April 22, 2025 • 27 mins
Meet Generation Alpha – children born after 2010 who are already reshaping retail landscapes globally. In this eye-opening conversation with Madison McBride, senior analyst at McMillanDoolittle and member of the Young Ebeltoft Group, we uncover surprising insights about tomorrow's power consumers.
While you might assume these young consumers are too young to matter yet, the data tells a different story. With over 80% of Gen Alpha already wielding pocket money and significant influence over family purchasing decisions, they're not just future customers – they're present ones. What's particularly fascinating is that despite being the first generation raised entirely in a digital world, Gen Alpha actively seeks meaningful in-person shopping experiences.
The research, spanning 6,000 respondents across 15 countries, reveals this generation's unique shopping behaviors and brand expectations. They engage with companies through non-traditional channels like gaming platforms, social media, and influencer content. Brands like Claire's, Chipotle, and Allo are setting new standards with interactive experiences that seamlessly blend digital and physical worlds.
For retailers and brands, the message is clear: building authentic relationships with Gen Alpha today is essential for future success. This requires creating compelling in-store excitement, fostering genuine connections through partnerships, producing engaging short-form content, and developing seamless technology integration across all touchpoints.
Ready to prepare your business for retail's next frontier? Discover the complete Ebeltoft Group Gen Alpha study and position your brand to thrive with tomorrow's consumers.
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:07):
Hello everyone and welcome to the Digital Front
Door.
I'm Scott Benedict.
Throughout my career inretailing, first as a retail
merchant, as an e-commerceexecutive and now as a
consultant, one of the mostconsistent elements of success
in any of those roles, indeedacross retailing as a whole, has
(00:28):
been the study of consumerinsights.
Data that informs us about howconsumers are shopping, what
their tendencies are, what theirpreferences are, have always
been invaluable across a numberof different functions within
the broader community of retail.
A particular interest toprofessionals in our industry
(00:50):
are studies about particularconsumer segments, highlighted
by things like demographics orpersonal characteristics like
age, gender or marital status.
Geographics where the customersare located, not only in
particular areas, but ruralversus urban versus suburban.
Behavioral tendencies, some oftheir buying habits or how they
(01:14):
choose to shop.
And psychographics, things likelifestyle, their personal
interests, their opinions onissues of the day.
All those provide a fascinatingpicture of consumer groups that
retailers use to make gooddecisions about the products
that they carry and how theymarket to particular consumer
(01:35):
segments.
Now, recently, I came acrosssome fascinating data on a
consumer group that not much hasbeen written about yet, but
about which an interestingpicture is beginning to emerge.
That group is referred to asGen Alpha, or consumers that
were born since 2010.
(01:55):
Now, it might not seem thatthat particular consumer group
is old enough perhaps they're abit too young to garner much
attention, but the insightsrooted in this particular group
are fascinating and foretell alot about the future of retail
markets, both here in the US andaround the world.
A study I'm referencing waspublished by the Ebeltoff Group,
(02:19):
a global alliance of retail andbrand consulting firms working
closely with clients around theworld.
My colleagues at Chicago-basedMacmillan Doolittle are members
of the Apple Talk Group, andMadison McBride serves as a
senior analyst at the firm, andshe joins us today from Chicago.
Maddie, welcome to the program.
(02:39):
I'm so excited to have you herewith us today.
Speaker 2 (02:42):
Thanks, yes, great to be here, excited to have you
here with us today.
Speaker 1 (02:45):
Thanks, yes, it's great to be here, awesome.
Why don't we start, maddie,with talk a little bit about
your role as a board member inwhat is called the Young
Ebeltoft Group, and that's agroup within the broader
Ebeltoft Group organization.
Can you maybe describe a littlebit about that initiative and
why it was formed?
Speaker 2 (03:01):
Sure, so Young.
Ebeltoft is a group of Gen Zand millennial consultants from
all over the globe, and ourpurpose for starting the group
was really to elevate emergingconsultants voice within the
retail industry.
We believe maybe I'm biased,but we have a unique perspective
to bring, given that we'reoften the target audience of
(03:24):
brands and retailers.
Today, we have a differentreference point when it comes to
what it means to shop, how itmeans to shop, and so we
gathered voices from all overthe globe Netherlands, south
Africa, canada and more and werecently published this work, a
Gen Alpha study, and we wereable to reach over 6,000
(03:47):
respondents over 15 countries,and we talked directly to the
parents and caretakers of GenAlpha really to understand their
values, their motives, howthey're shopping today, their
interest and what it means forretailers.
So that's a little bit aboutthe group, their interest and
what it means for retailers.
Speaker 1 (04:07):
So that's a little bit about the group, Awesome.
So I think probably the firstquestion a lot of our viewers
will likely have is why studythis particular group now, given
that the oldest members of thissegment have not even reached
adulthood yet?
Speaker 2 (04:21):
Right.
So a little bit of contextwhich you provided earlier.
Right, so you know a little bitof context which you provided
earlier Gen Alpha being bornbetween 2010 and 2025.
The oldest are around 15 today,so still pretty pretty young,
and often parents aremillennials, you know, siblings
of Gen Z.
But really the big takeawayhere is, although they are young
(04:42):
, gen Alpha is already yourcustomer.
So I kind of mean that in twomain ways First, gen Alpha
already has their own money tospend.
We find that in our study, over80% of Gen Alpha has pocket
money money from specialoccasions, chores and they have
the freedom to spend it howthey'd like.
(05:05):
And secondly, you know GenAlpha we find influence parent
shopping decisions, both in whatto buy and also where they're
shopping.
