What Your Brand Needs to Know About Gen Alpha and the Future of Loyal Consumers

Jul 22, 2024

Generation Alpha, or Gen Alpha, is the first generation to be born entirely in the 21st century digital age, from 2010 to 2024. They are sometimes referred to as “iPad kids” because Apple introduced its tablet in 2010, around when the generation’s oldest members were born. Gen Alphas are known for being:

  • Hyper-connected: They are comfortable with technology and social media from a young age.
  • Independent: They are the first generation who had devices in their hands before they could walk.
  • Visual learners: They prefer to learn visually, especially due to their technological involvement.
  • Materialistically endowed: They are the most materially endowed generation ever.

Most parents of Gen Alphas are Millennials, and most of those Millennials are on the older vs. younger end of the spectrum. This means the age of first-time parents is continuing to trend up, and in addition, Millennials are considered spenders vs. savers in comparison to earlier generations.

Another interesting distinction between generations is the way they think and process information. It has been suggested that Millennials think in file folder structure, while Gen Z thinks in a search structure, whereas Gen Alpha will think in a question structure as the AI generation. It is predicted that Gen Alpha will not be navigating the internet, but rather pulling from it exactly what they need as they will natively know how to engage with AI. This means their perception of time may change and have higher value.

With Gen Alpha becoming more sophisticated for their age than ever, and making up 15% of the current population (larger than Gen Z), what are the potential impacts brands should consider as we look into the future?

Redefining Values

Gen Alpha is expected to be more diverse than previous generations, with a higher proportion of individuals from ethnic minorities and immigrants. 47% of American children identify as non-white. 58% of Alphas under age 10 say gender is irrelevant, and 96% aged seven to nine believe that everyone should be treated fairly no matter what they look like. With these shifts, brands must consider how the most multi-cultural generation will relate to their values.

As visual learners, colors and visual cues will also have appeal to Gen Alpha and shape how they connect. Crayola, a 120-year-old brand, has been expanding into Roblox, Pinterest, TikTok and YouTube by creating nearly 40 videos per month to help reach the younger generation. From inclusive design to new color standards, now may be the time to consider how your brand’s visual identity is going to be perceived by the future generation.

Trading Up

Gen Alpha is said to be skipping the traditional “tween” stores and products, being influenced by their Millennial parents, social media influencers, and the digital age. Value may be defined by “trading up” in how aesthetic drives their concept of what’s premium or has high perceived value.

An example of this is the Stanley Cup craze – if one kid in the classroom has one, then everyone wants it. This is not a new trend, but we traditionally see this “trading up” mentality start in middle school. Now, it’s happening in elementary school where Alphas are too young to have the value equation yet, but they know they want to fit in. As a brand, you may want to consider how the function of products matches up to aesthetics, because it is starting to matter earlier than ever before.

Selfcare Dialogue

Today’s consumers are investing in total wellbeing. Millennial parents are starting the conversation around healthy relationship modeling with food at a younger age with their Alpha offspring. Gen Alpha will likely be faced with the human vs. AI (think kiosk) interactions with retail and food services. To help maintain connection, some brands are focusing on fandom and culture over their specific products. Brands can consider micro-communities as a means for people to gravitate towards connection or fandom, especially if their current perception is not aligned to wellness.

Another trend labeled as “psychodermatology” refers to the emotional intersection with skincare. Influencers like Alix Earle, known for her transparency with make-up, filters, and her journey with acne, are evolving the narrative and tapping into the emotional connection with beauty and skincare brands. If a parent were to redeem their tween’s favorite beauty brand reward points on their behalf, all hell may break loose.

Lastly, Elmo’s infamous wellness check tweet is as indicative as any other trend to the current selfcare dialogue. Gen Alphas will have an easier time expressing emotions, made possible through popular shows like Bluey, to where brands should be prepared to hear from them more openly.

As a brand looking to get ahead, it may feel overwhelming to consider the implications Gen Alpha can have on loyalty and your overall connection to consumers. To be proactive:

  • Embrace Technology and interactive apps to engage this tech-savvy generation.
  • Focus on Personalization and use data analytics to understand their behavior and preferences better.
  • Prioritize Sustainability as Gen Alpha is expected to be highly environmentally conscious.
  • Invest in Social Media and Influencers to create content that is relatable and shareable.
  • Foster Online Communities where Gen Alpha can connect and share experiences.
  • Ensure Safety and Privacy as Gen Alpha and their parents will be concerned about online safety and privacy.
  • Represent Diverse Backgrounds and perspectives in marketing campaigns and product offerings.
  • Engage with Parents since Gen Alpha is still young, and their parents will significantly influence their purchasing decisions.

Stuck on where to go next, or how this relates to your loyalty strategy? Kobie is here to help. Reach out to us today at kobie.com/contact.