Generation Z shoppers, namely those born from the mid-1990s onwards, are more likely to demand proof of sincerity from brands, as well as ‘radical transparency’ on social and environmental issues, a new study has found.
The study, by creative and sustainability agency Futerra, alongside the Consumer Goods Forum, asked both Generation Z and millennial respondents in the US, the UK, South Africa and India as to whether they believed that brands are honest about a number of common claims.
Honest Information
While almost 90% of millennials and Generation Z respondents said that they personally care about receiving honest information about products, only 42% of Generation Z believe that brands care about providing honest information (compared to 66% of millennials).
In addition, 58% of both Generation Z and millennial respondents said that they would trust a brand more if it were transparent about its challenges and showcased its ‘work in progress’ on difficult issues.
Some 46% of Generation Z respondents said that they search out honest products when purchasing. This heightened demand for brand honesty has led Futerra to dub Generation Z ‘the Honest Generation’.
“Millennials drove brands to be purposeful, but Generation Z are demanding proof,” commented Solitaire Townsend, co-founder of Futerra. “This generation were raised to question fake news, be suspicious of secrecy, and hold sincerity as sacred. They are the Honest Generation, and their appetite for radical transparency on social and environmental issues is growing.
“They don’t expect brands to be perfect, but they do expect them to be truthful,” Townsend added. “Those CEOs with the courage to be open will be rewarded, but brands who hide will risk being forgotten.”
Brand Claims
In terms of brands stating that their products are environmentally friendly, 79% of Generation Z respondents reported that brands were ‘never honest, or not honest enough’ about said claims, compared to 66% of millennial respondents.
Some 75% of Generation Z respondents reported that brands were ‘never honest, or not honest enough’ about the health claims of their products, compared to 60% of millennials, while 67% of Generation Z respondents reported that brands were ‘never honest, or not honest enough’ when stating product safety, compared to 56% of millennials.
Finally, 84% of Generation Z respondents questioned brand honesty when it came to claims about how their factory workers are treated, compared to 69% of millennial respondents.
Improve Transparency
“With Generation Z predicted to become the biggest generation in 2019, at 32% of the population,” commented Peter Freedman, managing director, the Consumer Goods Forum, “it is crucial for brands to swiftly improve transparency on the social, environmental, health, and safety of their products, in order to build back trust and thrive with the largest consumer segment in the world.”
The research builds on The Honest Product Guide, launched in November 2018 by the Consumer Goods Forum and Futerra, which highlighted that product-level transparency (rather than corporate reports) was the major demand from consumers.
The Consumer Goods Forum and Futerra commissioned the online survey of 2,400 respondents across the UK, the US, India and South Africa in June 2019.
© 2019 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: European Supermarket Magazine.
