Zillennials Spend Differently Than Millennials, Retailers See Dollar Signs

Zillennials Spend Differently Than Millennials, Retailers See Dollar Signs

Zillennials, a micro-generation born between 1990 and 2000, are a unique blend of Millennials and Generation Z characteristics. They have a strong work ethic like Millennials but also desire a better work-life balance, similar to Generation Z. This group places great importance on doing meaningful work and has not yet settled into fixed purchasing habits, with brand loyalty constantly in flux.

One key difference between Zillennials and Millennials is their living arrangements. A majority of Zillennials cohabitate with others, whether it be with romantic partners, family members, or friends. This shared housing arrangement may partially explain why this cohort has more discretionary income than older consumers.

With 54% of Zillennials working full-time and having fewer expenses, they are 30% more likely to say they do not live paycheck-to-paycheck compared to Millennials and bridge Millennials.

Zillennials are also more diverse and independent than previous generations. They are more likely to self-identify as a minority and value diversity and independence as traits that set their micro-generation apart. As digital natives, they prefer shopping on the more continent channel to them (ie. in-store, online, on app) but also lead the charge in consumer demand for cross-channel experiences.

This generation’s unique experiences and characteristics make them an attractive target market for disruptive brands. For instance, Zillennials have longer attention spans than Gen Z, making them more likely to engage with long-form content. They also make values-driven purchasing decisions, influenced by growing discussions about climate change and sustainability during their formative years.

Zillennials’ experiences with technology and popular culture also set them apart from both Millennials and Gen Z. They witnessed a massive shift in technology during their adolescence, with social media platforms like Instagram, Snapchat, and YouTube emerging during their high school years.

This exposure to rapid technological advancements has made them early adopters of new ways to connect with brands and products. In conclusion, Zillennials are a unique fusion of traits and experiences from both Millennials and Generation Z. Their distinct characteristics, such as their living arrangements, diversity, and values-driven purchasing decisions, make them an important target audience for brands looking to tap into this lucrative market segment.