Why Gen Alpha Will Fuel Spending This Season

WE’s new research examines Gen Alpha’s influence on their parents’ purchasing decisions

As soon as there’s a fall chill in the air (and sometimes even earlier), you begin to see telltale signs of the upcoming holiday shopping season. Retailers start setting up festive displays, brands start touting their wares and early-bird shoppers start snapping up bargains. And it’s not even December yet.

Yes, it’s that most wonderful time of the year again. That critical period for most brands to finish strong and deliver robust end-of-year sales. Although Mintel predicts that November and December sales in 2024 will reach $1.07 billion (+3.1% from 2023), they also say that given economic pressures, shoppers will remain price-sensitive, with 64% aiming to spend as little possible and 41% setting a budget for their holiday shopping.

Gen Alpha wields considerable influence on family purchases

What will consumers be willing to spend on with their limited funds this holiday season?

If they are parents of young children, just ask the kids! In WE Communications’ new “Alpha Intelligence” survey of Gen Alpha kids (ages 10 to 14) and their parents, we found that Gen Alpha wields a ton of power and influence over household purchasing decisions. A whopping 95% of parents of Gen Alpha said that their child’s preferences influence purchase decisions for the home and family. And that influence is felt across purchases big and small: from family activities (e.g., going to the movies) to restaurants to electronics and even to high-ticket items such as homes and vehicles.

Moreover, their influence extends beyond household purchases. When it comes to things that Gen Alpha wants, more than 4 in 10 parents often purchase trending or popular items their child asks for; remember Stanley cups? And it’s because an overwhelming majority (90%) of parents say they feel pressure when it comes to buying items their child requests.

Parents don’t want to skimp on the holidays

This desire from parents to please their kids is likely why — even though nearly two-thirds of parents feel that financial stress makes it difficult to celebrate the holidays in the way they want — parents are still less likely than nonparents to set a holiday budget. Plus they’re also less inclined to cut back on gift-giving than nonparents.

What can brands do to capture the holiday budget?

1. Lean into parents’ desires to fulfill their kids’ wishes. Gen Alpha has great influence on what their parents buy — and they know it.
2. Tap into the people and platforms impacting Gen Alpha the most. We found in our survey that online content creators are among the top influencers of what Gen Alpha thinks is cool. As for platforms, TikTok is critical, as 20% of Gen Alpha would be unlikely to buy or ask for a product if they don’t see it being talked about on TikTok.
3. Think about how your brand’s offerings can help foster family togetherness. Our findings showed that Gen Alpha values their relationships with friends and family more than even their smartphones and devices. So bring some extra sparkle and help families light up their gatherings this season.

Get ahead of Gen Alpha by downloading WE’s “Alpha Intelligence” infographic, the audience cheat sheet you need to help determine your brand’s Gen Alpha readiness.