While Gen Z has surely taken the retail industry by surprise, there’s a new generation on the rise that cannot be ignored: Generation Alpha. Not only are they the customers of tomorrow, but Alpha kids are already influencing their parents’ decisions. Growing up in a fast-paced environment and as children of millennial parents, it is worth considering what shapes this generation and how this impacts their buying behaviour. It’s time for retailers to prepare for Generation Alpha.

Read also: How to win over Gen Y?

Get to know Generation Alpha!

Born between 2010 and 2025, Generation Alpha is the newest generation, growing up solely within the new centennial. Their lives are shaped by advanced technology and a global pandemic that has left its mark. Digitalisation, climate change and globalization are rapidly transforming the world and Gen Alpha face an unpredictable future as they enter into adulthood. Yet, the children of today use technology as a form of empowerment and offer hope of a more inclusive and sustainable world they are not afraid to speak up for.

Read also: Understanding Children’s Influence on Parents Purchase Decisions

Tech-Driven: Nurturing A New Wave of Digital Natives 

Different from previous generations, Alphas do not know a world without technology. Their everyday lives are molded by screens and digital spaces. Facilitated by a global pandemic that bound Generation Alpha to their homes, children are spending a major part of their lives online. This does not mean they are abandoning social life, rather, they are forming strong online communities. A report by Morning Consult showed that about 34% of Alphas regularly interact with their friends online via games or messaging apps.

Virtual environments, like the metaverse, are also playing a big role in how Alphas experience the world, allowing them to escape reality and co-create their own. To them over, retailers will have to make sure to focus on immersive and interactive experiences, fusing virtual with reality.

The Return To Old-fashioned

Although they are digital natives who navigate technology with ease, Alphas tend to set aside their screens more often than their older counterparts. A study by Beano shows that they enjoy spending their time outside and value connecting with their families. These children are good at balancing digital with real life, and are inspired to take up activities that remind more of what their grandparents used to do, such as crafts and building things.

Read also: How Nostalgia Marketing Can Boost your Loyalty campaign 

Gen Alpha’s Strong Moral Compass

As the successors of Generation Z, Alphas hold equally strong moral values and are standing up for their beliefs. They are actively shaping their future, with one in five Alphas from five to nine having attended a march or protest to fight for their beliefs, according to the study by Beano. Growing up in more non-traditional and racially diverse families, Generation Alpha is also more inclusive than before. This generation is challenging traditional views on gender, sexuality and social identity and questioning stereotypes. Not only do they find themselves rooting for a more inclusive world, but a sustainable one too, demanding action on climate change. A study by Wunderman Thompson revealed that 66% of children hope to buy from companies making a positive impact.

How to connect with Gen Alpha?

Although Generation Alpha is not entering into adulthood anytime soon, its present and future impact on retailers and brands should not be dismissed. Retailers who understand this generation’s concerns and values are well-positioned to make meaningful connections and earn their loyalty early.

Both recognising this generation’s digital fluency and appreciation for the real-world will enable retailers to fully speak to them. This can be explored through virtual experiences and giving them the opportunity for creativity both in the virtual and the real world.

It can be predicted that Generation Alpha will be selective with where they spend their money and show great care for ethics and social responsibility. These kids also expect brands and retailers to take a conscious approach to climate change and sustainability. Retailers and brands that can respect and integrate this generation’s values and forge deeper connections with them can expect to reap the benefits. 

Loyalty campaigns that revolve around themes such as nature, animals, healthy food, balanced well-being, and sustainability can strongly resonate with Generation Alpha’s core values and deeply engage their interests. By incorporating eco-friendly materials, offering organic or durable options, and embracing the “phygital” landscape, brands can captivate Generation Alpha’s attention and pave the way for long-lasting connections.