By Guy Hayward, Founder and Director of Local Heroes
Z (born 1997-2012) now makes up approximately 40% of the global consumer market – one it has reshaped to such an extent that experts predict independents could soon revive our otherwise abandoned highstreets.
According to Faire, 74% of 18- to 27-year-olds enjoy shopping at independent retailers, compared to just 64% of millennials, 61% of Gen Xers and 57% of boomers. 40% of Gen Zers also admit to avoiding chain stores, with 62% willing to pay more for products from smaller companies. But why is it that young consumers favour SMEs over corporate giants?
Something unique
The products and services offered by independents stand out because they’re unique. For instance, Accessories of Old – a vintage jewellery shop in London – sells deadstock pieces from the ‘80s and 90’s, giving it an edge over the mass-market items produced by big brands at scale.
Authenticity
When authenticity is added to this unique badge of identity, brands gain a loyal following. Hollie Mercedes – Founder of Scottish knitwear brand, Clómh, tapped into this by sharing her journey online, creating a personal connection with her audience. This stands in stark contrast to the direct corporate marketing strategies that Gen Z has come to oppose.
Honesty is key to trust and continued engagement that’s earned, not bought – and we live in a world where brands can easily earn media if they tell true, compelling stories on people-first social media platforms, which have lowered the barrier for entry to amplification.
Mutual support
Let down by the traditional employment system, we’re also seeing more young people launch their own business. This has fostered a culture of mutual support for independents, where Gen Z consciously chooses to back small firms run by peers, without pouring more wealth into capitalist corporates.
Greater agility
Of course, smaller companies respond to real-world trends and needs much faster, too. Established corporations tend to be bogged down by layers of hierarchy and bureaucracy, with decisions being made by faceless shareholders in a far-flung HQ. For these people, the only measure of success is financial. Independents, on the other hand, remain agile, with owners who are not only attuned to genuine consumer demands but who also make decisions in real time, on their own merit, allowing them to pip larger competitors to the post.
Relatable marketing
The ability to listen and rapidly respond also creates a closeness with consumers that larger corporates struggle to compete with. Big brands often struggle to engage with young audiences because they rely too heavily on direct-to-consumer (DTC) strategies, too, failing to recognise that this comes across as impersonal.
Modern independents thrive on community driven social platforms, where they can engage regularly with their consumers, on an equal, down-to-earth, relatable level. This means they are more aware of what their audiences think, feel and want, without needing to rely on time-heavy market research.
Beauty brand, P Louise’s, use of the TikTok Live shopping feature illustrates how rapid success can be when building relatable engagement, with over $2 million being generated in just 21 hours.
Community engagement
Such successes serve as a reminder that the way top brands advertise has changed. According to a 2024 GoDaddy survey, 41% of Gen Zers trust a product or service posted by an influencer much more than a direct ad from a business – in stark contrast to the 46% of millennials who still place more trust in business-led ads.
Interestingly, Gen Z trust in influencers appears to have declined over the past 5-10 years, perhaps suggesting that endorsement alone is no longer enough. People now expect brands to align their identities and products with the influencers they work with much more closely. This explains why micro-influencing is growing in popularity, allowing brands to tap into ready-made niche followings to approach their already-engaged target audience directly.
Sustainability matters
More important than perhaps any other factor, however, is sustainability, which weighs heavily on young people’s purchasing decisions. ESW’s Sustainable Global Growth and Shopper Expectations report found that 94% of millennials and 93% of Gen Zers consider sustainability when deciding which companies to interact with. Brands like Damson Madder use this to win favour, advertising their use of eco-friendly materials and to capture the hearts and minds of young people willing to pay more for ethical products.
Transparency is key
Sustainable claims must be backed up by full transparency on processes, however. When fashion brand Pangaia launched in 2018, it loudly championed its use of plant-based denim and eucalyptus pulp fabrics – with open dialogue on internal practices helping the brand to reach $45.9 million in value by 2022.
A cause that counts
Ultimately, Gen Z supports brands that live by their values, replacing empty slogans with real-world impact. 70% of Gen Zers believe companies should take a stand on the social issues they care about, according to McKinsey, explaining why independents like Madhappy – which allocates 1% of its proceeds to mental health charity – prove successful.
Clear, measurable commitments build trust and loyalty among socially conscious consumers, aligning brands with causes people truly care about. Far from limited to younger generations, appreciation of such alignment is celebrated by 84% of all consumers, according to Edelman, though Gen Z does seem to have taken things one step further. Almost 60% of the generation feel connected to other consumers using the same brands as them – proof that brand identities and values now form part of young people’s personal identities, too. What better reason for independents to act with integrity?
The power of ‘cancel’ culture
Brands that break promises soon find themselves ‘cancelled’. Take Coca-Cola and Shein, for example, both of which have lost favour with Gen Zers owing to false claims of virtue and unethical practices. Even the WWF has been accused of ‘greenwashing’ for allowing polar bear hunting, proving that the modern consumer market cares – people will dig deep and the truth will out.
An independent future
With Gen Z leading the charge, independents have real opportunity to thrive, provided they prioritise value-driven business centred around authenticity, connection and engagement. Trust is now earned, not bought – an unshakable currency in a world where integrity succeeds above all.
