Mid-market department stores have become the punch bag for the state of modern retail. Often the largest, most visible and expensive stores to run, they are the cumbersome dinosaurs of the British high-street and, much like those, talk is about them dying out.
Two of Britain’s biggest department store chains, John Lewis and Debenhams, unveiled their rebrands on the same day, this week. Much like a first day at school, and a fresh seasonal start, this is their equivalent of a fresh text book and pencil case. But, will it be enough?
Left - John Lewis & Waitrose adds its Partners to their new logos
John Lewis is ramming home the fact it’s a big, fat cooperative by adding ‘Partners’ to everything. For the first time in the company’s history the names of both John Lewis and Waitrose have added ‘& Partners’.
At the same time, they also unveiled the largest own brand womenswear collection of 300 designs, which was created entirely in-house and carries the new name ‘John Lewis & Partners’. Plus its first own-brand gifting collection called ‘Find Keep Give’. The range is comprised of unique pieces, the majority of which were designed in-house by Partners.
This is John Lewis really putting its stake in the ground for point of difference. The future, they think, is something desirable you can’t get anywhere else. Never knowingly sold elsewhere!
Rob Collins, Waitrose & Partners Managing Director said: “This moment is far more significant than simply adding words and changing the design. It symbolises something bigger, expressing what’s different about our business and signalling our intent to make that difference count for even more: committed, knowledgeable Partners who care about the business they own, sharing their love of food and offering great customer service.”
Right - All about the D at Debenhams
John Lewis Partnership said in June that it would continue to invest in both businesses at a rate of £400m-£500m per year, to enable the two retail businesses to differentiate themselves from other retailers by innovating in products, customer service and services with the creation of ‘Customer Service Ambassadors’ who provide warm and personalised customer service front of store. As well as healthy eating specialists, they are training Partners to offer a concierge style service and equipping ‘Personal Stylists’ with the skills to deliver daily fashion talks; as well as investing in technology to improve customer service. This will be hard for other retailers to match.
But, John Lewis is feeling the pain too. They just announced the loss of back office jobs in IT, finance and store security from its 50 departments stores with 250 roles affected. This reflects the recent plunge in profits, and the announcement in June that profits in the first half of the year will be "close to zero”.
On the other hand, Debenhams was definitely due a refresh. Devised by new creative partner, Mother, Debenhams has unveiled a “modern, friendlier logo”. A new media tag line “do a bit of Debenhams” invites customers to “celebrate their discovery of the brands and products they love”.
Debenhams chief executive, Sergio Bucher, said, “Whilst we have made real improvements to our stores and continue to improve our product offering we also want to signify overtly to customers that Debenhams is changing and give them more reasons to come in store – our new brand identity is a way of signalling the change.”
As part of the ‘Debenhams Redesigned’ overhaul, the online shopper journeys have been reduced by half and conversion rate improved by 20%. The first new logo in 20 years, Debenhams’ new look reflects the investment and changes that Bucher, who was previously at Amazon, has made.
In June, Debenhams said full-year profits will be lower than expected - the third time it has issued a profit warning this year. The department store blamed "increased competitor discounting and weakness in key markets" for the profit shortfall. It said annual pre-tax profits would come in between £35m and £40m, below previous estimates of £50.3m.
Left - Debenhams new logo 2018
“Perhaps the rebrand for both these important retailers could be have been actioned earlier, but I am pleased to see that both Debenhams and John Lewis have now grasped the opportunity and wish them both well with the next steps. I am also encouraged to see that both businesses see the initiative as much more than signage and are taking the opportunity to look at every aspect of their businesses in terms of both the relevance and the importance of excellence in delivering goods and services to their customers.” says Michael Sheridan, CEO and founder of retail and brand design agency Sheridan&Co.
One department store chain that could possibly do with a makeover is the privately held Fenwick. The Newcastle-based department store chain is to shed 421 jobs as part of a cost-cutting plan following a slump in profits. The retailer reported, yesterday, it had not been immune from the struggles facing its competitors. It said management, support and shop floor staff would be affected by the job cuts - the result of a restructuring - taking its total workforce to 2,879 people.