You know, in terms ofcategories, we find obviously
toys, but also sporting goods,activities parents are bringing
their children into the familydecisions on what to buy.
(05:27):
And then, lastly, also kind ofinteresting, we find that Gen
Alpha are really tuned intotrends in terms of fashion,
beauty, culture.
Over 45% of our respondentsmentioned that they follow along
on these trends.
I think it's kind ofinteresting, comparing even to
(05:48):
Gen Z, as I am myself, when myfriends and I look back at
photos of ourselves when we were10, 12, we're wearing baggy
t-shirts, we're wearing Nikeshorts, crew socks, and then,
when we see Gen Alpha today,they're wearing crop tops and
they have a full face of makeup.
So it's just, it's reallyinteresting, even comparing you
(06:10):
know, from my perspective as aGen Z, to our Gen Alpha
counterparts.
Speaker 1 (06:16):
That's neat, and it's interesting that one of the
elements of this study thatreally stood out to me was the
finding that Gen Alpha reallydoes enjoy shopping in physical
stores, not just online.
Can you share a little bit moreabout that?
Speaker 2 (06:33):
Sure.
So an important context aboutGen Alpha is they are the first
generation to fully grow up inthis digital world, even more so
than Gen Z.
I was getting my Instagram, myphone, in late middle school,
early high school, whereastoddlers today are carrying
around tablets.
(06:54):
Kids are doing all of theirschool online or back in COVID,
but that's trickled.
But, yeah, the impact of COVIDin early childhood, early school
years so we're, you know, animportant context is really
being the first fully digitalgeneration when the store comes
into.
That is that we're starting tosee this swing into, you know,
(07:17):
an emphasis both on the parentside and kids seeking out, you
know, in-person experiences,hands-on, immersive, screen-free
activities.
Our research finds that thenumber one worry of parents
today when it comes to their GenAlpha kids is over-dependence
on technology on screens.
(07:38):
That was, across every country,as the top-rated issue.
So we're seeing this swing tomore of an in-person experience
With that, I think, because it'sso easy for Gen Alpha and so
typical and normal to be able topurchase anything in a click of
a button, get things fast, getthings cheap, get things easy.
(07:59):
The in-store experience has togive them a reason to come, and
so we're finding immersiveexperiences, hands-on pop-ups
really connecting with Gen Alphaon pop-ups really connecting
with Gen Alpha.
Speaker 1 (08:20):
You know, it's very clear, and you kind of make the
point, that they have beendigital natives since birth and,
while that is not surprising, Iimagine that there are some
non-traditional communicationchannels, so things like social
media, online gaming, streamingservices that are, I suspect,
big influencers of the brandpreferences of this age segment
(08:41):
as they come into their adultyears and as they come into peak
spending years.
Is that accurate?
Speaker 2 (08:49):
Yes, absolutely.
So what we're finding herereally interesting is that
non-traditional channels and Imean social media, gaming,
influencers, streaming have astronger influence over purchase
decisions compared totraditional channels.
So cable print publications,radio ads, and so, with that,
(09:20):
some of the emerging channelswe're seeing.
We've talked about Roblox andthe metaverse for a while now,
but Roblox still being veryrelevant, youtube, fortnite,
tiktok TikTok being short formvideos being really important
here.
So, kind of in terms of thechannels and driving down a
little bit deeper when it comesto social media, we're finding
the brands that are winning withGen Alpha are the ones that
(09:43):
aren't just selling theirproduct but selling more of a
personality to their customers.
A fun example Sour Patch Kids.
I mean they've been aroundforever, but on Instagram, I
mean they have over 800,000followers, um, and when you
scroll through their page it'squite interesting.
There's a few, you know,product pages or product images
(10:05):
here and there, but really it'smostly memes and videos and it's
taking their little sour peopleand bringing them to life and
you know it actually gets a tonof engagement through their
social media for their unhingedcontent.
So, you know, being able tohave more of a personality and
connect with customers andconsumers that way.
(10:27):
We're finding to be veryfascinating, to be very
fascinating.
And also I alluded to the ideaof short form content.
Being able to stay on trend andhow you're connecting with your
consumers is crucial.
Trends are just every day a newtrend is popping up and brands
(10:48):
can't spend months and monthsbuilding a campaign when maybe
they'll need to really jump onthe next thing that is, speaking
to their consumers.
So that's also very criticalthat we're seeing.
And then, lastly, somethinginteresting when it comes to the
non-traditional channels isoften Gen Alpha are learning
(11:11):
about your brand for the firsttime through these influencers,
through more secondary sources.
So, while your own social mediapage is really important,
finding ways to get your brandout there through social media,
but not directly.
So an example of this, a trendthese days I watch this on
(11:31):
TikTok too but a trend are theseget ready with me videos.
So essentially, an influencerwill set up their phone while
they're getting ready.
They're just showing theirmakeup, not talking really about
it, but just showing it anddoing it, and I know it kind of
sounds silly, but they're verypopular.
And so how are you getting yourproduct in the hands so that
that's being shown and peopleare seeing that and there's a
(11:53):
ton of these 10-year-oldinfluencers are actually blowing
up.
So I don't know how Ipersonally feel about that, but
that's something that we'reseeing.
Speaker 1 (12:04):
Yeah, it occurs to me , as we're talking and as you
were sharing, that that onedifference about Gen Alpha
versus prior generations is, asmany cases some of the older
generations were very influencedby their parents, and it sounds
like what you're saying is GenAlpha has a lot of other
influences that guide theirinterests, their brand
(12:25):
preferences and that sort ofthing.
Is that fair?
