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Opinion: Understanding Gen Alpha’s Shopping Habits

With the all-important Christmas shopping period well underway and the January sales only weeks away, Sarah-Jane Lowes, head of digital & social at Droga5 Dublin, part of Accenture Song, spills the secrets of the youngest generation, and tells brands where to find their trust.

Gen Alpha is the youngest and most digitally fluent generation yet. Born after 2010, Gen Alphas are already reshaping the retail landscape, with preferences distinctly different from those of Generation Z, even while their purchasing power is largely influenced by their parents.

Alphas are the first generation to be born entirely in the 21st century – an emerging demographic with which brands are already attempting to connect. By understanding the unique shopping habits and values of Alphas, brands can position themselves to build long-term loyalty with this new influential generation.

Digital Habits and Platforms

Unlike Gen Z, who grew up adapting to the digital world, Gen Alpha has been living in it since birth. They’re not just digital natives – they’re tech pioneers. Gaming and platforms like YouTube dominate their screen time and help shape their preferences and interactions with brands.

In fact, if we look at what Gen Alpha considers to be the “coolest” brands, they point to YouTube, Netflix and Roblox – not the traditional brands most generations would associate with their youth or with ‘coolness’.

YouTube, in particular, has shown up as a critical influencer in Gen Alpha’s consumer decisions. Out of all platforms, Alphas engage with it most often and, by extension, with the influencers on it. Drunk Elephant is a prime example of this. Looking back to Christmas ‘23, children as young as eight and nine years old were begging parents to buy Drunk Elephant skincare products.

Why? Having seen Drunk Elephant promoted by their favourite influencers, and drawn in by the colourful, aesthetically pleasing packaging, the brand’s products solidified their products at the top of tweens’ 2023 holiday wish lists.

Moving on to Roblox – to Gen Alphas, gaming platforms have gone beyond entertainment, becoming key social hubs. These platforms offer immersive, collaborative experiences where users can interact, create, and shape virtual worlds.

Unlike traditional ad-viewing, which is passive, Gen Alpha thrives on active participation. Here, we are seeing a new behaviour merger with Gen Alpha-one focused on dreaming up , creating, and shaping their own virtual experiences, as opposed to simply exploring those made by major studios.

In line with this, brands like Clip It, a video-editing platform native to Roblox, are leading the charge in capturing the generation’s attention – by enabling users to create and share content, Clip It has become a hotbed of user-generated content (UGC), reflecting Gen Alpha’s creativity and appetite for customisation. For brands, this underlines the importance of engaging alphas in interactive, gamified spaces where they already spend a lot of time.

Social Consciousness and Tangible Action

Gen Z-ers are already known as environmentally-conscious, but Gen Alpha takes these values to the next level. They seek out brands that not only stand for social and environmental causes but demonstrate visible action too. It might be as small as contributing to local communities, or full-on dedicating time to sustainability initiatives, Gen Alpha wants to see brands make a real difference.

Shifts like this one put authenticity front and centre. Gen Alpha isn’t swayed by empty promises – they expect brands to prove their commitment. Building trust through transparency and ethical practices will be critical to winning their loyalty.

From Personalisation to Full-on Involvement

It isn’t just sustainability that scores higher with Alphas, though. The youngest generation surpasses Gen Z in their expectation for personalisation too – they don’t just ask for tailored experiences; they want to co-create them. Whether it’s designing virtual avatars, customising gaming environments, or influencing product designs, Gen Alphas thrive on being part of the creative process.

Brands entering these interactive spaces need to adopt a collaborative approach, to satisfy Gen Alphas in a similar way that gaming platforms are doing. Offering customisation options, interactive polls, and augmented reality (AR) features for in-store and online experiences can help foster deeper connections.

And yes, Gen Alpha is the youngest generation right now, but research shows that children as young as six start shaping household brand preferences, with loyalties becoming entrenched by age 16. For brands, this means engaging Gen Alpha early is the key to building lifelong relationships.

The key point here is that this is a generation whose loyalty is conditional. Unlike previous generations, alphas expect brands to remain relevant, innovative, and engaging. Consistent quality and experiences matter, but so does a brand’s ability to evolve along with Gen Alpha’s preferences. This is exactly why platforms like Roblox and Minecraft, which offer both collaborative and educational elements, provide an excellent blueprint for creating meaningful relationships.

Trust and Ethical Engagement

Gen Alpha are already showing signs of being discerning consumers! Trust plays a crucial role in shaping their shopping habits, whether through positive reviews, safe online environments, or endorsements from their favourite influencers. When you consider alphas’ influence on household purchases, this is something that companies should pay attention to.

They are growing up in an environment where digital content is pervasive, and consequently, they learn from an early age to discern trustworthy sources. With this in mind, brands should prioritize strong data privacy, clear communication, and secure online interactions. This is what will establish the foundation of trust that will eventually pay dividends as this generation grows and gains purchasing independence.

The Power of UGC and Influencers

The Drunk Elephant example is a good indication of how influencers can popularise brands within younger demographics who will often emulate the choices and endorsements of their favourite social media personalities. It is true that influencer marketing continues to dominate among all younger demographics, but for Gen Alpha, it all goes back to authenticity.

The reality is, Gen Alpha is likely to be more discerning and may prefer content from micro-influencers or peers, yet they are also enormously influenced by celebrity creators like Mr Beast and will want to buy something if they see their favourite gamer or YouTuber using it.

UCG and ECG content are fundamental to how alphas engage and create online. Going back to Clip It, the platform surpassed one billion views in November, which is an enormous feat considering they launched in March this year – it’s the equivalent of TikTok for alphas, where they view, create and share videos of their in-game avatars.

Balancing Online and Offline Experiences

While Gen Alpha will spend a significant amount of time online, they also look for real-life experiences. Gen Z may favour in-store shopping, but Gen Alpha expects technology to enhance and simplify their everyday physical experiences.

Augmented reality and interactive in-store elements can bridge the gap between the digital and physical worlds that alphas are so desperate to blend. However, there is growing awareness of the importance of digital detoxes in matters of mental health.

There’s surmounting interest in ‘social rewilding’ too, where Gen Alpha seeks to balance their digital lives with more textured, offline experiences.

From a brand point of view, when you are positioning yourself to alphas, consider how you can deliver joy offline as part of your brand promise, and secondly, think about how you can bring more depth and simplicity to how you engage them online.

So, what does this all mean? It’s no secret that Gen Alphas are set for a life made up of a unique blend of creativity, digital fluency, and social consciousness. Not to mention they are growing up alongside generative AI and are poised to be the most AI-savvy generation yet. Because of their understanding of technology, though, they value trust, interactivity, and meaning above all.

Resonating with Gen Alphas means being prepared to deliver immersive, personalised experiences on all levels of life, and embracing innovation at every step. By meeting them where they are – whether in social gaming, influencer marketing, or enhanced real-world experiences – brands can secure a place in the hearts of this growing generation.

Sarah-Jane Lowes is Head of Digital & Social at Droga5 Dublin, part of Accenture Song.

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