The Gist: From 2016 to 2017, the percentage of Gen Zers who say they are “Very Loyal” to their favorite brands rose from 28% to 31%.
A few months back, we reported on Millennials’ gradual move away from brand loyalty. Citing various theories, we realized this may not be the fault of any single generation or brand. Rather, for Millenials, “new” may now just be more valuable than “known.”
In the initial research, we skipped one generation that has been gaining significant esteem: Gen Z. These entrepreneurial teens are changing the landscape for many industries, and others are eagerly awaiting their steps into discretionary income.
When these kids reach adulthood, will their affinity for their favorite brands mirror that of Millennials, or will “known” make a comeback?
As you can see, this graph looks a bit different than our report on Millennial brand loyalty. Evidently, Gen Zers who are “somewhat loyal” to their favorite brands are on the decline, while those with high brand loyalty are rising. Though this rise is somewhat small (3 percentage points from 2016 to today), it may have interesting implications.
If this trend doesn’t stagger, and brand loyalty continues to rise among Gen Z, brands may be in luck for a segment that they don’t have to win over each and every day. Again, this is early speculation, and will most likely shift one way or another as this generation ages and gains spending power.