Hello, everyone, and welcome to a special episode of Retail Refined. Today, I get to have my friend Brianne Olson on who's the CEO of PacSun. And so if you don't follow her, I know you're gonna be so excited about everything she has to talk about today. But if you know the brand, which I'm sure you do, I feel like she's kind of a staple of that, having been at the brand, you know, for so long and really stewarding so much innovation. And And so what we're gonna talk about today is nothing short of that, but their latest report that they put out, self commissioned kind of from the brand, really to help the industry as a whole, shining a light on Gen z and Gen alpha. So, Brianne, thank you so much for coming on with us today. Thank you, Melissa, for having me on and for shining a light on this research. It's such important data, and I'm thrilled to share more today. Yeah. And I love that you're diving into because I'm always studying first for sure alpha, and everybody that watches my show know that, like, mentioned my daughter probably way too much because I'm always studying her and her friends and my nieces. But I love that you took a deeper dive across two generations that are really impactful today. And, you know, there's there's there's a lot of considerations, and I think kind of taking two different lenses on gen alpha and gen z where z gets bucketed into this one persona, which is not accurate, and we talk about that all the time. And then Gen Alpha is having so much influence today even though most of them don't, you know, even have jobs yet, but they're making such an impact on spend. So let's step back and let's talk about it. This is, you know, a look into your most recently hot off the press distributed youth report. Let's start with the big picture. You know, what really grabbed your attention the most in your youth report? Is there a stat or an insight that made you feel like, there's a few things we could rethink here when we look at these two generations. Yeah. Absolutely. I think the first thing that stood out the most was how purchases are tied directly to identity. And the report shows that seventy five percent of Gen Alpha buys apparel specifically to create social media content over the last twelve months. And that really is uncovering that self expression is a primary driver of why they shop. And I think that stat was really important, a really important unlock. Things that we have seen in our own business in small pieces, even starting as early back as twenty twenty, twenty twenty one. But to see how much that has moved forward and is driving purchase intent, for Gen Alpha specifically, I think, is really fascinating. A second was a takeaway around lifestyle alignment for Pakistan. Seventy four percent of respondents said comfort of the six thousand voices that were interviewed by Global Data said comfort is the number one influence on their personal style. And that really shows us that youth wants fashion as a part of their identity, but they expect expect it to function in their everyday life. And so that comfort and style and fashion integration was really interesting. The third really insightful piece was how closely identity is tied to music. And I think that and just overall in the report, over and over, you see how music is an outlet for them to channel kind of issues they're having in their mental health or to bring them joy or to help them heal. And music is such a powerful part of identity for both Gen Alpha and Gen z. And I think as PacSun thinks about our four pillars, which are fashion, sport, art, and music, Leaning in with even more intention into that music is going to be something that we'll really give more thought to when we think about Gen Alpha and Gen z. Yeah. And I'm glad that you brought up, you know, the alignment too with some of the pillars that PacSun already has. And, you know, how do you bring this forward? You already do so many collaborations that I think, you know, really capture a lot of attention and really resonate with your customer today as you read this, you know, and you think about some of the music initiatives that you have. Maybe in the future, Is there anything, you know, that you're like, oh, that's gonna be interesting how we push this forward. I think PACK SUN has been really focused on merch and integration through merch, such as our Gov Ball activation live nation, which was amazing. And we showed up in a big meaningful way in the Soho store and had customized merch. But then the next day, we were able to bring it on the festival grounds. And I think showing up in an experiential way and creating those moments that live well past a transaction with apparel or outfitting. So PacSun's role really in looking at this report is so much more than selling clothes. It's giving young people tools to express who they are both online and offline and creating special and unique experiences for them. And so I think this report validated or reinforced a lot of the great work that Pakistan has been doing for over a decade. But the reason we created this risk report because in the report, very interestingly, we don't ask a single question about Pakistan. We're not asking questions about ourselves. The report is intended to be a free resource to everyone in the community to better understand Gen Alpha and Gen z because there is so much misinformation. And so Yeah. Really in in in kind of in clear connection with Pakistan's purpose to inspire the next generation of youth, to give them a voice, and to create a better world. And so this is just one small moment or way in which we're trying to give them an amplified voice. Yeah. I love that. And, you know, we study both. And when you talk about self expression, especially with alpha, which I think we're just, I mean, literally scratching the surface of understanding this generation. The other thing too for both is their desire to be cocreators. And so if you're if you pull together self expression desire, being cocreator, and the relationship they could have with the brand in that way. You know? How are you thinking about that? Like, taking it one step further, tying in that identity, but also that cocreation, with you as a brand. Yeah. Cocreation is the entire ethos for PacSun. So we really exist in