer" target="_blank"> Future Labs</a> report also revealed that airbrushing and colour correcting are no longer cool. In fact, Gen Z are now embracing a new kind of ugly aesthetic, which they perceive as more authentic and representative. For example, freckles have become such a celebrated beauty trend rather than a flaw. Many fashion brands are also choosing to feature models of all shapes and sizes in their marketing campaigns rather than the rake-thin body type that has traditionally been used to sell clothes to women.

<h2>Partner with authentic influencers</h2>This change in attitude is being most successfully applied by brands who are partnering with micro-influencers and real people. Micro-influencers are defined as those with a following of 1,000 to 100,000 and typically have very engaged and loyal followers.&nbsp;&nbsp;

Brands should therefore seek to create meaningful partnerships with micro-influencers that are celebrated for their authenticity and honesty. It’s also important to check that they have a good track record of displaying empathy and sensitivity in their own posts and the ways&nbsp;they have previously partnered with brands. When brands get these partnerships right, they can reach their followers in a whole new way and create lasting and deeper relationships.

To read more about Gen Z, check out the other articles in our Retailer Blog.

One of the biggest differences is the way that they engage with marketing content. 

How brands can market themselves to Gen Z through authenticity and real people

If Millennials led the shift from shopping brick-and-mortar stores to online, Gen Z is driving the change from shopping websites to social media.&nbsp;

Gen Z is discovering new brands on social media, either via word-of-mouth from friends or influencers, or through ads on Instagram, Facebook and other popular platforms. Research shows that <a href="https://www.impactbnd.com/blog/influence-of-instagram-on-buying-infographic" rel="noopener noreferrer" target="_blank">72% of Instagram users</a> report making purchase decisions based on something that they saw while browsing the app - sometimes cutting out the online storefront altogether. But which social platform is most successful?<a href="https://www.impactbnd.com/blog/influence-of-instagram-on-buying-infographic" rel="noopener noreferrer" target="_blank"> Impact </a>reports that Instagram is shown to influence 51% of users’ shopping habits while Facebook equates to 23% of purchases and Pinterest 22%.

That’s not to say that retailers should ditch online shops or list their entire line on social media. Think of this as a tactic to promote top-selling items, move your brand’s basics and essentials, or offer special promos. Just keep in mind that Gen Z has a very short attention span — on average only eight seconds long&nbsp;— so it’s important to keep your tactics engaging and concise.&nbsp;

Essentially, selling on social media is an acquisition tactic. By making it easy to purchase mid-scroll, you’re bringing that user into your funnel with just a few taps. You can then send push notifications or emails driving them to your full online store, boosting visits and lifting your conversion rate over time.

Not convinced? As of January 2020,<a href="https://www.facebook.com/business/instagram/shopping" rel="noopener noreferrer" target="_blank"> 130 million Instagram users tap a product tag every month,</a> according to the platform. Here are our tips to better leverage this social shopping phenomenon (to keep things simple, we’ll explore through the lens of Instagram’s shopping capabilities):

<h2>1. Get to know your options</h2>Social shopping is an evolving channel, so expect features to change over the next few months. Instagram has big plans for its<a href="https://business.instagram.com/blog/testing-instagram-shopping-posts-as-ads" rel="noopener noreferrer" target="_blank"> shopping functionality.</a> Over the next year, the company is predicted to roll out features like in-app checkout and shopping for creators. While the checkout feature is currently limited to a handful of partner brands, any company can currently tag specific items in a post. Tapping that item redirects users to the product page on your website, where shoppers can easily complete their purchase (and select Clearpay). It’s a good time to test the waters before going all-in on in-app checkout.

<h2>2. Be creative with your shoppable ads</h2>While you can certainly post a product photo and call it a day, many brands are getting creative with their ads. On Instagram, users might scroll past a post that’s obviously an ad (think: a model wearing a t-shirt against a white background). They might pause and explore a flat lay shot or candid of people hiking a gorgeous trail. They can then tap your products (nestled in the flat lay or on the back of a hiker) to learn more and purchase. All to say: Social ads are an amazing opportunity to make the shopping experience more interactive and memorable, while pushing your marketing team to be creative and have fun.

<h2>3. Go beyond the static post</h2>Now that you’ve nailed the creative product shot, try more dynamic mediums like videos and Snapchat or Instagram stories. This is an amazing opportunity to show your products in motion, demonstrate how they’re used, or simply show off cool features.&nbsp;

<h2>4. Serve up products to the shoppers most likely to buy</h2>Social ads have a superpower that traditional online storefronts don’t:<a href="https://business.instagram.com/advertising/#precise-targeting" rel="noopener noreferrer" target="_blank"> the ability to target ads to specific shoppers</a>. With smart targeting, you can put the right products in front of the right people, making your ad campaigns more efficient to save you money in the long run. A large outdoor retailer, which sells thousands of products for different climates and activities, would do well to push wetsuit ads to people who live near the British coast. If your brand is collaborating with an artist for a special-edition shirt, you’d want to target it to shoppers that love art. And so on.&nbsp;

Online shops also provide limited opportunities for collecting analytics. Sure, you can A/B test different product photos and see which pages get the most traffic, but ad platforms like Instagram offer robust backend analytics tools. Use these to test, adjust, and grow.

