Gen Alpha Retail
New Advantage Unified Commerce Research: Gen Alpha’s Growing Impact on Retail
Advice For Brands Developing Gen Alpha Commerce Strategies
Gen Alpha, the generation of people born between 2010 and 2025, comprises over 12% of the U.S. population and is poised to revolutionize commerce. Growing up in a world of unparalleled digital connectivity, this generation presents both unique challenges and immense opportunities. The most effective way to develop omni-commerce strategies for Gen Alpha is by focusing on their parents' perspectives.
The latest research from Advantage Unified Commerce reveals insights about Gen Alpha and their parents that can fuel shopper-centric brand building for CPG manufacturers.
Digital Natives Redefining Commerce
Gen Alpha is reshaping the digital commerce landscape. Over 80% of parents report that their children under 14 have access to digital devices like tablets, smartphones, and gaming consoles. These kids are discovering new products on YouTube (55%) more than through friends (46%) or family (41%). Although only a third can make purchases on their own, their influence on parental buying decisions is profound, with 95% of parents acknowledging this impact. Gen Alpha’s early brand awareness, driven by digital engagement, shows that while they may not be purchasing directly, they are key influencers in shopping decisions. One of our teammates shared a personal example of his son creating a holiday wish list on Amazon at just three years old.
The Power of Relatability
Parents' nostalgia significantly influences their purchasing behaviors, with 80% feeling it's important to pass on beloved aspects of their childhood to their kids, and nearly 50% buying products they cherished growing up. However, many of these brands may no longer resonate with today's kids, creating a cultural commerce divide. Brands need to ensure their products excite both parents and children.
Navigating Family Dynamics
Despite concerns over screen time, 90% of parents report that their kids still greatly enjoy face-to-face time, with family time being their top interest. Additionally, 89% of parents enjoy joint screen time with their kids (and 1/3 do so frequently), creating two key opportunities for brands: 1) Encourage offline activities that families desire, and 2) Develop digital experiences that parents and Gen Alpha can enjoy together.
The Importance of Omnichannel Strategies
While 63% of Gen Alpha’s parents shop online, in-store shopping remains dominant (78%), with 75% of kids accompanying their parents on these trips. This highlights the critical need for a seamless omni-channel approach that integrates both physical and digital shopping experiences.
The Future of Retail
Understanding Gen Alpha’s consumer behavior is vital for businesses aiming to stay ahead. Their digital savviness and influence on household purchases are already shaping retail trends. As Gen Alpha matures, their comfort with technology will make them game-changers in the industry. However, their spending power is still a decade away. In the short term, brands must adapt by understanding parents' mindsets and the barriers and play a role in helping bridge the cultural divide. Those that can effectively engage both Gen Alpha and their parents through a seamless omni-channel experience, while addressing the need for both digital and in person connectivity, will be well-positioned for success in the evolving retail landscape.
Want to learn more about Gen Alpha’s impact on commerce? Drop us a line.