Over the next 10 years, up to $8.6 trillion in assets will be transferred to younger generations. It will be history’s biggest-ever transfer of wealth and power as the so-called ‘boomers’ retire and die, and the younger cohorts take over with very different experiences, assumptions, habits, and values. Gen Z is among the key beneficiaries of this wealth. The TikTok generation may be coming of age at a tumultuous time, but as its sphere of influence increases, it is set to disrupt every industry, according to GlobalData, a leading data and analytics company.
GlobalData’s latest report, “Generation Z in Tech, Media, & Telecom” looks in detail at the key attributes of Gen Z and how they impact businesses, both employees and consumers, in the tech, media, and telecom (TMT) industry. The report focuses on the key areas in which Gen Z interacts with and influences technology: the workplace, the home, and entertainment. It also highlights key players developing new products and services attuned to Gen Z’s core preferences.
Mike Orme, Consultant, Thematic Intelligence team at GlobalData, comments: “The troubled and singular TikTok generation, Gen Z, is coming of age in an increasingly disrupted world. Gen Z has very different values and habits compared to the generations currently in charge and faces far worse economic prospects than its parents. Intergenerational tension is rising in the developed world as populations shrink and age. The urbanized youth cohort in China is radically out of sync with the underlying Confucian culture and family-based tradition. This presents a major challenge to President Xi’s regime, especially as over 20% of young graduates are unemployed or underemployed.”
Transcending national boundaries, Gen Z has a large impact on the digital space, informing online trends and being greatly influenced by them. While many generations use social media, it is Gen Z’s native domain. In using social media, Gen Z interacts with online influencers daily. With influencer culture comes the influencer advertising industry that enables millions to earn six-figure salaries from content creation.
Amna Mujahid, Senior Analyst, Thematic Intelligence team at GlobalData, comments: “Since 2020, influencer culture has entered a new stage of maturity. An entire generation of early influencers is retiring, and social media platforms, such as YouTube, have introduced creator training programs to develop the influencers of tomorrow. With the industry’s growing maturity, viewers are more critical of their parasocial relationships with influencers. The “cancelling” of harmful creators is commonplace, and viewers demand new standards for disclosing advertising. Consequently, influencers must work harder to prove their authenticity to viewers. However, despite this drive for truth and authenticity, new ways of submerging advertising within content creation continue to emerge to target Gen-Zers. For example, the recent trend of “de-influencing” began as a response to overconsumption, e.g., of fast fashion, but has morphed into another way to sell dupe products and experiences.”
The dependence on the digital world and the need to tie it to the daily realities of the physical world is a notable trend among Gen-Zers. Gen Z demands immersive experiences in shopping, working, schooling, and entertainment. The movement towards an increasingly interconnected world will not slow down and is especially demanded by this digital-first generation.
Martina Raveni, Associate Analyst, Thematic Intelligence team at GlobalData, adds: “Technology is at the heart of entertainment for Gen Z, and companies that want to win over Gen Z cannot ignore the virtual world and all its possibilities. Esports and the metaverse are gaining popularity among Gen Z. Indeed, video games like Fortnite, Minecraft, and Among Us are especially popular with Gen Z, as is the practice of streaming and watching gaming content on platforms like Twitch and YouTube. This popularity of gaming among Gen Z will naturally transition into metaverse applications as Gen Z demands an increased connection between their physical and virtual worlds. Furthermore, Gen Z gamers consider the virtual world a place to escape the real world and freely be themselves, experiment with their identities, and create new relationships.”
