Gen Z through the Eyes of Gen Z

Gen Z through the Eyes of Gen Z

Emily Bagnol, Gabrielle Branis, Rachelle De Guzman, Casey Donegan, Nick Jamison, Kathryn McCray, Steven Ota, Nyle Rioux,
Noah Rodebaugh, Rohit Subramanian, Kenneth Tang, Tanner Thompson, Jeffrey Wallace, Sophia Wang, Gabrielle Yanai
Defining the Generations

SILENT MILLENNIALS
BOOMERS GEN X GEN Z
GENERATION (GEN Y)

SOURCE: FutureCast
2
Overview
• Socioeconomic, Demographic and
Population Trends
• Cultural Trends
• Transportation Trends
• Workplace Trends

3
Socioeconomic,
Demographic
and Population
Trends
 Projected Population
• Expected population increase in the United
States of 98 million people between 2014 and
2060
• By 2051, there will be 400 million people within
the USA
• Population growth is projected to be slower
because of a decline in fertility rates
• By 2060, Gen Z will be at 87 million, making Gabrielle Branis
Fixed Operations Intern
them the biggest generation EASTERN Region

Source: US Census Bureau

Fertility
• Birth rates in women between the
years of 1960 and 2017 declined by
58 births per 1,000 women
• Steady decline between 1960 and 2017
• Hispanic women faced the biggest
drop out of all ethnicities
• White and Asian women did not face as
big of a decline
• Education has a huge affect of timing
for marriage and births
• Low fertility rates could also be
linked to the recession
• More women are in college and the
labor force
 Households in the United States
• Since 1960 to 2018, the number
of households doubled from 53
million to 127 million
• The number of people per
household has decreased over
the last few decades
• Single person households
have risen since 1970
• 83.09 million families with an
average of 3.14 persons in 2018
• Children under 18 living in a
household declined from 56% to
41% from 1970 to 2017

Source: US Census Bureau 7

 Household Profile
Household Size Median Household Income
Living Conditions

“They aren't a
more extreme
2.53 $63,700 version of
millennials, but
are different—
0.1 Less than 1990 $1.3k above Millennials
and that’s mostly
because of
parenting.”
–Forbes

43% 78%
Parents

College-Educated of parents are Gen X

9% more than Millennial Millennials’ parents are 82% Boomers
Source: PEW, Forbes, Bloomberg
 Cost of Education
Average Debt at Graduation: College Attendance

$29,800

59%
6% more than any other generation

Source: The Finance Twins, College Board, CNN

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 Unemployment vs Open Jobs

Job Market
• For Gen Z entering the market, there
are more open jobs than job
seekers

• Over 1.2 million healthcare jobs

are unfilled
• Only industry that will experience
continued growth through 2030
• Over 1 million computer science
jobs are unfilled Employment Growth – All Jobs (through 2026)

Personal Care Aides

Combined Food Prep

Registered Nurses

Home Health Aides

Software Developers

Source: FRED, Bureau of Labor Statistics, McKinsey, Brookings Amount of Growth

 Purchasing Power

Source: Millennial Marketing, Forbes 11

Cultural
Trends
Brand Preferences
• Gen Z values quality and authenticity
• Cares more about price and are not as brand loyal as other
generations

• They want companies that align with values on

diversity, environment, and social issues
o 75% of Gen Z willing to pay more for sustainable products (vs.
51% of Boomers)

• They expect simple and speedy online shopping

experience
o Willing to sacrifice data privacy for more personalized shopping
experience, but over 75% of Gen Z consider leaving a brand
after a data breach

SOURCE: Gen Z Brand Relationships 2017, Inc.com, Retaildive.com

 Mental Health
80 74
• 91% of young adults said they felt 70
70

symptoms associated with stress, such as 60 56

depression or anxiety 50
51
45

• Gen Z most likely to ask for and receive 40 37 35

treatment or therapy 30 26
22
20 15
Gen Z Stressors 10

Helicopter Climate 0
Health Finances Work
parenting change Gen Z Millennials Gen X Boomers Older Adults
•Mental •Student debt •Higher •Gen X •Sustainability % reporting excellent or very good mental health
health •Home education concerns •Activism
•Mass ownership •Job market •Pressure to
shootings achieve % reporting receving help from a psychologist or other mental
health professionals

SOURCE: American Psychological Association, Newsweek, Kantar Consulting

Social Media and Stress
• 55% of Gen Z say that social media provides a feeling of
support
• 45% say it makes them feel judged
• 38% report feeling bad about themselves

• Health-related factors made worse from social media

• Sleep quality/amount
• Fear of missing out
• Bullying
• Anxiety
• Depression

• Gen Z wants to disconnect and engage in face-to-

face interactions
• Spending time with friends and family is a priority
• Value escapism through experiences (e.g. traveling as a local)

