Understanding the Youth Market

Despite what our parents have led us to believe, we young folk have a significant pull on the economy.

Sure, many of us may be too broke to move out of our parent's houses, but countless industries and brands rely primarily on support from their millennial and Gen-Z consumers.

These industries range from makeup and electronics to clothing and education. Gen-Z and millennials now have a tremendous buying power in the market and make up almost half of all retail spend. Many companies overlook millennial and Gen-Z consumers when it comes to advertising, leading to them losing relevance and, most importantly, money.

By not understanding the youth market, these companies are losing out on so many valuable customers!

What is the youth market?

The youth market is a massive segment of the consumer population, ranging from people in their late teens to their late twenties. Gen-Z and younger millennials are the historical names for these people that make up the youth market.

While they are still young and not as financially stable as baby boomers and Gen X, they comprise a considerable portion of the population and the market. What's more is, they are essential for your business to thrive.

Without overgeneralizing too heavily, they are widely characterized as having distinct values, behaviours, and preferences. 

Preferences of the Youth Market

The youth market is made up of digital natives. By digital natives, I mean individuals who have grown up, for lack of a better word, online. They are very well-versed in digital culture, and because of this, they expect the brands they consume to be equally well-versed. We young people have been told time and time again that we're always "glued to our phones," and as much as I don't want my father to be correct, it's true. We use our phones for just everything. Buying, selling, scrolling, talking, interacting… I could go on.

Brands with a substantial online presence are almost always at the top of the market, and for good reason. Brands that post short-form video content, such as TikToks and Instagram reels, are generally more popular since (as the boomers always tell us) we have short attention spans.

The youth market is very value-driven and will not take kindly to brands that are not ethical or do not align with their values. For example, cruelty-free makeup brands such as Rare Beauty and e.l.f are consistently at the top of the market as opposed to other beauty brands that use animal testing. 

Challenges with the youth market 

While harnessing the power of the youth market is an undeniably essential tool, it comes with its challenges. Through the rise of social media, trends come in and out of style faster than a rat up a drainpipe.

Several popular fashion brands that were popular not even five years ago are completely irrelevant today. An example of this is Forever21. In the early 2010s, Forever21 was the place to go for young girls looking for cute, affordable clothes. They were also prevalent on Tumblr and Instagram, but in late 2019, they were forced to close all their Canadian stores and go exclusively online. They were beaten out by trendier and more modern stores like Zara and H&M. 

What can I take away from this?

The youth market - comprised of our own sons, daughters, and friends - is an incredibly diverse group.

We simply cannot categorize every individual as a technology-obsessed, wishy-washy monster, but as marketers, we can strive to understand them better.

A key principle is to remain current, socially aware, and technologically savvy. The youth market represents a significant portion of the consumer population, eagerly waiting to purchase your product if you know how to market it to them.

However, it's crucial not to compromise on the unique aspects that make your brand exceptional just to cater to the youth market (because the young people will make fun of you and call you a boomer. Trust me, I’m one of them 😆).