service to our consumers so that they can cocreate their favorite brand. And I think there's some interesting distinctions when you think about Gen z and Gen Alpha and how their values or behaviors are converging or diverging in ways that we didn't expect. And so Gen z continues to balance their self expression with a deep, kind of rooted desire to have purpose, and they expect alignment with brands. And they want to identify with brands that matter to them culturally. And this report goes to show that for Gen z, fifty five percent want brands to reflect their values and their community. With Gen Alpha, in contrast, they're growing up digitally native, like, from the beginning. And so their shopping behaviors are already tied to visibility, three enforcing. They purchased to create content. And they're really their expectation is cocoration from the beginning. So it's not an adaptation like it is for Gen z. It's really an expectation from the go. Yeah. I so two things on that. And, again, I say I bring up my daughter way too much. But, you know, when I take her from shopping, before we're even home, like, in the car ride, can I have your phone? I wanna I wanna I wanna take everything out of the bag that I just bought, and I'm gonna make this content video. You know, unboxing isn't a new thing, but it's so interesting at, like, eight years old, nine years old, ten years old. They just that's their form of expression. And they're they're always talking about the why too. Like, this is why I bought this thing. This is what this thing's gonna do. It's it's pretty fun to watch. So I think brands that we study a lot too when you think of cocreation, I think a lot can learn a lot of brands across different industries can learn a lot from Lego in this aspect. You know? And I'm curious your thoughts on that after having done this research because I think they're a unique one at a category where the heart is that creation, and they're they're integrating with people in the school, you know, children in the schools, outside of the schools, you know, virtual worlds, real worlds. I mean, how do you think about how that becomes applicable in other categories like apparel and accessories? Yeah. I think Lego is a great example. The youth are gravitating towards brands that act as platforms for creativity, platforms for cocreation. So when they buy a product or invest in a brand, they wanna see themselves reflected and cocreated in culture with the brand. So, like, it was a great example, but it really applies, like, if Gen z or Gen alpha, if you're the recipient of this amazing research and you're thinking about your future consumer, so maybe you don't have Gen alpha in your fold in ten years, understanding how these behaviors are evolving is so incredibly important to the moves that you might be making today. And so I think, you know, brands really have an opportunity to lean in and understand these you know, both cohorts are social first in terms of activations, really need to lean into creator collaborations and customizable experiences. And I think, you know, what LEGO has done with Formula One, for example, is Yes. Fascinating PacSun also shows up in formula one in very unique ways for our consumer, you know, bringing affordable product trackside to the races and bringing fashion and style to f one kind of beyond what one would expect expect on the track, and we've had a lot of success over the last three years with it. But definitely see this as super important to understand deeply. The report that PacSun put out for the youth report is really to get at the why, not the what. Yeah. The why there are these identity shifts, the why in terms of self expression. I think there's a lot of great reports that kind of scratch the surface in terms of telling you the trends or showing you where your brand might rank. But really understanding the ethos of the, like, inner workings of what's happening with Gen Alpha and Gen z and why they're shifting their consumer habits, I think, was, something that Neil and Global Data did a great job when they were looking at kind of crafting the questions alongside us and building out the research methodology of really getting under the covers to understand more. Yeah. I I love that. And and and part of your report, like you mentioned, because there's so we'd break down kind of how what your report goes through. You have, you know, identity, then style inspiration, discovery, social media, finances, and we'll make sure we touch upon mental health in this too, because I think that goes to what you just mentioned, like, the why. Like, what are the drivers? What are causing a lot of their their desires? With style inspiration, you mentioned kind of, you know, I agree, the alpha generation, they wanna be comfy and all that. But so can you circle back on that? What are some of the whys that stood out to you when you think about, how they think about identity and their style inspiration? So yeah. Well, what they think about identity is really interesting. The number one influence for themselves is themselves. So very different than I love that. Were more influenced by celebrity or more influenced by they really find that inspiration from within and within their community. And a part of their communities are influencers and creators. They are creators themselves. They they they, you know, creators for them are validators of trust. Right? And so credibility comes from peers. It comes from authentic voices, not traditional advertising, not traditional brands. And so to build trust, brands have to embed creators early on in the process. And one of the things PacSun has done so successfully, in my opinion, is really leveraging open creator platforms. So where You know, cohorts of fans are coming to you. The brand isn't preselecting who they wanna work with. The creators are choosing you, and then you have zero control over that creative output. And that kind of shift in control between brand and creator, I think, is something that you have to get really comfortable with. And Yeah. And has been really successful building that trust with Gen z and Gen Alpha as cocreators and really instilling that creativity innovation and having them be a part of the journey, like, truly. Yeah. I love that you