GZV #11: Johnnie Walker for Gen Z?
Startups. Trends. Markets. All from a Gen Z view.
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Themes of the week
The importance of telling a story with Gen Z š
E-Commerce Groceries šļø
Sports are back = Gambling is back šµ
Johnnie Walker is coming for Gen Z š„
šØCheck out our new āš”Investment Ideaš”āat the end of each section. We will relate whatever we talked about to an investment idea!
Recently Funded Startups
Scale: Gen Z wonāt/may/will like <Company Name>.
Gen Z will like Stagger.
Who are they?
Visual storytelling for your brandĀ to stand out from the crowd ofĀ competitors.
User Quote: āIāve been posting content with Stagger through instagram for a few months now and absolutely love it. Itās not only visually pleasing, but itās such a unique way to tell a story in a single post.ā
Note: Gen Z wonāt necessarily use Stagger themselves, but we will love the content that is made by Stagger for brands.Ā
Why the rating (Pros)?Ā
Gen Z loves having a personal relationship with the brands we consume. Nothing builds this relationship better than having an outstanding brand.
Staggerās visual storytelling produces engaging content that will pull in a Gen Z audience.
Creating content that is modern and simplistic really resonates with Gen Z, this seems like Staggerās style.
Cons:Ā
There is a fine line where the storytelling becomes too much and actually repels Gen Z.
Companies may build this same marketing concept in house and not have a need for this service.
š” Investment Idea š”: Watch for startups that help companies in brand design and marketing. Marketing is becoming an expertise nowadays and some companies just canāt do it on their own and need a third party.
Gen Z will like Move.
Who are they?
A Brand New Supermarket. Award-winning staples. Shipped straight to you. Fair prices. Free shipping.
Note: This company will resonate most with Gen Zāers out of college and in the real world.
Why the rating (Pros)?Ā
Grocery shopping is the old style. Gen Z likes a new style: E-commerce grocery shopping. Itās fair to say that Gen Z will drive a shift to online grocery shopping.
Move resonates their product with Gen Z through a few different ways:
Minimalist and simplistic Packaging (gen Z loves this style)
Cheaper than competitors
Free two-day shipping (compares to Amazon)
Personal customer service rep that you can text anytime
This product checks a lot of boxes, all they need to do is have good marketing and branding.
Cons:Ā
Keeping up with demand has been a problem for Thrive Market (similar concept), Move needs to make sure they donāt have this problem.
For a membership fee of over $100, the product and service has to be truly amazing.
š” Investment Idea š”: Keep an eye out for startups moving tasks like grocery shopping online (think of anything retail/brick & mortar). A shift to an e-commerce world is centered around Gen Z. These companies should perform well.
Gen Z Trend of the Week - (Some) Sports are Back šā¾ā³
What does sports being back for Gen Z?
For most people it means seeing our favorite teams and players in action again. Beyond that, it means that sports betting it back.
This tweet occurred right before the first exhibition hockey game
So is Gen Z big into sports betting?
I would say probably about 50%-70% of males in college have made at least one bet in the past year. Some bet hundreds of dollars a week, and some bet about $2 a game. The heavy bettors mostly use bookies to place their bets, while the cheaper ones use sites like Bovada.
What are the opportunities for investors? š”Investment Ideaš”
The UI/UX on most bookie and betting sites arenāt the best. At most they are a good MVP. Invest in new sites that have an AMAZING product. One cool thing to see would be social profiles for people, having success % on bettors, and seeing what other friends are betting on for that night.
Also take a look at $BETZ ETF, their main thesis is sports betting.
There is room for improvement in the betting world so be sure to keep an eye out and reach out with any questions.
Diageo Takes Steps Toward Attracting Gen Z
Pretty good looking bottle right? Modern design, simplistic, and attractive toward Gen Z.
And get this, 100% made of paper.
Diageo partnered with āPilot Lite, a venture management company, to launch Pulpex Limited, a new sustainable-packaging companyā.
One of the biggest trends in Gen Z is the idea of solving climate change. With that, we like purchasing products that help this cause. Pilot Lite and Diageo were able to see this and are ahead of the industry with their efforts.
Over the next few years most of Gen Z will be of drinking age, so how are we going to decide what beverages to buy? Well, first off, great marketing and design will always catch our eye. Take a look at the Johnnie Walker bottle, it has a nice white font against a cool matte black, very appealing toward our generation. Second, using your brand to promote a cause or idea can always be a winner. Johnnie walker should push advertisements that focus heavily on the 100% paper bottle. Itās unique and will catch the eye of Gen Z consumers.
What does the future hold: While Gen Z turns 21, alcohol brands like Boston beer, Anheuser-Busch, and Diageo all need to take steps to market properly toward Gen Z. We already saw the rise of spike seltzer mostly driven by millennials and Gen Z (Truly and Whiteclaw won that). The key is to be ahead of the game and be known as the āGen Zā brand.
š” Investment Idea š”: Look for third parties like Pulpex Limited (sustainable packaging) who are helping old companies change their game. These companies will provide good ROI. Beyond that, make sure any company you come across, they are taking steps to market efficiently toward Gen Z. As Iāve said multiple times, modern and simplistic styles usually work best.
Quote of the week:
Feel free to email or text with any questions or comments about the newsletter, Gen Z, or startups.
thomas@genzvoice.com
203-628-6006