Gen Z to boost UK January sales with GBP £2.5 billion spend

According to new research by SAP Emarsys, Gen Z consumers in the UK are expected to contribute significantly to January sales, with a projected spending of GBP £2.5 billion. This analysis indicates a potential average expenditure of £171 per Gen Z individual during this period.

The study surveyed over 2,000 UK consumers and highlighted that 68% of Gen Z exhibit brand loyalty through repeated engagement with their preferred brands. However, key factors, referred to as "red flags," could lead this demographic to shift their allegiance to competitors.

The top red flags identified include companies handling personal data irresponsibly and the overwhelming frequency of marketing messages, which 27% of respondents found concerning. Additionally, 26% of Gen Z consumers indicated that not offering free returns is a deterrent.

Conversely, Gen Z are drawn to certain attributes, or "green flags," exhibited by brands, which could enhance loyalty. Remarkably, 43% of Gen Z show their commitment by downloading a brand's app, underlining the necessity for quality digital engagement tools. Furthermore, 27% appreciate memorable experiences like personalised services or events, and 23% are attracted to brands that maintain a relatable presence on social media.

AI-driven personalisation is notably impactful, with 26% of Gen Z indicating increased loyalty to brands that offer such tailored experiences. Sara Richter, Chief Marketing Officer at SAP Emarsys, stated, "Personalisation empowers brands to create value for Gen Z wherever they are—on their phones, engaged, and eager for experiences that feel tailored to them. By understanding individual preferences and acting on them in real-time, across multiple channels, brands can create the kind of loyalty that lasts."

This research underscores the essential role personalisation plays in customer engagement. By leveraging artificial intelligence to provide real-time offers and recommendations, brands can enhance the shopping experience for Gen Z consumers and cultivate lasting loyalty. SAP Emarsys' platform facilitates such personalised interactions, offering consumer goods brands the tools to implement effective customer engagement strategies.

With Gen Z potentially driving GBP £2.5 billion of expenditure during January sales, brands have ample opportunity to strengthen their market position by focusing on personalisation and addressing Gen Z's primary concerns. This could result in capturing a larger market share within this influential demographic and bolstering long-term growth strategies.