Powerful and DEEPLY INSECURE.
Working Paper No. 13
What brands and companies should consider when dealing with Gen Z.
Allegedly the Sumerians complained as early as 5000 BC about the youth. However, since Cicero at the latest, it has been documented in writing that the elderly are irritated by the strange habits of the subsequent generation and criticize their lack of willingness to work hard. Today we call it the "kids these days effect" and it has been scientifically proven that it is perfectly normal to complain about the lack of attitudes among the young.
The kids these days - scientifically proven
According to a study by John Protzko and Jonathan W. Schooler, the fact that all the gloomy prognoses say far more about the concerned than the youth is due to two cognitive processes: the memory bias and the tendency to denigrate others in areas where one particularly excels. And even if these effects are not new and widespread in all cultures, the so-called “Gen Z” is causing a lot of headaches for employers and brand managers.
From “Me” to “Me Me Me”?
As soon as they got used to the new and obviously unjustified self-confidence of the millennials, their confrontational style of collaboration and their eternal keeping of all options[1], the “me generation” is apparently followed by a “me-me-me generation”. Or, as Emma Goldberg notes with relish in her highly regarded article in the New York Times, “The 37-year-olds are afraid of the 23-year-olds who work for them.” [2]
More and more brands and companies depend on the Gen Z
In view of the “The kids these days effect” one might think that even with this generation you just need to wait until the Gen Z is getting on in years, starts families, builds houses and the reciprocal distrust has grown out. However, one overlooks the fact that companies and brands are much more dependent on the trust of Gen Z employees, customers and consumers than the other way around. But what do institutions, companies and brands have to do differently than before in order for Gen Z to trust them?
A worried Generation
In short, according to a recent study[3] by the Edelman Trust Institute in collaboration with VidCon's Digital Creator Community, it is all about a broader understanding of security, a greater focus on the way companies treat people and the collective struggle for a better world. Growing up in times of Corona and the climate crisis, with a strong awareness for the possibilities and problems of omni-present social media channels, a growing political dualism and increasing social division, the Gen Z is shaped by an above-average number of worries and reservations. In Germany, this includes the fear of not being able to live as well a their parents, a lack of respect for traditional authorities, the feeling of never having enough high-quality information to make really good decisions and the increasing awareness of problematic intersectionality[4].
In search of security, humanity and commitment
In view of this, it is not surprising that three requirements are especially important to the gen Z when looking for trustworthy companies and brands:
1.) Let me feel (physically, financially and emotionally) safe!
2.) Be truthful and treat people well!
3.) Connect with us for change!
These requirements are not completely new and certainly do not apply to every member of the Gen Z. But they play an increasingly important role in their selection of products, brands and employers, and the tolerance of Gen Z customers in the event of injury is much lower than before.
The renaissance of security
After the seemingly carefree noughties, the increased focus on security does not come as a surprise. While millennials were leaving school and universities, the internet teared down many boundaries of time and space, digital natives could choose between numerous job opportunities, a woman became German chancellor, a man of color US president and the elimination of many severe diseases and global poverty came in sight. And even if this is certainly a strongly positive exaggeration of these years including the attacks of 9/11 and the Afghan war, the difference to the time when the Gen Z went to school and university is obvious. The bursting of the real estate bubble, Donald Trump, Brexit, cyber bullying, the increasingly clear effects of the climate crisis and then Corona shattered Gen Z's confidence in their own future and showed the limits of self-determination regarding their own physical and mental health as their economic well-being. For 7 out of 10 of the 10,000 14-24-year-olds from Germany, France, UK, Mexico, USA and China surveyed by Edelman, protection and security have a high priority in their life including all aspects of security:
• Physical security: 75% of Gen Z surveyed prioritize activities that have a low risk of getting sick or injured.
• Financial security: 79% say “pays well / provides financial stability” as an important career goal.
• Emotional security: 75% prefer “feeling safe” over “developing strong friendships”.
• Social security: 69% have changed social circles to feel safer.
Fact-checking becomes a hygiene factor
The almost unlimited internet euphoria with its always accessible music and video content and the limitless interaction options of social media has given way to growing distrust in the media. The new generation of consumers is unprecedented when it comes to questioning information. Hardly anything is seen as true and factually correct from the start including sponsored content and brand messages.
