Gen Z shows more optimism & plans to spend big in Q4

Gen Z is showing high levels of optimism and anticipation as the final quarter of the year approaches, according to the latest Student Insights Report by UNiDAYS.

Based on a comprehensive survey of 8,000 UK students, the report highlights a significant shift in the mood and behaviour of young consumers.

The research reveals increasing levels of happiness and decreasing anxiety among the Gen Z demographic. Derek Morrison, MD Retail Marketplace at UNiDAYS, highlighted the importance of this shift. "Gen Z has a lot going on in the coming months. From the back-to-school rush, pre-sales bargain-hunting, the gift-giving holiday, and looming January exams, they've got a lot on their plate," Morrison remarked. "But, this unique and vibrant demographic is savvy when it comes to tracking down and capitalising on the best deals. Brands must meet them at their passion points by making the activities, products and services that fuel the hobbies and interests they love more accessible."

The report notes that while Gen Z's happiness scores are on the rise, the generation still experiences high levels of overwhelm and nervousness, with approximately a third reporting such feelings. This compares to less than a quarter among millennials and Gen X, and just one in ten among baby boomers.

The survey also covers Gen Z's spending intentions for the peak trading season, including key events like Back-to-School, Black Friday, Cyber Monday, and Christmas sales. Insights suggest technology will be a major focus area, with a particular surge in purchases of laptops and mobile devices around Black Friday and Cyber Monday. Almost half of Gen Z users indicated plans to buy big-ticket items during these sales events.

Furthermore, the report anticipates a boost in domestic travel as students commute between their accommodation, university, part-time jobs, and social events. The timing of the October loan drop is expected to contribute to healthier bank balances, with four in ten students looking to secure travel plans and confirm bookings.

In addition to technology and travel, the report predicts strong engagement with food and drink, fashion, and beauty retailers. Gen Z is set to buy over GBP £3.6 billion worth of goods and services across these categories in the year's final three months. This demographic is also expected to spend more in the run-up to the gift-giving season, with a penchant for surprising friends and family with expensive, luxury items.

Morrison underscored the importance of Black Friday and Cyber Monday for this generation. "Eighty-five per cent of students say they're waiting until the event to ensure they get the most out of their budget. Supporting them now during these crucial moments is a surefire way for brands to seize the opportunity to increase engagement, build awareness, and nurture Gen Z's loyalty," he added.

Overall, the Student Insights Report from UNiDAYS provides valuable eye-openers for brands looking to proactively engage with the Gen Z demographic. With their unique needs and motivations, Gen Z's rising optimism and strategic spending patterns present a significant opportunity for businesses as they approach the peak trading season.