<h2>5. Know when to expand</h2>Some Gen Z shoppers buy on social platforms simply because it saves them time. If you could buy your favorite lip gloss while scrolling through your feed instead of navigating a full website on mobile, wouldn’t you? Once you have a better sense of how your shoppers interact with your ads, consider expanding the number of products offered on social channels. Again, be sure to test, learn, and keep content balanced. If you find that you’re losing followers, you might ask if your content is coming off as too promotional. And, don’t be afraid to ask your followers directly using a more informal medium like Stories: a simple “Do you want us to add more shoppable posts on IG?” can help you get the answers you need, while coming off as approachable and human.

Shopping as we know it has changed dramatically, and it will continue to do so. We’re here to help you keep up with trends and ahead of the competition.

Does your business want to leverage Clearpay’s social media reach? Launch with Clearpay in as little as under three business days. Contact sales@clearpay.com today!

If Millennials led the shift from shopping brick-and-mortar stores to online, Gen Z is driving the change from shopping websites to social media. 

How Gen Z is Leveraging Social as a Shopping Tool

The shape of retail over the next 50 years will be defined by Gen Z. And it will be influenced to a level never seen before.

As Einstein said, if you want to know the future, look at the past. In the 1960s and 70’s, the baby boomers fought for women’s rights, gay rights, civil rights and for social equality. They also played a big role in shaping popular culture and retail.

Therefore, If you want to know what you need to do to be relevant now, and in the future, Gen Z will provide all the answers. However, they shouldn’t be thought of as a market segment, they are more than that, they are a community. And it is the power of the community and Gen Z as a collective that will shape the future. They are the change agents who will redefine how we deal with diversity, the environment, sustainability, the circular economy, financial wellness and happiness and trust.

Retailers who tap into this insight can get ahead, and stay ahead, of competitors and maintain their relevance for years to come.

While Gen Z will have a significant impact upon retail the way baby boomers did and share their activism on causes of most importance to them, their behaviour in other ways is pretty much polar opposite. Here are five things you need to know about this pivotal generations shopping and spending habits.

1.&nbsp;&nbsp;&nbsp;When it comes to money, they don’t want debt, therefore they don’t use credit cards the way earlier generations did. They want to pay cashwith their own money. That means debit cards or even better, having the flexibility to buy now but pay back later. This helps them to budget and empowers them with more control over their finances as opposed to entrapping them the way credit card debt would do.

2.&nbsp;&nbsp;&nbsp;They aren’t influenced by traditional aspirational advertising that uses models and celebrities to promote their wares. They engage with brands who are empathetic and authentic and use real people in marketing that they can relate to.

3.&nbsp;&nbsp;&nbsp;They are emotional and passionate and look to engage with brands who want to have a deeper relationship with them. Trust will be at the heart of any relationship they have. However, they will often start from a position of distrust. And it will be down to a brand to prove that it can be trusted. This means taking the issues that are most important to Gen Z seriously. Such as the environment, sustainability, diversity and inclusion.

4.&nbsp;&nbsp;&nbsp;They are the changemakers. Greta Thunberg being the prime example of the passion and activism of Gen Z. Undoubtedly, Gen Z will lead the way to a better world for all of us. They will force us all to take sustainability seriously, to measure our own carbon footprint. They will ensure brands have a genuine purpose and look after the planet, their people and their customers. They will drive us to care about the community and think more about others and less about ourselves. They will even reshape what retailers sell us. As we move more towards the circular economy and re-purposed products, we will find more and more retailers selling a range of products that includes both the old and the new.

5.&nbsp;&nbsp;&nbsp;Also, of huge importance is to deliver a more personalised experience with relevant content, messaging, marketing and products. This way they can see that a brand is taking them seriously and not treating them as just a number.

Don’t make the mistake of thinking that Gen Z is not your core customer and therefore you don’t need to worry about any of this for the time being as their influence goes way beyond their own brand preferences. They have a bigger influence on other generations than any previous generation did. They are the beacons and the path-makers. And we should all look to them for what comes next.

The shape of retail over the next 50 years will be defined by Gen Z. And it will be influenced to a level never seen before.

How to be relevant now, and in the future, with Gen Z

From vegan cosmetics to upcycled jeans, Gen Z wants to consume more sustainably and a growing number of brands are taking action to meet their expectations.

To better understand our youngest shoppers, we take a look at the values that are most important to them, the trends to note and what retailers can do to be more socially responsible.