Speaker 2 (12:27):
to say, yes, definitely, you know, word of
mouth still being the top way ofyou know hearing, but those
coming to discussion throughthese more viral moments.
Speaker 1 (12:39):
Gotcha.
So one of the best practicesthat the report highlights on
Gen Alpha's interest is theirinterest in interactive content,
Some of the things that you'rementoring, influencer
collaboration and more.
I guess the thing that occursto me as a retailer is are there
(12:59):
any retailers that are reallydoing a good job or perhaps
setting the standard in terms ofhow they're getting ahead and
building relationships now witha Gen Alpha consumer while
they're young to set themselvesup for the future?
Any good examples out there?
Speaker 2 (13:19):
Sure, one that I'll talk about is Claire's.
So you know, accessory beautycompany for kids.
But recently they launched thecollab which they worked with
they call it Gen Z and Alphainfluencers in order to bring
(13:39):
them in and to building thedirection of the brand, and
through that they createdinfluencer campaigns.
They have product pages on theClaire's website where you can
go to you know, if I was aninfluencer it would be, you know
, maddie's page with my curatedselection of bracelets and
(14:01):
makeup, um, so really connectingyou know, the those out there
that Jen Alpha already watchingGen Z are already connected to
um and kind of bringing theminto their brand.
But, you know, wanting to callout it, it feels very authentic
in the way that they're doing it.
It's not just, you know, let mekind of have this person you
know talk about my product.
(14:21):
It's really bringing them in tohelp create the future of what
Claire's looks like and thenalso talk about, you know, how
the brand resonates in theirlife today.
And with that I'm talking moreabout digital channels that
they're showing up, but we alsosee in-store collaborations,
we're seeing events, interactivecampaigns.
(14:44):
So, again, not just thatdigital focus but focusing on
kind of every channel.
Really, how are you connecting?
Speaker 1 (14:52):
So any particular best practices or things that
you think are you'd recommend toclients that want to get ahead
on building relationship withthis consumer segment?
Speaker 2 (15:07):
Yeah, I would say, you know, creating authentic
connections in terms of you know, an influencer or a partnership
, you know kind of Gen Alpha cansee through, I feel like very
easily like if it doesn't seemgenuine, then it may kind of be
(15:29):
off putting.
And you know, because on onescale it's, you know, being
talked about, it is great andyou want to get your name out
and go viral, but for the rightreasons, obviously.
And um, you know, kids todayare kind of are kind of brutal,
um, so you know, wanting to domore of like an authentic
connection and then again,engagement throughout various
channels, um and experiences,and kids are shopping across
(15:55):
social media, they're shoppingon the website, they're shopping
in store.
So it's the one path that won'treally be enough.
Speaker 1 (16:02):
Gotcha, so it really sounds like you have to engage
them across channels and acrossplatforms, right?
Speaker 2 (16:09):
Yes.
Speaker 1 (16:10):
Yes.
So to be certain, omnichannelis not your concept in retailing
.
But how important isOmnichannel to the Gen Alpha
consumer as they approachincreasing influence on the
retail market?
Speaker 2 (16:29):
Yes.
So in our view, omnichannel isessential.
It's very vital really, becausekids today don't know any
different.
Even I feel like, speaking frommy Gen Z experience, you know
that's just table stakes thesedays, and so you know, being
really intentional on, you know,building that experience and
(16:54):
connecting seamlessly both thein-store and online touchpoints.
But one that I want to bring upthat's maybe not always in the
strategy is kind of thinkingabout these gaming platforms or
thinking about these.
I know metaverse has been abuzzword for a while, but
thinking about how to connectmaybe emerging channels into
(17:17):
their strategy.
So one I'll talk about is isRoblox.
So we're thinking aboutChipotle.
They have this, you know, game.
I actually played it recently.
I was just wanting to test itout to kind of see what the hype
was all about.
And there's this Chipotle gamewithin you know.
So Roblox, you can joindifferent games.
You can.
You have your own character,like it can look like you, you
(17:40):
know.
So it's kind of your, yourdouble, your double and in a
virtual world.
And so for Chipotle, they havethis game where a customer comes
in and you're a Chipotleemployee.
They tell you what you want.
You're building burritos, andthen you can actually.
Yeah, I know it sounds silly,but I mean I'm like I could see
why.
You know, I would do this um inmy free time and you can
(18:02):
connect with um.
You know different peopleacross the globe on it as well,
but you know, somethinginteresting is, yes, that lives
in more of a digital world, butnow there's also ways to redeem
your points in a physical storeor there.
If you're the first one to jointhis game, you could get points
to redeem.
(18:22):
So it's kind of like how areyou bridging now not just your
website and your physical store,but these online gaming
platforms and stores?
Or another example Allo, reallypopular athleisure company.
These days they have a gamewithin the Roblox as well and
(18:43):
you can take your littlecharacter to go on runs or
meditation, and it's a fun waythat they bring their brand to
life.
But now in the store they havelittle stickers at checkout
where, if you scan that whileyou're checking out, you can
redeem a virtual sweatshirtonline.
So again, it's like reallybridging the two, between online
(19:07):
platforms and in-person storesas well.
Speaker 1 (19:12):
That is so neat.
It feels like one of the thingsthat has been truly emerging is
the use of loyalty marketing innew and different ways.
But what you're just describingthere goes beyond the if you
sign up with us, we'll give youa coupon.
It's a lot more interactive toyour point earlier and it feels
(19:33):
like it's a much more buildingof an engaging relationship with
the consumer than perhapsloyalty marketing as we
historically think about it hasbeen in the past.
