Razorfish’s New Gen Alpha Research Spotlights the Generation’s Perceptions of Five Key Industries

Marketing transformation leader Razorfish announced its third piece of research examining the next generation of future consumers: Gen Alpha. The group has been shattering assumptions while uncovering the emerging trends that will guide brands in revamping their marketing strategies.

Gen Alpha are more influential than any other tween generation. Even though Gen Alphas have a few years before becoming full-fledged consumers themselves, their purchasing power and sway in the household is undeniable. 61% of parents say their kids have a big influence on what their family eats, while 77% are interested in being an active participant in grocery shopping. And their impact goes beyond food––61% of parents say their kids have final say on which car they purchase.

Gen Alpha craves in-person experiences, not just digital. Marketers have started to label Alphas as “digital natives” who were born with a tablet in their hands. However, the research shows 2 in 3 Alphas would pay more for something they can only use in the real world (66%) over something solely used online (33%). Additionally, 47% would like to receive cash.

Gen Alpha doesn’t settle for the status quo. As of now, Alphas’ financial habits are not fully formed, but they are growing up with a more mature understanding of digital money and are eager to try new things. According to the research, traditional banks are not their first choice, with PayPal, CashApp and Visa being their top financial services brands.

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Gen Alpha is not as socially conscious as expected. While some Alphas have been influenced by their environmentally conscious older Gen Z counterparts, only 38% of Alphas would pay more for a vehicle that is good for the environment. And, although Alphas are poised to challenge traditional beauty standards, 80% of Alpha girls have already applied a filter or used a retouching app to change the way they look. However, they still value body diversity, with 63% wanting to see inclusive representation in the media.

Social presence is critical in Gen Alpha’s relationship to beauty. 36% of Alphas say it’s more important to look good online than in real life, showcasing that their social media presence is still paramount. Creators and influencers have captured their attention, with 75% of Alphas interested in beauty content on social media, while 38% said they already make their own content.

“Being the first generation to grow up entirely within the 21^st century, it’s no surprise that Alphas have been one of the most interesting generations we’ve attempted to understand. They are digitally savvy, but they’re having an offline renaissance. The speed at which Alphas are breaking preconceptions and paving their own path is remarkable, and marketers need to be paying close attention if they want to win them over,” said Dani Mariano, President at Razorfish.

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Business Recommendations

1. Recognize them as key household decision-makers. From food to automotive and beauty, Gen Alpha is increasingly taking a prominent role in nearly every household decision. Marketers should treat them not as mere tag-alongs but as integral family board members.
2. Prepare for an audience who seeks new ways to do old things. Always ready to hack the system, Gen Alpha is not bound by traditional brands, products, or services. Marketers will need to offer unique product solutions that meet their needs for access, simplicity, and personalization.
3. Don’t assume their interests align with traditional gender roles. Health, wellness, and beauty have become gender-neutral topics for Gen Alpha, with boys adopting more robust skincare routines. Marketers will need to understand the unique motivations driving this emerging cohort of skincare enthusiasts.
4. Prepare for shoppers who are as interested in physical as digital. For Gen Alpha, digital is not just their world; it’s a tool for connecting to the physical world and the brands and products they covet. Marketers must find the right balance of digital and real-life experiences to capture their interest and imagination.