6 Key Gen Z differentiators in Mexico’s Market: What Brands Need to Know

Introduction: Gen Z in Mexico

By 2025, Gen Z will make up over 25% of Mexico's 130M population. A major shift in behavior and cultural trends has the power to permanently change market dynamics, a power that once belonged to the Millennials. Born into a digital world, this generation is prompting brands to rethink how they connect with younger consumers, shaking up old marketing structures.

This accounts for over 30 million Mexicans who are now between the ages of 11 and 26. While many of them will still be dependent on their family's income (yet having an influence on household purchases), a good portion will be entering their working-age years. Many will occupy mid-senior corporate positions or become entrepreneurs and creators, thus accessing higher salaries. They are a large and digitally savvy cohort, leveraging social media in unique ways. Their early and extensive use of these platforms has integrated them into the cultural zeitgeist at an unprecedentedly young age. A sizable market opportunity that many brands have not yet dared to explore.

At InPulse, we dive into Gen Z culture and values. Connecting with this generation can be challenging, especially in a diverse and culturally rich market like Mexico. It starts with an in-depth analysis of this new audience. 

1. The Core of Gen Z’s Consumer Behavior

Generation Z has many names: from “Post-Millennials” to “Centennials,” from “iGen” to “True Gen”. Each label highlights a distinctive trait about their behavior and their way of experiencing life. Let’s start with the truth.

“True Gen” prioritizes authenticity and honesty above all, both in themselves and others. They have room to accept mistakes, distancing themselves from millennial perfectionism. As long as they are recognized and addressed properly (this applies to both people and brands), they give second chances—just maybe not thirds.

Let’s not forget that iGen is a generation of digital natives, with strong ties to technology and an amplified cognitive ability to search, digest, and analyze high volumes of information. In a constant quest for integrity, they often lean into the power of groups and communities—now massive and without borders—to ensure that wrongs get noticed and rectified. They have active involvement in social and environmental causes, with a strong sense of pragmatism and justice.

This has a direct impact on brands; Gen Zers demand transparency, ensuring that external communications align with internal practices. If brands want to be accepted into this exclusive club, they are not only disallowed from coloring outside the lines, but also expected to contribute to making the painting better.

This brings us to the next aspect of Post-Millennials: Community. They have left behind the strong sense of individuality and competition of their predecessors, often known as the “me” generation. Now, collaboration rules. It’s no longer about who speaks louder, or about picking fights, but the opposite. It’s about opening different lines of communication and mutual support that invite dialogue. A smart approach that encourages everyone who is open and receptive to join the group, knowing that the group will have their back.  

This aspect of Gen Z brings an opportunity for brand outreach. Creating and fostering digital communities has never been so impactful. They appreciate companies that create platforms of products, services, and experiences that connect customers. From collaborations with content creators who already have a nurtured community, to developing online spaces where customers can explore their joint values and brand experiences, as well as promoting user-generated and co-created content that propels collaboration and a sense of union.

Moving on, remember the labels? Well… They hate them. Fluidity and inclusivity are huge parts of their DNA. They are identity nomads, refusing to be put into a box. Therefore, consumption becomes a way of self-expression, and no more merely a medium to fit in. This is why we are seeing more and more brands moving into the unisex market, fighting against mass production and leaning towards personalization.

2. Connecting with Gen Z in Mexico: 6 key differentiators

While there are many similarities between Mexican Gen Z and their counterparts in the USA or Latin America, Mexico boasts a unique fusion of cultural and economic contexts that give rise to six key differentiating factors:

1. Local vs. Global: Despite their digital fluency and borderless mindset, Mexico's distinctive economic and cultural landscape shapes behavior towards a significant emphasis on local products and community-focused businesses. For instance, they prefer brands that engage local communities during production, and support local causes.
2. Loyalty: Unlike the broader Latin American market, where loyalty to big brands remains strong, Mexican Gen Z consumers tend to break ties with brands involved in discrimination, environmental pollution, and legal violations. Instead, they identify with smaller brands that demonstrate strong ethical commitments, transparency, and offer ethically sourced goods.
3. Communication Style: Mexico has a very rich colloquial vocabulary. It's crucial to incorporate local expressions, humor, and warmth, while steering clear of promotional tones. Gen Z values clear, culturally relevant messaging and responds well to directness. Another differentiating factor in how brands should communicate in Mexico compared to the US is luxury. While some segments of Gen Z in Mexico are beginning to appreciate subtle luxury, there remains a prevailing cultural emphasis on brand recognition as a status symbol, like displaying logos, labels, etc.
4. Channel Mix: In the Mexican market, WhatsApp emerges as one of the most pertinent networks for Centennials (and across all generations), boasting three times the penetration rate compared to the US (93% vs. 27%). TikTok, Instagram, and Facebook enjoy similar popularity among this demographic, while Snapchat, Reddit, and Pinterest lag behind. Interestingly, X (Twitter) is utilized by 48% of Centennials in Mexico, compared to 38% in the US. Additionally, there's a cultural inclination towards traditional advertising formats, including TV and radio. And let's not forget Spotify, where Generation Z is the fastest-growing group in listening to music and podcasts in Mexico.
5. Purchase Behavior: Mexican Gen Z prefers a blend of online and in-person shopping experiences, with seamless hybrid experiences garnering favor. Unlike their US counterparts, they actively seek out promotions and discounts. Celebrities and major influencers remain significant sources of inspiration, while micro-influencers have yet to reach the same level of relevance seen in the US. Loyalty is cultivated through consistent value and community engagement, with active participation in loyalty programs offering practical benefits.
6. Price Sensitivity: Mexican Gen Z individuals tend to research and opt for more affordable options within a similar quality range, making pricing an integral component of any strategy. Second-hand/pre-owned items are gaining popularity in both fashion and technology sectors, as this generation becomes increasingly cognizant of the financial implications of the nearby economic crisis. They trust FinTech influencers above traditional financial institutions, prioritizing savings and reliable sources of income while striving to balance work and life commitments.

These insights underscore the necessity for marketers to tailor their strategies not only to a generational cohort but also to the nuanced differences influenced by regional and local contexts.

3. What’s Next for Gen Z? Challenges & Opportunities

Capturing their fluidity regarding identity expressions takes time and effort. Marketing strategies and communication efforts need to be tailored, localized, and genuinely dynamic, reflecting the brand's values and aligning with this generation’s values.

Brands that dare to conduct thorough research, delve deep into insights, and then act on them with ethics, authenticity, and accountability will thrive. However, their actions will be under constant scrutiny, and efforts to honor the new way of experiencing life by this pivotal generation must be consistently upheld throughout the year. The risk of rainbow-washing/ pink-washing / green-washing must be carefully analyzed for every campaign.

Skepticism is at its peak, and we are on the peak of cancel culture, so internal company policies must reflect the spirit showcased in marketing campaigns from the inside out.

On the other hand, there has never been a greater opportunity for brands that embrace product and service innovation. Word spreads more rapidly than ever before, and every company is just one reel or TikTok away from a breakthrough. If what you are selling is innovative, experience-oriented, ethically sourced, and of high quality, endorsements will swiftly follow, especially if you go the extra mile to ensure a unique unboxing experience.

What's in store for the future? 

As Gen Z gains more purchasing power, Deloitte predicts we will witness an increase in AR integrations and products/services promoted and delivered in the metaverse, with new players like AI shopping assistants and digital twins. Voice and Visual Search will soon skyrocket, along with AI-personalized content, interactive media, experiences, and services. Privacy will also become a highly valued commodity, as Gen Z individuals become increasingly aware of the value of the data produced by their digital footprint.