In a 2019<a href="https://www.forbes.com/sites/gregpetro/2020/01/31/sustainable-retail-how-gen-z-is-leading-the-pack/#2d99624a2ca3" rel="noopener noreferrer" target="_blank"> report</a>, 60% of Gen Z shoppers said that they preferred to buy from sustainable brands that reflected socially responsible values across their business, while a recent<a href="https://www.forbes.com/sites/staceywidlitz/2020/02/03/retailers-get-serious-about-sustainability-into-2020/#205102465e09" rel="noopener noreferrer" target="_blank"> IBM study</a> of 19,000 consumers in 28 countries reported nearly 60% were willing to change their shopping habits to reduce their environmental impact. Most interestingly, 70% of these respondents said that they would pay a premium of 35% in order for retailers to make their processes and products more sustainable.

And you don’t have to look far to see the statistics playing out in real terms. According to a recent report, <a href="https://vegnews.com/2019/6/56-percent-of-british-women-buy-vegan-makeup" rel="noopener noreferrer" target="_blank">56% of women in the UK </a>now buy more vegan makeup in an attempt to live more sustainably, contributing to a global vegan cosmetics market estimated to be worth <a href="https://www.grandviewresearch.com/press-release/global-vegan-cosmetics-market" rel="noopener noreferrer" target="_blank">20.8 billion USD by 2025.</a>

Concerns about sustainability have also had a big impact on the way Gen Z consumes fashion. Once about single-use, throwaway items, younger influencers are now gaining credibility and social kudos by showing how they can max out a single outfit while encouraging their followers to do the same. Circular fashion is also on the rise with fashion rental and resale websites such as DePop, By Rotation and HURR allowing consumers to enjoy fashion in a fun and sustainable way.&nbsp;

So how can retailers do more to meet the expectations of the socially conscious Gen Z while gaining greater trust and loyalty in the process? Read on to find out how you can implement more environmentally friendly and responsible practices into your business.&nbsp;

<h2>Encourage responsible consumption habits</h2>According to Inside Packaging, 34% of Gen Z consumers believe that compostable packaging is under-used by brands and would like to see it more readily available. Moving away from single-use plastics and excessive packaging is a great start, in addition to introducing reusable packaging in biodegradable materials. Many retailers should as<a href="https://www.weforum.org/agenda/2019/01/a-guide-to-sustainability-for-online-retailers-by-one-of-the-biggest" rel="noopener noreferrer" target="_blank"> JD</a> are also supporting more sustainable and responsible consumption habits by offering customers the choice of returning boxes so that they can be reused or recycled.

<h2>Combat waste and pollution</h2>With tonnes of clothing being thrown away each year, Gen Z favours brands that are actively looking to combat waste and pollution and<a href="https://www.forbes.com/sites/gregpetro/2020/01/31/sustainable-retail-how-gen-z-is-leading-the-pack/#2d99624a2ca3" rel="noopener noreferrer" target="_blank"> 59% regularly buy upcycled products</a>. Follow the lead of brands such as <a href="https://ragyard.com/pages/about-us" rel="noopener noreferrer" target="_blank">Ragyard </a>who upcycle unwanted fabric and vintage pieces in order to create ‘new’ designs, and think about incentives where customers can exchange unwanted clothing and materials for vouchers or discounts to use in store. You could also consider organising clothes drives and campaigns to collect unwanted items on behalf of local charities and non-profit organisations.

<h2>Make it easy for your customers to make ethical choices</h2>The ethical viability of a product is of the upmost importance to Gen Z shoppers and they expect brands to make it easy for them to make better choices.<a href="https://wellmadeclothes.com/catalogsearch/result/?q=recycled" rel="noopener noreferrer" target="_blank"> Well Made Clothes</a> is a great example of an online retailer doing it well; customers can search for items according to their values such as vegan, handmade or manufactured locally and be directed to pages full of products that align with their belief system. Product copy pages are another great way to provide customers with clear information about the environmental impact of a product and help them to make a quick yet considered decision. Look to Clearpay retailer<a href="https://reve-en-vert.com/product/lucette-honey-linen-trousers-pre-order/" rel="noopener noreferrer" target="_blank"> Rêve En Vert</a> for inspiration – it uses simple icons to denote details such as handmade, organic, and natural dyes.

<h2>Make achievable promises</h2>Gen Z places a huge amount of trust in the brands they love so it’s important to communicate with integrity and clarity – especially when it comes to areas of the environment and community. If you’re working towards more sustainable and greener business practises and philosophies, keep customers updated on your progress via blog posts, marketing campaigns and social media content and avoid making empty promises that can’t be executed in a realistic timeframe. Small, steady changes can make a big difference over time.

Gen Z wants to consume more sustainably and a growing number of brands are taking action to meet their expectations. 