Kids Industries’ ceo, Gary Pope, takes a look at the arrival of Generation Beta and what it could mean for the licensing industry.
Apparently, at midnight on 1 January we welcomed the latest cohort into the world; an entire generation arrived. Generation B. BETA. So a child born on 31 December 2024 is literally categorically different to a child born on 1 January.
Not being funny or anything, but that’s just well, silly.
Of course, it’s not as simple as that.
Generational transitions are always an evolution and are shaped by overlapping influences, cultural shifts and technological advancements. It’s pretty clear that understanding this continuum will be increasingly necessary for the licensing industry as we continue to engage with the young consumers that drive so much of our revenue.
It doesn’t take a tech bro to know that Gens A and B are shaped by a world that prioritises technology and connectivity. Alphas, born into an era of smartphones, smart homes and social media ubiquity, have grown up in a world where digital is not an innovation but a given. These are the first so-called ‘Digital Natives’.
The clever clogs that devise these monickers tell us these digital foundations are going to go much, much deeper for Gen B. With the real-time emergence of AI companions, AR integration and more immersive forms of entertainment, these shifts promise opportunities for licensing that we probably can’t quite imagine; and yet within a few short years they’ll be the norm.
But these generations don’t exist in isolation. Just as their Millennial parents’ tech-savvy approach has influenced Alpha’s habits, Beta’s upbringing will be moulded by Gen Z’s curious tendencies – the first cohort to internalise digital media on a mass scale during their formative years. But let’s not get distracted by the troublesome Zs. The generational interplay between A and B, Millennial and Z, means the values, behaviours and expectations of one cohort will inevitably blend with another. A single moment in time cannot define an entire generation. For the licensing industry, this interconnectedness requires flexible strategies that balance familiarity with forward-thinking innovation.
One significant point of divergence between Alphas and Betas will likely lie in their social and environmental consciousness. Alpha has a keen awareness of sustainability and diversity, driven in part by the visibility of these topics in media and education. They’re trying to have a say – it doesn’t seem to be working for any of us frankly, but at least this activist generation is having a go.
Generation Beta, meanwhile, will come of age in a world grappling with the lack of action around climate change, equity and mental health. It’s not looking good, really, is it.
Mother Nature has a way of landing the right people in the right place at the right time to avoid the auto-extinction that we are seemingly prone to. And I hope this evolution will redefine what young consumers – and their parents – expect from licensed products. It will mean going beyond paper-thin gestures of sustainability or lip service to inclusion. I can hope at least; products must embody these values authentically.
Technological innovation is where the licensing industry’s most profound opportunities and challenges lie. While Alpha’s formative years have been defined by the rise of YouTube Kids, Roblox and TikTok, Generation Beta will likely engage with technologies we are only beginning to conceptualise. Roblox will wane, TikTok will fall and something we’ve not thought of yet will harness the audience.
These technological shifts will not negate the core appeal of licensed properties. And that is to stay story. Beloved characters, immersive storytelling and meaningful narratives have been at the heart of the human condition for 150,000 years and no amount of clever segmentation and naming is ever going to change that. Ever. Licensing strategies must embrace this evolution, ensuring properties are as compelling in an as yet unimagined hyper-real immersive experience as they are on a lunchbox. A sustainable lunch box.
The transition from Generation Alpha to Generation Beta should not be seen as a baton pass but as a continuum. Instead, these cohorts represent a gradual shift in societal norms, values and technological landscapes. For the licensing industry, this perspective demands flexibility and foresight. Strategies must address the overlapping needs and expectations of these generations while recognising the transitional nature of their preferences. It also requires a global mindset… but that’s another conversation.
Alpha and Beta are not two distinct entities but part of a broader story of cultural and technological evolution. By embracing both the similarities and the subtle differences between these cohorts, licensors and licensees can create products and experiences that resonate across generational divides. After all, the best stories – and the most enduring licensed properties – are those that speak to the universal, while celebrating the uniquely generational.
PS. If you’re interested, I’m doing a 20-minute webinar all about Gen A to B at 1pm on Thursday 30 January. You can sign up at kidsindustries.com/kitalks.
