Generation Z is more diverse and far more digitally savvy than any previous generation. They were born between 1995 and 2010 and make up almost 30 percent of the world’s population. For online retailers like Asos, the fashion-savvy age group already accounts for half of their target audience and will completely overtake millennials in the future.
“We need to understand this new generation if we want to be successful and grow as a company in the future,” said Sandra Kampmann, director of insight and analytics at Asos, during a panel discussion last week on adapting brands to Gen-Z -Market at Shoptalk Europe.
The transition from Millennials to Gen Z is something the retailer has been actively working on for the past several years. “It used to be about finding the customers, bringing them to the site and serving them. You used to be able to score with things like delivery options and payment options that gave you a competitive edge,” Kampmann said in an interview with Sarah Engel, President of consulting firm January Digital. “Today, of course, none of that matters anymore. It’s really about the emotional connection.”
While Millennials have had few exposures to fashion through magazines or television, Gen Z draws inspiration from anything and everything. “Whether you’re taking a picture of strangers or a screenshot on Instagram, all of these things come from qualitative and quantitative research. So you have to find these different access points,” Kampmann explained.
Many of these access points are on social media, allowing businesses to reach and engage their customer base 24/7, from any location. “Every Gen Z person I know has more social media followers than I’ve met in my entire life,” Kampmann joked. “It’s already clear that we have to be present on this channel.”
Merging of shopping and social media
“This leads to a demand for a merging of shopping and social media experiences,” explains Kampmann. By including social media-like features on its website, like “buy the look” and “you might also like” suggestions, or the ability to upload inspirational photos in visual search and share the wishlist with friends, connects Asos these two areas already successful.
The retailer also works with influencers, which are a great way to connect with the target audience. “What this generation and social media is enabling is that we can find role models that apply to us — of all shapes and sizes, no matter what you look like. The Internet and social media make this connection possible,” says Kampmann. According to her, Gen Z uses influencers not only to get inspiration, but also to see what looks good on them and to feel good about themselves and what they buy.
“We are in the process of launching a nano-influencer network, specifically in the US,” announced Kampmann. “It’s really exciting because we’re basically leveraging our own customer base. There are already people who are loyal to Asos – they have a few thousand followers – and they create that connection between us and the consumer.”
Emerging social media platforms like TikTok should not be ignored when it comes to successfully engaging Gen Z, as they offer unique opportunities to connect with a brand’s audience. For Black Friday 2021, Asos launched the #AsosAlterEgo campaign, encouraging users to show off their best and spookiest Halloween transformations to promote the Asos cosmetics line. The retailer leveraged various advertising formats and features that TikTok has to offer, such as a custom “branded effect” that users could use for their challenge to stand out from the crowd.
By partnering with professional TikTokers and encouraging engagement, Asos saw a 219% increase in relevant engagement and a 7.8% increase in brand awareness, according to TikTok for Business. “There was this massive hype that allowed people to be a part of the experience, which is a really big deal,” Kampmann said.
Asos’ head of insights and analytics saw attracting Gen Z as another opportunity that could transform the entire brand image. According to Kampmann, Generation Z starts at a very early age to shape their own life path and to look for educational opportunities that go far beyond what would be considered traditional. “I think that companies have an opportunity here to take a stand when developing their own strategies in this area and to use their platforms to pass on and share their knowledge, research and what they are learning. They will definitely appeal to a large part of this generation that is looking for information and education,” she explained.
This translated post was previously published on FashionUnited.uk.
Shoptalk Europe 2022 took place in London from June 6th to 8th and brought together more than 3,000 participants from more than 70 countries. Follow further coverage of the event from FashionUnited here.