mentioned that because that is a shift in mindset. You know, back in the day for us, brand dictated and, you know, they kind of dictated what you liked and how and now it's not the tables are fully turned. Maybe it's a little more integrated, in your leadership position. I'm just curious too. How do you help cultivate that? Because it's one thing to say that that's what's needed. It's another thing, right, to actually infuse that in how you operate it and how you think and strategize as a brand. I think first, social listening is really important. So, you know, making sure that you are listening across all channels and really putting your customer, your creator at the center of all of your decision making. The second is really being authentic and consistent in your belief system. So at PacSun, cocreation is really our model. And so whether you're in marketing, merchandising, design, everyone is really sharing this vision of how important it is to to bring our customer along the journey with us, and we're not trying to sell them something. We're trying to bring them along. So it's a it's a pretty important and strategic shift, and I would say it happened over the last five to ten years of us slowly continually working at this and paying attention to those generational shifts. Yeah. And so how about from the lens of another section of your report talks about social media, which is, you know, we have discovery and then we have engagement. And on social media, both are happening. But, also, how do you take the learning? So maybe you can dig into some of the key takeaways from that section of the report. But, also, how do you then apply that to your omnichannel strategy? Right? Because your brand with multiple touch points, and how how does that consistently filter through knowing that a person or customer is looking to you as a brand, not as a store versus a website versus your TikTok versus your Instagram. Yeah. Definitely, first and foremost, PacSun is a lifestyle brand. So before we even think about channels or how we reach the consumer, recognizing that we are a part of their community, a voice within their community, we give them voices. And in the youth report, we find that fifty seven percent of young consumers spend more than forty percent of their apparel budget online. And that really shows that digital is a sticking point. But we've also seen this incredible return to malls and this desire for community. So there's opportunities on both lenses and both sides. Within digital, opportunities are under leveraged for sure in particular as it relates to social commerce. So we've seen tremendous success on livestream shopping, on platforms like TikTok or YouTube with which really aligns with how the youth is discovered and entertained, but also their ambition. So they aren't just using these platforms or tools to be a passive part of storytelling. They are the storytellers themselves, which I think is really interesting. And then another Yeah. Is culture forward channels like gaming and music with sixty four percent of respondents saying music influences their style, which, you know, I shared earlier how big of a part music plays in their identity. And I think there's a space for brands to connect through those cultural ecosystems, through music in integrative, innovative ways as opposed to just focusing on retail platforms. Yeah. And and I, you talked about gaming, and I wanted to bring that up too, especially, I think, more for alpha than gen z and the impact of things like Roblox and, you know, the tie to that and identity because the the you know, every kid is asking for Roblox, and then they're buying clothes for the avatar, and that's a form of expression in their style. And then, you know, that influences what they go look at in the store. How do you see that, you know, coming together? People ask a lot, like, what's the future of physical, And how do you see some of these things get more integrated if you just think of the future ahead? I think they're all really interconnected and intertwined. In twenty twenty, we started with our first Roblox world, and we've evolved into multiple worlds. And we see the importance of even replication. Sometimes they want something completely different for their avatar, like a pair of large gold wings. And other times, they want the exact favorite PacSun hoodie that they've have found in their store. And so watching that integration and watching kind of the evolution and also this freedom of sense of expression. You know? You want blue hair today? You can have blue hair. Any color skin. Like, it's really interesting to see that evolution and just the full expression of their self identity is so rich because of this access to have so many different forms of expression. And at the same time, there's also, you know, a growing concern about how much time young people are spending online, but it really is just just an integration of the worlds. And I certainly think physical retail will become more experiential, but they will remain equally important kind of in their lives and and for different reasons. And perhaps search and exploration will happen more in the digital realm, but then there's that physical satisfaction of being able to go into a store, feel like you're a part of something, be a part of a community, and get that live feedback and and kind of tactical feel. Yeah. And one of the other stats I have in front of me from that social media section, I'm gonna read it. Everybody has to download the report to hear everything, but some teasers. Over half aimlessly scrolled daily, yet the main cause of negative sentiment when on social is the feeling of wasting time. And so I thought that I thought that was interesting. I think we all have that gut check from now and again. But that's the other thing that's interesting. How does that that kind of efficiency and and and not wasting time, coexist with some of your planning? Because there's the experiential aspect of being integrated into community, but I thought that was an interesting kinda takeaway or one of the stat that you shared in the report. Yeah. Absolutely. And this is something at our PACSUN Purpose Summit last week that Neil Saunders dug deeper on and shared more about those behavioral shifts. Then, again, for