Fenwick posted a 93% fall in pre-tax profits to £2m in the year to 26 January. They said a 3.6% fall in sales over the 12 months was a resilient result.
A spokesperson said: "Our annual results reflect the challenging market conditions all department store groups are facing, including increased competition from online retail, declining footfall on the high street, and increasingly competitive price discounting - factors that have been exacerbated by a rise in the cost of living that has led to a fall in consumers' disposable income.”
Fenwick is a small chain, with 9 branches, mostly in wealthy market towns. They have no e-commerce ATM, and, while they plan to, I think it could be too little, too late and they would be better off investing in their stores and “owning” the towns they are in. They need to remind us why we need to go to a Fenwick’s store. They should follow John Lewis’ lead and offer good customer service and product points of difference. It doesn’t have shareholders pushing for short-termism profits so should look longer term.
We’re still waiting to see what is happening with House of Fraser, but I’m sure we’ll see a new logo and branding there within the next 18 months.
These department stores are using new logos to draw a designed line under the past with the aim to looking forward. They’ve been surrounded by negativity for so long and this must be hitting the morale of the staff and this is a way of saying “new start” and they are investing.
There’s a lot of play for, but everybody needs to become leaner and faster, and many chains have no more meat left to cut. They, now, need shoppers returning and buying more. Only exclusive products or services they can’t get anywhere else will draw them back.
John Lewis has deep pockets and Debenhams’ survival could be at the expense of another chain. John Lewis’ classic branding didn’t feel tired, but maybe they thought it was important to change before it does, but I would have kept the original dark green colour. Debenhams’ new look looks fresh without trying too hard. It looks reliable and welcoming and does reflect the changes that have been going on in-store. Debenhams has come on massively over the last couple of years and it was a good idea to have a clear out of its “designers” - read more here. Now, it needs enticing, contemporary product to replace it.
The mid-market department store, as a concept, isn’t dead, but for the bad ones it’s the beginning of the end and no fancy new logo or slogan will fix that.
Read more expert ChicGeek Comments - here
Quite possibly the collab. of the season. One of the finest mills in Scotland, Johnstons of Elgin, has been trying to move into the ready-to-wear menswear market for a few seasons, now. They have the finest cloth and it makes sense to want to control the final product. Scotland’s answer to Zegna, maybe?
Finding the skills to manufacturers garments to the high standards these fabrics deserve isn’t easy in the UK, so it’s great to see they’ve teamed up with one of the best coat manufacturers, Private White V.C. in Manchester.
Left & Right - Black Single Breasted Ventile Men’s Trench Coat & Gilet - £1795
The new collection features two jackets: a single-breasted trench coat featuring a seam sealed waterproof external fabric with a detachable quilted gilet complete with a contrasting lambswool tartan lining and cashmere knit collar and the waxed country jacket using a 1402 Halley Stevenson premium wax fabric boasting weatherproof and thornproof qualities. Lined with Johnstons of Elgin 100% cashmere velour, it features details of punched leather elbow patches and trim on the collar. Both jackets feature Johnstons of Elgin’s 100% cashmere velour.
Alan Scott, Creative Director at Johnstons of Elgin said: “I am very proud to present these two key men's outerwear pieces from the Private White x JoE collaboration for AW18. We are very excited to showcase and celebrate the best of British quality garment manufacturing and specialist cashmere textiles all made entirely in the U.K. We value the unique expertise and authenticity that Private White embody and for helping to bring our cloth to life. Our parallel stories and family owned history create the perfect partnership.”
James Eden, Brand Director at Private White V.C said: “We’re delighted to be collaborating with one of the most esteemed cashmere manufacturers in the world; Johnstons of Elgin. Together we have struck the perfect blend of luxurious fabrics and quality craftsmanship- these are pieces of outerwear that have been made to last a lifetime and I believe they will be cherished by whoever is lucky enough to wear them for just as long.”
The only negative, these jackets are crazy expensive and I almost wish they were bursting with more Johnstons’ fabrics. If you do want a beautiful Johnstons of Elgin blanket type coat look at Gieves & Hawkes’ new AW18 collection.
