Brands are teaming up more today than ever, and it’s finally catching on in the car industry. Big names like Ford, Dodge, and Volvo have started partnering with unexpected companies. This strategy aims to attract new customers—especially younger ones. Young people’s views on cars are changing, and automakers want in.
“Gen Z is the key consumer group now,” says Parija Kavilanz, a retail expert and co-founder of Bagable.com. “They represent 20 to 25 percent of the consumer market, and that’s only getting bigger.” Retailers and car companies are paying attention. A recent Nielsen IQ study predicts that Gen Z’s spending power will hit $12 trillion by 2030. That’s more than what baby boomers are spending!
For a long time, people believed that Gen Z wasn’t as interested in owning cars. However, as they get older, their interest is shifting. They are tech-savvy and drawn to modern car features, influenced by brands like Tesla. Yet, they are also heading to dealerships to make their first purchases.
Despite driving less and losing interest in electric cars, Gen Z still represents a big opportunity for automakers. Companies are trying to catch their eye with unique products, like a retro-style car-themed t-shirt from Abercrombie or a luxury candle made by D.S. & Durga in collaboration with Volvo.
These special partnerships go beyond just unique merchandise. It’s a significant revenue stream for automakers. Kavilanz notes that these collaborations gained momentum as Gen Z matured, shaping how brands market themselves. “Brands need to break through the noise to grab young people’s attention,” she advises.
High-end automakers are venturing into real estate, creating luxurious living spaces. The Porsche Design Tower in Miami, for example, features an elevator that allows residents to park their cars in their own apartments. Similarly, Bentley is building a luxury complex in Miami with additional “Dezervators” for residents to use.
Brands are also launching lifestyle products as they strive to connect with new customers. This could involve anything from perfumes to furniture, ensuring that the luxury experience extends beyond just cars. Kavilanz emphasizes that it’s crucial to stand out in a crowded market and keep the interest of young consumers.
Source link
Gen Z,Business,Finance,Economy,Parija Kavilanz,Sydney Sweeney,Ford,Mercedes Benz,Volkswagen