Speaker 2 (19:44):
Is that safe to say yeah, and I think something
interesting is that, as Imentioned earlier, being able to
purchase online, you cancompare across brand, you can
pair like on Amazon, like that'sjust so typical now and often
you know we're seeing Gen Z andGen Alpha.
You know buying dupes of, youknow brands that are really
(20:05):
popular, but so dupe is aduplicate or you know kind of
off brand that's ton cheaper.
You know not as high qualitybut still like does the trick.
And so you know we're finding,in order to really win them over
, your brand has to like, likehave, you know, a higher kind of
meaning to your, your customer,because it's so easy to buy an
(20:30):
alternative and you know it'sclose enough for many,
especially when they have moneyto spend.
But pocket money and specialoccasion money is different than
maybe a Gen Z-er who has a jobthat they're having that income
from.
Speaker 1 (20:46):
Yeah, it feels like building a relationship with
them now is kind of critical toyour future success with
reaching that segment.
I'm curious what advice wouldyou give, either to a retailer
or to a consumer brand, toprepare for the coming of age of
(21:06):
the Gen Alpha segment that isso large and so influential
already?
It feels like there should bework that they are doing now to
get ready as that populationenters more adult years and has
more disposable income as theygo forward.
Any recommendations or thoughtson things that they should be
(21:26):
doing now?
Speaker 2 (21:28):
Yes.
So, as you mentioned, buildinga relationship with Gen Alpha
today will lead to, hopefully,long-term success.
So really building that intothe strategy now is what we
recommend, and I'll kind of givethree ideas of what to think
about.
First is creating in-storeexcitement, for, as I kind of
(21:52):
mentioned, you need to give GenAlpha a reason to come into your
store.
So a few examples of that youknow creating highly immersive
experiences.
You know here in Chicago we'repreparing for the Harry Potter
store to open up.
You know so really excited tosee how you know they do their
experience there, but veryhighly immersive.
(22:12):
You know what signature itemsare in store that you can't get
online.
Is it a limited edition bagthat's Chicago specific?
Is it generating a little bitof excitement?
I feel like all the storeopenings I've gone to recently
have Chicago branded merchthat's only available the first
(22:33):
few days or something of thatnature.
So generating that in-storeexcitement.
Or another fun example we'reseeing is a lot of jewelry
brands now are havingpersonalization in-store.
So Pandora has their machinethat you can go in and
personalize.
So what about the experience?
(22:53):
Can you not do online and areyou giving Gen Alpha a reason to
come in?
We see a lot of fun pop-upsalso now, or mobile vehicles
that are going to for more Gen Zbut college campuses, or
they're popping up at events inorder to, especially if they're
a digital first company, reallybring their brand to life and
(23:15):
again establish that loyaltyearly on with customers.
Second, I've mentioned buildingauthentic connections.
It's important to docollaborations and partnerships
that amplify your brand, but ina very authentic way.
So we find some that are reallyleaning into goofiness and you
(23:37):
know excitement and that'sreally fun to watch.
And also, with that, you know,providing short form content,
recognizing that Gen Alpha evenmore so than Gen Z, you know
attention span, you know justless relevant, so just needing
to produce, you know, short formcontent that really catches the
(23:58):
attention of this nextgeneration.
And then, lastly, going totalking about just a seamless
integration, seamless technologyand also creating mobile first
experiences, but also thinkingabout the tablet experience.
I think that's something kindof interesting to examine.
I mean, I know you've probablyseen while you're out at
(24:21):
restaurants or you're just outanywhere, you know a tablet is
present.
So kind of what do you?
How are you creating?
I know Chick-fil-A launchedthis like play app where they
have stories and games, and I'vekind of I've noticed you know
that on on tablet screens whileI'm out walking around, so that
there, what gamification are youdoing in order to connect in
(24:44):
that way?
And then, lastly, kind of aswing but what screenless
activities or screenlessexperiences are you bringing to
your customer in order toconnect that way?
So kind of, to sum it up, thatin-store excitement, that
authentic connection andcreating mobile-first and
(25:04):
tablet-first experiences inorder to connect that all
together.
Speaker 1 (25:10):
Well, that is so neat , Maddie, and I appreciate you
joining us today and kind ofsharing insights on this.
I think one of the recurringthemes that I've seen throughout
my retailing career is thatretailers or brands who don't
change, who don't evolve asconsumer segments come of age
and they have new ways ofwanting to be engaged with, of
(25:34):
being sold to and being spokento.
It's really those retailersthat tend to perish over time
and those that stay up-to-date,relevant and engage new consumer
groups while staying true tosome of their existing customers
, those that figure out how tothread that needle, are the ones
that are successful over time,would you agree?
Speaker 2 (25:57):
Yes, for sure.
In our research we did findthat the top brands are kind of
the same ones Nike, walmart,target for the top brands that
can stand the test of time, weare seeing them adapting in
their Nike the in-storeexperiences that really hit the
head on the in-store excitement.
(26:18):
So we are seeing top brandscontinuing if they are investing
in this next generation ofglobal consumers.
Speaker 1 (26:26):
Awesome.
Well again, Maddie, thank youso much for your time, for
sharing your insights on thisstudy, and we really appreciate
you joining us today.
Speaker 2 (26:35):
Thank you.
Speaker 1 (26:36):
All right.
Well, I'll tell you, it sureseems like both retailers and
consumer brands really alwayshave to keep their eyes on the
horizon for what is new and whatis emerging in consumer trends,
both in general andparticularly with younger
consumers whose preferences,whose interests and whose
(26:56):
mindsets may differ than thoseof prior generations.
Consequently, the members ofthe retail community who ignore
a large and increasinglyinfluential customer segment
like Gen Alpha probably do so attheir own risk.
