The rise of the underconsumption trend among Gen Z consumers on TikTok has shed light on a growing financial reality for many young people. With limited discretionary income, a significant portion of Gen Zers are finding themselves needing to cut back on spending and make more mindful purchasing decisions. This shift in consumer behavior is not just a passing trend for these individuals, but rather a necessity driven by financial constraints.
According to a recent report from Bank of America, two-thirds of Gen Zers are actively making lifestyle changes to save money. This includes measures such as reducing dining out expenses and opting for more budget-friendly grocery shopping options. Additionally, 30% of Gen Zers feel that their incomes are not sufficient to start building up savings, leading many to rely on financial assistance from their families. These statistics highlight the financial challenges faced by a significant portion of Gen Z consumers.
For brands looking to engage with this underconsumption trend on TikTok, it is important to approach the movement with sensitivity and authenticity. Simply jumping on the bandwagon to stay relevant may come across as insincere to young consumers. As Matt Poekert, a social media strategist, points out, brands that regularly release new products may struggle to align with the underconsumption trend. However, companies with sustainability at the core of their business models, such as secondhand clothing marketplaces and clothing rental platforms, may find success in connecting with Gen Z consumers.
Research from Capital One Shopping shows that over 80% of Gen Z consumers have either purchased or are interested in purchasing apparel secondhand. This presents an opportunity for brands to tap into the growing demand for sustainable and eco-friendly fashion options. Companies like ThredUp, Poshmark, and Nuuly, which offer secondhand clothing and rental services, are well-positioned to resonate with Gen Z consumers seeking more conscious consumption habits.
One example of a brand subtly embracing the underconsumption trend is Vaseline, a client of the marketing agency Collectively. By reposting a TikTok video showcasing a 16-year-old tub of Vaseline, the brand indirectly highlighted the longevity and value of their product. This approach resonated with consumers who appreciate products that stand the test of time and align with the principles of underconsumption.
In conclusion, the underconsumption trend on TikTok reflects a larger financial reality for many Gen Z consumers who are navigating limited incomes and seeking more sustainable consumption habits. Brands looking to engage with this trend should do so thoughtfully and authentically, focusing on sustainability and value-driven messaging. By understanding the motivations behind underconsumption and aligning with the values of young consumers, brands can effectively connect with Gen Z audiences in a meaningful way.