In today’s dynamic business landscape, Gen Z is redefining the rules of brand engagement. Recently, during the third edition of PRologue, the Public Relations Consultants of India (PRCAI) hosted a panel discussion titled ‘Cracking the Gen Z Code’. Based on Edelman’s proprietary research, the discussion delved into understanding this transformative generation. The panel featured influential Gen Z content creator and author of The Money Guide, Anushka Rathod; industry veteran Sushant Dash, CEO of Tata Starbucks; alongside myself. It was moderated by Arun Sudhaman, CEO and Editor-in-Chief of PRovoke Media. With Gen Z wielding significant purchasing power and influencing global buying decisions, brands face a critical challenge: engaging this demographic effectively while avoiding backlash. In India, home to the largest Gen Z population, earning trust from this dynamic group is non-negotiable for brand success.
Here are 7 key takeaways from that panel conversation:
Trust: the cornerstone for modern-day brand marketing and communications
One of the most common themes was the importance of trust for Gen Z and the fact that it has to be earned. According to Edelman’s Trust Barometer Report (The Collapse of the Purchase Funnel), a staggering 79% of Gen Z emphasize the need for trust in the brands they choose—a figure that surpasses all other generations, highlighting a fundamental shift in consumer expectations. And this generation holds immense influence and gravitational pull over others. This applies across the industry – whether consumer brand, corporate brand or employer brand. Sushant Dash of Tata Starbucks (where 72% of loyalty members are Gen Z) highlighted that trust is earned through consistent and authentic actions. He emphasized that earning trust involves not just walking the talk, but also continuously learning from feedback. He pointed out that the foundation of external trust starts internally. When employees are genuinely aligned with the brand’s values, this trust is more likely to be reflected in their interactions with customers. The good news – Gen Z trusts business more than they do other institutions like media, government, and NGOs. Brands should invest in building and leveraging this trust.
Action earns trust. Trust earns action
Brands cannot simply put out communication and expect to be trusted. This generation – known for being vocal, opinionated, and driven – requires real, ongoing engagement. They look to brands beyond a transactional purchase and feel attached to those that represent their reality, that help them express themselves and create a like-minded community. Content is no longer king and should be treated as an open door to a conversation, not a final destination that can easily be skipped. Investing in meaningful and authentic interactions is a trust-building action that will earn you their attention, purchase, and evangelism, among other tangible benefits that will have a true business impact.
Authenticity over appearances – get real or die trying
Edelman’s Power of Gen Z report reveals that 70% of Gen Z globally are actively involved in social or political causes. Society, environment, animal rights, and war are certainly higher up than politics when it comes to Gen Z in India. The panel agreed that brands must weave social causes into their culture authentically rather than using them as marketing ploys. Anushka Rathod warned brands against purpose-washing, and superficial alignment with social issues – which would surely be called out. Apologies to The Tremeloes, but silence is no longer golden. It is clear that Gen Z expects brands to take a stand on social issues, but it goes without saying that this expectation must be approached with authenticity, bravery, and strategic intent. Brands should actively listen to their audience, select causes that resonate with their core values, and engage in initiatives that align with their business objectives.
Understanding Gen Z’s Diversity
A recurring theme in the discussion was the need for marketers to grasp the diversity within Gen Z. Sushant pointed out that Gen Z in India is not a monolithic group; their preferences and behaviours vary widely depending on a great many factors. I would add that it is crucial for brands to move beyond consumer insights and adopt a more holistic human-centric approach. Understand their dreams and ambitions, and what they truly care about, and integrate these insights into brand strategy. This is why Edelman started our Gen Z Lab, which brings this generation directly to the table with brand decision-makers. Brands that successfully do this will not only earn their attention but also secure a lasting place in the minds and hearts of consumers.
Brands as Culture Creators
Sir John Hegarty described a brand as the most valuable real estate in the world – a corner of someone’s mind. To earn your way into the minds of this unique and restless generation requires marketers to put culture at the heart of their strategy and creativity. You might opine that this is not new, but it is even more crucial for this generation, perhaps more than others. It’s not enough to be ‘always on’. Rather, you have to be ‘always interesting’. By creating and contributing to cultural narratives, brands can establish a deeper, more impactful presence in the lives of their audience.
Trust at Work
Gen Z is shaking things up. Even in the workplace. The 2023 Edelman Trust Barometer Special Report: Trust and the Workplace shows that 80% of Gen Z expect to shape the future through their work, impacting modern work dynamics significantly. Sushant Dash noted that with an average employee age of 23 at Starbucks India, meeting Gen Z’s expectations for flexibility, creative freedom, and equal opportunities is vital. He also acknowledged a broader challenge: while addressing Gen Z’s needs is crucial, brands must also manage the diverse expectations of all employee cohorts. One-size-fits-all solutions are inadequate; instead, brands must navigate these varying needs to maintain a strong, cohesive presence and consider new, interesting ways for impactful employee engagement and internal communications.
Digital natives, but expertise is trusted
As digital natives, Gen Z primarily turn to their peers and social media for information, favouring sources that offer unfiltered, authentic insights. Anushka Rathod highlighted that platforms like YouTube and Amazon reviews are particularly influential, as they provide raw and unbiased information. You could argue that reviews can be faked, and that’s where brands must build partnerships with experts who are highly trusted – like scientists, nutritionists, beauty experts, environment experts and the like. With the average Indian spending about four hours a day on social media, brands must establish a strong presence where their audience is most active.
In conclusion, to resonate with Gen Z at a time when polarization and cultural tensions are at an all-time high, brands and corporations must prioritize trust, act authentically while putting culture at the heart of marketing, and engage meaningfully both externally and internally. I will end this with a quote from a CMO of a global pharma company who said, “If I don’t factor Gen Z into my business now, I don’t have a business for tomorrow”.