Left & Right - Olive Country Style Men’s Wet Wax Jacket - Private White Collaboration - £1795
It’s September, which means new season, fresh ideas, shopping, putting more clothes on, having your eye on something and changing things up. Well, at the recent 75th Venice Film Festival, Radiohead’s Thom Yorke jumped forward all the way to next SS19.
At the premiere of Luca Guadagnino’s - the director of Call Me By Your Name - new horror film, Suspiria, he was wearing the latest collection from Dries van Noten. Inspired by the 60s designer, Verner Panton, the collection - see more here - is a beautifully kaleidoscope of wavy colour and was firmly on my must-have list for next season.
This inspired me to look at Thom’s other outfits during the festival to promote the film's soundtrack. From the natural tan sandals, which will change colour over time, to the nonchalant summer scarf to the honey coloured lensed sunglasses, you won't go far wrong by copying Thom for your next warm holiday wardrobe.
Left & Below - Radiohead's Thom Yorke in Dries van Noten SS19
Far Left - Style in Venice - Honey coloured lenses and matching frames and a double breasted jacket
Left - Move over Benedict, Thom is in town
You probably saw my obsession with Space Odyssey 2001 after the Undercover AW18 show at Pitti Uomo in January. See more here Well, I haven’t been able to get Z Zegna’s interpretation of those Kubrick space suits out of my head and this bright yellow one from Topman just jogged my memory.
So, this winter make like a bold Michelin Man in vibrant primary colours. Yellow is the colour of choice and the matching hat, trousers, gloves, boots, are all purely optional!
Left - Topman - Yellow Puffer Jacket - £70
Right - Z Zegna - £1090
Walk into Selfridges’ new eyewear department and you’ll see a noticeable change in the eyewear market. Amongst the acres of grey terrazzo and perfectly lit vanity mirrors, you’ll discover 2,200 eyewear styles from 50 brands, some costing nearly £8000.
This is eyewear placed in equal importance to the other accessories in Selfridges’ refreshed accessory department - the largest in the world at 60,000 sq ft and costing in excess of £300m. Sitting alongside the luxury handbags and designer boutiques, it illustrates the new focus from luxury goods companies on their eyewear product. It is no longer the rather side-lined licensing cash-cow it once was and as such, is no longer taken for granted.
Left - Selfridges' new eyewear department on the ground floor
Much like the perfume business, niche players have entered the eyewear market, offering difference and quality. The designer brands are sitting up and taking notice and while Selfridges’ new eyewear department is run by the Luxottica, owner of Ray-Ban and many other designer licenses, it hasn’t completely monopolised it with its own brands.
New brands to Selfridges include Fak by Fak and Project Produkt, while others, such as Grey Ant, Retrosuperfuture and Thiery Lasry, have created exclusive styles for the space.
The eyewear market is actually experiencing the reverse of what is happening in other categories. Luxury brands are putting more focus and input into their product and increasing the quality and workmanship in order to compete. At the same time, thanks to brands like Gucci, eyewear has become an integral part of a look or outfit and it’s the bolder, the better ethos, right now, that is making eyewear sales rocket.
“The industry's certainly going through a time of flux. At one end you've got the old guard consolidating - Luxottica and Essilor being the obvious, gargantuan example. Then at the other, you've got a whole bunch of new own-branded entrants. And then in the middle, you've got the high street multiples (who still collectively control over 70% of the market in the UK).” says Tom Broughton, Founder of Cubitts.
It wasn’t long ago the branded eyewear market was a duopoly dominated by the Italian giants of Safilo and Luxottica. In 2014, the luxury conglomerate, Kering, eyeing the potential of cutting out of the middle man in their eyewear business, terminated the licenses with Safilo for brands including Gucci, Alexander McQueen and Saint Laurent.
Right - Gucci has really lead the way in pushing mainstream experimental styles
“To maximise the development of its brand portfolio, Kering decided to internalise the value chain for its eyewear activities, from product creation and development to supply chain management, sales and marketing.” says its press release.
