As CEO of LS International, I’ve been having increasingly urgent conversations with C-suite executives about Generation Alpha – the cohort born from 2010 onwards. What started as forward-thinking strategic discussions has quickly evolved into immediate business imperatives, as this generation is already wielding unprecedented influence over household purchasing decisions.
The wake-up call came during a recent conversation I had with someone from Amazon, who revealed that one of their big focuses is on Gen Alpha and how to get younger generations to the platform. As he candidly shared, even a company that’s been very customer-centric is now feeling disconnected from Gen Alpha. This admission from one of the world’s most customer-obsessed companies should serve as a warning to every C-suite leader: the strategies that work today may not work for the next generation.
This trend prompted me to take a deeper dive into the strategies and frameworks that successful heritage brands are using to navigate this complex transformation. Through conversations with industry leaders and marketing strategists like Linda De Vito, who has extensive experience with iconic heritage brands, several key patterns have emerged that every CEO should consider.
The Generational Shift: More Than Just Digital Natives
In my recent conversation with marketing and growth strategist Linda De Vito, who has worked with heritage brands like Harper’s Bazaar and Cosmopolitan, she highlighted a crucial distinction: “Gen Alpha really has early exposure and complete immersion with certain technologies and AI. They are the first generation to really grow up with AI as a readily available tool, which is going to shape their approach to information, it’s going to shape their approach to interactions.”
This isn’t just about being comfortable with technology – it’s about fundamentally different expectations for how brands should engage, respond, and deliver value. With a projected population of 2.2 billion by 2024 and an estimated economic footprint of $5.46 trillion by 2029, Gen Alpha isn’t just the next generation – they are the generation that will define business success for the next three decades.
However, as this CEO candidly shared, these traditional categories are facing significant headwinds from changing consumer behaviors and digital transformation. The hypothesis he’s operating under is clear: “In order to grow the business, we would need to expand the brand into adjacent categories.”
This scenario is playing out across numerous heritage CPG and retail brands. The very categories that built these companies are now facing headwinds from digital transformation, changing consumer behaviors, and evolving market dynamics.
The Amazon Reality Check
The fact that Amazon is struggling to connect with Gen Alpha should be a sobering moment for every executive. Here’s a company that has built its empire on customer centricity, yet they’re acknowledging a disconnect with the next generation of consumers. This reveals a fundamental truth: even the things that are working today may not work two, three, or five years from now.
As I told De Vito during our conversation, “Even Amazon demonstrates that we need to question whether today’s successful strategies will remain effective two, three, or five years from now.”
The answer requires a complete rethinking of customer engagement strategies.
The Immediate Business Impact: $28 Billion in Direct Spending Power
Don’t mistake Gen Alpha’s young age for lack of economic influence. According to Numerator research, over half (53%) of Gen Alpha children receive an allowance averaging $22 per week, translating to over $28 billion in direct spending power among these young shoppers. More significantly, 87% of parents acknowledge that their buying behaviors are heavily influenced by Gen Alpha preferences across games, toys, apparel, food, drinks, and events – representing up to $500 billion annually.
This influence extends beyond traditional “kid categories.” As De Vito observed, “They’ll also have tools to help them make sense of all the online noise and various options. But also they’ll have to be educated because AI will also bring a host of questions around authenticity and trust.”
The Test-and-Iterate Philosophy
1. Speed and Responsiveness Expectations
Gen Alpha expects unprecedented speed in innovation and response. Consider the ELF Cosmetics example De Vito shared: their CEO was on a TikTok live session when someone requested a specific type of bronzer. Although it was months away on the roadmap, he fast-tracked the product to get it to consumers much quicker. “The speed at which they produced a product in response to a customer need was impressive,” De Vito noted.
2. AI-Integrated Decision Making
Unlike previous generations who adopted AI as adults, Gen Alpha has never known a world without it. As De Vito explained, “AI will help them do research, it will assist with their purchases and other critical tasks and decisions. It really will become an integrated part of their lives.” This means traditional marketing funnels and decision-making processes need complete reimagining.
3. Global Awareness and Cultural Fluency
“They’ll have a wider global awareness and they’ll be very culturally fluent,” De Vito observed. “Much of what is done on social now has global reach. So people know what’s going on in the world, and you have to take that into consideration.”
4. Authenticity and Sustainability Demands
A staggering 92% of Gen Alpha consumers feel that being their authentic self is important, and they’re more likely than Gen Z to voice their opinions about brands. They expect stronger sustainability and ethical practices than any generation before them – 80% of parents report their Gen Alpha children have influenced them to make more environmentally conscious purchases.
The Paradox: Digital Natives Seeking Analog Experiences
Perhaps most surprisingly, Gen Alpha is driving a resurgence in offline experiences. Despite being the most digitally immersed generation, there’s been a 16% increase in physical toys on wishlists since 2023, and board game popularity is up 8%. Cinema interest has grown every year since 2021, with 28% of 8-15 year olds preferring theatrical experiences over streaming.
As De Vito noted, “There also may be more of a push to enjoy the real world and taking breaks from the digital and doing things that are super creative or enjoying analog experiences, activities and community-focused events.”
Strategic Imperatives for C-Suite Leaders
1. Rethink Customer Listening Mechanisms
Traditional focus groups and surveys won’t capture Gen Alpha insights. You need real-time feedback systems and co-creation opportunities. As De Vito emphasized, “Listening to the customer will be key because they’re going to be different. Every generation is going to be very different.”
2. Invest in Speed and Agility
The ELF example demonstrates that Gen Alpha expects a rapid response to their expressed needs. C-suite leaders must build organizational capabilities for faster product development and market response.
3. Integrate AI Thoughtfully
Since Gen Alpha views AI as a natural part of decision-making, brands must figure out how to authentically integrate AI into customer experiences without compromising the human connection they still crave.
4. Prepare for Community-Driven Commerce
With 23% of Gen Alpha preferring to buy everything from one place, and their comfort with social commerce, traditional retail models need fundamental restructuring.
The Talent Challenge
The executives I work with consistently struggle with finding leaders who understand Gen Alpha. Traditional consumer goods and retail marketers often operate within established frameworks that limit creative thinking about reaching this generation. Success requires bringing in talent that can think beyond conventional category boundaries and understand community-driven, AI-integrated commerce.
The Bottom Line
Gen Alpha represents the most significant generational shift in consumer behavior since the advent of e-commerce. They’re not just future customers – they’re current influence drivers who are already reshaping household purchasing decisions.
As De Vito concluded our conversation, “Brands will have to meet them where they are, places like TikTok or Roblox. Brands will also need to be authentic and show how their products provide value to the lives of people because this generation is very tuned in to trends as well as independent thinking as consumers.”
The C-suite leaders who recognize this shift and begin adapting now will capture the loyalty of the largest generation in history. Those who wait will find themselves in Amazon’s position – incredibly successful with current strategies but struggling to connect with the consumers who will drive the next three decades of growth.
The question isn’t whether Gen Alpha will reshape your industry – it’s whether you’ll be leading that transformation or scrambling to catch up.