Hello everyone and welcome to our newsletter on all things Gen Z.

🎉🎉🎉🎉🎉

Gen Z is the most globally connected demographic in the world. Social media natives, news from Korea is as accessible as news from Kansas or Kent. Our deep dive survey reveals that the hopes and dreams of this international community are surprisingly similar - and two words can sum them up, climate (make it better) and equity (make it fairer).

But, as we also say with monotonous regularity, never treat the next generation of consumers as a homogeneous lump. Experiences within countries and between nations are very different. This week we have seen (and do read back our earlier newsletters on this trend) more evidence of Gen Z’s spending power in the US and the UK. Global leisure retailer JD Sports announced ever higher profits off the back of Gen Z’s passion for affordable luxury - in this case sparkling white trainers.

In China, the story is more complicated. High youth unemployment (1-in-5 people aged 16-24 are out of work) is being reflected in a new social media trend “My Real Savings at 26”. The equivalent of 14 cents, says one post on Weibo, a similar platform to Twitter. Working from pay-check to pay-check is commonplace.

But, but, but . . .

What does that mean for brands? Well, not what you might think. Just as in the west, Gen Zers in China like their luxury affordables as well - so spend to their limit.

Go figure.

Debt bombs . . .

This desire to spend is having knock-on effects in other parts of the Gen Z world. The next generation are missing credit card repayments, and the return of student debt payments later this year could cause more problems. According to the New York Federal Reserve, 8% of credit card debt among 18-29-year-olds has entered what is called “serious delinquency” between January and March - up from 5% a year ago. By last summer, 36% of Gen Zers had student debt, averaging $20,900. While Gen Z are diverse and have varying access to wealth, one common need is clear - help to navigate financial issues.

. . . so I’ll be cash-stuffing

Speaking of financial smarts (and a lack of), here’s a new money trend we’re seeing on TikTok: “cash-stuffing”. Yes, that means literally stuffing cash into an envelope to save it for specific needs. While we might raise an eyebrow at this retro savings method, there’s something human and emotion-driven at play here. The physical act of holding onto cash helps people feel in control of their money, and the simplicity is in stark contrast to the rise of budgeting apps, crypto-currencies and investment platforms.

Which probably won’t lead to lower anxiety . . .

To mark Mental Health Awareness Week, Channel 4 has explored the biggest drivers of anxiety for 16-24-year-olds in the UK. The results are stark, especially when it comes to triggers around work/education and finance (the numbers expressing concern about finance are eye-popping). Click here for a summary of the data, where you’ll be pulled in by the top lines - and certainly hang around for the solutions-focused suggestions on what might help.

. . . but dressing to stand out might

If you work with young people, you might have noticed the prevalence of certain fashion trends: cargo pants, cult trainers, (anything but skinny) jeans. And while the casualness of office dress has been a conversation for decades, the current Gen Z flavour is less about what’s acceptable and more about embracing and expressing who you are through your clothes. This trend for “less formal” is fuelled by post-pandemic ways of working, where boundaries are relaxed. But we think there’s something more at play here. It’s about wanting to work in a world where you can show more of who you are, and know this doesn’t mean you’re any less good at your job.

And finally…

37%

Percentage of Gen Z who "believe in God", compared with 48% for millennials and just over 50% for Gen X. Although the next generation are less “religious”, they are more “spiritual” with 51% believing in life after death - the same number as older populations.

So, if you mess it up on this Earth, you might just get a second chance.

Have a good weekend everyone, and see you next Saturday.

How can we help?

In my many travels and conversations, I’m increasingly talking to CEOs, executives and civil society leaders wanting to better understand the next generation of consumers and the next generation of employees. Gen Z is putting pressure on us all to transform in fascinating ways, and many of us are asking questions about how to cater for younger workers and future proof our organisations.

If this sounds like you, we’d be keen to have a chat and see if TNM can help. From our own content production to work we have done, for example, with The Oliver Wyman Forum, we have a raft of insights and data which can support you. We work closely with a number of global organisations – helping with high-impact story-telling, digital media, internal communications, through to employee benefits, HR and working structures.

Email me direct and all of us at TNM look forward to speaking further.

Kamal Ahmed
Editor-in-Chief and Co-founder
The News Movement