IADS Exclusive: Gen Alpha, the new retail powerhouse
Generation Alpha, born between 2010 and 2024, is emerging as a significant consumer group. With an estimated USD 5.46 trillion economic footprint by 2029, Gen Alpha’s spending power is almost as much as that of Millennials and Gen Z combined. The demographic is now closer to working and shopping independently, requiring the retail industry’s attention.
Caught off guard by Gen Z, brands and retailers are already implementing several strategies with “tweens” to effectively appeal to both Generation Alpha and their parents. Social media, climate change, and efforts in prioritising transparency and inclusivity shape Gen Alpha’s world. They value authenticity, sustainability and brands that align with their social values. Similar to Gen Z, their loyalty to brands is not a given.
As a consequence, marketing to them requires a different approach, as they are strongly influenced by peer recommendations on social media and gaming platforms and expect stores to be amusement parks.
The below illustration shows how Gen Alpha differs from the others.
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