SOURCE: American Psychological Association, Internet Trends 2019

 Technology and Social Media
• Gen Z has used technology all their lives with heavy
usage of phones and desktop computers
• Phone usage increased from 8% of the day in 2010 to 33% of the
day (or 3.6 hours per day) in 2018
• Desktop usage decreased from 25% in 2010 to 18% in 2018
• Mobile media consumption has increased
• YouTube and Instagram are the most popular Gen Z media sites

Social Media Sites Usage Desktop vs. Phone Usage

40 40

30 30

20 20

10 10

0 0
YouTube Instagram Facebook Desktop Phone
2017 2018 2010 2018

SOURCE: Internet Trends 2019

Interconnectedness
• Gen Z is interconnected through smartphones
• Used for social media, gaming, and research
• Voice assistant and wearable technology use
is prominent in everyday life
• Amazon Echo installations have increased by 27
million between 2017 and 2018
• Wearable technology (e.g. FitBit, Apple Watch) has
increased by 27 million devices between 2017 and 2018
Millennials / Gen Z

Gen X

Traditionalists / Baby Boomers

0 20 40 60 80

Likes voice-activated digital assistants (e.g., Siri, Alexa)

SOURCE: Internet Trends 2019, Medium.com, Target Marketing Mag

Trend Toward City Migration
Percentage Change in Population for Cities (100,000
people or more) (2010-2013)
SOURCE: U.S. Census Bureau, USA Today, Glassdoor
• Between 2000 and 2013, increase of
24.1 million people living in cities
o This increase was faster than growth rate of
the total US population – 13.9% versus
12.3% over the same amount of time
• Gen Z applying to jobs in large
metropolitan cities – New York, Los
Angeles, San Francisco, Washington D.C.,
Atlanta
• Why? Job availability, cities seen as
entertainment centers, new experiences
Driver’s Licenses in Decline

16-year- 50% 25%

olds in 1983 in 2017

Early 20- 92% 80%

year-olds in 1983 in 2017

SOURCE: Wall Street Journal, CB Insights, The Drive

Gen Z and Driver’s Licenses
• Finances are main concern for Gen Z
• High cost of driver’s education programs, automobiles, and
insurance
• Save money by riding with friends and family
• Helicopter parents can drive around and/or pressure to wait
on getting licenses

• Gen Z migrating to urban cities where having a car

can be unnecessary
• Public transit
• Ride-hailing
• Ride-sharing

SOURCE: Wall Street Journal, CB Insights

Transportation
Trends
 Vehicle Ownership Seen as Less Necessary
"Having Transportation is Necessary, but
Owning a Vehicle is Not"
% Agreed
60% 55%

50% 45%

40% 35%

30% 28%

20%

10%

0%
GenZ Millennials Gen X Boomers

Gen Z and Millennials most likely to say ownership is

becoming too expensive

SOURCE: Cox Automotive Evolution of Mobility

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Personal Transportation Declining
Share of Miles Traveled by Personally-Owned Vehicle*
(if alternatives are widely accessible at Current Pricing**)
Higher average cost-per-mile for vehicle
ownership for those who use a vehicle
at least once a month, but drive it less
due to alternative options available:

Generation
Gen Z Millennials Z $0.71
64% 65%
Millennials $0.79
Generation
Gen X Boomers X $0.56
71% 82%
Baby
Boomer $0.50

SOURCE: Cox Automotive Evolution of Mobility

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Subscription Model Option
42% of non-users cite lack of availability

27% of non-users cite cost

• Majority of respondents prefer subscription to ride hailing or car
sharing if all are available
• Majority interested in non-luxury vehicle subscription, but only current
subscription options are luxury brands
• (Volvo, Mercedes, Porsche, Cadillac, Lincoln, BMW)
• Today, car subscription only accounts for 1% of miles traveled
• Cox predicts subscription will be #1 alternative ownership
model with up to 24% penetration in the future

SOURCE: Cox Automotive

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Challenges for Car Brands
Gen Z looks for uniqueness, individuality,
personalization in vehicles

No manufacturer stands out to Gen Z as

“genuine” or “youthful”

No auto brand is on the list of Gen Z’s

100 favorite brands

Gen Z prefers to buy from brands with expressed

stands on social causes (Nike, Patagonia, etc.)

