As the purchasing power of Gen Z grows to a staggering $12 trillion by 2030, carmakers are redefining brand loyalty through innovative collaborations, partnering with seemingly unrelated consumer companies to attract new customers and solidify existing ones.
Carmakers Are Foraying Into Unconventional Lifestyle Partnerships to Woo Gen Z Buyers
As Generation Z matures into their late 20s, carmakers are taking notice of the significant impact they can have on the automotive industry.
Gen Z, born between 1997 and 2012, is the most diverse generation in history.
They are digital natives, growing up with smartphones and the internet.
This generation values authenticity, individuality, and social justice.
According to a survey by Pew Research Center, 52% of Gen Zers prefer online shopping, while 45% use social media for news.
Their spending power is estimated at $143 billion annually.
Gen Z: The Most Important Consumer Base
The purchasing power of Gen Z is expected to grow to a whopping $12 trillion by 2030, making them the wealthiest generation yet. Their spending is expected to surpass that of baby boomers‘ by 2030, according to Nielsen IQ’s recent study.
While headlines have claimed that ‘Gen Z are less interested than their previous generations in owning personal vehicles,’ this began to shift over the last few years as they grow older. The group remains deeply focused on technology when it comes to cars, thanks in large part due to the rise and popularity of Tesla with its single-screen infotainment and quirky features.
Lifestyle Partnerships: A Meaningful Revenue Stream for Carmakers
Cross-brand partnerships and collaborations have been a marketing tool du jour for more than a decade. However, automakers have been slow to get into the game until recently. Companies like Ford, Dodge, and Volvo have partnered with seemingly unrelated consumer companies in an effort to attract new customers and solidify existing ones.
These unconventional lifestyle partnerships are not only attracting new customers but also generating billions of dollars for carmakers each year. Licensing deals, collaborations, and partnerships where automakers partner with another company to release special t-shirts, small-scale vehicle models, soap, and even special boots are becoming a significant revenue stream.
High-End Automakers Invest in Luxury Homes
High-end automakers like Porsche and Bentley are investing in luxury homes all over the world as ‘brand extensions‘ of their core products. For example, there’s the Porsche Design Tower in Miami, which was completed in 2016 and allows residents to take their Porsches up to their apartments using a special elevator.
Why Carmakers Are Turning to Unconventional Partnerships
Carmakers are turning to unconventional partnerships as a way to break through the clutter and keep young consumers interested and excited. As Kavilanz notes, creative collaborations is also a crowded market, and carmakers need to find ways to stand out.
In conclusion, carmakers are foraying into unconventional lifestyle partnerships to woo Gen Z buyers. These partnerships not only attract new customers but also generate significant revenue for carmakers each year.