“Through this project, Kering is putting in place an innovative way of managing its eyewear operations, which will lead to significant value-creation opportunities and enable the group to fully capture the sheer growth potential of its houses in this category, in a global market which is sizeable and in which the high-end segment is enjoying substantial growth.” it says.
Today, ‘Kering Eyewear’ designs, develops and distributes eyewear for Gucci, Bottega Veneta, Saint Laurent, Alexander McQueen, Stella McCartney, McQ, Boucheron, Pomellato, Brioni, Christopher Kane and Puma.
Kering understand the profits and growth to be seen in eyewear and by taking it in-house, it cuts out a cost plus adds control. The results have seen more distinctive styles imbued with the individual brands’ DNAs. It is lead by Roberto Vedovotto who was previously CEO of the Safilo Group.
“For the last couple of decades, 'designer' eyewear has really meant branded eyewear. And so those who controlled access to those brands - big players like Luxottica and Safilo - controlled much of the market. But I think there's a general change in consumer appetite for more independent brands, particularly those mono-brands who just try do thing one thing exceptionally well. Our old friend the internet has meant that it's also possible for small start up brands to sell directly to end consumers, rather than be encumbered by the traditional wholesale model.” says Broughton.
Alistair Benson, Managing Director Eyesite Opticians, says “The big fashion houses are, now, more concerned with producing distinctive eyewear with better quality that adds to the success of their other product lines. We saw Céline remodel their already best selling ‘Shadow’ piece, introducing new and improved hinges and additional colours. An example of an already proven and successful formula being upgraded just to ensure it stays at the front of the pack.
“As competition grows, fashion houses inevitably need to ensure they are producing more innovative products to stand out. Another reason for this is the rise of niche/cult brands and start-ups; take the jazz inspired Black Eyewear for example. All-in-all, it makes for a much more stimulating market that benefits today’s highly engaged consumer, who now have more choice than ever before. From our own perspective, as a retailer, we have had to adapt to this change, responding quickly to shifts in certain trends and the overnight rise of new cult brands to ensure our own customers have everything they need and more.”
Left - One of the most famous eyewear wearers - Elton John inspiring the Gucci catwalk
Gordon Ritchie, MD of Kirk Originals, says “Recent years has seen the emergence of smaller niche eyewear labels appearing that offer handmade, up to bespoke quality, eyewear collections and a number of people like ourselves are making in England.
“It is driven by smaller niche players and I think this is a reaction against the handful of huge corporations that now dominate the global eyewear business and between them actually produce pretty much everything with a "big" brand name on it.” he says.
Niche brands are offering more artisan and limited product, but the big boys have recognised this and are moving into this area. The margins on eyewear are large and there’s everything to play for. Luxottica, reported a 2 percent rise in 2017’s sales to 9.16 billion euros and Safilo had full-year sales totalling 1.05 billion euros.
Designer fashion brands have made eyewear an integral part of their fashion collections. These flamboyant styles have resonated with consumers especially with its entry price points. But, smaller, niche players are offering individuality which attracts many consumers to well designed and made eyewear.
“I think this is a result of people growing in confidence in expressing themselves, probably helped along by them being exposed to so many images on a daily basis on Instagram. Instagram can be inspiring but also allows you to feel you’re not the only one pushing the boundaries a little bit by being bold in your choices in colours and styles.” says Ritchie.
“I think people will increasing see a pair of spectacles or sunglasses as a defining piece of their wardrobe, rather than merely a medical accoutrement to help them see.” says Broughton.
People are buying many more pairs to suit different outfits and moods. Add in the recent fashion of coloured lenses and it broadens the scope of choice. “We believe that people will continue to look for more individuality in their eyewear, too. Much like other countries in Europe, we expect increasing numbers of customers to buy 3–5 sets of frames each year in order to mix it up and achieve a different look whenever they want.” says Mary-Frances Kelly, Marketing Manager at Optical Express.
“Fashion in general has become more experimental, and people are realising that they can achieve a different look with a certain style or colour of frame. And it’s not just the under-30’s who are fashion conscious – across the generations, we’re more style-aware about everything, including glasses, than ever before.” says Kelly.