SOURCE: Kelley Blue Book, Frost & Sullivan, Business Insider

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Shopping Experience
• Most important factor for ideal shopping experience
• Gen Z: Positive dealership and purchasing experience

• Millennials & Gen X: Convenience

• Gen Z wants the dealership to be an experience center

• Test drives are a very important decision-making factor

for Gen Z

SOURCE: Kelley Blue Book

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Smaller, Economical Segments Preferred
• Gen Z segment preferences by used cars purchased

25% Compact Cars

19% Midsized Cars

11% Compact SUVs

• Segment preferences come from Gen Z being more

pragmatic and having lower purchasing power

SOURCE: Kelley Blue Book, Carmax.

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Tendency Toward Pre-Owned
• Gen Z buying 6.5x as many used cars as new cars
• In 2016, Gen Z bought 2x as many 2001-2006 vehicles
as 2016 vehicles
• Most popular Gen Z registrations come from unique
vehicles no longer in production

% of Gen Z Registrations by Vehicle

Daewoo Lanos 7.0% Mitsubishi Lancer 4.7%
Eagle Talon 6.2% Acura RSX 4.7%
Nissan 240sx 5.5% Kia Sephia 4.7%
Acura Integra 5.1% Ford Aspire 4.7%
Honda Prelude 5.0% Daewoo Leganza 4.6%

• Focus on economy and individuality, away from

typical Civic- and Corolla-type vehicles

SOURCE: Cox Automotive, FI Magazine

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Transportation
Technology
Importance of Technology
• Generation Z was raised in the age of
information
• Gen Z and Millennials reported highest
interest in experiencing more technology
integrations in cars
• 73% of Gen Z thinks cars should incorporate more
technology
• 60% willing to switch brands to get tech
• 62% of Gen Z cares more about VR, AR and similar
technologies than automobile technology
• Car connection to wearable devices to
monitor the vehicle status
• Increase the relationship between the driver and
their vehicle
SOURCE: Allison + Partners, GFK Insights, COX Automotive

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Desire for ADAS
• Gen Z cares more about safety than any
other generation
• 42% view proactive safety systems as
important
• 46% seek features that protect from
environmental hazards
• Gen Z is 3x more likely than other
generations to seek wellness solutions
that go beyond active and passive safety
systems
• 43% Gen Z vs. 35% Millennial value safety
features

SOURCE: Allison + Partners, COX Automotive, KBB & AutoTrader

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 Autonomous Vehicles
• 61% of Gen Z feel Autonomous Vehicles will make
roads safer

• 60% of Gen Z believes they will use AVs by 2029

• Gen Z lack of interest in obtaining a driver’s license

• Remember how Gen Z is a stressed generation?

• 65% of Gen Z would use autonomous vehicles for relaxation
• 67% would use for travel convenience

SOURCE: KBB & AutoTrader, Allison + Partners

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Importance of the Brand

53% of Gen Z
Majority of US Gen Z is attracted
agree that most
consumers want to brands that value
important factor
connected car data innovation and
of autonomous
managed by OEMs disruption
vehicles is brand

SOURCE: Allison + Partners, Deloitte

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Opportunities

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Technology Focus
• Opportunities
• Education: Add dealership technology specialists, and
AR/VR product launches
• Include more standard technology on base level cars
• Build trust with Gen Z by emphasizing data security

• Benefits for Kia

• Experiential avenues will increase Kia’s attractiveness to
Gen Z by appealing to their unique attitude and values
• Drive vehicle sales by appealing to Gen Z’s desire for tech
features and innovation, brand authenticity, and vehicle
safety

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Emphasize Certified Pre-Owned
• Opportunities
• Can market Kia CPO to Gen Z through advertising and incentives
on social media
• Provide opportunity for future revenue stream with advanced
connected car features within CPO vehicles

• Benefits for Kia

• High Gen Z used sales provide opportunity to acquire loyal
customers at a younger age
• CPO drives brand loyalty
• 58% of CPO Kia disposers buy another Kia
• 30% of non-CPO Kia disposers buy another Kia

SOURCE: J.D. Power, Proprietary Kia CPO Q1 2019 Sales Report

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Enhance Dealership Experience
• Opportunities
• Test Drive Expansions for Dealership Customers: Leverage dealer’s
Test Drive Program
• KU Collaboration: supplemental interactive tutorials for
employees and customers via social media/online
• Increase Sales-to-Service handoff upon vehicle delivery
• Promote vehicle demonstrations via social media and dealer sites
• Allow brand ambassadors to execute this, too

• Benefits for Kia

• Happy Gen Z customers, and positive, memorable experiences lead
to increased brand loyalty for sales and service
• Gen Z likes posting experiences, which is free advertising for lineup

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Brand Identity
• Opportunities
• Using social media as a forum, purvey a caring and
youthful brand
• Follow trends of the current and upcoming generation, to stay
forward thinking
• Unite around and communicate social causes (such as
sponsoring a recent movement that is relevant to Gen Z)

