Are you Ready for Generation Alpha?
A large cohort of young individuals, the first generation to be born in the 21st century, have been quietly influencing household spending. This group has been named Generation Alpha. The oldest of this group is hitting adolescence and some are yet to be born.
Generation Alpha is on track to hold strong opinions, be the most digitally literate group, have a heightened awareness of social issues, and be the most globally informed while having the longest lifespan.
This young group already has an impactful voice and major buying power, influencing parental purchases between $130-$670 billion a year. Their millennial parents have invested around $2 billion in K-12 ed-tech businesses.
If you haven’t been paying attention to Generation Alpha now is the time to start.
Meet Generation Alpha
Generation Alpha includes individuals born between 2010 and 2024, by 2025 this cohort is predicted to reach over 2 billion globally. Generation Alpha is on trend to be the largest generation in history to date, surpassing the Baby Boomers in the next few years.
Characteristics of Generation Alpha:
Most Tech Savvy
Truly a digital first generation, some born the same year of the iPad and Instagram. The first to be born surrounded by smartphones, tablets, and other interactive electronic devices.
The tech trend may have been accelerated due to COVID-19. Children were forced to quickly learn how to use tech for communication, education, and engagement. Therefore, allowing this generation to be the most globally connected in history and able to move outside of their typical cultural community.
Digital channels and social media will easily influence and act as inspiration for this generation. They will expect to be given the right information at the right time with little effort over their preferred channels.
The first generation where most children are being raised by college-educated parents and are more likely to seek higher education themselves. Most countries are currently reporting school completion of 12+ years.
Online learning will increase with an emphasis on skills instead of formal degrees. Long-term education will be more readily available due to instant access from any location. This will allow for further proficiency in tech.
Most Racially and Ethnically Diverse
It is predicted by 2045 no one group will hold over 50% of the U.S. population. Growing up in such a diverse environment has had a profound impact on how this generation views the world.
Generation Alpha already has an acute awareness of how important diversity, equality, and inclusion are in society. They will be the most accepting of variations in race, religion, disabilities, sexual orientation, and identity. Choices, values, and differences are the only baseline for this group.
Diversity and technology have also played a role in allowing an early understanding of community and social issues. Therefore, activism is part of their mentality, and they are not afraid to share their opinions and take action, even in small ways, to alleviate these issues.
Wider access to healthcare and research will allow for most of this group to live to see the 22nd century. Longer life expectancy means Generation Alpha will stay in the workforce longer and have greater income potential. This will ensure they will influence global culture, the physical environment, and brand trends for many years to come.
To learn more, watch this Video: Generation Alpha: The New Kids On The Block with Mark McCrindle.
A conversation with a Millennial mom, Google, and a Generation Alpha 8-year-old:
8-year-old: “Hey Mom! Can you buy me some green peppers and gummy sushi to try?
Can I also have a YES Day?!?!?!
Mom: “Since when do you like green peppers and what is in gummy sushi?
I need more information about the yes day.”
8-year-old: “I saw it all on YouTube and now I want to try them.
You can order from Amazon, and it will be here tomorrow.
Hey Google, what is in gummy sushi? … Hey Google, tell my mom what a yes day is….”
Peppers are now a favorite snack, gummy sushi arrived 7 days later to the dismay of my son, and Google continues to be part of our everyday household conversations. Studies have shown that 25% of this young cohort talk daily to Alexa, Siri, Google, and other smart speakers like it’s an old friend.
This conversation reflects the mindset of this generation. They expect instant access to information, are influenced by social media and are part of the family’s purchasing decisions. 75% of children are influenced by YouTube and 46% have some level of access to an Amazon Prime account.
Why Should Businesses Care About Generation Alpha Now?
Generation Alpha is expected to have the greatest spending power in history and the ability to spend more money on non-essential items as adults.
For now, their parents hold the purse strings but that doesn’t mean you should not be paying attention to this young generation.
Millennial parents and their children have grown closer than in previous generations and their children’s opinions matter. Gone are the days when global issues were too “big” for children to handle. Dinner conversations on social topics now include their children.
This inclusion also influences family purchasing decisions. Kids have increasingly more say in parental decision-making. 70% of parents consult with their children before purchasing a product for their use.
Parents are learning about new ideas and products through their connected kids. Children’s preferences are the #1 factor driving parental purchases. 70% of parents made a purchase influenced by their kid’s favorite show or character. 80% of parents gravitate towards customized products.
Socially conscious Millennial parents also influence their children and may determine long-term brand relationships. 95% of parents are willing to pay more for healthier ingredients and higher quality items. Their parent’s views on holding brands accountable for sustainability, social justice, and values will have an effect on Generation Alpha’s choices in the future.
Businesses must be aware of what is important to this large group now to be better prepared for their buying power later.
How To Gain Insights on Generation Alpha
This generation has already found a voice and is willing to share their opinions in part thanks to their parents, caregivers, and educators. Parents and educators have empowered this cohort to speak up and in return have taken the time to listen.
Some of the best insight gained has come directly from speaking to children between the ages of 7-12 through focus groups and surveys.
It’s not a secret that your environment especially your home shapes you. A sense of trajectory and values can be found by looking at parents, siblings, and educators. Acquiring feedback through surveys and focus groups allow for insights into what matters to this group.
Understanding the unique, highly personalized, and digital experiences these youth and their parents expect is imperative in helping future omnichannel and product development.
This young group already holds a lot of influence and will continue to dictate spending and marketing trends. Generation Alpha has embraced a world full of choices, environmental sustainability, social justice, and inclusivity.
Will your business be ready to meet their needs when they reject traditional forms of marketing and sales?
Now is the time to gain insight into this young cohort to ensure your brand can build a lasting relationship with them.
Let Eastcoast Research assist you with focus groups and surveys to gain information to help you prepare for the future of Generation Alpha.
Visit: https://eastcoastresearch.com/bid-request/ to request a bid today!