United in the fight for a better world
This high need for security and the skepticism towards traditional institutions and media presents employers and marketers with new challenges. But Gen Z's most difficult demand are to handle their massively increased expectations towards brands to use their se their reach, money, and scale to create change for a healthier environment and a better society. In Germany, according to the Gen Z study, the fight against climate change, poverty reduction, COVID-19 and gender equality are at the top of the Gen Z priority list.
5 questions for a trust-driving brand communication
But how should brand managers deal with these expectations? The analysis by Edelman and VidCon raises the following questions with which the trustworthiness of their own brand communication can be checked from the eyes of Gen Z:
1. Is security the top priority in all branding experiences and events? The protection of data and privacy is essential. Products and services that increase personal security offer a good chance to differentiate from the competition and to open new areas of business. Violating security standards or playing down security claims, on the other hand, is no longer a trivial offense and will no longer be easily forgiven.
2. Are all facts transparent and are all claims easy to check? According to the study, 70% of Gen Z routinely check facts before they believe them and will unfollow brands if they are not truthful. It is expected that advertising statements and claims will also be linked with validating content or certificates and backed up with factual background information.
3. Are there real people and socially committed personalities who could support our claims or who could help out with questions? Family members (88%), friends (84%) and ordinary people who do good (81%) are the preferred sources of inspiration for Gen Z while doctors / therapists (77%), scientists (75%) and teachers / professors (74%) rank as the people they trust most. Therefore, real people, scientists or socially committed personalities can play a more important role as testimonials or included in the brand and product experience via feedback options, ratings or reviews.
4. Are our claims and values reflected in how we treat our employees, suppliers, partners and society? How a company deals with people is the ultimate test of trust for the Gen Z and can be checked at any time in times of social media and rating portals. 8 out of 10 of the Gen Z surveyed consider if a company treats their employees well as a critical or important factor in their purchasing decisions and 7 out of 10 evaluate how a company deals with people in need before deciding on an employer. A discrepancy between what you say and what you do is always a trust killer. For Gen Z, where the “We” is often just as important, if not more important than the “Me”, hypocritical treatment of people can quickly and completely discredit their reputation and brands.
5. Is it clear in everything we do and say that we are committed to global values and advocate for them in local actions? For Gen Z, global values have more weight than local actions and everything that brings people together in the fight for a greener, better and fairer world is highly valued. 9 out of 10 Gen Z respondents want the brands they buy to partner with them in the fight for a better world.
In short, for those responsible for brands and communications, it is crucial today to shift the focus from high-quality and entertaining brand expressions to a personal and value-driven exchange and thus the focus from awareness to relationship building. Because even if fulfilling these expectations is easier said than done, brands such as Nike, Disney, Patagonia, Starbucks or Allnatura show that it is worth making the demands of Gen Z and the current communication from dm, Funny Frisch or Katjes proves that this does not have to be boring and serious but can be funny and self-deprecating. In doing so it is important to meet Gen Z on their platforms, instead of inviting them to your own or “boomer” platforms and face them at eye level, instead of flattering them or - even worse – trying to teach them.
About the study
The “The Power of Gen Z - Trust & The Future Consumer” study from December 2021 was developed by Edelman in collaboration with the independent opinion research agency Smarty Pants. In November 2021, 9,600 members of Gen Z aged 14-24 in China, France, Germany, Mexico, the UK and the USA were surveyed. Further information on the methodology and
[1] L. Lammers 2015 for Edition F: “Wir Millennials sind nicht arrogant!“ https://editionf.com/Millennials-Arbeitseinstellung-Kritik/
[2] E. Goldberg, 2020: “The 37-Year-Olds Are Afraid of the 23-Year-Olds Who Work for Them“ https://www.nytimes.com/2021/10/28/business/gen-z-workplace-culture.html
[3] Edelman X VidCon 2021: „The Power Of Gen Z“ https://www.edelman.com/future-consumer?utm_campaign=Future%20Consumer/Gen%20Z&utm_source=linkedin&utm_medium=social&utm_content=launch
[4] Intersectionality is understood as the overlap and simultaneity of different categories of discrimination against a person.