Amidst the sea of struggling retailers, a few brands stand out as industry leaders when it comes to effectively engaging and selling to Gen Z shoppers. These retailers include Supreme NYC (streetwear), GameStop(video games and consumer electronics), and NTWRK (home shopping). They each have one key strategy in common that’s winning the hearts and wallets of today’s youth culture: they create a sense of belonging for shoppers. Each retailer brings Gen Z together in unique ways that are relevant to their targeted young audiences while staying true to its business model. For example, Supreme has done away with outmoded seasonal product releases, and “drops” (launches) new products or smaller, limited-quantity collections every Thursday. This approach drives demand that creates long lines outside of its store, where young people gather in hopes of getting the latest products before they’re sold out. However, the true genius behind this strategy is that the experience of waiting in line itself builds a strong community of passionate fans, who look forward to connecting with other like-minded peers. The brand’s appeal goes far beyond its physical store, however. The exclusivity of the products has fostered a new economy of Gen Z resellers, who sell or trade Supreme items online after they’re no longer available. It works because the strategy is as much about creating a deeper connection and elevating the status of shoppers as it is about the retailer making money. At GameStop, it’s an entirely different strategy to engage and sell to Gen Z shoppers. This national video game retailer builds a strong sense of community by employing incredibly knowledgeable staff known as “associates,” who are authentic experts in the field (many are rising eSports players themselves). The associates create a powerful comfort level among parent buyers, who are often disconnected from the latest gaming trends, products and technologies. It’s also worthy to mention that GameStop has remained nimble enough to pivot into collectibles and other must-have products, which are popular among Gen Z and many multigenerational fandoms. The latest retailer to step in and get it right when it comes to engaging Gen Z shoppers is a drops-driven QVC-like shopping network for the YouTube generation. The company is called NTWRK, and features daily content segments focused on e-commerce sales hosted by creators, musicians and other pop culture figures. NTWRK’s strategy is to create the next wave of video commerce: a mobile-first, home shopping experience that brings curated styles from big personalities directly to consumers. Young shoppers typically want the most exclusive products, content and experiences, yet gaining access can often be a serious challenge. NTWRK is dedicated to making exclusivity more accessible. The first content released was a shopping show hosted by youth culture icons DJ Khaled and Sean Andre. NTWRK is now partnering with top brands in fashion, tech, sneakers, toys and collectibles. Related story: A Marketing Guide for Generation Z 5 Engagement Considerations for Retailers Targeting Gen Z The world is a fast-growing global generation. Look to emerging geographic markets such as Nigeria, Southeast Asia, and Mexico for opportunities to reach some of the largest audiences of Gen Z shoppers. Practice good storytelling. In a world where the greatest prize is attention, content must capture young shoppers’ attention and inspire them to participate and take action. Don’t take Gen Z for granted; they expect authenticity and will quickly see through any lack of relevance. Create retail experiences that elevate a young shopper’s status. Create content and real-world experiences that positively showcase the coolest, most meaningful and original things you’re doing as a brand. This provides young shoppers a currency that can be leveraged to elevate their status. Be where they are; build a presence on emerging social platforms. YouTube, Instagram and Snapchat are among the top social channels for engaging Gen Z. However, the algorithms work against everyone — including retailers trying to reach young shoppers. Consider opportunities to be a “big fish in a small pond” by establishing a presence on fast-growing social platforms like Twitch, Discord, TikTok, and YouNow. You’ll reach millions, and with less algorithm resistance. Future-proof your retail business and embrace the conversational economy. Start developing strategies that use chatbots to create two-way conversations with young shoppers. Focus your efforts on channels those customers are already comfortable using. Gregg L. Witt is a renowned youth marketing strategist and generational expert, author and public speaker. He has spent 17 years in consumer insights, media and youth marketing, and is currently chief strategy officer of Engage Youth Co. He co-authors the insightful new book, “The Gen Z Frequency: How Brands Tune In and Build Credibility,” now available from Amazon and other retailers. Visit www.thinkwithwitt.com.   Article originally published in https://www.mytotalretail.com/article/how-retailers-can-better-engage-and-sell-to-gen-z-shoppers

