What’s up with Gen Alpha consumer behavior? Gen Alphas are referred to as “upagers” due to their burgeoning social consciousness at such a young age. And make no mistake, they’re still young. Generation Alphas are born between 2010 and 2025. Also known as “millennial’s children,” this generation will be the next to dominate the global consumer landscape, after Gen Z.

And when it comes to interacting with Gen Alpha, talk transparently about issues like mental health, diversity, inclusion, and sustainability. Prepare to earn their respect through discourse, action, and more discourse about the results. By laying the foundation now, your business can begin to reap the benefits of the consumer base already steering most of household purchasing decisions.

Gen AI

They’re not just the second generation of digital natives, they’re the first to grow up in the advent of artificial intelligence. While ChatGPT launched to the public a little under three years ago, the growth of artificial intelligence has been the topic du jour since the oldest Gen Alphas were but a twinkle in their millennial parents’ eyes. This means that they’re accustomed to the concept of a rapidly evolving tech landscape, and that has serious implications for the retail industry.

With that said, like their millennial parents and Gen Z predecessors, Gen Alpha is already the most socially conscious generation yet. But how that will play out for retailers looks a little different than the generations that came before. Let’s get into it.

Diversity Is a Prerequisite

If you’re thinking that you’ve already heard the same diversity thing about Gen Z, you’re right. Generation Alpha, like Gen Z, is the most diverse generation to hit the global consumer marketplace to date––with over 25 percent identifying as Hispanic and 7 percent identifying as mixed race. However, unlike their predecessors, Gen Alpha isn’t just prioritizing brands that feature diverse models, a diverse C-suite, and cosmetic products that suit diverse complexions…they’ll quickly shun and call out brands that aren’t.

Alpha is now the most likely generation to call out your brand. A staggering 92 percent of Gen Alphas feel that being their authentic self is important––they’re even more likely than Gen Z to voice their opinions and share their views with others. And yes, that extends to their consumer behavior, particularly when brands and retailers have outdated or unethical business practices.

Yet, as we learned from Victoria’s Secret’s ability to thrive in the early aughts and then get called out repeatedly for sexist and transphobic behavior once younger millennials came into buying power, the definition of inclusion and diversity is continually expanding. While fast fashion is still a real issue in the apparel industry, the young consumers who are buying it aren’t part of the segment that’s most concerned with sustainability. But those who are part of the eco-conscious segment of Gen Alphas expect stronger sustainability and ethical practices from brands than any generation to come before them.

Sustainability & Brand Ethos, Squared

Generation Alpha came of age looking up to their Gen Z predecessors. So, retailers, it’s time to mentally prepare: If you thought of Gen Z as “millennials on steroids,” it’s time to prime your offerings for the most sustainability and brand ethos-focused generation yet. But don’t take our word for it. In a recent study by McCrindle, 80 percent of parents said their youngsters have already influenced their actions or consumption decisions making them more aware of the environmental impact of their purchases. And 81 percent of Gen Alpha’s parents have been shifting towards more sustainable consumption, motivated by dialogue with their eco-conscious youngsters.

Why are they so sustainability-obsessed? It’s not just because of Gen Z. A whopping 72 percent of middle and high school students polled by The Museum of Science say climate change is already impacting their lives and that their generation will have to find solutions to address climate change. The same percentage also says that, as Gen Alphas envision their future, it’s important that their jobs have a direct impact on reducing climate change and preserving the environment. And over three-quarters of Gen Alphas think climate change will require “radical changes to how we all live.”

Many analysts are already predicting that this mentality will propel Gen Alpha to change the dialogue around fast fashion. While millennials and older Gen Z were swayed by “sustainable” clothing lines at fast fashion retailers like H&M, Shein, Zara, and Pretty Little Things, Generation Alpha has more of a stake in the environmental game.

Of course, Gen Z’s purchasing goals never included fast fashion––many remain vehemently opposed to the concept. But purchasing behavior rooted in economic disparities between the Haves and Have Nots doesn’t always leave Gen Z room to make sustainable choices. Gen Alpha isn’t here to play at eco-consciousness; they’ll be ready to put their money where their (predecessors’) mouth is by the time the oldest have their own bank accounts in less than four years.

Disenchanted with Digitization

If the Great Recession of 2008 defined the Gen Z purchasing mindset, mass adoption of AI is the equivalent shift for Gen Alpha. But growing up in a digital world doesn’t necessarily lead to digital-first shopping behavior. Remember when the hottest topic last year was how Gen Z was using flip phones due to their disenchantment with social media? Imagine what this level of disillusionment with the artificial would look like on steroids.

Sure, Gen Z prefers physical stores. However, Gen Alpha doesn’t just demand physical experiences––they expect the technology they use to inform the streamlining of those day-to-day physical experiences. Alphas are most interested in using technology to find simplicity in their day-to-day lives. This means whittling down the noise and conflicting demands that this digital-first generation faces each day. Advertising for the sake of advertising can have an adverse effect on Gen Alpha consumers. They don’t want to spend with brands that don’t get them, and bombarding youngsters with generic ads is a great way to firmly cement your company in the “doesn’t get it” category.

You want Gen Alpha’s engagement? Well, they want to be incentivized via polls or promos to justify the demands paid content makes on their time. Think about it: You wouldn’t ask your employees to work for 30 minutes for free, so why are so many brands and retailers placing that same request upon their customers? When Gen Alpha takes center stage, social media interactions between brands and customers will look more like a bartering system/slow-burn burgeoning relationship than just throwing engagement requests at the masses to see what sticks.

And when it comes to interacting with this overstressed generation on any platform, think about the immortal words of Otis Redding: “Try a little tenderness.” Talk transparently about issues like mental health, diversity, inclusion, and sustainability. Prepare to earn their respect through discourse, action, and more discourse about the results. By laying the foundation now, your business can begin to reap the benefits of the consumer base already steering most of household purchasing decisions.