The trend: Coach and Urban Outfitters are building community experiences to deepen ties with Gen Z.

• Both the narrative and products featured in Coach’s “Explore Your Story” campaign were developed using input from Gen Z communities worldwide, including the US and China, CMO Joon Silverstein said at a Marketing Dive event.
• Urban Outfitters’ “Add to Story” initiative invites audience members to share updates on school, sports, and everyday life in response to weekly prompts.

The details: Coach’s campaign builds on deep research into the Gen Z consumer, including home visits with women ages 18 to 30 to learn about their desires, needs, values, and sense of self. Those insights are shaping the brand’s creative and product decisions. For example, Coach is seeking to satisfy Gen Zers’ desire for individuality by highlighting its product versatility and offering shoppers the opportunity to customize their bags with a diverse array of charms and accessories.

Urban Outfitters is using community outreach to expand its creator network. Its “Add to Story” campaign marks a bigger push to turn engaged customers into more powerful brand advocates via its newly-launched Me@UO program. The initiative, which is open to influencers with fewer than 10,000 followers, aims to give the retailer’s super fans more chances to engage with the company—while also helping Urban Outfitters increase discoverability on social platforms.

Zoom out: For both brands, community-building is a key initiative that keeps Gen Z consumers loyal while attracting new customers.

• Coach won 3.7 million new customers globally in the holiday quarter while increasing repeat purchases and lifetime value.
• 41% of Gen Zers say access to community member events is an important attribute of a loyalty program, compared with 28% of the general population, according to a Deloitte survey.
• Urban Outfitters and other retailers like Pacsun are introducing community hubs that reward engagement and brand advocacy, reflecting Gen Z’s desire for more opportunities to come together in real life.

Implications for brands and retailers: Getting closer to Gen Z shoppers boosts the chances of winning spending from that often-fickle customer base—and can increase interest in a brand more broadly.

• Coach CEO Todd Kahn noted that the brand’s popularity among younger consumers creates a “heat halo” that raises its desirability among shoppers of all ages, strengthening customer acquisition efforts.
• Community platforms and outreach initiatives also open up direct lines of contact between brands and Gen Zers, giving companies crucial insight into product and marketing expectations.