Every generation is uniquely defined by different life experiences and values. It’s important for brands and retailers to understand the differences between generations in order to effectively target consumers.
Generations are currently labeled as follows:
Generation
Year born
Ages in 2021
Silent Generation
1925-1945
76 and older
Baby Boomers
1946-1964
57-75 years old
Generation X
1965-1980
41-56 years old
Millennials
1981-1996
25-40 years old
Generation Z
1997-2012
9-24 years old
Generational characteristics
Silent Generation
In short, members of the Silent Generation are considered traditionalists. For instance, they are dedicated to family, are thrifty, and hard-working (University of South Florida, n.d.).
A 2020 Jungle Scout survey of 1,006 U.S. customers (McPhee, 2020) found that this oldest generation has, unsurprisingly, the largest group of consumers (24%) who shop only in-stores. The 76% who shop online do so because of the ease of not having to leave home (59%), the chance to see others’ reviews (41%), and the ability to price check (38%). Only 3% of the Silent Generation claim to buy a product only based on its name. This generation shops most frequently for clothing, followed by beauty and personal care items.
Baby Boomers
The Baby Boomers (71.6 million people) are the largest consumers of traditional media, though 90% of them are on Facebook. Financially they are focused on retirement (Kasasa, 2021). Baby Boomers value success and have therefore worked hard, while staying involved and making a difference (University of South Florida, n.d.).
In the Baby Boomer generation, 81% of consumers prefer to shop online as opposed to the 19% of consumers that like to shop only in-stores. It’s also notable to mention that 55% of consumers enjoy the convenience of not leaving home, and like to receive desired products easily (McPhee, 2020).
Generation X
Gen X is made up of 65.2 million people. While they still access traditional media, they are digitally savvy and spend more time on Facebook than any other generation–about 7 hours per week. In general they carry a high debt load and are busy raising children and preparing for retirement (Kasasa, 2021). Gen Xers are generally more informal and independent. They also value time and seek balance in their lives (University of South Florida, n.d.).
When it comes to brands, 21% of Gen Xers will choose a branded item over a non-branded item. 10% shop only in-stores, and the 90% who shop online do so for a variety of reasons: product selection (47%), convenience (47%), timely shipping (44%), and avoiding public places (43%) (McPhee, 2020).
Millennials
Millennials (72.1 million people) were shaped by the Great Recession, as well as 9/11, and the rise of the internet and social media. In addition, vast amounts of student debt has caused this generation to delay major life purchases. They watch TV (mostly Netflix), have multiple social media accounts, and are very comfortable with mobile devices, though a third of consumers still use a computer to make a purchase (Kasasa, 2021). Additionally, Millennials care about diversity and individual achievement. They are often considered self-absorbed, but are also admired for thinking outside the box (University of South Florida, n.d.). Millennials are career-oriented, so many are marrying and starting families later in life.
Of the Millennial generation, 91% of consumers prefer to shop online due to fast shipping, product selection (44%), convenience (40%), and the ability to see others’ reviews (36%). Furthermore, 29% of Millennials state that they always look for brand name products when online shopping. Beauty and personal care items are a higher priority for Millennial customers (51%) than clothing (43%) (McPhee, 2020).
Generation Z
Gen Z, which consists of 68 million people, has grown up in a hyper-connected world. As a result, they prefer to communicate via smartphone and want to avoid debt accumulation as seen among Millennials (Kasasa, 2021). A 2021 CGS survey estimates that Gen Z shoppers have an estimated worth of $323 billion (Nishimura, 2021). Having been raised during times of economic hardship, they are realistic, yet they also value personalization, as individual identity matters most to them (Francis & Hoefel, 2018). In addition, they value experiences and also seek to support causes they care about.
Among the youngest generation, 11% shop only in-stores, while 89% shop online to see others’ reviews (42%), price check (40%), and enjoy the ability to shop from home (39%). Brands certainly speak to Gen Z consumers; for instance, 24% choose branded items over non-branded. Like the Silent Generation, Gen Z also shops for clothing often, followed by beauty and personal care products (McPhee, 2020).
Similarities and differences
Spending
Unsurprisingly, all generations have decreased their overall spending due to the pandemic as everyone’s priorities fell in line–all ages shopped most frequently for groceries, followed by beauty and personal care items. Shopping habits will therefore be impacted long-term: 69% of Millennials, 63% of Gen Xers, and 60% of Gen Zers plan to cut back on luxury item purchases. While some feel more strongly about online shopping than others, recent post-COVID studies suggest that consumers of all ages want to get back to shopping in stores (McPhee, 2020).
Price is a key purchase driver for Baby Boomers and Gen X consumers (Taylor, 2021). Conversely, Gen Z consumers are more influenced by quality and influencer endorsements over price (Nishimura, 2021). Younger generations (Gen Z and Millennials) use social media to research products before making a purchase. They are also more likely to make in-app purchases when shopping through social media platforms.
Sustainability
Moreover, on the topic of sustainability, First Insight’s December 2019 report, “The State of Consumer Spending: Gen Z Shoppers Demand Sustainable Retail,” includes survey results from 1,000 U.S. respondents (Berthiaume, 2020). Interestingly, Gen Z appears to be the most interested in sustainability, while Baby Boomers appear to be the least.
How many prefer to buy from sustainable brands? In short, 62% of Gen Z and Millennials, 54% of Gen X, 44% of the Silent Generation, and 39% of Baby Boomers. Who is willing to pay more for sustainable products? 73% of Gen Z, 68% of Millennials, 55% of Gen X, 50% of the Silent Generation, and 42% of Baby Boomers.
One similarity, for instance, is that recommerce is growing in popularity among all generations–64% of Millennials, 63% of Gen X, 62% of the Silent Generation, 59% of Gen Z, and 52% of Baby Boomers shop secondhand. Likewise, each generation ranks quality above environmental concerns.
Looking to the future
In conclusion, it is important for brands and retailers to understand the generations shopping in today’s market in order to reach their target audience now and in the future.