Probably do so at their ownrisk, and so staying attuned to
(27:17):
new consumer groups as they comeof age is of paramount
importance.
Again, whether you're aretailer or a consumer brand.
Now to gain access to theEbeltoff Group's Gen Alpha study
, check out the link there onyour screen for not only this
study but a lot of other reallygreat content that the Ebeltoff
Group and my friends atMacmillan Doolittle create on an
(27:39):
ongoing basis, and you reallyfind it to be a treasure trove
of information about consumersand about the retail community,
not only here in the US butaround the world.
Thank you for watching theDigital Front Door.
I'm Scott Benedict.
Thanks for joining us.
Hello everyone and welcome to the Digital Front
Door.
I'm Scott Benedict.
Throughout my career inretailing, first as a retail
merchant, as an e-commerceexecutive and now as a
consultant, one of the mostconsistent elements of success
in any of those roles, indeedacross retailing as a whole, has
(00:28):
been the study of consumerinsights.
Data that informs us about howconsumers are shopping, what
their tendencies are, what theirpreferences are, have always
been invaluable across a numberof different functions within
the broader community of retail.
A particular interest toprofessionals in our industry
(00:50):
are studies about particularconsumer segments, highlighted
by things like demographics orpersonal characteristics like
age, gender or marital status.
Geographics where the customersare located, not only in
particular areas, but ruralversus urban versus suburban.
Behavioral tendencies, some oftheir buying habits or how they
(01:14):
choose to shop.
And psychographics, things likelifestyle, their personal
interests, their opinions onissues of the day.
All those provide a fascinatingpicture of consumer groups that
retailers use to make gooddecisions about the products
that they carry and how theymarket to particular consumer
(01:35):
segments.
Now, recently, I came acrosssome fascinating data on a
consumer group that not much hasbeen written about yet, but
about which an interestingpicture is beginning to emerge.
That group is referred to asGen Alpha, or consumers that
were born since 2010.
(01:55):
Now, it might not seem thatthat particular consumer group
is old enough perhaps they're abit too young to garner much
attention, but the insightsrooted in this particular group
are fascinating and foretell alot about the future of retail
markets, both here in the US andaround the world.
A study I'm referencing waspublished by the Ebeltoff Group,
(02:19):
a global alliance of retail andbrand consulting firms working
closely with clients around theworld.
My colleagues at Chicago-basedMacmillan Doolittle are members
of the Apple Talk Group, andMadison McBride serves as a
senior analyst at the firm, andshe joins us today from Chicago.
Maddie, welcome to the program.
(02:39):
I'm so excited to have you herewith us today.
Speaker 2 (02:42):
Thanks, yes, great to be here, excited to have you
here with us today.
Speaker 1 (02:45):
Thanks, yes, it's great to be here, awesome.
Why don't we start, maddie,with talk a little bit about
your role as a board member inwhat is called the Young
Ebeltoft Group, and that's agroup within the broader
Ebeltoft Group organization.
Can you maybe describe a littlebit about that initiative and
why it was formed?
Speaker 2 (03:01):
Sure, so Young.
Ebeltoft is a group of Gen Zand millennial consultants from
all over the globe, and ourpurpose for starting the group
was really to elevate emergingconsultants voice within the
retail industry.
We believe maybe I'm biased,but we have a unique perspective
to bring, given that we'reoften the target audience of
(03:24):
brands and retailers.
Today, we have a differentreference point when it comes to
what it means to shop, how itmeans to shop, and so we
gathered voices from all overthe globe Netherlands, south
Africa, canada and more and werecently published this work, a
Gen Alpha study, and we wereable to reach over 6,000
(03:47):
respondents over 15 countries,and we talked directly to the
parents and caretakers of GenAlpha really to understand their
values, their motives, howthey're shopping today, their
interest and what it means forretailers.
So that's a little bit aboutthe group, their interest and
what it means for retailers.
Speaker 1 (04:07):
So that's a little bit about the group, Awesome.
So I think probably the firstquestion a lot of our viewers
will likely have is why studythis particular group now, given
that the oldest members of thissegment have not even reached
adulthood yet?
Speaker 2 (04:21):
Right.
So a little bit of contextwhich you provided earlier.
Right, so you know a little bitof context which you provided
earlier Gen Alpha being bornbetween 2010 and 2025.
The oldest are around 15 today,so still pretty pretty young,
and often parents aremillennials, you know, siblings
of Gen Z.
But really the big takeawayhere is, although they are young
(04:42):
, gen Alpha is already yourcustomer.
So I kind of mean that in twomain ways First, gen Alpha
already has their own money tospend.
We find that in our study, over80% of Gen Alpha has pocket
money money from specialoccasions, chores and they have
the freedom to spend it howthey'd like.
(05:05):
And secondly, you know GenAlpha we find influence parent
shopping decisions, both in whatto buy and also where they're
shopping.
You know, in terms ofcategories, we find obviously
toys, but also sporting goods,activities parents are bringing
their children into the familydecisions on what to buy.
(05:27):
And then, lastly, also kind ofinteresting, we find that Gen
Alpha are really tuned intotrends in terms of fashion,
beauty, culture.
Over 45% of our respondentsmentioned that they follow along
on these trends.
I think it's kind ofinteresting, comparing even to
(05:48):
Gen Z, as I am myself, when myfriends and I look back at
photos of ourselves when we were10, 12, we're wearing baggy
t-shirts, we're wearing Nikeshorts, crew socks, and then,
when we see Gen Alpha today,they're wearing crop tops and
they have a full face of makeup.
