Generation Z usually refers to those born between 1995 and 2012, succeeding Millenials and preceding Generation Alpha. Gen Z are often called “digital natives” because they are the first generation to have enjoyed access to the internet and portable digital technology from a young age. These digital natives were perfectly placed to benefit from the Nigeria’s digital era. In this article, we explore Gen Z’s in Nigeria, how they behave, what their presence means for businesses and how businesses can sell to Nigerian Gen Z.
While the oldest Gen Zs were born in 1995, Nigeria’s telecom industry experienced a huge transformation in 2000. Notably in 2001, the government auctioned 2G licenses to private companies and mobile telephony deepened. This was marked by an increase in mobile lines from zero in 1999 to 9.2 million by 2004 and 189 million by March 2020. Internet adoption is expected to explode in the next decade. This is due to broadband penetration and the rising population of these digital natives.
How Important Are Gen Z?
Gen Z already make up 30% of the global population and up to 50% of Africa’s young population. In Nigeria, Gen Z is the most prevalent generation. Nigerian youth are twice as digitally included as any other demographic. According to the CIA World Factbook, one in every four Nigerian is Gen Z!
By 2018, Gen Z already controlled almost $44 billion in discretionary spending. This is an interesting figure which is bound to increase exponentially as more Gen Z grow older and join the working class. A decade from now, Gen Z will account for a third of consumers globally which presents a vast opportunity for businesses worldwide. Businesses on the other hand must adapt to these new consumers and understand what they want.
The Business dimension to Gen Z
Gen Z hold a lot of promise for businesses, depending on how well their potential is recognized. But how can businesses sell to Gen Z? To reach Gen Z, say goodbye to traditional marketing methods and hello to new strategies. Let’s take a look at five strategies businesses can employ in selling to Nigerian Gen Z.
Pricing and Discounts:
Cost minimization is at the core of their being. The average Nigerian Gen Z would consider the cost of any product before considering the quality. Using their smart phones, Gen-Zs are more likely to prefer online and e-Commerce businesses to traditional markets. They are usually on the lookout for deals, sometimes turning on post notifications from their favorite vendors. Gen Z consciously sort the lists from cheapest to the most expensive are evidence of their cost-cutting behavior.
They actively seek alternatives that yield similar quality but at better price. As a result, a vital strategy to hold this consumer segment is undercutting the competition. However, they would not mind paying a premium if the service being delivered is better than cheaper alternatives. A strength they have that businesses need to tap is their ability to refer and drive sales.
Referrals and discounts are another means to getting the attention of Nigerian Gen Z as they actively seek deals. Gen Z are more easily influenced by their peers than other generational groups. Business models that incorporate reward-based referrals are likely to become more popular with them. These referrals by a population that is active on the internet with a compounding international reach would likely do more advertisement on behalf of the company. Time-bound discounts also give the fear of missing out. This is a recipe for impulsive spending decision for a generation that wants to be on top of things. Scarcity can be a great element for your sales and a powerful motivator for Gen Z.
E-Commerce and Social Media Presence:
With increasing technology, there are many digital platforms where businesses can successfully reach the target Gen Z. Nowadays, everyone has access to a smartphone, PC, and tablet which means they have access to social media and digital content.
Selling to Nigerian Gen Z, you need to harness the power of all those platforms to promote and advertise your products. Business must strive to get their products on online platforms. Setting up a shop on Shopify or other e-commerce platforms are a good start but if that is too advanced for a step, social media platforms like Facebook, twitter, and Instagram are other amazing and underrated ways to sell to Nigerian Gen Z. If you’re a business owner, you can can be used to run ad campaigns and reach more audiences. To sell effectively using these platforms, content must be tailored to their interests.
Being a generation whose online and personal identity are equally important, this generation holds in high regard the social media presence and corporate social responsibility actions brands. Gen Z love to lend their voice to everything and ensure they are heard. Likewise, they expect brands that they do business with to do the same. To sell effortlessly to Gen Zs, you must ensure that your brand has a good reputation and original products.
Another way businesses can sell to Nigerian Gen Z is to partner with celebrities and influencers. This is a sure way to attract this younger generation to buy a product. Most Gen Z have some celebrity or public figure whom they ‘stan’ or have a very strong affinity towards. They follow these public figures on social media especially personalities in the sports and entertainment industry.
Some Gen Zs don’t just follow them on social media, they may try to imitate their lifestyle, mode of dressing, start online arguments, and keep themselves updated with every move, because of how much they like these personalities.
This fact is an advantage to businesses. To sell to Gen Z, businesses need partner with some of these celebrities and influencers to help promote their brand or product. This works every time.
Leverage on Technology:
Another way to engage this large demography of potential customers and sell to Gen Z is to adopt systems that make the user experience seamless. Again, this generation is comfortable working remotely, having access to services at little cost is important to keep them. The use of cryptocurrency as a medium of exchange is becoming more popular. Many Gen Zs are now keeping their money in digital wallets and even invest in digital assets. Therefore, having outlets that support digital transactions may lead to increased patronage.
Gen Zs are known to be digital-savvy and marketers can utilize the newest technology to provide them with a smooth buying process. They always wants to explore new developments in the online space. If you already have an online store or website where you sell your products or services, you can incorporate the right technology and software to enhance their shopping experience and make them stay longer. The internet is rapidly evolving, therefore, ensure you keep your store up-to-date with the right software.
For businesses to gain a competitive edge, they must not only accommodate the presence and growth of Gen Z, but also adapt to them. In this article, we’ve discussed a few strategies businesses can employ in selling to Nigerian Gen Z.
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Hi there! I’m Owen, a writer, designer, and a digital marketer. I create and manage content at OG Capital. I am a highly motivated individual who is very passionate about problem-solving. Reach out to me on social media and I will be more than happy to connect with you. Cheers!