GenerationAlpha:Sayhellototomorrow’sshopper

7.22.24
Applied
Date Published (7.22.24)
Read Time 0 Min
Child playing in yard
  • Applied
Generation Alpha: Say hello to tomorrow’s shopper
(7.22.24)

Part I in our three-part series examined 20th and 21st century consumerism to illustrate how world events determine shopping habits of a generation.

For part two below, we’re zooming in on the proverbial timeline, looking at tomorrow’s shopper, Generation Alpha.

Who are they? In what ways did COVID impact their purchasing decisions? How does school and playtime influence their shopping tendencies?

Our third and final installment will dive into how brands can reach them.

Person jumping into a pool with text "Generation Alpha born 2010-2024"

Who is Gen Alpha?

Alphas were born 2010-24 but the name was coined in 2008 by a social researcher. Before them, there was Gen Z — the final letter in the Latin alphabet. Alpha is the first letter in the Greek alphabet. They’re also the first generation born entirely in the 21st century and third millennium.

What sets them apart?

Born in the tailwinds of a major recession, Alphas are exposed to major world events at earlier ages than previous generations.

A trickle-down effect of unprecedented macroeconomics is unfolding during their formative years; for example, not too long ago, fast food wasn’t a luxury but now with historic inflation, it’s an expensive indulgence in the eyes of young children. Whether it’s because of price, corporate irresponsibility or other factors, Alpha’s are developing vastly different relationships with iconic brands.

Obesity and allergy rates among Alphas became increasingly prevalent in the late 2010s, despite greater access to healthier foods and medicine. Also, imagine navigating puberty during one of the worst pandemics, as many Alphas experienced.

Because of COVID, they lost key years for socialization, forced into a lifestyle that is pretty much 100% digital with FaceTime, gaming, online school portals, and other tools. They’re craving IRL connections off screen but for now Alphas still rely on digital products to interact.

They’re generally too young to have disposable income – and definitely too young to own a credit card – but take note: by 2029, Alphas will have a whopping $5.5 trillion of spending power.

Shopping, gaming, and sometimes school

In and out of school, screen time is more prevalent despite more knowledge of its dangers. Since 2021, Alpha’s interest in books has dropped 4 percent, but their interest in audio books skyrocketed 75 percent. They are becoming more visual learners at earlier ages; Instagram and YouTube are playing increasingly larger roles as primary sources of education and entertainment.

But now, children aren’t developing fine motor skills as early as previous generations. Basic activities like cutting paper or tying your shoe have been delayed because of limited in-person learning experiences. Emotional IQ, such as taking turns, listening to peers, exhibiting self-control, and other forms of development have also been delayed.

They won't remember a time before constant connectivity to mobile devices, but with unparalleled access to information, Alphas are forming their own opinions at younger ages.

Silhoutte of kid playing at sunset with text on slide "alphas are spending an average of 2.4 hours daily on Roblox"

Compared to Gen Z, they are twice as likely to see games as a means of expressing creativity. Alphas are content co-creators, not passive observers. They’re building new ecosystems on Roblox and Minecraft as opposed to participating in gameworlds designed by others. Alphas are spending an average of 2.4 hours daily on Roblox.

Interestingly, 51 percent would be motivated to purchase directly from a brand in-store or online if its ad was in a game.

Regarding retail, approximately 78 percent of Alphas prefer in-person shopping, versus 80 percent who prefer it online. Across all age groups from other generations, the percentage drops 9 and 8 percent respectively, according to a survey.

Alphas also care more about a brand’s mission and the environmental impact of its products. Brands like Sephora and Ulta have taken note, using Novi Connect to vet companies and assign them in-store designations – “Clean” or “Black-owned” – because more transparency is no longer a cherry-on-top but rather critical to brand survival. Perhaps as a result, Alphas are also better at sniffing out brands that make bogus claims – “greenwashing” as it’s called in the context of sustainability.

Kid skateboarding at skatepark. Text on slide "nearly 80% of six to nine year olds want to design or personalize products"

Regarding where they buy, thirty eight percent of Alphas buy directly from the brand on social media, more than twice those who prefer influencers as merchants. Nearly 80 percent of six-to-nine year-olds want to design or personalize the things they own.

And they want it much faster.

Gen Alpha is growing up with Amazon Prime, a staple of an increasing number of American households. Roughly 34 percent of Alphas expect delivery in two days or less, and 45 percent won’t buy from anywhere that can’t deliver the next day.

Perhaps now more than ever, brands need to make the fastest delivery option less expensive, or risk obsolescence. For apparel brands, it’s a tough line to balance as kids want personalization but also expedited delivery that’s faster than you can say hawk tuah.

Pressing reset

The end of the pandemic showed a diversion in their behavior in one rather interesting aspect; after historic levels of screen time during the first COVID wave in 2020, Alphas began to seek more in-person social opportunities and less time on devices. Perhaps it’s mother nature’s way of saying, “take a break” and giving the kids a valuable lesson – mama knows best.

Couple on a hike. Text saying "Since 2021, there's been a 10% drop in parents saying their child spends a lot of time on devices."

Maybe the kids are just reacting to their screen-addicted parents and we’ll see a generational plateauing of screen addiction. Since 2021, there’s been a 10 percent drop in parents saying their child spends a lot of time on their devices, according to the report.

Stay tuned for the final installment of our three-part Gen Alpha series. We will be looking closer at how brands can reach them.

Photography: Michael Baca, Clay Boan

Behind the Byline: Noah Jackson & Marc Weinreich

  • Noah is a Senior Strategist at BASIC/DEPT® who focuses on finding culturally meaningful solutions to brand problems. Beginning his career as a journalist, he long operated as a music industry jack of all trades, crafting social, content, and marketing strategies for artists including Grimes, A$AP Rocky, and Anderson .Paak. Prior to BASIC/DEPT®, he headed the strategy department at Premier Music Group, where he oversaw Cannes Lion, Webby, and Shorty Award-winning projects. He enjoys trying TikTok recipes and making playlists.
  • Marc Weinreich is the Copy Lead at BASIC/DEPT®, overseeing the narrative arc for clients' digital platforms. Weinreich's client work has included Google, Docusign, AT&T, and others. His contributions to the thought leadership platform, Applied®, has focused on ecommerce through a futurist lens.
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