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Jul 17

The checklist on getting to know Gen Alpha for Retail Brands

Updated: Jul 30

Generation Alpha are not only tomorrow's consumers, but also have a significant influence on family decisions and spending today. And, while marketers are currently preoccupied with how to engage Gen Z, we are seeing this focus shift as Gen A become increasingly important consumers. This makes this demographic important to brands and marketers, and those who aren’t considering Gen A in their marketing strategies are missing a trick. The good news, for brands that have invested in understanding Gen Z, is that they are not too different from Gen A. But Gen A is a fast-moving and increasingly discerning group, so grabbing the attention of this youngest cohort of consumers is no easy task.  

Brands looking to tap into this generation need to be visible across the myriad of touchpoints that our youngest generation of digital natives engage with – from YouTube to Roblox to the High Street. At Beano Brain, we have observed and listened to kids and teens aged 7-14 across the US and UK to find out exactly what makes a brand cool for this generation, and from the 120,000 responses, we ranked the 100 Coolest Brands. So, what do these findings mean for retail brands looking to engage this emerging demographic as we move further into 2024?  

Authenticity is paramount  

We have noticed an increase in holding brands accountable and only engaging with brands that they believe have strong values that match their own. We are seeing more and more often that Gen A is more critical than the generations before them and won’t have the wool pulled over their eyes.  

Doing the right thing is a mandatory hygiene factor for them and no longer a nice to have. Kids tell us about their efforts to do due diligence on the brands that they buy from and often conduct their own research into brands to ensure they align with their own beliefs, such as looking into which skincare brands test on animals or whether the influencer that promotes them reflects their values. Just look at YouTuber Ali A, who got called out for click-bait content. This generation is well equipped with information to determine when a brand is being authentic. Any brand that does not live up to or exceed expectations can expect to be called out. Truly authentic brands that have a strong value system and demonstrate that consistently are the ones that rank highly in kids' perceptions of “cool” (referenced in our Coolest Brands report for 2023).  

Salience is key  

A successful brand must capture both the hearts and minds of its audience and kids instinctively love brands with salience and a clear proposition. There is no brand that demonstrates this more clearly than Nike. Nike is the cultural uniform for kids and teens. Its slogan and logo are instantly recognisable and provide kids with an accessible, cool way to ‘fit in with the crowd’ – it’s not about any one elite sportsperson; anyone can “do it”. Granted they have a huge marketing budget, but this clear brand position gives Nike both strong salience while being easily seen as a “brand for me” by all kids, however they want to move. Brands that don’t employ this level of salience will be demoted to a trend. Remember Prime? Logan Paul and KSI's viral drink that took the world by storm. It was all the kids talked about for three months, and they spent a lot of money on it, collecting drinks and even displaying their bottles. But it didn’t make it into the top 50 of our Coolest Brands ranking for 2023.  

Yes, they had a great platform with two huge influencers and kids understood the what? but they failed to communicate the why? Without a strong purpose the brand is yet to rank high as “cool”. Think beyond digital While Gen Z’ers are digital natives, Alphas are digital savants, having been born into a world of digital devices such as sophisticated smartphones and smart home assistants. So it's understandable why digitisation is front of mind for retailers. But what they may not consider is that kids LOVE in-store shopping. For these nascent shoppers, seeing their purchases, trying them on, touching them, and sharing them with friends and family is important. And the brands that enable kids and teens to thrive in their retail spaces, making them feel included and allowing them to socialise, will win with this demographic.  

Over the last year we have seen a rising trend of skincare and beauty among a younger demographic – be it the clean girl aesthetic, preppy aesthetic or the Gilmore Girls aesthetic – most young girls will have an aesthetic they are aiming for. As part of these aesthetics, driven largely by TikTok, YouTube and their favourite influencers, we are seeing a growing interest in skincare products such as Sol de Janeiro and Drunk Elephant. These products are aligning with the certain aesthetics with their funky branding and choice of endorser. But the place that is bringing all of these things together from a retail perspective is Sephora.  

Sephora is winning with this demographic because it has taken all of the areas that this demographic is showing interest in online, e.g. the interest in aesthetics and the desire for particular products, and created a really nice and accessible shopping environment. There are no barriers to entry – tweens are welcomed in store the same way as older Gen Z – and their consultants are like big brothers and sisters who will spend time with the tweens and make them feel valued. Sephora is a perfect example of using both its digital and in-person spaces and pooling these resources together to create an environment that works for the future consumer. 

Resellers are winning  

Reselling is not a new phenomenon. Boys have been reselling games and consoles for a while and are conscious that if they want the newest game or console, they will have to sort it themselves. What we are seeing though, is a big rise in clothing resale platforms for girls, in particular Depop and Vinted.  

Gen A is more overtly aware of financial strains than generations before them, and we are seeing kids and tweens running their own vintage resale sites to fund their lifestyles. And not just reselling – but creating and actual selling too. One example we have seen is a young girl creating and selling jewellery on her own Etsy shop so she could buy her first guitar.

This generation is the first to have such a barrier-free experience when setting up their own businesses. And this is shining through in their habits. It is now cool to have a vintage pair of trainers. Down both to their economic value and also from a sustainability lens. As Gen A matures, they will become increasingly important to brands and marketers. Brands must take a sophisticated approach, focusing on authenticity, salience, and a comprehensive understanding of their end consumers' desires and needs. But, more importantly, brands must remember that Gen A is not just the next generation; they are the now generation, and if they are not already a part of your marketing mix, now is the time to start.

If you'd like to know more about our research, contact the team or sign up to our Neuron newsletter.

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