So it's just, it's reallyinteresting, even comparing you
(06:10):
know, from my perspective as aGen Z, to our Gen Alpha
counterparts.
Speaker 1 (06:16):
That's neat, and it's interesting that one of the
elements of this study thatreally stood out to me was the
finding that Gen Alpha reallydoes enjoy shopping in physical
stores, not just online.
Can you share a little bit moreabout that?
Speaker 2 (06:33):
Sure.
So an important context aboutGen Alpha is they are the first
generation to fully grow up inthis digital world, even more so
than Gen Z.
I was getting my Instagram, myphone, in late middle school,
early high school, whereastoddlers today are carrying
around tablets.
(06:54):
Kids are doing all of theirschool online or back in COVID,
but that's trickled.
But, yeah, the impact of COVIDin early childhood, early school
years so we're, you know, animportant context is really
being the first fully digitalgeneration when the store comes
into.
That is that we're starting tosee this swing into, you know,
(07:17):
an emphasis both on the parentside and kids seeking out, you
know, in-person experiences,hands-on, immersive, screen-free
activities.
Our research finds that thenumber one worry of parents
today when it comes to their GenAlpha kids is over-dependence
on technology on screens.
(07:38):
That was, across every country,as the top-rated issue.
So we're seeing this swing tomore of an in-person experience
With that, I think, because it'sso easy for Gen Alpha and so
typical and normal to be able topurchase anything in a click of
a button, get things fast, getthings cheap, get things easy.
(07:59):
The in-store experience has togive them a reason to come, and
so we're finding immersiveexperiences, hands-on pop-ups
really connecting with Gen Alphaon pop-ups really connecting
with Gen Alpha.
Speaker 1 (08:20):
You know, it's very clear, and you kind of make the
point, that they have beendigital natives since birth and,
while that is not surprising, Iimagine that there are some
non-traditional communicationchannels, so things like social
media, online gaming, streamingservices that are, I suspect,
big influencers of the brandpreferences of this age segment
(08:41):
as they come into their adultyears and as they come into peak
spending years.
Is that accurate?
Speaker 2 (08:49):
Yes, absolutely.
So what we're finding herereally interesting is that
non-traditional channels and Imean social media, gaming,
influencers, streaming have astronger influence over purchase
decisions compared totraditional channels.
So cable print publications,radio ads, and so, with that,
(09:20):
some of the emerging channelswe're seeing.
We've talked about Roblox andthe metaverse for a while now,
but Roblox still being veryrelevant, youtube, fortnite,
tiktok TikTok being short formvideos being really important
here.
So, kind of in terms of thechannels and driving down a
little bit deeper when it comesto social media, we're finding
the brands that are winning withGen Alpha are the ones that
(09:43):
aren't just selling theirproduct but selling more of a
personality to their customers.
A fun example Sour Patch Kids.
I mean they've been aroundforever, but on Instagram, I
mean they have over 800,000followers, um, and when you
scroll through their page it'squite interesting.
There's a few, you know,product pages or product images
(10:05):
here and there, but really it'smostly memes and videos and it's
taking their little sour peopleand bringing them to life and
you know it actually gets a tonof engagement through their
social media for their unhingedcontent.
So, you know, being able tohave more of a personality and
connect with customers andconsumers that way.
(10:27):
We're finding to be veryfascinating, to be very
fascinating.
And also I alluded to the ideaof short form content.
Being able to stay on trend andhow you're connecting with your
consumers is crucial.
Trends are just every day a newtrend is popping up and brands
(10:48):
can't spend months and monthsbuilding a campaign when maybe
they'll need to really jump onthe next thing that is, speaking
to their consumers.
So that's also very criticalthat we're seeing.
And then, lastly, somethinginteresting when it comes to the
non-traditional channels isoften Gen Alpha are learning
(11:11):
about your brand for the firsttime through these influencers,
through more secondary sources.
So, while your own social mediapage is really important,
finding ways to get your brandout there through social media,
but not directly.
So an example of this, a trendthese days I watch this on
(11:31):
TikTok too but a trend are theseget ready with me videos.
So essentially, an influencerwill set up their phone while
they're getting ready.
They're just showing theirmakeup, not talking really about
it, but just showing it anddoing it, and I know it kind of
sounds silly, but they're verypopular.
And so how are you getting yourproduct in the hands so that
that's being shown and peopleare seeing that and there's a
(11:53):
ton of these 10-year-oldinfluencers are actually blowing
up.
So I don't know how Ipersonally feel about that, but
that's something that we'reseeing.
Speaker 1 (12:04):
Yeah, it occurs to me , as we're talking and as you
were sharing, that that onedifference about Gen Alpha
versus prior generations is, asmany cases some of the older
generations were very influencedby their parents, and it sounds
like what you're saying is GenAlpha has a lot of other
influences that guide theirinterests, their brand
(12:25):
preferences and that sort ofthing.
Is that fair?
Speaker 2 (12:27):
to say, yes, definitely, you know, word of
mouth still being the top way ofyou know hearing, but those
coming to discussion throughthese more viral moments.
Speaker 1 (12:39):
Gotcha.
So one of the best practicesthat the report highlights on
Gen Alpha's interest is theirinterest in interactive content,
Some of the things that you'rementoring, influencer
collaboration and more.
I guess the thing that occursto me as a retailer is are there
(12:59):
any retailers that are reallydoing a good job or perhaps
setting the standard in terms ofhow they're getting ahead and
building relationships now witha Gen Alpha consumer while
they're young to set themselvesup for the future?
Any good examples out there?
Speaker 2 (13:19):
Sure, one that I'll talk about is Claire's.
