Product Development for Consumers Under 40: What’s Important to Younger Shoppers?
At Flywheel Sourcing, we know that understanding how younger generations navigate the shopping experience and spend their money is essential to developing products that are relevant to new generations of buyers.
Consumer needs and values differ across generations, and their purchases reflect that. Connecting with younger generations of shoppers will require different strategies than reaching their parents did.
With more than 141 million members, Millennials and Gen Z together make up more than 40% of the U.S. population, and these younger consumers shop differently than previous generations. Gen Z, for example, is considered to be the most diverse age group the U.S. has seen. And when it comes to spending their money, this generation of consumers tends to prioritize technology, innovation, and convenience, as well as values like social responsibility and transparency.
Product development for consumers under 40 requires a new set of considerations. Here, we’ll explore what’s important to today’s young shoppers and what to consider when developing products geared toward this demographic.
Technology Integration
It should come as no surprise that younger consumers tend to be more tech-savvy than their older counterparts. Gen Z, for example, (born between roughly 1997 and 2012) have never known a world without the internet, smartphones, and other digital-first technology. For young shoppers like them, technology isn’t merely a tool — it’s an extension of themselves.
Therefore, they tend to value products that seamlessly integrate with their digital lifestyles, prioritizing features like compatibility with their smartphone, smart home integration, or connectivity options.
Innovation and Novelty
Millennials and Gen Z have grown up in a rapidly changing world. As consumers, they tend to be drawn to products and brands that are innovative and cutting-edge. They’re looking for something new and different — not the same old products their parents bought.
This demographic appreciates creativity, uniqueness, and novelty, and makes their product choices accordingly. Brands looking to reach this group will need to think outside the box and focus on innovation.
Convenience, Efficiency, and Mobility
With busy lifestyles and a need to juggle multiple responsibilities, time is valuable to young consumers. Products that can save them time or help them multitask are high priority, as are services like grocery delivery, subscription services, and e-commerce shopping.
Millennials and Gen Z also value flexibility and mobility…and not just in the workplace. This generation is on the go, and they’re looking for products that facilitate a busy and versatile lifestyle.
In developing products for this group of consumers, convenience, efficiency, and flexibility should be high on the priority list. Products that offer portability, versatility, or adaptability to different environments may be particularly appealing to this demographic.
Personalization
Younger consumers value individuality and appreciate personalized experiences and unique products that can be tailored to their preferences. They’re looking for a diverse range of niche products, artisanal goods, and one-of-a-kind finds that will set them apart from their peers, as well as locally-sourced and handmade items. This has led them to search out independent retailers and boutique shops for the individualized experience they’re looking for.
To attract this demographic, consider offering products with customizable options or personalized recommendations. Subscription-based models offering curated experiences will also be popular.
Social Responsibility
Millennials and Gen Z tend to be highly environmentally and socially conscious. Environmental sustainability and ethical concerns are increasingly influencing their purchasing decisions.
In fact, one study found that 73% of Gen Z are willing to pay more for sustainable products. Another study found that 75% of Gen Z consumers considered sustainability more important than brand name when making purchasing decisions. Needless to say, this is a significant priority for today’s youngest consumers.
Gen Z and Millennials alike are looking to buy from companies that prioritize sustainability, ethical sourcing, and social responsibility, and may choose to avoid products or brands that don’t share these values.
Brand Authenticity and Transparency
Because of this value-driven mindset, it’s important for young consumers to know the value and beliefs of the companies they buy from. Millennial and Gen Z shoppers value authenticity and transparency from brands, and are more likely to support companies that openly communicate their values, mission, and product origins.
To reach younger generations of shoppers, it’s crucial to clearly communicate the ways your company addresses sustainability, ethical manufacturing, and social responsibility.
Online Reviews and Social Proof
When younger consumers buy, they do so well-armed with proof of a product’s value. From online reviews to influencer recommendations and feedback from peers on social media, young shoppers rely heavily on social proof when making purchasing decisions.
This means that, no matter your product, you’ll need to invest in growing your online reputation to attract younger generations of shoppers. For this cohort, positive reviews and endorsements can significantly influence their choices.
Value for Money
With less disposable income to work with than their older counterparts, today’s young consumers are highly conscious of the value they receive from a purchase. For them, it’s all about quality over quantity.
As previously mentioned, this demographic is likely to do their research and compare reviews and prices before buying, looking for the best deals and bargains. They’re willing to spend on products that offer genuine value and longevity, as well as those that provide unique or innovative benefits. They’ll avoid products they perceive as being overpriced or low-value.
This budget-conscious group is also likely to prioritize purchasing essentials over luxury or discretionary items.
Experience Over Ownership
The preference for experiences over ownership of material possessions is a growing trend among young consumers. They tend to prefer to spend their disposable income on experiences such as travel, dining out, or entertainment rather than on physical products.
Products that enhance these experiences, as well as a robust online platform that serves to build relationships with consumers centered on these products may do well with this group.
When it comes to product development for consumers under 40, keeping these things in mind will help you create relevant products that engage young consumers.
To learn more about product development and manufacturing for major retailers, contact the team at Flywheel Sourcing. With a robust knowledge of retail product development and manufacturing, we can provide the expertise you need to make your products a success.