This is something really positive. It reflects a thriving market. The big brands have recognised the threat and, wanting to hold onto the many hundreds of million of dollars involved, are focussing on directional styles and quality. This leads to better product and choice for everybody. They have, thankfully, realised that simply putting different names on the same glasses just isn’t enough anymore. Add the maximalist mood in fashion and everybody wanting to be an Elton John or Iris Apfel, then you have a very bold, experimental and receptive market. Let’s hope this type of thinking enters other sectors of the luxury business.
I popped into Selfridges last week to have a look at their new eyewear department - more of that later - and thought I’d have a look at the new deliveries on the menswear floor. This is the best time of year: all the collections are box fresh, straight out of the cellophane and you get a visual reminder of all the great things you saw from the shows in January. It’s like being a stylish kid in a sweet shop.
I was drawn to the Dries van Noten collection. Full of all the swirling and beautiful marbling which was central to the collection - see more in TheChicGeek AW18 Trends here - It was reminded of a beautiful collection of silk shirts and printed coats that had caught my eye at the beginning of the year.
The new Dries collection is fine. The marbling and swirls put his artistic touch on some of the best distinctive menswear around. This is what you buy him for. The standout was this satin and unstructured evening jacket with a Big Brother like eye on the back. It's kind of Hugh Hefner in his hippie days and is perfect for the current relaxed formal type of dressing. Forget Big Brother, TheChicGeek is watching you!
Left & Below - Dries van Noten - Swirl-Print Satin Wrap Shirt - £630.36 from Barneys New York
As this year’s A Level and GSCE students collect their results I’m going to look at the reasons behind the death of the Saturday job amongst this demographic - Generation Z or iGen - why they seem to need less money and whether this will make them less attractive as a target market to marketeers, brands and retailers.
According to the UK Commission for Employment and Skills (UKCES) some 42% of 16- and 17-year-old students were studying and working simultaneously in 1997. This had dropped to just 18% in 2014.
Post-millennial youth - those born after 1996 - have been labelled as ‘Generation Boring’ or ‘Generation Sensible’. A recent survey by the British Pregnancy Advisory Service showed teenagers are becoming less likely to have sex, preferring to spend time with their families and having romantic relationships online. Teenage pregnancy rates have fallen by 55% in the last decade to their lowest ever level (July 2018). Add this to the rates of smoking, arrests, drug taking and drinking all falling and you can see why older generations are perplexed at this conservative and law abiding wave of youngsters.
Hannah Elderfield, Consumer Behavioural Analyst, Canvas8, says, “From paper-rounds to sweeping up at the hairdressers, Saturday jobs can give a first taste of independence and provide useful future skills. But, data shows that less British teens are taking on part time work, with pressure to get good academic results partly the reason."
“Research conducted by the BBC found that the number of young teens working part time jobs after school or at the weekend has declined steadily since 2013. Businesses employing kids aged between 13 and 15 are required to apply for a permit, and the number of permits issued in 140 local authorities across the country fell by a fifth – dropping from 29,498 in 2012, to 23,071 in 2016.” says Elderfield.
“When looking at dropping levels of Gen-Z taking up weekend jobs in general, it’s important to recognise the pressure teens today feel to do well in exams. 61% of 15- to 17-year-olds believe that good grades are more important than happiness! As a result, they’re channelling their focus into a different type of work, the hard work of studying.” she says.
Leila Willingham, Founder @Digipigz, which targets this demographic and offers ‘market research and insights supplemented by their community of industry astute 16-24 year olds’, says, “We think that statistics like that will mean marketing professionals label Gen Z as 'lazy' and what they won’t be interpreting is that Gen Z are very future focused and these statistics could be off the back of their dedication to learning and prioritising their studies over a job at that age. It may even be that they are doing work experience as opposed to paid work.”
Today’s teenagers don’t seem to be so driven to get themselves a part-time job, like previous generations, and it’s not because of a lack of opportunities. The number of jobseekers per vacancy has fallen to a record low despite a drop in the number of posts on offer. There was less than one person for each vacancy in June 2018 even though the number of advertised jobs fell by 5 per cent to 1.1million compared with a year ago, according to job site, Adzuna. Latest figures from the Office for National Statistics showed there are 32.4million people in work in the UK, a record high, and 388,000 more than a year earlier. The National Minimum Wage for people under 18 is £4.20, compared to £7.83 for those over 25. But, you would think this would make them more attractive to low-skilled employers? But, Generation Z seem to be set on concentrating on their studies.