everyone that is receiving the report or chooses to download the report for their individual brand, they might choose to interpret the data differently or to leverage the data differently. Accsoon, we're really focused on showing up where our consumer is, meeting them where they are, and trying to create more meaningful ways for them to connect. And part of that is allowing them to participate in the creator economy, giving them opportunities, you know, help start, start businesses early, weigh in from a community standpoint, design, be a part of something bigger if they choose, express themselves, creativity, self expression, and also offer them just a myriad of different types of relationships with the brand. So activations and experiences that they wouldn't be able to experience physically because of limitations in terms of maybe where they live, so being able to bring those experiences to life for them. Yeah. No. Absolutely. And it's gonna be interesting. I mean, I'm just so I'm personally so interested in how the alpha is gonna evolve because, you know, as you read through the report, you know, there's so much influence they are getting because they're so digitally integrated and more so than any of us were at that age. Yeah. So but it's keeping I I mean, as a brand or retail, you're on your toes with that, I think, too because, they're they're just and and it you know, the way they're discovering beauty and apparel and all of that online and how they're influenced and how they're taught about putting styles together. And, you know, do you do you see the correlation to some of the things like styling platforms and things like that that they're engaging with that maybe were surprising to you too? Yeah. We're starting to see some of those correlations. Again, the research is to paint, like, you know, a pretty broad picture about these shifting demographics. And what about is to be able to repeat the same report year over year so that to your point earlier, we can see where there's movement, where is gen Gen Alpha evolving? Are they getting closer in line to Gen z? Where are the differentiation? Closer points, I think, in terms of spending habits and priorities, another thing that was, you know, very interesting in the report was that the youth are willing to spend when purchases connect directly to culture and identity. In French, seventy five percent said they buy apparel for social media content creation. So they buy the product to your point earlier, like your daughter, to take that photograph, to share with friends, and to signal that subculture has a greater value to them, much more so than On the other hand, they're pulling back from purchases that feel hype driven or dis personal meaning. And too expensive was something else that was also a top barrier cited to adopting new styles. And so for PacSun, you know, affordability, making sure that we create access points for young people when they have the opportunity to be able to try out new trends is something really important to us, and that was really reinforced in the report as well. Yeah. What was your thought around that? Do you think they're just more hyperaware than in the past about, you know, kind of finances and the state of things? Or I think awareness is a big piece. I think also just economic moment that we happen to be in right now creates a hyper awareness, and they have a lot more access to news and where they access their news on social media. Everything that Neil Saunders pointed out in our purpose summit last week, which, you know, is a big shift in terms of prior generations and access to that information. And the The way that the access is created are very short blips. Right? So it's headline. And so it's also a different type of depth of information. And so as they get more access to information and their awareness grows with more depth of knowledge, it'll be interesting to see how their behaviors might shift. For sure. There's a little superficial knowledge in it, but it'll evolve over time. Then then the I think it was either the final or second to the final is mental health too, which I do think is important just to touch upon a little bit, because I do think in addition to finances, then it is another area that's top of mind more so than it had been in the past and mental health being the most important factor to the youth. You know, and there's a variance. Right? You asked about physical and mental and stuff. So what are your thoughts there and some of the things you talked about at the beginning of our conversation with values, right, and and and them caring about brands that stand for certain things. And, you know, I would think this would be on that list. But what what are some of the insights you can share from this, topic of the report? You know, for me, looking at the data that was provided to us and the over index the clear over index of mental health far superior to how they think about their physical health or how they think about academics, mental health ranks, you know, incredibly high. It shows a vulnerability of this generation to have a willingness to prioritize that. So I thought from that perspective, it's very healthy. On the flip side, it also shows that, you know, there are some needs and that we as brands, as communities, as leaders, have to pay much closer attention to these statistics and what are we going to do, how can we learn from them, and how can we all kind of lean in together to ensure that we're creating the best future for our youth, especially as it pertains to their mental health and how they view the world and how they view opportunities. You know, one of the brand partnerships that we have seen resounding success with is our partnership with Selena Gomez. And A percentage of all of the purchases for her rare denim edit go back to her mental health foundation. And I think that the, you know, it's it's successful because it's something Gen z and Gen Alpha care about. It's relates, and it creates meaning for them. And so they think there's a really important lesson there for brands that you can do good, and you can also, you know, lead your business. And conscious capitalism as an ethos is something that, you know, at PacSun, we've we've we've spent a lot of time thinking about