Gen Z is leading the way with groundbreaking new cosmetic and fashion trends, from Y2K fashion to au naturel makeup.
The importance of Generation Z is undeniable, accounting for 40% of the overall consumer base in the UK. This generation challenges the static, one-size-fits-all attitude to beauty that has usually been associated with it, and they are glad to display their individualism. However, it can be a difficult population to pinpoint, particularly for beauty brands analyzing what the TikTok generation expects.
Despite market uncertainties, our recent Holiday research shows that beauty, along with fashion and technology, is one of the primary industries drawing Gen Z spending. This makes it more important than ever for beauty brands and salons to understand how to adapt to fulfill the needs of this core consumer base. With this in mind, we asked analysts, influencers, and creators to break down five of the most important variables influencing Generation Z purchasing decisions.
Communicating in the right way
To begin communicating with Generation Z, the industry must first meet them where they are most at ease. This entails determining where Gen Z wants to learn about the latest developments in the realm of beauty.
Unsurprisingly, social networking is the answer for the majority of Generation Z. The average Gen Z consumer spends nearly an hour per day on TikTok alone, and 62% of US students see social media as the key channel for keeping up with the newest beauty trends, news, and recommendations, according to the survey.
Surprisingly despite the rise of TikTok, which is so closely connected with Gen Z, Instagram remains the go-to place for the majority - 80% - of beauty seekers. This means that beauty companies, salons, and professionals must have a social strategy in place that communicates their ideals directly to Gen Z. Finding the correct influencers can be critical in this, with one-third of UK students utilizing influencers to stay up to date on the newest in beauty.
Brands can communicate with Gen Z as part of their daily lives by working with the appropriate influencers. Influencers can engage on a personal level with their followers, providing a trusted source capable of communicating a brand's values and worth to Generation Z.
Clean Ingredients
According to a case study, the "clean beauty" sector is anticipated to be valued $11.6 billion by 2027, representing a 114% growth over 2022. The desire for cleaner makeup and skincare products has grown among the Gen Z generation.
Gen Z isn't simply concerned with what's inside. They truly want to buy items that make them happy. The movement toward "clean" labels is currently underway, with companies such as Sephora labelling products with "clean" ingredients on their app and in-stores. More and more companies are capitalizing on helping people feel beautiful without using harsh chemicals in their goods.
The full retail experience
Because Gen Z enjoys creating new experiences, physical retail plays an essential role in their purchasing decisions, particularly in the beauty industry. They are looking for the best balance of physical and digital purchasing experiences, as well as the associated benefits.
They value the ability to try before they buy, something online purchasing does not provide. This is especially useful when looking for cosmetic companies that compliment their skin type, tone, and texture while still representing their personality.
This is fantastic news for beauty businesses, but it's crucial to understand what motivates people to shop in-store.
It is critical to point out that Generation Z expects shopping to be an experience; they expect to be engaged in the brand while also benefiting from the efficiency, choice, and information offered online.
This means that salon owners and beauty professionals have a wonderful opportunity to upsell items in addition to extensive explanations, consultations, and treatments. According to research, 48% of Gen Z expect to be able to return or exchange things purchased online at a real store, and 33% expect to be able to buy online and pick up in-store.
Customers in Generation Z want to be able to try on beauty looks at home using AI technology and digital sample, as well as access the degree of information and product variety available online via QR code scanning and ordering in-store.
Innovation
Fiona Chan founded Youthforia in 2020. The attitude of the brand is centered on looking well, feeling good, and doing good for the environment. Youthforia has thrived through these exceptional times thanks to Chan's knowledge of Gen Z's affinity for creativity and innovation. The company soon garnered popularity for its ingenious creation of aesthetic items that also function as skincare.
Check out our blog The Guilt-free Makeup you can sleep in to find out more about Youthforia.
