Brand ethics are 'essential ' for Gen Z to part with cash - survey

One in four young people say ethics are the most important reason behind their purchases, according to a new survey conducted by Beatfreeks.

The engagement and insights agency, who works with businesses looking to engage with young people, revealed the findings in its new report Institutions of the Future: A National Youth Trends report into Gen Z and the Private Sector.

The report surveyed 2,000 young people between aged between 16 and 21, otherwise known as Generation Z.

The report revealed that ethics and an authentic stance on societal issues lie at the heart of young people 's relationships with business brands and strongly influence their spending power.

Almost nine in ten young people (87 per cent) pay attention to brands ' ethics when buying from them, with ethics noted as the main reason behind Generation Z 's selection of their 'favourite ' brand.

Ethics was second only to 'quality ', voted for by 50 per cent of respondents, and also beating 'cost ' which was chosen by just 23 per cent.

Beatfreeks say that these findings are particularly insightful, as Generation Z will account for 40 per cent of global consumers by the end of 2020, highlighting the need for brands to not overlook the purchasing power of young people.

The research also revealed that Generation Z do not take brands ' stances on societal issues at face value.

Over half (53 per cent) of respondents highlighted the importance of brands supporting causes on social media and in real life, with seven in ten (69 per cent) wishing to see these changes replicated inside organisations via inclusivity, working conditions, accessible products and contributions to charitable causes.

Anisa Morridadi (pictured), founder and chief executive at Beatfreeks, said: “As the first generation of digital natives, Generation Z are prolific content consumers and creators.

“Our new report shows their willingness to uncover and call out social injustice online, but crucially they believe it shouldn't just be left to them. There is a new expectation that brands will listen, respond, and get behind societal issues, particularly after the enormity of societal change from 2020.

“Not only do they expect this, but brands having an authentic stance on values, particularly when it's driven from the inside out, is now essential for Gen Z to part with their cash. This generation provides a huge purchasing power, and they will spend where they can see action, so brands need to start making serious moves to become genuine 'institutions of the future '. ”

To download the full report, click here.