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Generation Alpha Infographic

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.

![GEN ALPHA

McCrindle – Decoding Gen Alpha

At the crossroads of tech maturity, social media and gaming

Technology as a way of life

Millennials grew up with personal computers, leading the way in internet usage and technological adoption. Gen Z was raised in the era of smartphones and social media, with limitless information always within reach. Gen Alpha has grown up with advanced technology and has never known a world without AI, AR, or gaming. No single technology or platform defines Gen Alpha. Instead, their distinctiveness lies in their overall tech-savviness and ease with emerging technologies. This generation naturally navigates new tools and technologies in ways we’ve never seen before. They interact with AI tools like ChatGPT and virtual assistants, making spatial computing and augmented reality their norm.

Unlike previous generations, and seeing technology as an integral part of life, they blend physical and virtual experiences, from gaming and socialising to shopping. As a result, they expect seamless integration between online and offline shopping experiences, pushing retailers to focus on creating personalised interactions and ensuring a smooth omnichannel presence. This includes user-friendly websites, mobile apps, and in-store technologies that enhance the shopping experience.

Social media platforms are crucial, but gaming platforms get traction

Retailers should create content that resonates with Gen Alpha, utilising popular platforms and collaborating with influencers. According to the Harvard Business Review analysis of Generation Alpha, unlike Millennials who favoured Facebook and then Instagram, Gen Alpha prefers TikTok and engage in popular trends such as "get ready with me" videos and "shelfies" (videos showcasing products on bathroom shelves). But more than the usual social media platforms, Gen Alpha is investing time in gaming. According to the Business of Fashion, they now spend a bit more time on gaming platforms (Roblox, Fortnite, Minecraft) than on social networks, with 5.2 hours vs. 5.1 hours per week. User-generated gaming is rising, with kids preferring to create their game environments and avatars rather than just playing pre-made ones. Gen Alpha even asks parents for virtual currencies instead of traditional allowances. For example, Robux, the Roblox currency, allows users to customise their avatar or to buy additional functionalities.

Also, according to retail consulting firm J.C. Williams Group, Gen Alpha is used to creating relationships through technology. Unlike Gen Z, they are comfortable with never meeting people and may develop friendships online. So, Gen Alpha interactions with friends are shifting toward the metaverse, where WhatsApp groups, Discord servers, and Roblox DMs are replacing traditional platforms like Instagram and Snapchat.

Current and future shopping patterns

It’s a family business: targeting parents

Gen Alpha and their parents influence each other’s purchases. Gen Alpha is impacting their parents' shopping habits and has USD 300 billion in spending power through parental influence, so brands need to have a dual-focused marketing approach and keep on marketing to adults, as parents greatly influence their purchases. Trends extend beyond Gen Alpha and resonate with older generations as well. For example, Gen Alpha greatly influences their family's entertainment choices, preferred food and delivery services, home technology adoption, and hygiene products. Their emphasis on health, wellness, and sustainability significantly shapes their parents' purchasing decisions.

A generation focused towards adult brands

Due to social media and digital influence, Gen Alpha is more brand-aware than other generations but doesn’t have many dedicated spaces or brands targeting their specific needs. Unlike previous generations who had “tween” brands catering to their needs (for example, Tammy Girl in the UK in the '90s’), Gen Alpha tends to gravitate towards adult brands, preferring to shop where their Millennial parents shop, such as at Lululemon and Sephora. Also, many young shoppers share the same favourite brands as their parents, like Amazon. As a result, the concept of a “tween” market is fading, and brands prefer to expand product sizes instead of creating separate lines. As a result, many retailers now market to parents, knowing Gen Alpha influences their spending decisions. Gaming platforms become brand discovery spaces as 60% of Gen Alpha discover new brands through gaming experiences. Success stories like Fenty Beauty's Roblox contest,  which led to real product launches, demonstrate effective gaming engagement strategies.

Trends are now popular with multiple generations, often based entirely on trying and reviewing different products. This phenomenon is visible with skincare and makeup, but also with clothes, accessories, furniture, and more. Brand audiences are no longer defined by narrow demographics: everything is for everyone. Millennials and their Gen Alpha kids are likely to share the same viral cult products, such as the Stanley the tumbler for example.

Will Gen Alpha be the first generation to prioritise CSR concerns?

Like every other demographic, younger consumers are price-conscious, which is evident in Shein's success. Among Gen Z, 52.6% of 16-24 year-olds in the UK ordered from abroad in 2023, of which .

Will it be different with Gen Alpha? They will feel the growing impacts of climate change more than any previous generation. Also, they will have to cope with massive social and geopolitical shifts, widespread mental and environmental health crises, and ongoing struggles for equality. Under such circumstances, like Gen Z, Gen Alpha declares is a key concern. Retailers should continue their sustainability efforts, offer eco-friendly products, reduce waste, and support ethical practices. Creating second-hand or resale programmes can also appeal to this demographic's eco-conscious concerns. Gen Alpha values inclusivity and diversity. Retailers should ensure their products and marketing campaigns reflect various cultures, identities, and experiences. However, it’s uncertain if what Gen Alpha declares will reflect in their purchases once, freed from their parents’ choices, they can fully decide what they buy.

