How Gen Z Planners Suggest Overcoming Business Barriers (Part 1)

Dentsu Inc. has launched " REVERSE CONSULTING for SUSTAINABILITY," a service that advances corporate sustainability alongside Generation Z, often called sustainability natives. Standing out within this consulting framework are members of the 'Youth Consumption Lab,' a unit within DENTSU PROMOTION PLUS INC. This time, we welcomed Kyosuke Igarashi, Kana Oki, and Risako Baba from this unit, along with Rie Tanaka, who leads 'REVERSE CONSULTING for SUSTAINABILITY,' to discuss how Generation Z themselves perceive sustainability.

Excitement over obligation. What is "SDGs Next Door"?

Tanaka: First, could you briefly introduce the "Youth Consumption Lab," launched in 2022?

Igarashi: The Youth Consumption Lab is a unit within DENTSU PROMOTION PLUS INC., composed of members from the Millennial generation (born 1980-1995) and Generation Z (born 1996-2015). We tackle challenges in sales promotion and marketing by incorporating the perspectives of the target audience for products and services aimed at younger generations.

Tanaka: How did you recruit the members?

Igarashi: We already had a planning department targeting younger demographics, but we wanted to create a space where even younger generations could take center stage and thrive. So, we approached each young employee individually. We felt it was essential to have Gen Z members, who are the target demographic themselves. We also believed that having such a platform would allow our young employees to engage more vibrantly. Additionally, we noticed that while many producers execute projects addressing company-wide challenges, there were relatively few planners developing the actual concepts. So, there was also an underlying goal to "increase the number of young planners."

Tanaka: Becoming a producer does require a certain level of experience, after all.

Igarashi: That's true. But if we just wait for everyone to gain experience by handling more projects, the organization becomes rigid. I thought that wasn't acceptable, so I started thinking about creating opportunities for young employees to shine.

Tanaka: What do you think about the creation of the Youth Consumption Lab, Mr. Baba?

Baba: Iragi was a trainer during new employee orientation, and even then he was saying things like "I want to increase the number of planners" and "I want to raise the overall level." Knowing there's a senior colleague like him, who's putting so much effort into creating opportunities for young people to shine, was incredibly heartening and makes me feel reassured.

Tanaka: So the Youth Consumption Lab also has an SDGs unit?

Igarashi: Previously, we handled things on a case-by-case basis for each project. But because our members showed strong interest in topics highly connected to consumption, we were able to categorize them and divide them into six major areas. Now, each unit team operates independently.

Tanaka: Ms. Baba and Ms. Oki are members of the SDGs Unit, right?

Baba: Yes. In my daily interactions with clients, I often heard them say, "We don't know how to integrate SDGs into our business." That's why I decided to join the SDGs Unit, wanting to delve deeper into this topic.

Oki: Within this unit, we've adopted the activity principle "SDGs Next Door" because we want Generation Z to feel more connected to the SDGs. Corporate SDGs initiatives can sometimes come across as a bit "stiff," so we're aiming for "accessible SDGs," using that as a benchmark in a way.

Sustainability will become more commonplace going forward, but that doesn't mean it's easy to pursue it solely out of a sense of obligation. So how can we get everyone to proactively engage in sustainable initiatives? I believe we need more than just sustainability; we need "reasons people want to use the product or service." Whether buying that product or using that service sparks excitement is crucial. Ideally, "sustainability" should come as a natural byproduct of that.

Tanaka: That's true. If you don't feel something like "I love the design," "It's delicious," or "It's fun" before thinking "It's good for the environment," it's hard to buy it, right?

Igarashi: Gen Z excels at connecting with diverse people on social media and adapting their behavior to different situations. They also understand how to maintain distance from society. This allows them to strike a good balance between their personal "excitement" and the socially beneficial aspects of "sustainability" and "SDGs." They value their own enjoyment while simultaneously forming values centered on protecting the planet's future and the environment.

Key Points for Proposals Incorporating a Gen Z Perspective

Tanaka: While the Youth Consumer Lab is a field-based team focused on "for Z" promotions targeting Gen Z, the "REVERSE CONSULTING for SUSTAINABILITY" service is "with Z" – aimed at executives to co-create new business with Gen Z, representing a slightly different approach. It involves incorporating Gen Z perspectives to advance sustainability initiatives both within and outside organizations, tackling challenges head-on. Leveraging the real-world insights gained by the Youth Consumption Lab through promotions adds depth to our consulting. This applies not only to input but also to successfully guiding test marketing. Could you share recent trends in Gen Z-targeted promotions?

Igarashi: Digital communication is fundamental. Currently, communication channels—both e-commerce and brick-and-mortar—still feel unoptimized for Gen Z. While new technologies are being adopted, few have established patterns or formats that truly resonate with Gen Z using these technologies. We're likely in a transitional phase where companies and players are exploring various approaches.

Tanaka: It's crucial to grasp the key points of a business from a Gen Z perspective. However, even if management decides to take a longer-term view on sustainable business, review the business portfolio, and invest in new ventures, you won't know if it will succeed without test marketing. The front lines are busy and have sales responsibilities, so they tend to stick to the safe, existing approach. Revisiting business from a Gen Z perspective within existing business divisions is likely more difficult than one might think.

Oki: Honestly, when I look at various companies' businesses and communications, I often think, "They should do this more" from a Gen Z perspective. Even so, there are times when you have to make proposals despite various constraints.

Tanaka: "REVERSE CONSULTING for SUSTAINABILITY" is "with Z" (together with Generation Z), not "for Z" (targeted at Generation Z). Therefore, I believe those "I wish they'd do this" opinions hold significant value. Of course, experience-based approaches can work, but if we don't break through biases, decisions might be made based solely on the values of seasoned veterans with extensive field experience. This could ultimately cause the business to fall behind.

Are there cases where good ideas get blocked by organizational or business barriers? How do you overcome those barriers?

Igarashi: While they might not be as big as "business or organizational walls," I believe there are three key points for getting proposals approved. First, articulate the ideal. Second, set KPIs or other metrics to show the gap from the current state. And third, present a concrete vision.

For example, when proposing to use a VTuber for a youth-targeted campaign, I first communicated the ideal vision. Then, I explained how having that VTuber discuss specific topics would effectively convey the company's appeal and how that would help achieve KPIs. By showing concrete numbers and output images, I gained understanding.

Tanaka: Whether they feel "this could work" is crucial, right? Promotion is also an investment in the future. Presenting the ideal, showing the numerical gap from the current state, and offering a concrete image—these three points seem like they could build trust in any situation, no matter who you're dealing with.

Members of the Youth Consumption Lab say that while planning and executing promotions targeting Gen Z, they also identified challenges for the companies driving these efforts. In Part 2, we'll delve deeper into what specifically is trending among Gen Z lately, how insights gained from analyzing these trends can be leveraged, and what "REVERSE CONSULTING for SUSTAINABILITY" aims to achieve.