They value environmental protection but love fast fashion! How can brands navigate this consumer contradiction among Generation Z?

"Environmental sustainability" is a topic of great concern for young consumers, especially Generation Z. Compared to other generations, Generation Z is more willing to buy second-hand goods and carry eco-friendly tableware with them. However, among those surveyed, 58% of American Generation Z agreed that they need "material" goods and, given the price, are loyal to fast fashion brands such as Shein and H&M, presenting a polarized situation.

Why are Generation Z caught in this situation? Should brands value these ideas from Generation Z? How can brands capitalize on this tug-of-war between consumers?

Compared to the baby boomers, Generation Z, born in the 1990s, is more environmentally conscious. According to a report by Canadian market research firm GlobeScan, 34% and 71% are interested in buying secondhand products, 36% and 71% bring their own reusable containers to stores, and 46% and 71% choose products made from recycled materials. Data from another research firm, First Insight, shows that nearly 30% of Generation Z consumers say they want to improve the environment, 23% want to reduce waste production, and 22% want to reduce their carbon footprint. Only 7% of consumers said they shop sustainably to follow social trends, indicating that Generation Z genuinely wants to be more environmentally conscious.

Retailers who can innovate and resolve the conflict between Generation Z's shopping preferences and their strong aversion to the environment have the opportunity to win over eco-conscious shoppers. However, this won't happen overnight; businesses must rethink their entire business model, including materials and marketing, requiring significant adjustments to offer consumers more valuable and impactful products. Using innovation to resolve this conflict is crucial to ensuring that sustainable shopping doesn't feel like a compromise.

Even though Generation Z is not currently the main consumer force, brands still cannot ignore this customer group. Firstly, they can significantly influence Generation X's elders. In a First Insight report, influenced by Generation Z, Generation X consumers' preference for sustainable brands increased by nearly 25%, and their willingness to pay more for sustainable products increased by 42%. Two years ago, only 58% of consumers across all generations were willing to pay more for sustainable products, but now nearly 90% of Generation X consumers say they are willing to pay an extra 10% or more for sustainable products, compared to only 34% two years ago.

Generation Z is also gradually accumulating wealth. According to estimates from the American online business media Insider, Generation Z will account for 27% of global income by 2030 and will replace Generation Y as the main consumer force by 2031. In response to this situation, brands must plan ahead to ensure that the brand personality they cultivate in the coming years aligns with this group of consumers, resonates with their hearts, and makes their products the first choice for shopping.

The conflicting ideas of Generation Z have led many brands to misunderstand consumer perceptions. Data from First Insight shows that two-thirds of consumers say they are willing to pay a higher price for sustainable products, but two-thirds of retailers believe that consumers won't pay a higher price for sustainable products, instead assuming that consumers prioritize "brand" when shopping. This could cause brands to misjudge their business strategies. In reality, only 56% of consumers consider brand name important, but 75% of consumers consider the sustainability of a product before placing an order.

Brands that can find a breakthrough at both ends of the spectrum can seize business opportunities by "filling the gaps." Brands can try to make sustainability more accessible, breaking the myth that sustainable products are more expensive than regular products. It doesn't necessarily have to be about reducing production costs; brands can also try changing their business model to a rental system or focusing on selling secondhand goods. This not only increases consumer engagement but also helps brands move away from fast fashion and disposable products when new products are no longer the company's sole source of revenue.

Reducing single-use waste during the production process also helps brands achieve greater sustainability. US retailer Target launched the "Target Zero" series, allowing packaging to be refilled, composted, and recycled, helping to reduce plastic waste. E-commerce brands Grove and Blueland offer refillable alternatives to replace single-use household cleaning products. Swiss company On developed a sneaker where discarded shoes can be sent back to the factory for shredding and melting to be remade into new shoes, achieving zero waste throughout the sneaker's lifecycle. Subsequent subscriptions ensure consumers can help recycle their old shoes. When brands promote environmental awareness, they can also advocate for a "no returns" philosophy, creating a win-win situation.

If purchasing goods can reduce harm to the planet, allowing consumers to save the world without extra effort, it can significantly boost brand favorability. For example, Walmart's "Clean Beauty" line boasts products free of harmful chemicals; The North Face's Renewed clothing line emphasizes both the sustainability of materials and their durability, allowing consumers to enjoy more opportunities for adventure at a relatively low cost.

A love for sustainable products and a shopping spree may seem like two extremes, but closer analysis reveals that they are not contradictory and could even be a great opportunity for brands to break through the competition. Focusing on developing sustainable products and catering to Generation Z consumers in the coming years will definitely give brands a significant boost in their strategic positioning.