Based on the writings of International Business Machines Corporation(IBM) Institute for Business Value, ‘Generation Z will reach 27% of the population with an estimated population of 2.6 billion in 2020, with annual consumption of about $44 billion in 2014.’ Generation Y have been popular up to now, but there is a tendency to pay closer attention to Generation Z for the future.
  As the times change, new generations are named differently from the previous generation by reflecting on the situations of that time. The most recent generation is Generation Z. Then, who are Generation Z?
  Generation Z, whose adult ratio is more than half starting this year, is a major force in society and the economy. By definition, they have been born since the mid-1990s. Unlike the previous generation who experienced both analog and digital, Generation Z spent their childhoods only in the digital environment, so they are more familiar with mobile technology, and their usage time is higher than ever before. They are using SNS rather than phone or text messages for communicating with people as well as for accessing multimedia.



  Based on these characteristics, they have different consumption characteristics from their elder generations. Since Generation Z are in their teens or early 20s, they do not make lots of money or have financial knowledge. However, they have higher purchasing power than Generation X or Y. The reasons for this are that they grew up in more prosperous times and their allowances are higher than in the past because of having two working parents. In addition, they are exercising a powerful influence on their parents and family purchases due to the new access to more powerful information. For example, one member of Generation X, a housewife with a high school daughter, said, “My daughter often tells our family members about the famous restaurants she sees in the social community and wants to go there. Furthermore, during the winter vacation, she finds many cheap and good accommodations. When I tried to contact one to make a reservation, she let me know that we could make a reservation right through the application. I think there are a lot of differences between my daughter and my generation.”
  With the advent of Generation Z, the marketing strategies are changing. The first thing is not to over-idealize anything if you want to attract Generation Z. The article published in the journal Management says that choosing brand models based on appearance only worked for Generation Y. Nowadays, Generation Z is more likely to get a feeling of an ‘awkward fake’ than to feel charmed when they are seeing a perfect visual. Because of these reasons, the name brand Abercrombie & Fitch, once popular with teenagers, has been neglected by Generation Z. On the other hand, Aerie, one of the most popular underwear brands for Generation Z, portrays honest images of a normal girl, and because the model is a normal girl, it gets more attention than Victoria Secret. Secondly, unlike Generation Y, which is a generation about image, Generation Z is a generation about video. As a result, Nike and Adidas brands are starting to focus on Youtube like video advertising rather than print advertisements. In order to capture the minds of the video generation, experts use mobile and video advertisements to reach online marketing and employ individuals who have an impact on social media.
  As the marketing strategies are rapidly changing due to the characteristics and consumption trends of Generation Z, society is undergoing important changes. The spread of mobile and social network services that influenced them as they grew up helps them live a better life. There is always shock due to the ever-changing names of generations, from Baby Boomers to Generation X, and even from Generation Y to Generation Z. Perhaps the next generation will have another name and a greater impact that reflects their society. Even though the behaviors of the new generation, which are different from the previous generations, seem awkward or even incorrect at times, now is the time to try to understand them.

By Kim Min-jeong l mj38@cbnu.ac.kr
Illustraed by Park Han-na