It’s a Zoomer’s World, We’re Just Living In it
There is no question that the Covid-19 pandemic has fundamentally impacted all our lives over the past two years. However, its enduring impact on Millennials, Zoomers and Alphas cannot be underrated.
For these younger generations (particularly our Zoomers and Alphas), their formative years (and a major percentage of their lives) have been shaped and disrupted by the Covid-19 environment as well as broader political, economic, societal, and technological changes.
With disruptions to socialisation, education, work and family life, the behaviour of these future consumers is set to be unlike any generation that has preceded it.
Compared to these younger generations, the last two years are a mere blip for Boomers and Gen X consumers. Making up a small percentage of their lives, these consumer groups are far more likely to revert to pre-pandemic behaviours cultivated in those more character-defining years.
Zoomers and Alphas on the other hand are far less likely to revert to pre-pandemic behaviours. Rather, these younger generations, and particularly those in lockdown heavy countries (China) and states (Victoria) are likely to feel the lingering effects of Covid-19 for years to come.
As Zoomers and Alphas are quickly exceeding the previous generation by population, this is likely to have a radical impact on the retail landscape.
Already we have seen the accelerating effects of Covid-19 on the retail sector. In addition to the acceleration of pre-existing trends, the past two years have given rise to the emergence of entirely new trends. Despite the uncertainty caused by the crisis, what is clear is that retail has come through it as a changed sector.
While the impact of Covid-19 on the retail industry has garnered much interest and discussion, much of this discussion has focused on short-term consumer metrics and stimulus. A band-aid on a bullet wound, this approach is highly reactive and comes at the cost of investing in a more robust long-term strategic vision.
What does this mean for the retail industry?
Retailers and logistics must cater to the Alpha and Zoomer consumer if they are to compete.
1. Digital comes first with pure-play retailers setting new industry benchmarks
2. Convenience is key. Free same day delivery (across 7 days a week) and free returns are now the minimum consumer expectation.
3. Sustainability is a key consumer driver
4. Physical stores must provide in-store experiences that cannot be replicated online. Convenient, experiential retail is the future.