What does Gen Alpha want? Customisation, entertainment and curation

Experience, personalisation and co-creation

Offering customisation options allows Gen Alpha to express their individuality as they engage with technology as creators and world builders. They ‘build together with’ or ‘play with’. Also, they are truly “the builders and users of the metaverse.” Gen Alpha might finally give true value to this technology. This is mainly due to platforms like Roblox, Minecraft, and Fortnite, which have revolutionised gaming by enabling players to design their own worlds, characters, storylines, and rules. Gen Alpha has embraced this creative freedom, using it as a means of self-expression and innovation. Their deep connection with experiential technologies also shapes their engagement with the physical world. In the US, while their parents might visit attractions like the Museum of Ice Cream to take Instagram-worthy photos, Gen Alpha prefer experiences like Meow Wolf, an immersive art experience that blends storytelling, technology and exploration, focusing on participation rather than documentation. With their enthusiasm for these interactive spaces, retailers who build experiential attractions and provide personalised products or services can capture young consumers' attention and wallets.

Stores are entertainment parks: beauty retailers ahead

Physical shopping experiences like visiting Sephora or big-box retailers feel like amusement parks for Gen Alpha as they enjoy interactive retail environments. Already aware of the fact, beauty retailers Sephora and Glossier are hosting children's birthday parties, transforming stores into experiential celebration venues. These events combine educational elements, such as age-appropriate skincare tips and makeup tutorials, with entertaining activities like store scavenger hunts. At Sephora, makeup artists teach young guests about "dewy skin" techniques, while staff create beauty sample goodie bags as party favours. Glossier's flagship locations accommodate planned events and impromptu celebrations, seeing increasing demand for beauty-themed gatherings. The trend signals a significant shift in beauty retail strategy, where stores are evolving from pure shopping destinations to true experiential venues that forge emotional connections with future consumers. The trend extends beyond major retailers, with specialist brands like Rile, a teen beauty brand, offering skincare education parties led by teen ambassadors. This approach allows retailers to engage with both parents, who appreciate the structured learning environment, and children, who enjoy the interactive experience. For brands, it represents a significant opportunity to build brand loyalty during formative years. Beauty seems to lead the way for entertaining Gen Alpha, but toy retailer Camp in the US was a pioneer with their family experience combining retail with interactive play, offering shop/play hybrid experiences and rotating themes.

Curating relevant product offer: the example of Nordstrom

Department stores are also launching strategies to attract Gen Alpha. In October 2024, Nordstrom demonstrated this shift by launching dedicated in-store "young adult" beauty kiosks and a new online category dedicated to this segment. Reminding of the likes of Galeries Lafayette’s unprecedented “Club 20 ans”,i opened in 1969 and gathering several product categories (fashion, trinkets, music, etc) for teenagers, Nordstrom’s kiosks are located on teen apparel floors, feature popular brands like Kiramoon and Kaja beauty brands, alongside clothing from brands such as Pacsun and Asos. Currently available in six locations and online, the initiative offers over 850 products. Nordstrom's strategy involves leveraging data from TikTok and its website to identify trending categories, such as the "everything shower” trend (products to use in the shower beyond soap and shampoo), which has led to successful product additions like Oui The People shaving brand. The key to success here is to focus on youth-coded but not overly juvenile products.

These strategies reflect retailers’ understanding that today's experiences are shaping tomorrow's consumers, with retailers balancing entertainment, education, and brand awareness. Also, these Gen Alpha recruitment tactics seek to offset challenges in the luxury market by tapping into alternate revenue streams. This trend toward early customer engagement was further evidenced in 2024 when Ulta Beauty introduced collectable miniature replicas of popular products targeting children as young as six.

The rise of Gen Alpha as a key consumer group represents a significant shift in retail strategies, as this generation’s tech-savviness and unique shopping preferences reshape the retail landscape. Prioritising authenticity, digital influence, experiences seamlessly blending digital and physical retail, customisation initiatives, and interactivity presents new opportunities for retailers to engage and retain their loyalty. Retailers must adapt by offering personalised experiences, leveraging immersive technologies, and emphasising sustainability. Additionally, as this generation has an increasing influence on family purchasing decisions, brands must align their marketing efforts to resonate with both Gen Alpha and their parents, ensuring they are well-positioned to capture future market share.

i : Galeries Lafayette’s « Club 20 ans » was featured in the Paris Cité de l’Architecture exhibition “La Saga des grands magasins”whose contributions include Galeries Lafayette, Magasin du Nord, El Palacio de Hierro, SKP and the IADS

Credits: IADS (Christine Montard)