Sustainability-native Gen Z. Keywords: "Meaning" and "Transparency"

The generation born between the late 1990s and early 2000s, also known as "Generation Z," is drawing attention as a symbol of the "new normal." Throughout history, young people who express new sensibilities and ways of thinking have always symbolized the future just half a step ahead. While we often see talk of "young people turning away from XX," perhaps it's less about youth abandoning things and more about those things no longer aligning with today's youth values, leading them to be unchosen. Failing to grasp youth insights could render any corporate activity or brand obsolete.

This article explores why Generation Z has gained such attention, examines what makes them new, and discusses how companies should act going forward, drawing on insights from Dentsu Inc.'s Youth Research Department (*).

*The Dentsu Inc. Youth Research Department is a special-assignment unit within Dentsu Inc. that comprehensively conducts surveys and plans/executes projects to understand the realities of teens and young adults (primarily high school and college students) in their teens and twenties. Its goal is to help companies and society build better relationships with youth. It comprises members with diverse expertise in creative, strategy, digital marketing, business design, and other fields. We engage with young people because they are the "first to embrace the new," and to seek hints for society's future direction.

Gen Z can't wait three years on a rock

A key point in understanding Generation Z is that they live in a VUCA (Volatility, Uncertainty, Complexity, Ambiguity) era—a time where there are no clear answers and change is relentless. Generation Z grew up alongside rapid technological evolution, alongside economic instability, terrorism, earthquakes, and unprecedented natural disasters occurring one after another.

Another major influence is the information explosion. As digital natives who grew up with smartphones, Generation Z has been immersed in an overwhelming volume of information exceeding human processing capacity. For them, information isn't something you actively seek out; it's something you select and discard. They prioritize "time performance" – how much high-quality information they can obtain in the same amount of time – over cost performance. Furthermore, as symbolized by social media platforms like Instagram and TikTok, information is not just passively received but actively shared as a matter of course. The term "KY" (short for "air-reading incapable"), once a defining keyword for the millennial generation preceding Gen Z, now feels like a relic of the past.

According to Dentsu Inc.'s "Understanding Young People Survey 2019," the percentage of respondents across all generations who answered "It's not embarrassing to be seen trying hard" was higher than in the 2017 survey, with younger generations showing a particularly strong tendency. Generation Z actively uses social media and YouTube to share their efforts and individuality with others, and opportunities to turn their passions into careers are increasing. While they tend to think rationally, they also show a passion for giving their all to things they love.

Moreover, we now live in an era where the so-called "traditional path" has disappeared. For Generation Z growing up in this environment, loneliness and anxiety have become major challenges in life, alongside poverty and illness. However, this loneliness and anxiety amplify their desire to acquire unique abilities and skills. It fuels a growing momentum to seek their own personal solutions—their "convincing answers"—rather than standardized, generalized correct answers. This is precisely why they tend to dislike irrational, long-term groundwork, often saying they "can't wait three years on a stone."

Compared to previous generations, Generation Z possesses the characteristics described above.

Sustainability-native Gen Z prioritizes "meaningful consumption"

Generation Z is not only digital native but also "sustainability native." As mentioned, having grown up alongside unprecedented natural disasters, sustainability is not merely a concept of "high awareness" for them; it is a concept taught in schools, one of "deep awareness."

While the shift in consumption from "product-based to experience-based" has been discussed for some time, as consumer choices have multiplied and commoditization has advanced, affordable quality has become the norm. The term "reasonable" was once used simply to mean "low price." For Gen Z, however, "reasonable" means more than just being cheap; it's about having a clear reason for choosing it. In other words, it's about "meaningful consumption." Among these meanings, a crucial factor is whether the choice reflects a commitment to the planet and the environment.

This trend is especially pronounced in the apparel industry. The reduction in information asymmetry between companies and individuals via social media, coupled with enhanced traceability (the ability to track a product's journey from production to consumption) enabled by technologies like blockchain, has made previously hidden aspects visible. These include cost ratios, environmental impact, and labor conditions – aspects companies could once conceal. Consequently, greater transparency in corporate activities is now demanded. We have entered the era of "fact fashion," where the criterion for judgment is not fast fashion, but whether sustainable facts exist.

An era where "Is there a philosophy behind it?" is being questioned

In this era demanding transparency in corporate activities, companies whose advertising contradicts reality and brands promoting ideals beyond their means will lose support. What is now required is a unique, original philosophy specific to that company or brand, starting with its commitment to the planet and the environment. This is increasingly referred to as "brand purpose."

Since 2021, Dentsu Inc. has offered " Foresight Planning," a methodology that supports companies and brands in developing their core philosophy based on future hypotheses derived from insights like interviews with Generation Z.

And it's crucial that this philosophy (brand purpose) isn't just "SAY"ed, but actually "DO"ed. That's precisely why we assist not only with advertising expression development, but also with developing corporate activities. These activities take various forms: recruitment initiatives targeting students, IR actions for investors, service and product development for consumers, and internal initiatives for employees.

There is no such thing as a "Generation Z" person. We should focus on each individual.

"Generation Z" was nominated for the 2021 Buzzword of the Year award. We are frequently asked by media and clients about "Generation Z characteristics." I, too, have frequently used the term "Generation Z" for convenience in this article.

But is it acceptable to lump the majority in surveys together as "Generation Z"? Labeling them as "Generation Z" is easy, but no one is actually named "Generation Z." Naturally, there are conservative members of Generation Z and liberal members of Generation Z. Comparing them to preceding and following generations, or examining the social context in which they grew up, is meaningful. However, when doing so, we must remain conscious that we are merely dividing them into "generations" for convenience.

For those involved in marketing and creative work, it's important to peel away the "Generation Z" label and remember that even among minorities and outliers often overlooked in survey results, each individual has their own values and way of life.

The generation following Generation Z is reportedly called the "Alpha Generation." In the not-too-distant future, we will likely be asked about the differences between Generation Z and the Alpha Generation. However, we must be careful not to create meaningless divisions in the process.

We continue to engage with young people because the future always begins with them. We want to keep focusing on how brands and young people can build better relationships, and on the hints for society moving toward the future, while also paying attention to the voices of minorities and the "n=1."
Perhaps even the concept of "consumption" itself will become a relic of the past. Rather than viewing individuals as mere "consumers" for marketing activities, why not join us in creating the mindset and actions that will make companies partners chosen by individuals to realize a sustainable future?

To learn about trending terms like "quiet quitting," please also refer to this resource.