Today’s young people tend to be highly individualized and making culturally relevant connections is non-negotiable. If you want to be noticed, followed and garner their attention, find and align with the most relevant groups within youth culture. Successful brand alignment with young people depends, in part, on your organization’s capability to make psychographic and situational context a priority. What does this mean? Many brands default to demographic, geographic and behavioral targeting as their primary filters because they are more convenient, but the reality is that relationships are built in the personal realm. Demographic targeting, such as age, gender and ethnicity, remain a starting point to help organize consumers who are more likely to be a good match with a brand. However, the ultimate goal is audience segmentation that helps us not just organize youth culture, but to understand it. Hyper-individualization is the norm Gen Z is pushing the idea of individualism, sometimes to the point of hyper-individualism. Gen Z defines itself as being more highly individualized than previous generations. This perception is important. Whether or not they truly are the most individual generation of our time is a moot point if they believe they are. It’s interesting when you consider how much exposure they have to the world via the Internet and social media, at a time when they’re developing a sense of self: they may have more options and raw materials to choose from than previous generations. Regardless of studies and statistics, to understand Gen Z’s perspective we have to recognize their self-perception as the most unique generation. A 2017 report by AwesomenessTV found that, “Growing up in a time when intersectionality is the buzzword du jour, [Gen Z] perceive identity on a spectrum — a complex, ever-evolving construction of self rather than a static set of demographic descriptors. Now we are faced with an arsenal of niche, interchangeable and hyper-specific labels …” In fact, there seems to be an infinite number of hybrid subcultures that young people can zero in on and claim as “home.” No identity is too specific or personalized; it can all be made-to-order. Being highly individualized isn’t a barrier to entry or to societal acceptance. One might easily be accepted because of their individuality, instead of being excluded for it. Today’s youth celebrate differences with less judgment or hesitation than previous generations, but it goes beyond just self-expression. Gen Z needs a more flexible identity because they have to adapt to more variety and situations in their lives. Identity is less and less conveyed by a static, stereotypical ‘persona,’ and more by a fluid, evolving, ever-changing condition. We’ve all been in situations where we bring forward a different side of our personality to blend in with others, whether that’s our parents, boss, peers or partners. This is adaptation. Gen Z will try to match themselves to their current situation just like everyone else. Yet, because they’re also at a life stage marked by transition, coming up with the right personality may be more intense, because they’re discovering and defining themselves, as opposed to toggling between more solidified personalities like adults might do. Gen Z is blending characteristics like the pieces in a kaleidoscope. A teenage male entrepreneur who enjoys knitting while he and some friends drive to Coachella is no longer seen as having an identity crisis. He’s making an identity statement. If brands want to connect, they need to understand and adapt to the way that Gen Z defines and identifies themselves. But tuning into the trends and influences that inform Gen Z’s lifestyle and consumer choices means getting out of boardroom comfort zones and into the complexity of youth experience. So, where do we start? Putting alignment into action A brand’s likelihood of building a commercially viable audience is in direct relation to that brand’s ability to identify and connect with the right spectrum of groups within youth culture. The key word here is spectrum. Relying on demographic targeting alone is like casting a net into the water and crossing your fingers. A segmentation method rooted in the lifestyles of youth culture may require more patience and work up front, but it’s far more likely to result in real cultural identification and alignment with the groups that will desire and value what that brand represents. Key stages of youth culture alignment Stage 1: Needs Analysis: Determine the extent of your targeting needs. How big, small, specific, etc. does your audience have to be for a particular offering? Stage 2: Brand and youth personality match: Identify the consumer traits and characteristics you should look for that would be compatible with your brand’s offerings. What qualities do you and your ideal audience share? Stage 3: Identify and prioritize potential subgroups: Develop a list of subgroups that share key personality traits and characteristics with your brand, and determine their alignment with commercial viability for your brand. What groups share these qualities? How deep is the connection, and how commercially viable is that group for your brand? Stage 4: Optimal youth audience definition: How do alignment and commercial viability intersect? Who’s most aligned, who is most viable, and how can you strike the most successful balance? Do you need to sacrifice a little alignment to reach a more profitable group, or will sticking to a smaller group of more aligned youth result in more long-term success? Youth culture alignment tips, takeaways Hyper-individualization is the norm: Gen Z expects unique. When developing creative strategies to reach Gen Z, remember that being highly individualized or even “weird” presents an opportunity to connect with them on their frequency. Traditional demographic targeting models are outmoded. If you really want to get tuned in with this group of individualistic young consumers, focus segmentation strategies on psychographic, lifestyle and situational context as priorities. Embrace the diversity of Gen Z. If you approach Gen Z as a homogeneous entity and fail to appeal to the multitude of segments that comprise it, you’ll be relegated to a limited view of both their world and the motivations behind their decision making….

A powerful social engagement strategy to boost interaction with youthful audiences at retail is to integrate elements of gamification into merchandising, content, social media and event-driven brand experiences. Here’s what Tilly’s is doing right on their ROCK-PAPER-SCISSORS promotion: They’ve aligned with a vendor brand, JanSport and two pop culture influencers, @shonduras and Echosmith’s @sydneysierota, who are actually into both brands (and it shows). Created a simple AR game for customers to interact in two distinct areas in-store (female and male sections) Layered in a traditional (yet effective) sweeps contest with a 20% discount for participation Driving engagement and retail traffic w/ a steady stream of relevant Instagram stories Increasing app downloads and growing their customer database. Best part? It doesn’t feel forced, it’s fun, it creates a sense of belonging and everyone wins!

Establishing trust is absolutely critical when building consumer relationships. The process, while it might not always be easy, doesn’t need to be complicated. Trust in youth culture comes down to a simple equation: Transparency + Authenticity + Action = Credibility. By avoiding pretense or deceit and being true to core beliefs, young people will be more likely to trust in your promise, reliability, and the strength of your company. Trust: prove it. Create content that helps give young people reasons to believe that your brand will deliver what it claims. That it’s reliable, has ethical business practices and that an association will be beneficial to Gen Z by exposing ‘how it’s made’, ‘demonstrations of…’ – it’s about showing, not telling. Why should consumers within the youth culture trust your brand? How do you reinforce your relationship with people who engage in your brand? Are you transparent about your business practices? Does Gen Z view you as an ally or an authority? Do you even know?