Gen Z or generation Z is composed of those born between 1995 and 2010. This group is enticed by marketers, shaping the future face of retail, digital and social media. In YouTube alone, there are a number of Gen Z YouTubers who are making money through posting beauty vlogs.
The way Gen Z lives is different from the previous generations. Navigating their early years through a lens and social media, this generation has a strong will to pursue and express what they want. They are exposed online to aspirational images of celebrities and self-made social media stars.
According to the survey, there is an uptick in teen spending from this generation, which mirrors the economic expansion that we are experiencing broadly. Within a teen’s wallet, food is the top priority but also video games (male) and beauty products (females) are gaining share.
Gaining share it is, with the sector setting a new high with female shoppers said to be spending $368 per year on the category, up 18 percent, led by skincare. Young female consumer is still figuring out who she is. Young female consumers use beauty as her playground for self-expression. Gen Z invested in beauty because of the way they live their lives onscreen and on social media. With these, companies are working hand in hand with celebrities and other prominent beauty gurus to create beauty products that are mostly sell online. In Singapore, it is very common to buy beauty products online.
Academic research studies have found links between social media usage and low self-esteem. Due to pressure of comparing teens with others they seen on social media, this drives up spending on beauty products in shopping website in Singapore, for example. When shopping for beauty products, young consumers turn to social media, and especially video content, for advice. The volume of beauty content on YouTube rocketed by 200% between 2015 and 2016, and female consumers ages 13–24 make up fully 47% of the audience for these videos. Female teens had looked to YouTube for tutorials on new styles or new products. Brands seeking to engage with Gen Z must offer engaging, authentic content on visual-driven social media sites.
To sum it up, some retailers and brands already count Gen Zers as customers—but the group comprises the customers of tomorrow for all retailers and brands. The oldest people in this demographic will turn 16 this year, and so are on the cusp of becoming fully fledged adult shoppers. Social media impacts Gen Zers’ spending, particularly in the beauty category. In turn, Gen Zers often turn to social media for information and expertise when shopping for beauty items. There appears to be greater pressure than ever before on young people to spend on their personal appearance—although it is possible that these pressures will lessen as this generation gets older. Looking further ahead, we expect the demands of this generation to be a factor in future beauty industry mergers and acquisition activity as legacy players seek to appeal to Gen Z by buying up beauty brands that align with the generation’s preferences.