Mia, 15, from London, says, “I don't have a Saturday job because I spend most of the day at a Dance School, which is my exercise and release from the pressures of school. I also have an absurd amount of homework which can take on average 2-3 hours a night/day, leaving little time to work or socialise. I also need some time to relax and recuperate.”
Her father, Darren, says, “I feel that the amount of homework received certainly affects the possibilities of part time work. The kids, today, are under a huge amount of pressure to live up to an adult role model, living a fantasy lifestyle. To be able to do this they know they need to succeed at school to achieve a high paying job. I also believe that parents are being lent on more to assist with these social lifestyles. I had a part time job from the age of 12 to 17 and didn't rely on my parents much. But, at the same time I received a fraction of the workload from school that children seem to receive today.”
“Many people think it’s better to get qualifications before leaving education to work straight away as many believe it is the best way to achieve a high income.” says Rhianna, 16, from Hounslow.
It’s not ‘cool’ to be seen flipping burgers or stacking shelves when you’re living ‘your best life’ on social media. If Generation Z are too busy studying and doing their homework then they aren’t spending money on going out, drinking and maybe the knock on effects of needing new clothes to go out in etc. But, this doesn’t take into account teens documenting their lives through social media and the tendency towards materialism and showing off what they have.
Rihanna, 16, says, ““Some people get their money from 'cool' jobs like modelling or Saturday jobs, but many people use other illegal ways to allow them to quickly achieve the 'lavish lifestyle'. I get my money from my Mum and Dad and my grandparents, but I have to do jobs around the house. People want money and usually don’t mind sharing the fact that they have a job if it enables them to flaunt the expensive things they have bought on Instagram.”
Mia, 15, says, “There is definitely a truth in not wanting to do 'uncool' jobs. On Social Media you don't really see people working Saturday jobs and most of what you do see is a glamorous lifestyle. This creates a false impression of what you should be aspiring to.”
Teenagers are more reliant than ever on their parents for money. Liliah Zion, 14, from London, says, “My Mum gives me £40 a month to my account for which I am supposed to help with household chores, but, then I get more on top. Everyone just relies on their parents or sells clothing/stuff on depop.”
Her mother, Caroline, says, “I want my 14 year old daughter to work, as does she, however, I think she in the minority, and I recently asked a friend, who owns a long established West London clothing store, if she could work. He was dubious, but said "yes if she was genuinely into it” so that’s on the cards. She has been babysitting to earn money for herself . One of her friend’s Mum’s recently told me her daughter couldn’t even comprehend that she needed to work… ever and her fear was that because she doesn’t.”
But, not all of this generation are studiously just looking at their books or screens. There is a group of young entrepreneurs using their skill set and talents to make extra income. Jenk Oz, the 13-year old CEO of iCoolKid Ltd. a website highlighting ‘cool’ hobbies and activities for the younger generation, says, “We are definitely witnessing a trend of teenagers moving away from the traditional ‘Saturday job’. However, the truth is that the idea of young people seeking part time work, and starting their own businesses is thriving more than ever before. Young people want jobs that help to enhance their CV for university applications - as it’s so competitive - and they want to feel like their employers and job contributes in some way to their interests and hobbies. Gone are the days when a dish washing job in the local restaurant or a paper round are the only options. Now, with the rise and influence of social media and the internet, young people are open to a whole range of money making opportunities which just weren’t possible previously.”
“For example, there’s so many digital orientated jobs which kids can get involved in today, and carry out remotely. From slime manufacturing and selling via Instagram, to writing social media copy for brands during their lunch break (so they can market better to teens), to personalising badges and selling them on Etsy – there’s so many creative activities that young people can try.” says Oz.
