As a distributor of promotional products (aka “merch” or “swag”), you have a promising future when you embrace the desires and values of the Gen Z and Millennial generations.
Who are these people and why are they so important?
Millennials are generally thought of as those born between 1981 and 1996, while Gen Zs were born between 1997 and 2012 (as of this writing, people ages 12-43). That’s a hefty segment of the current consumer market.
They have strong opinions about what’s important to them, what they choose to spend their money on and the types of promotional products they prefer. They also have distinct buying preferences and patterns.
How does this affect you as a distributor of branded promo?
As these generations age, have more buying power, and have more influence in the consumer market, you’ll want to pay close attention to their values and preferences. You’ll want to communicate in ways that engage them.
Adjusting to market demands is always a major part of business. While this seems to happen at a blinding pace in today’s world, it’s well worth keeping up with developing trends to stay relevant and successful as a promo products distributor in the years to come.
Here are a few trends we see with Millennials and Gen Zs.
[NOTE: We’ll be using data gathered from two recent studies. One is a 2023 ASI study which covers adult consumers ages 18+. The other is 2024 research from PPAI which focuses on Gen Z.]
Apparel is Their #1 Choice of Merch
PPAI’s study found that almost 7 out of every 10 Gen Zers hold a favorable view of branded merch (their term for promo products). More than 6 out of 10 say they’ve made a purchase influenced by merch.
And their number one choice of merch? 62.6% of the Gen Zs in the study picked apparel as their preferred branded promo item.
This aligns with ASI’s study, which found outerwear and performance wear are among the top five promo items in every age group, including 18 to 44-year-olds. Polo shirts also ranked high, especially among older Millennials.
While PPAI’s study doesn’t break down the types of apparel younger people prefer, it does show other important factors you’ll want to consider. We’ll look at these next.
Top Characteristics for Gen Z Promo Products
PPAI includes a graph showing Gen Z’s preferences for merch characteristics. There’s a curious combination in the top three. 60.8% prefer practical and useful items. A close second, 58.2% say they like fun and whimsical items. Dropping to 48.3%, these young people value luxurious, high-end items.
Even more important is the 90% of these consumers who look at the quality of the merch they encounter and say they’ll recommend brands with high-quality promo products.
Key in on high-quality, useful, and fun merch and you’ll get the attention of these discerning young consumers—both current buyers and end users.
High Value on Trendy
It will continue to be important to know apparel trends that attract these demographics. Gen Zs are “trendsetters who want premium quality merchandise. They’re not afraid of spending more on quality products…[and] they’re extremely particular about the fabrics and finishings…” says the PPAI article.
As you work with your customers in their promo product decisions, it’s to your advantage to suggest apparel brands that keep up with current styles.
Sustainability and Social Initiatives are Meaningful
Millennials and Generation Zs take cultural relevance seriously. While they value quality and practicality in merch, they also value brands that are transparent about their sustainability and social initiatives.
89% of the Gen Zs who participated in the PPAI study say they consider sustainability important. And 82% say they think about the environmental impact of the merch they use.
In the PPAI graph referenced above, 34.9% prefer sustainable merch as their top characteristic (after useful, fun and high-end). The ASI study showed favorable feelings towards eco-friendly products as well—45% of Gen Zs and about 40% of Millennials say it’s important in promo products.
The social impact made by brands is also important to young people. These include things like DEI (Diversity, Equity and Inclusion) and inclusive sizing. It also includes the transparency of the supply chain from fabrics to sourcing/manufacturing to shipping.
The more open and detailed you can be with these generations about how the merch impacts the earth and its people for good, the more favor you’ll have with them.
Think Digital with These Digital Natives
Commonsku reported this in their recent merch trends video series: By 2025, 75% of the American workforce will be digital natives. And before this decade closes Generation Alpha (Gen Z’s successors) will have joined that workforce.
We see an interesting differentiation in advertising methods between the Millennials and Gen Zs, according to ASI: While the 25-44 year-olds rank mobile advertising at number four and five—after radio and Internet—ages 18-24 ranks mobile advertising at number two.
(Both rank promotional products as number one, which is excellent news for us!)
As time goes on it’s clear that mobile campaigns like those through social media will become more important for brands. It will be imperative for brands that target these young age groups. NFTs, QR codes, augmented reality and other digital tools will also play a growing role in engaging them.
Personalization is Significant
Here’s a stat you may find surprising (we did): 85% of Gen Zs value personalization in merch compared with just 39% of all ages. That’s a significant increase that shouldn’t be ignored.
The study doesn’t identify the motivation for that high percentage. But personalized merch communicates thoughtfulness and attention to detail. It’s more likely to leave a memorable impact and build stronger relationships. It also fosters loyalty and positive word-of-mouth. It appears our 12-26-year-olds value these qualities highly.
In Summary
Millennials and Gen Zs have significant buying power and cultural influence. As we look together at the future of the promotional products industry, we can engage them by understanding what’s important to them and making informed decisions.
Storm Creek values these same characteristics of high quality, luxurious fabrics, function and style—as well as sustainability and social good. We’re here to partner with you in your merch success with these age groups.