So you know, accessory beautycompany for kids.
But recently they launched thecollab which they worked with
they call it Gen Z and Alphainfluencers in order to bring
(13:39):
them in and to building thedirection of the brand, and
through that they createdinfluencer campaigns.
They have product pages on theClaire's website where you can
go to you know, if I was aninfluencer it would be, you know
, maddie's page with my curatedselection of bracelets and
(14:01):
makeup, um, so really connectingyou know, the those out there
that Jen Alpha already watchingGen Z are already connected to
um and kind of bringing theminto their brand.
But, you know, wanting to callout it, it feels very authentic
in the way that they're doing it.
It's not just, you know, let mekind of have this person you
know talk about my product.
(14:21):
It's really bringing them in tohelp create the future of what
Claire's looks like and thenalso talk about, you know, how
the brand resonates in theirlife today.
And with that I'm talking moreabout digital channels that
they're showing up, but we alsosee in-store collaborations,
we're seeing events, interactivecampaigns.
(14:44):
So, again, not just thatdigital focus but focusing on
kind of every channel.
Really, how are you connecting?
Speaker 1 (14:52):
So any particular best practices or things that
you think are you'd recommend toclients that want to get ahead
on building relationship withthis consumer segment?
Speaker 2 (15:07):
Yeah, I would say, you know, creating authentic
connections in terms of you know, an influencer or a partnership
, you know kind of Gen Alpha cansee through, I feel like very
easily like if it doesn't seemgenuine, then it may kind of be
(15:29):
off putting.
And you know, because on onescale it's, you know, being
talked about, it is great andyou want to get your name out
and go viral, but for the rightreasons, obviously.
And um, you know, kids todayare kind of are kind of brutal,
um, so you know, wanting to domore of like an authentic
connection and then again,engagement throughout various
channels, um and experiences,and kids are shopping across
(15:55):
social media, they're shoppingon the website, they're shopping
in store.
So it's the one path that won'treally be enough.
Speaker 1 (16:02):
Gotcha, so it really sounds like you have to engage
them across channels and acrossplatforms, right?
Speaker 2 (16:09):
Yes.
Speaker 1 (16:10):
Yes.
So to be certain, omnichannelis not your concept in retailing
.
But how important isOmnichannel to the Gen Alpha
consumer as they approachincreasing influence on the
retail market?
Speaker 2 (16:29):
Yes.
So in our view, omnichannel isessential.
It's very vital really, becausekids today don't know any
different.
Even I feel like, speaking frommy Gen Z experience, you know
that's just table stakes thesedays, and so you know, being
really intentional on, you know,building that experience and
(16:54):
connecting seamlessly both thein-store and online touchpoints.
But one that I want to bring upthat's maybe not always in the
strategy is kind of thinkingabout these gaming platforms or
thinking about these.
I know metaverse has been abuzzword for a while, but
thinking about how to connectmaybe emerging channels into
(17:17):
their strategy.
So one I'll talk about is isRoblox.
So we're thinking aboutChipotle.
They have this, you know, game.
I actually played it recently.
I was just wanting to test itout to kind of see what the hype
was all about.
And there's this Chipotle gamewithin you know.
So Roblox, you can joindifferent games.
You can.
You have your own character,like it can look like you, you
(17:40):
know.
So it's kind of your, yourdouble, your double and in a
virtual world.
And so for Chipotle, they havethis game where a customer comes
in and you're a Chipotleemployee.
They tell you what you want.
You're building burritos, andthen you can actually.
Yeah, I know it sounds silly,but I mean I'm like I could see
why.
You know, I would do this um inmy free time and you can
(18:02):
connect with um.
You know different peopleacross the globe on it as well,
but you know, somethinginteresting is, yes, that lives
in more of a digital world, butnow there's also ways to redeem
your points in a physical storeor there.
If you're the first one to jointhis game, you could get points
to redeem.
(18:22):
So it's kind of like how areyou bridging now not just your
website and your physical store,but these online gaming
platforms and stores?
Or another example Allo, reallypopular athleisure company.
These days they have a gamewithin the Roblox as well and
(18:43):
you can take your littlecharacter to go on runs or
meditation, and it's a fun waythat they bring their brand to
life.
But now in the store they havelittle stickers at checkout
where, if you scan that whileyou're checking out, you can
redeem a virtual sweatshirtonline.
So again, it's like reallybridging the two, between online
(19:07):
platforms and in-person storesas well.
Speaker 1 (19:12):
That is so neat.
It feels like one of the thingsthat has been truly emerging is
the use of loyalty marketing innew and different ways.
But what you're just describingthere goes beyond the if you
sign up with us, we'll give youa coupon.
It's a lot more interactive toyour point earlier and it feels
(19:33):
like it's a much more buildingof an engaging relationship with
the consumer than perhapsloyalty marketing as we
historically think about it hasbeen in the past.
Speaker 2 (19:44):
Is that safe to say yeah, and I think something
interesting is that, as Imentioned earlier, being able to
purchase online, you cancompare across brand, you can
pair like on Amazon, like that'sjust so typical now and often
you know we're seeing Gen Z andGen Alpha.
You know buying dupes of, youknow brands that are really
(20:05):
popular, but so dupe is aduplicate or you know kind of
off brand that's ton cheaper.
You know not as high qualitybut still like does the trick.
And so you know we're finding,in order to really win them over
, your brand has to like, likehave, you know, a higher kind of
meaning to your, your customer,because it's so easy to buy an
(20:30):
alternative and you know it'sclose enough for many,
especially when they have moneyto spend.
But pocket money and specialoccasion money is different than
maybe a Gen Z-er who has a jobthat they're having that income
from.
