This week we take a look at the grocery retail industry in South Africa and how aspiring entrepreneurs can create value

Creating a youth-centred business should be of paramount importance because the future success of a nation rests heavily upon the extent to which the youth fulfils its potential. A youth centred business can take any form as it depends on the intersection between a specific market need and the founder’s passion. But how can one create a business that caters to the youth? What steps are required?

WHAT DO THEY BELIEVE IN?

Trust and fairness

It’s safe to say that looking back in history and current affairs, trust across generations has been dealt several blows by numerous leaders. A way to get an edge over the competition and to build a successful enterprise is to cultivate trust and fairness between your company and those you serve. In a Gen Z survey conducted by Ernst and Young, it was established that Gen Zs value trust and fairness especially in the workplace; Gen Z respondents cited their most important characteristics associated with future employers to include: treating people with respect, ethical behaviour, fair compensation and promotion across all employees, open and transparent communication, and wise business decision making (Shwieger & Ladwig, 2018). The same values should be treated the same when it comes to consumer behaviour; 74% of Gen Zs say that it is important to strive for equality.

Individuality

In Criteo’s Gen Z report 49% thought that unique products on a company’s website are very important (Criteo, 2018). Important to note that customers do not want to be overwhelmed with customisation: extreme customisation can sometimes lead to customers thinking they do not have options and variety to choose from, they do not want to be cornered to a particular design or product. The Gen Zs of today will be parents, grandparents one day and if an SME can successfully navigate the changes that they will inevitably go through that will be a recipe for success. This particular value requires SMEs to be intentional with getting to know their customers and their personal networks (no person is an island). The old adage that it takes a village to raise a person is true even when observing customers’ behaviours: who influences their behaviour? Why do they buy the products they do? Why does that design appeal to him/her so much?

A brand with a cause

Gen Zs do not back down from fighting for a cause and they expect brands to stand for a cause greater than their businesses. In a transparent world, younger consumers don’t distinguish between the ethics of a brand, the company that owns it, and its network of partners and suppliers. A company’s actions must match its ideals, and those ideals must permeate the entire stakeholder system (Francis & Hoefel, 2018). In fact, nearly 65 per cent of Gen Zs surveyed in the McKinsey report try to learn the origins of anything they buy—where it is made, what it is made from, and how it is made. Furthermore, about 80 per cent refuse to buy goods from companies involved in scandals.

Finding out what ethical standards your clients expect you to uphold and creating an organisational culture aligned to that and what you are passionate about is vital in making any SME sustainable. Gone are the days of solely caring about the profit margin at the expense of society.

This generation’s passion for standing up for something may be a result of the violence and challenges that have occurred during their lifetime. In South Africa, the marginalised want to be empowered as they realise that they are valuable and competent members of society; they are eager for brands that make a stand with and for them. Protests like the Fees Must Fall, the fight against gun violence by those affected in Sandy Hook and other mass shootings, the environmental activism charge led by Greta Thunberg and Malala Yousafzai standing up for girls’ education, serve as evidence that they are brave enough to speak up if nobody else will.

THE C.A.U.S.E FRAMEWORK

This is a brief description of a framework that aspiring entrepreneurs can use as they develop their product/service offering. It is an effective way to brainstorm new tactics to use to appeal to the youth regardless of the type of business.

Communication is Key

Brand communication is the art of clearly conveying your brand’s identity and promise. In other words, an entrepreneur informs a target market about everything they need to know about the brand and the value they will receive from using the brand. Before telling your customers about your brand, you should discover your ideal customer’s expectations and needs. Thereafter, develop a brand message that speaks to those expectations and needs. Secondly, determine which channels you will use to distribute your brand message. This will depend on who your target market is and where you will find them. For a social enterprise looking to cater to underprivileged youth, radio, community outreaches and partnerships with local organisations may be the best avenues. On the other hand, social media platforms are the popular tools for the youth that are digital natives in the true sense of the word.

David Skok and Mike Troiano state that great messaging is important for two reasons:

1. You need it to connect with customers, investors, potential employees, the press, etc. and if you don’t have a simple, compelling message, they won’t bother to learn more. They won’t take the time to learn about, and ultimately love and share your product. More so, if you don’t steer how people think about your product, the market will make up its own version that may not match your vision.

2. Every touchpoint a customer or potential customer has with your product or company will shape their view of you. It’s critical that each of those touchpoints send the same message. When you create a clear brand message it ensures your team is fully aligned. This gets everyone moving in the same direction, telling the same story and creating consistent touchpoints for your customers.

Attention

Gen Zs need brands that pay attention to them. As stated earlier, Gen Zs celebrate their individuality and they want to know that companies value what matters to them. Data collection has its pros and cons but one thing it’s enabled organisations to do is to pay attention to the habits of consumers all over the world. Global trends and regional trends are readily available on the internet all one has to do is choose to pay attention to what the market is saying. If you choose not to pay attention, the challenges faced by Gen Z will not be important to your business and a great opportunity to add value to their lives may pass you by. Implement consumer feedback initiatives with your most loyal consumers or potential customers that are willing to participate in focus groups.

Unison

Every action and every employee must exemplify what the vision and mission statement of an SME says. Gen Zs want brands that mean what they say. Gen Zs want brands that uphold the values they advertise. From the CEO to the staff the message and values should be shared. The message should be the culture of the company starting from inside the organisation. Remember our definition of culture: a community’s customs and social behaviour that have been shaped by the instilling of certain common ideas and philosophies

Security

Gen Z needs to feel secure when it comes to the brands they are associated with: they need an overwhelming sense of trust. They need to know that everything the company does is with their best interest at heart and that the products/services are reliable. Gen Zs need to know they are not being exploited simply because brands need to break even: they need companies that put people first. In a recent study, it was established that almost 90% of Millennials and Gen Zs want brands to be honest about their products/services. Safety looks different depending on the industry but at its core, it is the same regardless of the industry: it is taking action and building foundations that will put the consumer at ease.

Entertain

Gen Zs are entertainment seekers. But entertainment with a purpose: They want informative, engaging, and entertaining content from the brands they associate with. SMEs should learn from larger companies that have been led astray in terms of their content creation: by all means, entertain but have a clear and powerful intention behind it. How can you add an element of entertainment to your product/service? TikTok, YouTube, Discord, Twitch and other social media platforms are great for creating engaging content.