The Gen Z consumer, the youngest and lowest earning demographic, is proving to be one of the most financially resilient during the global economic uncertainty. This is why Nike is targeting this generation, looking to capitalise on their supposedly more frivolous spending habits.
Nike Sales in China
Retailers are taking note and actively targeting young adults by offering innovative products that resonate with Gen Zers. Nike, in particular, has seen a boom in sales from Gen Z buyers during the shopping holiday known as Singles’ Day in China. In fact, their demand for Nike products on the Chinese shopping site Tmall increased 45% on that day alone.
Nike is currently the “number one cool and favourite brand” in China, according to the company’s CEO John Donahoe. They have local iterations of the Air Force 1 and Dunk that better resonate with Chinese younger consumers.
In addition to their success in China, Nike and its Converse brand are also on top for footwear brands in the US, according to Piper Sandler‘s survey of teenagers. According to the survey, Nike and Lululemon are also the top clothing brands in the US.
How can Gen Z Spend Much During Inflation?
Gen Z spending much money during inflation and cost of living crisis can largely be attributed to their living situations; nearly half of them still live with their parents. This means that their expenses are somewhat alleviated and they can spend money on luxury items, especially during a time when the global economy is still uncertain.
However, young adults should focus on smart spending by budgeting and putting money towards investments. By understanding where their money is going each month, they can be sure to get the most out of their money while still having fun and indulging in some of their favourite luxury items.
Nike’s Wise Strategy
It is no surprise that Nike has taken note and is actively targeting this demographic with innovative products that resonate with them. Nike is proving to be a wise choice for Gen Zers, as they are helping them get the most out of their money while still enjoying some of their favourite luxury items.
With businesses focusing on targeting the younger generation, it will be interesting to see how this demographic fares in the future. However, with Nike’s strategic marketing approach and their success in China and the US, it looks like Gen Zers will continue to be one of their biggest customers.
It is clear that Gen Z’s presence in the shopping market is massive, and companies like Nike are capitalising on it by offering specialised products that directly target their needs. With this strategy, Nike is set up for success in the years to come.
