It’s no secret that Gen Z is one of the most influential consumer groups today. Despite not having the deepest pockets, they bring an unprecedented ability to shape culture, establish trends, and ultimately decide what’s in or out. For brands, understanding Gen Z is like holding the future of retail in their hands, and it’s a future that looks increasingly digital, mobile, and social.

Gen Z grew up in the digital age, seamlessly incorporating smartphones into their daily routines. For them, shopping isn’t bound by physical stores or even desktop computers. It’s a mobile-first experience and a convenience-based ecosystem they carry in their palms. In Pakistan, as e-commerce grows to new heights, this preference for mobile shopping has only become stronger.

This demographic in Pakistan has unique online shopping habits that are shaped by global trends and local influences. Social media platforms are central to their shopping journey, with 22 per cent making purchases based on influencer endorsements that prioritise authenticity. They value convenience, preferring seamless platforms with quick transactions, in-app payments, and peer reviews to guide decisions.

Gen Z also seeks community-driven shopping experiences where user-generated content and shared endorsements matter. Social and environmental responsibility strongly influence their preferences, as they gravitate toward brands that align with their values. While they prefer online shopping, 38pc still visit physical stores after online research, and they are most engaged by visually appealing and humorous content in video or reel format.

Brands must turn their attention from Gen Z to Gen Alpha, which is set to number over 2bn globally by 2025 if they hope to maintain a loyal customer base

However, brands are now turning their focus to an even younger demographic: Gen Alpha. By 2025, this generation will number over two billion globally, becoming the largest generation in history, according to a McCrindle report.

Known as “iPad kids,” Gen Alpha has been exposed to touchscreens and gadgets since they were toddlers. They are growing up watching their older Gen Z siblings engage in digital shopping, forming their own preferences in the process.

Interestingly, while Gen Alpha shares some shopping tendencies with Gen Z, they have distinct values and aspirations. Research by DigiDay shows that about 30pc of Gen Alpha have a strong sense of purpose, often dreaming of careers that help people or animals.

For brands, this suggests a rising generation that values impact and purpose in their purchases, signalling a potential shift towards more socially conscious consumer behaviour.

Yet, Gen Alpha’s spending power remains connected to parental influence. With millennials as their parents, Gen Alpha’s spending habits are often borrowed by the older generation. This is why we see premium products or tech gadgets making their way into young children’s shopping carts, products already embraced by their parents too.

In Pakistan, these consumer behaviours are becoming more visible. Local brands are noticing that Gen Z and Gen Alpha blur the lines of age-specific marketing. From q-commerce to fashion and skincare, the same products appeal to tweens, teens, and even their millennial parents, thanks to a shared digital consumption of content on social media platforms.

These items often gain a cult following through endless appearances across social media posts and stories. The result is the transformation of certain brands into symbols of belonging to an elite, digital-savvy community. Brands that want to thrive in this landscape must stay adaptable and create loyalty among their young customers.

Driving loyalty among Gen Z and Gen Alpha consumers requires brands to go beyond traditional customer engagement. Subscription models, particularly those offering exclusive perks, discounts, and personalised experiences, resonate deeply with these generations who value both convenience and individuality.

Influencers play a critical role in creating awareness and adoption of such programmes, as their endorsements often carry significant weight among young consumers. By offering tailored subscription models, brands can build a loyal customer base that is not just transactional but emotionally invested in their journey.

Leveraging social media platforms for influencer marketing and community-driven shopping experiences are key strategies. Additionally, brands should focus on aligning with the values of these generations, such as environmental and social consciousness. By staying adaptable, companies can build lasting connections with these trendsetting consumers and thrive in the ever-evolving digital landscape.

To capture the attention of Gen Z and Gen Alpha, marketers must understand their unique motivations and preferences. This requires monitoring trends, experimenting with engagement techniques, and building genuine connections. By adopting a data-driven approach, brands can position themselves as meaningful contributors to these tech-savvy, socially conscious consumers’ lives. The brands that succeed will be those that resonate with their values, adapt, and evolve.

The writer is the Marketing Director at foodpanda

Published in Dawn, The Business and Finance Weekly, January 20th, 2025