• Benefits for Kia

• Gen Z customers are more interested in a brand that cares
• Creates a transparent and strong brand
• Specifically targets Gen Z

Source: Allison + Partners

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Subscription Model
• Opportunities
• Create Kia-owned subscription model for Gen Z customers
• Vehicle flat fee per month that includes all maintenance,
insurance, registration
• Focus on accessibility and affordability since these are main
customer pain points with subscription models
• Use former corporate and fleet vehicles
(low mileage but not new) that will not incur as high depreciation
• Benefits for Kia
• Provides first step for Kia into alternative ownership space and
way to get ahead of the trend
• Young buyer customer acquisition and brand loyalty

SOURCE: Cox Automotive

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Workplace
Trends
Life Experiences have Shaped Gen Z’s Views on Work
Compensation & Benefits
Financial Stability & Job Security
• Competitive Pay
Parents’ financial struggles causes Gen
• Health Care Insurance
Z to stress out about their career paths

Opportunities of Advancement Upward Mobility

• Merit-Based Bonuses Gen Z needs assurance that they will
• Promotions be recognized and rewarded for their
efforts
Schedule & Hours Work-Life Balance
• Vacation and PTO Gen Z values opportunity to manage
• Flexibility their own schedules and projects
• Business & Leisure
Good Relationships
Work Environment
40% of Gen Z individuals want
• Comfortable Workspace
(positive) daily interactions with their
• Collaborative, Selfless Colleagues
boss
Empowerment
Management Employees with meaningful work
• Attentive and Active Leaders spend one additional hour working

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 Which Companies Best Balance the Wants & Needs of Gen Z?

These Companies Have One Thing in Common:

Strong Corporate Culture and Brand
Source: Glassdoor.com
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To Be the Best, Learn from the Best

2019 America's Best Large Employers List

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 Holistic - Approach
Shopping List Company Fostering a Culture that Matches
the Brand Identity it Desires to Have

Identified Socioeconomic Trend

→ Of all people qualified to go to college, 60% were going
Targeted its Customer (Not Smarter, but Better-Educated)
→ This newly educated class of people would want something different

Establish Brand Identity that Appeals to the Personalities of the Target Customers
→ The term, “Trader,” evokes the South Seas and the merchandise reflects this
Attract Both Customers and Employees Who Share Similar Backgrounds
→ Sophisticated, well-traveled, and environmentally-conscious, with finer tastes

Source: Harvard Business Review

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 Trader Joe’s Took a Specific Route to Establish its Culture

7 Core Values
1) Integrity
2) They are a product-driven
company
3) Trader Joe’s creates a WOW
customer experience everyday
4) No bureaucracy
5) It is a national chain of
neighborhood grocery stores
6) KAIZEN!
7) The store is our brand

Source: Glassdoor.com
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So What?
Customers

Culture
Brand Employees

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Opportunities – First Steps

• Building a culture and brand takes a holistic approach

where all divisions help shape a uniform company
identity

• An organization with cultural challenges cannot address

everything at once

• Focus on the “low-hanging fruit” – opportunities that can

act as first steps toward building a strong culture and
brand

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1. Recruit Based on Cultural Fit

• Consider the type of benefits that not only cater to young

professionals’ needs, but also their wants (and interests)

• Leverage competitive employee lease program to

attract job candidates who are passionate about the
brand

• Hire individuals based on their values and attitude –

these should reflect the culture the company wants to
cultivate
• Vehicle Lease (incl. Insurance)
• Paid Time Off
• Healthcare Benefits
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 2. Build Culture from the Bottom Up
Pilot Mentorship Program

• Six Month Trial Period

71% of Fortune 500
companies offer mentorship
programs

“Linking up a mature mentor

with a promising protégé is
an excellent way to keep
valued up-and-comers from
• Benefits of Mentorship jumping ship and taking jobs
o Increased employee engagement and productivity.
o Higher employee retention, thus improving an elsewhere.”
organization’s “bench strength”
Source: Wharton Business School, University of Pennsylvania
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Mentorship Benefits All Participants Findings
Sun Microsystems Mentorship Program Case Study

“…researchers also
Non-Participants
learned that Sun’s
Non-
Participants
Mentees Mentors mentoring program was
most effective for the
lowest performers”
Received a Pay 5% 25% 28%
Raise
• Invest in lower performers to
5x more 6x more help raise their level of
Received a Standard than non- than non- performance
Promotion participants participants

• People who are most in need

Retention 49% 72% 69% of guidance benefit most from
Rate having mentorship

Source: Wharton Business School, University of Pennsylvania

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THANK YOU!
Appendix