March 15, 2021
In a relationship with Oxford Economics, Snapchat It recently looked at the role Gen Z plays in fueling the post-pandemic recovery, the digital economy, and its impact on marketing efforts, and what this means for the industry as a whole.
We'll take a closer look at some of the themes and trends revealed by the results. However, the most important information in the report includes:
- Gen Z will support $ 3.1 trillion of spending through 2030 in six key markets surveyed: Australia, France, Germany, the Netherlands, the United Kingdom and the United States
- The global AR market is expected to expand fourfold until 2023
- Technology and COVID-19 will transform skill needs, with most jobs requiring advanced digital skills
- Greater emphasis for the future workforce will be placed on skills such as agility, curiosity, creativity, critical thinking, and problem solving in order to harness Gen Z's natural strengths
Gen-Z: the engines of consumer spending
Gen Z will prove to be an independent and powerful source of consumer spending. While most of these cohorts are on the periphery of the labor market due to their age, this will change drastically in the years to come. In particular, their consumer spending will increase more than sixfold $ 467 billion in 2019 to $ 3 trillion in 2030, equivalent to 11 percent of total household expenditure. Additionally, Gen Z's share of total employment will increase noticeably from mere 10 percent in 2019 to 30 percent in 2030.
Beyond digital literacy, Snapchat highlighted a few key traits that Gen Z-er will equip for success in the workforce. This includes agility by quickly absorbing information and reacting to new challenges with an open and innovative mindset. They are also more creative and very curious about forms of communication and content creation, including AR, emojis, lenses and filters, compared to their older cohorts.
The evolving AR market
It's no secret that COVID-19 will act as a major disruptive factor accelerating the shift towards a more digital society and fundamental changes that will transform the way we work.
One of the fastest growing technologies that many have in mind is AR. Snapchat's report estimates that global AR market revenue nearly quadrupled between 2018 and 2020. The next three years are expected to be marked by a similar trend, with estimates a 10x Aside from 2018, statistics are vital. The characteristics of AR pave the way for a significant demand for digital skills comparable to that of 2010 with the rise of social media platforms.
Enabling new ways to express, entertain, use, and collect information is not only important as brands attract attention and connect emotionally on a large scale, but technology enables immersive experiences that are new to retail and online beauty define. After research by ShopifyThe interactions with AR / 3D almost increased 94 percent More revenue conversion compared to non-AR channels. Outside of marketing and e-commerce, AR will continue to transform our experiences in healthcare, education, architecture, entertainment, and manufacturing.
The future of learning and retraining for a dynamic workforce
While the disruption of formal education is a key concern at Gen Z after 2020, the impact on their labor market prospects remains uncertain. To put the rise of online learning into context, platforms like Coursera and edX have signed up 180 million Students in courses in 2020, through 1,000 percent compared to five years earlier. Given the increasing reliance on remote working, Snapchat's analysis shows that Gen Z's higher level of digital literacy largely supports adaptation to this new way of working.
As with all recessions, the pandemic will also accelerate a new wave of automation, fueling the demand for creativity and curiosity in the workplace – two of the traits of Gen Z mentioned earlier. With it, the increasing importance of lifelong learning will increase with workers who are have to adapt to rapidly evolving requirements. This includes adopting new technology and software to drive new business methods, respond to structural changes and challenges, and qualify a dynamic workforce that will set the tone for the 2020s.
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