GEN Z is obsessed with the concept of 'dopamine beauty,' in which your beauty routine is an expression of joy. They are constantly attempting to create items that have never existed before, such as color-changing blush oil. They also don't like to use fossil fuels, which are the major ingredients in most makeup, making development difficult. Their desire to see these products come to life drives them.
The price is right
Rising inflation requires Generation Z to be more cautious when purchasing non-essential items such as cosmetic products, prompting them to look for ways to stretch their money wider.
So price is important, and Gen Z appreciates a good deal. As the first digital-native generation, Gen Z will scour the internet for the greatest deals from brands and beauty retailers. In fact, more than half (52%) will wait for an offer or discount before purchasing their favorite beauty goods.
Of course, companies and salons are feeling the pressure as well, which means that the majority can't offer significant discounts all year. Adopting a sustainable price strategy in which firms can offer discounts during major calendar periods such as Black Friday and throughout the holiday season is critical. Finding the right balance is difficult, but it is worthwhile, according to Fashion Report, which discovered that 82% of consumers are loyal to companies who give regular discounts.
Say no to animal testing
However, pricing is not the only consideration. Gen Z is extremely concerned about social issues and expects companies to uphold their ethical standards in order to earn their allegiance.
This involves brands addressing topics that are important to them. For example, our Beauty research discovered that 43% of UK students oppose animal testing, with 43% saying they never buy beauty items produced on animals.
Instead, consumers are rallying behind brands like The Ordinary, which is cruelty-free and fights for the abolition of animal testing worldwide. Gen Zers are concerned about the formulation of the products they buy and want to shop environmentally, with 37% refusing to buy cosmetic products that contain dangerous components such as microplastics or palm oil.
With US students prepared to pay 10-20% more for ethically produced and vegan beauty products, keeping this in mind when examining business methods and product ingredients is critical.
Transparency and Connection
One of the simplest ways for beauty brands to lose interest is to fail to connect with the Gen Z consumer. Instead of presuming, Gen Z beauty companies are reaching out to their customers and asking them what they want. When customers provide insight, and items are made to satisfy their requirements and demands.
They also value brands that lift the veil on the beauty industry and freely share knowledge with their community. In their marketing, they seek transparency. Gen Z is fascinated by the process of generating a product. It is also searching for their ability to learn from their mistakes and admit when they have made a mistake.
Representing beauty for all
The values of Generation Z do not stop there. According to US study, Gen Z is the most ethnically and racially diverse generation yet, and they expect beauty businesses to represent this.
Simply put, they want to see people who look like them when they shop for beauty products: two-fifths of Gen Z think diversity and inclusion are the most important brand values to them when shopping for beauty products.
Fenty cosmetics shook up the traditional cosmetics market just five years ago with an astonishing debut of 40 foundation colours that catered to a wide variety of light to dark complexion tones. Other companies quickly followed suit, making diversity the industry standard. This pioneering work is recognized and acknowledged by Gen Z, with over 80% of those polled aware of the brand and a quarter purchasing Fenty Beauty.
Authenticity and Impact
Authenticity is important to Generation Z more than millennial. They enjoy engaging with brands that share their values. It is no longer sufficient for companies to merely create viral products or amass a sizable social presence. Younger generations are particularly concerned about their effect outside of the beauty industry.
Anyone can have a lovely Instagram and a hilarious TikTok, but what are you doing that matters? What distinguishes a company is what it brings to the table with its product, how it treats its employees, and what it does for the world around it.
Time to go all in
It's not easy; Gen Z wants inclusive, ecological products created to the highest ethical standards, all at an affordable price. When it comes to online vs. in-store shopping, people want the best of both worlds. While their expectations are enormous, their power cannot be underestimated. They are all brands' current and prospective core consumers, setting trends that influence Millennials and Generation X purchasing habits.
With this critical demographic, this is a watershed moment for beauty brands. Gen Z consumers are eager to discover their next favorite beauty items, which might be yours if you understand and adapt to their values and expectations.