NOTTINGHAM, UNITED KINGDOM, April 30, 2024 -- The latest Student Insights Report from the world’s leading Gen Z affinity network reveals when and where the younger generation of shoppers will be buying big in the coming months

Gen Z, a generation distinct in its shopping habits, shows stark differences compared to other age groups. Most notably, only 54 per cent are worried about the cost of living versus more than 80 per cent of millennials, Gen X, and baby boomers. That is, according to the latest Student Insight Report, which details findings from a comprehensive survey of 6,400 UK students in March by UNiDAYS, the network that enables students and graduates to discover savings.

Things are looking up for Gen Z

Reports of negative emotions, like feeling overwhelmed and anxious, have dropped around ten percentage points compared to last quarter’s report. There are also green shoots of positivity unseen in older demographics. As financial worries fall for the youngest generation of buyers and next steps after university are at the forefront of their minds, spending habits are set to change in the third quarter of this year.

“From holiday highs to back-to-school slumps, this is a season of ups and downs for students,” said Derek Morrison, MD Retail Marketplace at UNiDAYS. “Gen Z operates with a more restricted budget than their older counterparts, but they’re nothing if not resourceful. As they rely on multiple sources of income to supplement their student loans, brands should be looking at further ways to support them.”

Priority purchases

Standout findings from the Student Insight Reports suggest several priority areas for brands to focus on in key categories as students return to university in September:

● Technology (https://corporate.myunidays.com/q3-2024-tech)— Demand for broadband peaks in September as the pilgrimage to new student digs kicks off. As well as WiFi deals, the highest volume of engagements is laptops, mobile networks, and music subscriptions.

● Travel (https://corporate.myunidays.com/q3-2024-travel) —The pre-semester rush coincides with a surge in both short and long-haul trips. As students make last-minute visits to friends and family before returning to learning, domestic travel is set to grow five per cent year over year.

● Wellness, Earning & Learning (https://corporate.myunidays.com/q3-2024-wel) — Students can’t get enough of learning. Over the summer, the uptake of online courses surges. Once September lands, it’s back to the grind as they gravitate toward study tools that help with learning, retention, and employability.

● Health and Fitness — Fifteen per cent of annual gym subscriptions will be taken up as the holidays end, but Gen Z is focused on more than just exercise. Nutrition and weight management are also important to more than half of students once the new school year starts.

● Food and Drink— As students head back to university, they’re not quite in the swing of meal prep and cooking dinners from scratch, so demand for delivery services, ingredient boxes, and restaurants will spike.

● Fashion— As the first student loan drops, freshers’ outfits and winter wardrobe staples are top of the agenda. In addition to the non-negotiable back-to-school fashion rotation, home furnishings like bedding will hit a high during the summer months.

● Beauty— Gen Z is big on self-care. However, as they’ll spend most of their time in lectures and study sessions, makeup, hair care, bath, and body items take a back seat to skincare products.

Seize the opportunity

“To resonate with Gen Z, brands need to tap into key moments,” said Morrison. “Throughout our research, three factors come into play time and time again. Vendors must one, align their market offering with the student calendar, two, lean into Gen Z trends, and three, get students on side.”

Across every generation, price and quality are the most critical factors in purchasing decisions. But, unlike their elders, Gen Z’s income is in a state of constant flux. They’re dependent on periodic student loan drops and have varying availability to earn from part-time jobs or side hustles. Even the level of financial support from family can vary from term to term as the cost of living changes.

“When it comes to Gen Z shoppers, the formula for success is high-quality products and services at a great price. For them, nothing says ‘good deal’ like a student discount, as two-thirds of respondents feel it helps with money and budgeting worries. But on another level, it communicates goodwill, which inspires brand love and loyalty,” added Morrison.

For more information, you can download your copy of the Student Insight Report by visiting: https://corporate.myunidays.com/q3-2024

Alan Duncan

UNiDAYS

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