Retailers and brands have spent the past few decades identifying consumer generations and driving strategies to lure in the five different groups, from the traditionalists/silents generation (71 and older) to Baby Boomers (born between 1946 and 1964), to Generation X (born between 1965 and 1980), to the all-important millennial/Gen Y (born 1981 to 1996), Gen Z, (born between 1997 and 2012) and Gen Alpha, (born between 2013 and 2025).
Each consumer demographic has its own habits, needs, wants and shopping expectations. All of which means retailers must adjust strategy and marketing, as well as in-store and online experiences to keep the targeted consumer coming back.
A huge light has been cast on millennials given they were the first identified as prioritizing the customer experience and their love for gadgets — specifically the smart phone when shopping and product searching. Once they were old enough to shop the retail customer experience was not longer just about having quality products and offering discounts.
Meeting all those different consumer preferences presents increasing challenges and it's not going to get any easier given the Generation Beta consumer being born this year through 2039.
Who is Gen Beta
The Gen Beta consumer (the children of younger millennials and older members of Gen Z) will likely be immersed in AI and technology, and many expected to live into the 22nd century, according to McCrindle, a research and consultancy based in Australia. The cohort will make up 16% of the global population by 2025.
"For Generation Beta, the digital and physical worlds will be seamless. While Generation Alpha has experienced the rise of smart technology and artificial intelligence, Generation Beta will live in an era where AI and automation are fully embedded in everyday life — from education and workplaces to healthcare and entertainment," stated a McCrindle article.
Here's a quick look at what Gen Beta will be experiencing as part of their lifestyles: autonomous transportation at scale, wearable health devices, immersive virtual environments and always-on digital interactions when socially connecting.
McCrindle predicts "Generation Beta will embody the balance between hyper-connectivity and personal expression. They'll redefine what it means to belong, blending in-person relationships with global digital communities."
RetailCustomerExperience.com reached out via an email interview to Christy Parrish, director of client partnerships at Cordial, to learn more about what will set Gen Beta apart from previous consumer cohorts and the anticipated relationship between AI and personalization that will play an integral role in their lives — from shopping to communication. Parrish believes that rather than viewing personalized experiences as intrusive, Gen Beta will consider them a baseline expectation.
Q. Can you define Gen Beta in terms of who that consumer group is and what their shopping strategy is?
Parrish: Gen Beta refers to the next generation of consumers following Gen Alpha. This generation will be raised in a fully digital and AI-enhanced environment, with virtual education playing a key role in shaping their behaviors. AI will also play a significant role in product visualization and shopping experiences, and these young consumers will expect highly tailored shopping environments — even highly tailored virtual shopping environments. Gen Beta will live with and demand personalization in their consumer experiences, even manipulating and experiencing products virtually before making purchase decisions, and they'll use AI assistants to curate their consumer experiences, filtering what products or advertisements they see based on preferences.
Q. How are Gen Beta consumers different than say Gen Z or Gen X and what drives that difference?
Parrish: Gen Beta will differ significantly from Gen Z and Gen X due to their upbringing in an AI-driven, hyper-personalized digital world. Unlike Gen X, who primarily experienced brick-and-mortar shopping, and Gen Z, who grew up with e-commerce and social media, Gen Beta will be fully immersed in AI-powered shopping and expect personalized experiences. AI-curated recommendations and virtual product interactions will shape Gen Beta's purchasing decisions.
Q. What should retailers be doing to appeal to the Gen Beta consumer?
Parrish: Retailers must prioritize AI-driven personalization and immersive digital shopping experiences to appeal to Gen Beta consumers. This generation will expect highly tailored virtual shopping environments where they can manipulate and experience products before making a purchase. AI can play a central role in curating individualized recommendations, ensuring that shopping journeys feel intuitive and uniquely suited to each consumer.
Q. Why is personalization so important to the Gen Beta?
Parrish: Personalization is significant for Gen Beta because it will be fundamental to their consumer experience rather than an added feature. Gen Beta will grow up in a world where personalization is the norm, not a luxury. Unlike previous generations, who might view personalization skeptically, Gen Beta will consider it a basic requirement and may actively reject brands that don't offer personalized experiences. Personalization is not just a premium feature but a fundamental requirement for engaging with this generation effectively since it will be deeply integrated into their daily lives through early experiences with technology.