GENERATION ALPHA: THE NEXT ECONOMIC FORCE?

Pre-teen purchasing power not only exists; it is also significant

- BRENT HAUMANN, AMY DUNCAN, TSHEPO MATLOU, and ANDREW BOURNE

THERE HAS been considerable discussion of Generation Z and their purchasing power. Marketers' strategies have evolved to communicate with a younger generation that values transparency and authenticity when making purchases.

However, before marketers declare victory, it's important to note that the next generation, Generation Alpha, has already arrived and is demonstrating incredible purchasing power.

Who is Generation Alpha exactly? They were born after 2010, which means the oldest member of this group is only 12 years old. And, while they are not physically holding the card or hitting the purchase button, they are making several behind-the-scenes decisions and are ultimately the customer for a large number of purchases.

According to research conducted in the United States, four out of every five Generation Alpha children have a substantial influence on family purchases, and children under the age of 12 impact $500 billion in purchases each year.

Marketers who continue to disregard this generation as too young should consider the fact that they are already generating revenue on social media platforms. If you're still not convinced, consider this: 87 percent of parents report that their children have an effect on their shopping habits.

In this article, we speak with industry leaders to get their thoughts on why businesses should include Generation Alpha in their marketing plans.

Generation Alpha will determine the line between success and failure

Brent Haumann is the managing director of Striata Africa.

Generation Alpha is significantly more informed about what is available in the world than previous generations, and simply need to tug on their parents' heartstrings-or, more precisely, wallet strings-to get what they desire.