People
People are the focus of every organization. People ultimately make the decision of whether to purchase a given product, making them the main contributor to a business’s success. The people pillar deals with relationships within the management of the industry as well as between businesses and consumers.
When choosing between brands, consumers typically support brands they resonate with. Gen Z is revolutionary in the sense that consumer behavior is intricately connected with socio-political values. Gen Z is defined as anyone born between 1996 and 2010 (Demock, 2019).
Generations prior to 1996 had only experienced a fashion industry that targeted the dominant culture. Monocultural marketing historically was aimed at one certain demographic (Fitzsimmons et al, 2019). This occurrence influenced the industry for generations because the dominant demographic continued to “practice superiority to avoid vulnerability” (Caryn Franklin M.B.E, MSc). A study for the International Journal of Financial Research refers to Gen Z’s buying habits as “digital literate consumption” (Grigoreva et al, 2021). Mastering this highly digitalized world, Gen Z expects to access brand information across multiple media platforms and read reviews before purchasing (Grigoreva et al, 2021). Being the first generation with access to a larger global community, Gen Z embraces diversity and rejects the previous practices of monoculturalism.
Inclusivity is increasingly becoming more critical to consumers, with 61% of Americans finding diversity in advertising important (Thompson, 2020). However, as brands scramble to alter their ad campaigns, superficiality, tone deafness, and cultural insensitivity can be seen. This is often due to a lack of diversity within the business team and a lack of authenticity (Thomspon 2020). ‘Diversity washing’ is the focus on representation at the expense of inclusion and equity. Nike is a brand that has not only responded to diversity in campaigns but also from within the organization. The company revealed its Black Community Commitment in 2020, focused on helping organizations dedicated to social justice, education innovation and economic opportunity for Black people. John Donahoe, Nike CEO, stated, “The Nike Inc. family can always do more but will never stop striving to role model how a diverse company acts. We will continue our focus on being more representative of our consumers while doing our part in the communities we serve” (Verry, 2022).
Gen Z looks forward to co-creation with brands, participation in teams, and collaboration with managers; it expects innovation from its employers, leaders, and brands (Grigoreva et al, 2021). Authenticity and transparency are critical to a brand’s success. This generation is adept at accessing information readily off of the Internet and can therefore know whether a brand is living up to its promises. Diversity washing is not possible with a generation that can see through.
Sources
Dimock, M. (2019). Defining generations: Where Millennials End and Generation Z Begins. [online] Pew Research Center. Available at: https://www.pewresearch.org/fact-tank/2019/01/17/where-millennials-end-and-generation-z-begins/.
Grigoreva, E.A., Garifova, L.F. and Polovkina, E.A., 2021. Consumer Behavior in the Information Economy: Generation Z. International Journal of Financial Research, 12(2), pp.164-171.
Harvard Business Review. (2019). What Makes You ‘Multicultural’. [online] Available at: https://hbr.org/2019/12/what-makes-you-multicultural.
Schneider, B. and Lee, D. (2022). BoF Insights | Gen-Z and Fashion in the Age of Realism. [online] The Business of Fashion. Available at: https://www.businessoffashion.com/reports/retail/gen-z-fashion-in-the-age-of-realism-bof-insights-social-media-report/.
Thompson, S. (2020). Data Shows Consumers Want Diversity In Marketing—Why Many Brands Struggle To Get It Right And How To Fix. [online] Forbes. Available at: https://www.forbes.com/sites/soniathompson/2020/02/05/data-shows-consumers-want-diversity-in-marketing-why-many-brands-struggle-to-get-it-right-and-how-to-fix/?sh=2a78e9f632f5 [Accessed 21 Oct. 2022].
Verry, P. and Verry, P. (2022). How Nike Is Progressing With Its Diversity, Equity and Inclusion Commitments + Its Goals for 2025. [online] Footwear News. Available at: https://footwearnews.com/2022/business/athletic-outdoor/nike-diversity-equity-inclusion-2021-impact-report-1203262446/.
Vogue Business (2021). Gen Z shopping trends uncovered. [online] Vogue Business. Available at: https://www.voguebusiness.com/consumers/gen-z-shopping-trends-uncovered-pay-pal.