In the evolving landscape of holiday marketing, brands are increasingly adapting their strategies to resonate with the distinctive preferences of Generation Z. This demographic continues to value social media and influencer recommendations, but they now also exhibit enhanced comfort with retail media and artificial intelligence in their shopping experiences.
As the holiday season approaches, marketers are facing a challenging environment characterized by economic uncertainty. A recent Deloitte survey indicated that 57% of consumers anticipate an economic downturn in the next six months—the most pessimistic outlook recorded since the firm began its surveys in 1997. Consequently, consumer spending is projected to decrease by 10% compared to 2024, with Gen Z facing an even steeper decline of 34%. This backdrop necessitates that brands remain strategic and intentional in their engagement with this critical consumer segment.
Retail experts highlight that Gen Z is particularly sensitive to economic pressures. “For retailers, it is crucial to engage this demographic meaningfully,” stated Lupine Skelly, a retail research leader at Deloitte. This year’s marketing efforts are shifting away from extravagant campaigns, focusing instead on authentic themes of connection and real value.
Notably, many consumers are prioritizing affordability, with several retailers tailoring their offerings to meet this demand. Walmart’s promotion of budget-friendly options and JCPenney’s “Really Big Deals” initiative exemplify this trend. Marketers are encouraged to communicate messaging that goes beyond just price, reflecting how their products enhance consumers’ lives.
The growing emphasis on emotional resonance in advertising is illustrated by Gap’s recent campaign, which showcases heartfelt connections rather than idealized holiday visions. As consumers seek to establish new traditions and community ties, brands are urged to create authentic marketing experiences.
Amid these shifts, the role of digital platforms remains pivotal, with 95% of Gen Z actively seeking deals during the holiday season. Brands like Urban Outfitters are leveraging insights from their Gen Z customer community to create tailored shopping experiences, enhancing loyalty through personalization.
Moreover, while social media remains a significant tool for product discovery, 61% of Gen Z indicates openness to sponsored ads, a 11% increase from last year. This trend demonstrates the potential for retail media to effectively engage younger consumers.
As retailers prepare for peak shopping events such as Black Friday and Cyber Monday, understanding Gen Z’s nuanced preferences—including their appreciation for in-store experiences—will be critical for successful holiday marketing in 2025. Ultimately, crafting genuine, value-driven communications aligned with consumer sentiments during this economic climate can significantly enhance brand loyalty and engagement during the holiday shopping season.