“These types of jobs work better with school schedules and present more opportunities for individuals with entrepreneurial flair, a key attribute of Gen Z’ers today. As most of these jobs are done remotely from a bedroom or garage, the wider public don’t see young people doing them – which makes their part time jobs less obvious. Today’s teens and tweens are starting their own businesses that suit their schedules and personal interests – rather than opting for the traditional weekend jobs.” he says.
Hannah Elderfield, says, “Embracing a long term view, they’re using every opportunity to give their careers a head start by swapping would-be weekend shifts at supermarkets for study and experiences. That's not to say they're abandoning work completely – many are finding ‘side hustles’ using tools like Pickle or launching entrepreneurial projects early on, on resale platforms such as Depop."
“Gen-Z’s disposable income is dropping, which has a knock-on effect on the brands they buy from. While they might not be buying into their favourite brands as often as they’d like, they’re still engaging with them, which is important for marketers to consider in the long run. More often than not, that engagement is happening online via social media channels. Eight out of ten Gen-Zers say that their purchases are influenced by social media and over half of 13- to 17-year-olds say they would rather their favourite brand be advertised via influencers.” she says.
Leila Willingham says, “These statistics paint Gen Z in a bad light and if marketing teams aren’t careful, and don’t take time to understand this complex generation, there’s a danger they’ll disregard this generation and later loose out when Gen Z have huge spending power and will look to brands that align with their values/beliefs and have a track record of being good on social, innovative with tech and accepting of diversity, for example.”
Brands need think long term about this generation. It's about raising awareness and desire in the hope of reaping the benefits when they can afford to make larger purchases and buying decisions in the future. This is especially true for luxury brands.
If these teenagers aren’t going out clubbing and drinking like previous generations, then what are they doing with their spare time? “Nothing most of the time. They might play Xbox (mainly boys), go to the park. Go shopping. Meet at friend’s house.” says Rhianna, 16. “See friends, actually and digitally, and pursue hobbies like dancing, exercising, for boys football or skating or mates’ time.” says Liliah Zion, 14. Mia, 15, says, “I don't go out as much, but generally split costs with parents, depending on what I am doing. There is also an expectation as a teenager to dress or act in a certain way (thanks to social media and peer group pressure) and this can be expensive. I generally save up for something special or ask my parents.”
When not online with each other, it feels like teenagers are spending a lot of time in each other’s houses with their activities watched over or supervised by parents. Because they have less disposable income, they are going out less to places involving drinking, smoking and drugs and probably a reason why many of these night time economy places have closed or are struggling to survive, giving even more reasons not to go out. It’s also an element of peer pressure in reverse. If your friends don’t have part-time jobs then, maybe, you don’t feel as much pressure to get one. You also don’t feel left out by having less money. As long as you can afford your phone and you have the internet and social media, then you have a satisfied social life. Is it all ‘Netflix & Chill” without the sex, or is that already yesterday’s news?
Life, it seems, gets very serious from an early age today and Generation Z is a reflection of this. Growing up through the age of austerity, they are very focussed on their futures. “Today, we know how important it is to achieve good grades to allow us to follow the career we eventually want to succeed in. I feel that paid work can be delayed for now until we begin to work professionally and if I study hard enough the results will come in time.” says Mia, 15.
The pressures and time constraints of studying is weighing heavy on the ability and motivation to get part-time work. This is probably why the country’s exam results have got steadily better over the past few years. There are over 7 million 16-24 year olds living in the UK and the number of full-time students rose from 2.16 million in 1996 to 3.24 million in 2014.
But these young people are missing out on valuable experiences. The UK Commission for Employment and Skills (UKCES) report also stated 'earners and learners' are likely to perform better and earn more than those students who focus only on their studies in the longer term. They are also likely to earn more than those just in full-time education, with a premium of 12-15 per cent. Part-time jobs are also excellent ways for young people to gain experience of the working world, a factor which 66% of employers say is important when recruiting.
It’s clear Generation Z aren’t being lazy. On the one hand we have a very diligent, healthy and focussed generation which seems to be putting education before anything else, but, on the other, a generation without as much life experience and rebellious streak as previous ones. This generation is concentrating on learning and their revolution will just have to wait.