from kind of the beginnings of Whole Foods and John Mackey and what Doug Rausch was able to do at Trader Joe's and really being a company that stands for good and does good and gives back. And I think this is something that these young generations of Gen Alpha and Gen Z expect from us as brands, and I think that expectation will grow over time. And I think the stat and the data that has come out on mental health is something we should all pause on, and we all need to introspectively look as a brand, as a leader, as a community member, what more could we do, should we do? At our Purpose Summit, we had educators. We had people from Make A Wish. We had people from Los Angeles Rams, LAFC, TikTok, Pinterest, all in the room really with a focus and an emphasis to say, hey. This is the data. What can we all do as leaders to ensure that we are all leading with purpose, that we're leading with intention, and that we're taking this data and really doing something with it. And so I think the stat from the report is important. What we do with it and how we choose to lead differently, how we choose to have our brands lean into this differently will be even more important. Absolutely. No. I think it's so important that that's getting more attention, and it's such a die dichotomy, is that the right word, between the being constantly connected, right, which is creating, right, this this desire for mental health and wellness, it's at odds with each other. So I think, you know, the more we can help them kind of engage and and and be a part of community and be part of something bigger and something that they think understands them and their identity and all of that. I think that's a big opportunity for brands. So, well, you're always future forward, and I think it's a great, endeavor that took to to partner with GlobalData and to get this information out there. And as you said, brands are gonna interpret it how however they do, correlated to who they are as a brand and what they stand for. But as you look ahead, what do you think some of the you know, you're studying year over year still, but what do you think the landscape might look like? If we look two to five years down the road, what do you think are some areas of focus or things that you're really watching? Yeah. So I do think the data does show a clear direction whether brands choose to take that direction or not. The patterns point to a future where social commerce, cultural connection, and identity led purchasing are dominant. So fifty seven percent, online shopping, seventy five percent of Gen Alpha shopping for content, sixty four percent influenced by music. And I think retailers really need to be flexible and experiment with new formats, new collaborations, and an evolution alongside the youth rather than chasing from behind them with traditional advertising. So I think in terms of a future of what that might look like, it will continue to evolve. As we know, Gen Alpha and Gen Z are incredibly dynamic, and it's important to do the research, revisit, and amplify it with additional voices. We were able to speak to six thousand youth, which is a great initiative. Which is amazing. Yeah. If we can do double that next year, I think we would all be really pleased to have even more diversification of voices. So I think, that's one piece. I think second piece really in terms of actionable takeaways would be listening, social listening, listen directly. Bring your audience into the fold. For Pakistan, you know, last month, we announced that we have a youth advisory council that is made up of eleven different voices, including Jen Alpha. Our youngest is, like, with Becks, and she is age fourteen from Ohio. And she sits on a board along Gen z voices from a range of different backgrounds, and they're team four times a year, and we're also providing them mentorship. So we are actually giving them a seat at the the table and shining a light on their voices, on their thoughts, and ensuring that we're really putting a little bit more formality around what this kind of social listening looks like and taking that to the next level. I think the second is to build creator credibility, and so that is so incredibly important. The creator voices are incredibly important important. Cocreation is incredibly important, so that is another super actionable takeaway. Irregardless of what industry you sit in, what branch you're at, having that trust, authenticity, and finding voices, you know, in open open platform and creating in meaningful ways is just super relevant to today's research. No. I I love it, and I love how you made it, actionable. Right? Because it's easy to read and how do I get started? And, obviously, listeners different ends of the spectrum. Some are gonna be small to mid size, you know, brands and retailers and some larger. So it's great that you have some action steps that people can take. And so for those who want to read the full report, where where is the best way to download that? Yeah. Go on to PacSun's website, type in youth report. You'll will pop right up, and you'll have access to download the full report. The report is about eighty pages. We also have executive summaries and key takeaways, but I highly encourage you to dive in and to really lean into the data because the data is the voices of these new generations of Gen z and Gen alpha. And really deeply understanding the why, not the what, of how this is evolving and changing is incredibly important and the reason that we did the research in an effort to kind of stop the spread of misinformation around these generations. Yes. And the bucketing that they're one size fits all with they they are clearly not. Yes. Gen alpha is not a mini Gen z. They are a cohort of their own right and evolving in their own way, and Gen z, I think, is just deeply misunderstood. Yeah. No. Absolutely. Well, so everybody will have to download it to read further by what she means by that sentence of them being misunderstood. But we appreciate you taking the time to break it down a little bit and some key highlights and and actions. And, I look forward to watching the year over year report that comes out whether it's in one or two years from now. So thank you so much. Every September. Thank you, Melissa, so much for taking the time.
