3 Reasons why Generation Alpha is important to companies
Generation Alpha, a generation growing by the minute. This new generation has already become an important target group for companies and businesses. These children have a significant influence on the purchasing habits of their parents. Generation Alpha is already shaping the future. Let’s find out why companies should keep a close eye on Generation Alpha.
1. Generation Alpha’s impact on the economy
With 22 million millennial parents living in the US, about 9,000 Generation Alpha babies are born every day. By the mid-century, they will be with two billion. The new patterns of consumption that emerge from this growth are likely to shape markets radically.
The rapport “understanding Generation Alpha” noted Alpha’s impact on their parents’ spending behaviour. 65% of all parents let their children influence their technology purchases. Especially when it comes to TVs, smartphones, and tablets. In the US, the influence of children is even higher, namely more than 80%.
2. Alpha’s are raised on a Tech-basis
Alphas use a lot of technological devices like the iPad or iPhone. We could say they have a technology fixation. Because Generation Alpha has learned to use technological devices at a young age, they will have less difficulty adapting to new technological innovations.
For companies, this tech-savviness will have positive and negative consequences. Companies will have the opportunity to build a relationship with Generation Alpha at a young age. On the other hand, it will be harder to reach this group. Companies will have to find new marketing strategies. The times of the traditional kid marketing methods such as linear TV have passed.
3. Bandwagon effect of Generation Alpha
The bandwagon effect is people’s tendency to have a particular style, behaviour, or attitude because everyone else is having it. Companies are aware that Alpha’s are very vulnerable to this effect. They are already developing unique campaigns to reach Generation Alpha. Some companies use online channels like YouTube and Instagram to reach their young target group. A good example is the American kidfluencer, Ryan Kaji. He reviews toys on his YouTube channel and has more than 28 million subscribers. Toymaker ‘pocket.watch’, launched a line of toys on Ryan’s channel last year, the toys sold out in less than 10 minutes on Walmart’s website on Black Friday. They use the young influencers to promote their products and use them as intermediaries to reach Generation Alpha.