The pandemic has significantly reshaped the how, where, and why of consumer spending. Digital adoption raced forward, personal values and priorities were reshaped, new habits were formed, and expectations were reset. Generational trends in place pre-pandemic also moved forward more rapidly, coaxed by early retirements, stimulus checks, student loan forgiveness, home buying and wealth accumulations. A number of behaviors associated with Gen Z and Millennial consumers appeared to tip, producing norm changes across age groups.
How consumers exit the crisis will be less about legacy decisions carried forward than the new things tried and preferred. The products, services, and ways of life that are fundamentally better, easier, and aligned with one’s values are the things that will persist.
What we’re watching
“The rapid ascent of Gen Z/Millennial consumers is a long-tailed theme in a nascent stage with significant headroom for growth for many years to come.”