Speaker 1 (20:46):
Yeah, it feels like building a relationship with
them now is kind of critical toyour future success with
reaching that segment.
I'm curious what advice wouldyou give, either to a retailer
or to a consumer brand, toprepare for the coming of age of
(21:06):
the Gen Alpha segment that isso large and so influential
already?
It feels like there should bework that they are doing now to
get ready as that populationenters more adult years and has
more disposable income as theygo forward.
Any recommendations or thoughtson things that they should be
(21:26):
doing now?
Speaker 2 (21:28):
Yes.
So, as you mentioned, buildinga relationship with Gen Alpha
today will lead to, hopefully,long-term success.
So really building that intothe strategy now is what we
recommend, and I'll kind of givethree ideas of what to think
about.
First is creating in-storeexcitement, for, as I kind of
(21:52):
mentioned, you need to give GenAlpha a reason to come into your
store.
So a few examples of that youknow creating highly immersive
experiences.
You know here in Chicago we'repreparing for the Harry Potter
store to open up.
You know so really excited tosee how you know they do their
experience there, but veryhighly immersive.
(22:12):
You know what signature itemsare in store that you can't get
online.
Is it a limited edition bagthat's Chicago specific?
Is it generating a little bitof excitement?
I feel like all the storeopenings I've gone to recently
have Chicago branded merchthat's only available the first
(22:33):
few days or something of thatnature.
So generating that in-storeexcitement.
Or another fun example we'reseeing is a lot of jewelry
brands now are havingpersonalization in-store.
So Pandora has their machinethat you can go in and
personalize.
So what about the experience?
(22:53):
Can you not do online and areyou giving Gen Alpha a reason to
come in?
We see a lot of fun pop-upsalso now, or mobile vehicles
that are going to for more Gen Zbut college campuses, or
they're popping up at events inorder to, especially if they're
a digital first company, reallybring their brand to life and
(23:15):
again establish that loyaltyearly on with customers.
Second, I've mentioned buildingauthentic connections.
It's important to docollaborations and partnerships
that amplify your brand, but ina very authentic way.
So we find some that are reallyleaning into goofiness and you
(23:37):
know excitement and that'sreally fun to watch.
And also, with that, you know,providing short form content,
recognizing that Gen Alpha evenmore so than Gen Z, you know
attention span, you know justless relevant, so just needing
to produce, you know, short formcontent that really catches the
(23:58):
attention of this nextgeneration.
And then, lastly, going totalking about just a seamless
integration, seamless technologyand also creating mobile first
experiences, but also thinkingabout the tablet experience.
I think that's something kindof interesting to examine.
I mean, I know you've probablyseen while you're out at
(24:21):
restaurants or you're just outanywhere, you know a tablet is
present.
So kind of what do you?
How are you creating?
I know Chick-fil-A launchedthis like play app where they
have stories and games, and I'vekind of I've noticed you know
that on on tablet screens whileI'm out walking around, so that
there, what gamification are youdoing in order to connect in
(24:44):
that way?
And then, lastly, kind of aswing but what screenless
activities or screenlessexperiences are you bringing to
your customer in order toconnect that way?
So kind of, to sum it up, thatin-store excitement, that
authentic connection andcreating mobile-first and
(25:04):
tablet-first experiences inorder to connect that all
together.
Speaker 1 (25:10):
Well, that is so neat , Maddie, and I appreciate you
joining us today and kind ofsharing insights on this.
I think one of the recurringthemes that I've seen throughout
my retailing career is thatretailers or brands who don't
change, who don't evolve asconsumer segments come of age
and they have new ways ofwanting to be engaged with, of
(25:34):
being sold to and being spokento.
It's really those retailersthat tend to perish over time
and those that stay up-to-date,relevant and engage new consumer
groups while staying true tosome of their existing customers
, those that figure out how tothread that needle, are the ones
that are successful over time,would you agree?
Speaker 2 (25:57):
Yes, for sure.
In our research we did findthat the top brands are kind of
the same ones Nike, walmart,target for the top brands that
can stand the test of time, weare seeing them adapting in
their Nike the in-storeexperiences that really hit the
head on the in-store excitement.
(26:18):
So we are seeing top brandscontinuing if they are investing
in this next generation ofglobal consumers.
Speaker 1 (26:26):
Awesome.
Well again, Maddie, thank youso much for your time, for
sharing your insights on thisstudy, and we really appreciate
you joining us today.
Speaker 2 (26:35):
Thank you.
Speaker 1 (26:36):
All right.
Well, I'll tell you, it sureseems like both retailers and
consumer brands really alwayshave to keep their eyes on the
horizon for what is new and whatis emerging in consumer trends,
both in general andparticularly with younger
consumers whose preferences,whose interests and whose
(26:56):
mindsets may differ than thoseof prior generations.
Consequently, the members ofthe retail community who ignore
a large and increasinglyinfluential customer segment
like Gen Alpha probably do so attheir own risk.
Probably do so at their ownrisk, and so staying attuned to
(27:17):
new consumer groups as they comeof age is of paramount
importance.
Again, whether you're aretailer or a consumer brand.
Now to gain access to theEbeltoff Group's Gen Alpha study
, check out the link there onyour screen for not only this
study but a lot of other reallygreat content that the Ebeltoff
Group and my friends atMacmillan Doolittle create on an
(27:39):
ongoing basis, and you reallyfind it to be a treasure trove
of information about consumersand about the retail community,
not only here in the US butaround the world.
Thank you for watching theDigital Front Door.
I'm Scott Benedict.
Thanks for joining us.
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