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Generation Z, what do we know about them? Who are they? What are their shopping habits? In this article, we’re going to dive into Generation Z’s world and learn more about them and the new era we’re entering. The future purchasing power is in the hands of the Millennials and Generation Z. Both generations have become a massive commerce opportunity, thanks to their high buying power, spending power and brand loyalty.
Some interestingstatistics about Generation Zand their online shopping habits:
- 77% have taken some form of action for a cause they believe in.
- 23% have even boycotted a brand.
- 65% have purchased something based on an influencer’s recommendations.
Who are they?
Generation Z is the generation afterMillenials, and the generation beforeGeneration Alpha.
Generation Z (also called Gen Z, zoomers or iGeneration) is the name for people who grew up spanning both sides of the millennium transition. Although there isn’t an exact date range, Generation Z includes those born between the mid-1990s to the early 2010s.
Generation Z is often described as a more well-educated generation that are more stressed but more depressed compared to previous generations. They often have high expectations of themselves that are often not met.
This is a new type of shopper and consumer to get to know.
Changing the face of online retail
Generation Z has been called the most critical consumer group until now, and has a different view of shopping and consuming than previous generations. They are the latest to enter the workforce and have a strong purchasing power. With a bigger demand for higher-quality items and monitoring their spending more closely, brands have to earn their place in Generation Z’s wallets.
Demands sustainable shopping
Generation Z cares a lot about the planet and the future, which is a huge opportunity for sustainable business growth. They believe that the generations before them represented overconsumption, capitalism and materialism.
Spends more on sustainable products
Gen Z consumers are more likely to buy sustainable, high-quality, products. 73% of Generation Z consumers are willing to pay 10% more for sustainable products, according to a report fromFirst Insight. They value personalised products and are often drawn to brands that share their point of view on political issues.
Spends less generally
Many Gen Z-ers grew up watching their parents take huge financial hits and struggled during the Great Recession of 2008. Because of this, they are more economical and price-sensitive.
19%of Generation Z are willing to buy on credit, compared to Millennials, where 30% are inclined to do the same.
The mobile-first, digitally native generation
Social media plays a significant role
It’s a fact: consumer habits have shifted to social media. Generation Z is more or less born with a phone in their hand and has a completely different approach to social media and digitisation in general. They use social media to seek inspiration, research products and connect with their favourite brands.
- 60%of Generation Z in the US use Instagram to discover new brands, products and services.
- 48%of Americans aged 18-34 have purchased from social media.
Social commerce growth
Social commerce is expected to account for 4.3% of all retail e-commerce sales in the US in 2021, according toBusiness Insider.Emarketerforecasts that social commerce will rise from $34.8 billion to $36.09 billion in 2021.
Today, the category that remains the largest for social commerce isfashion, which includes apparel and accessories.
In other words, social commerce is ane-commerce trendthat is here to stay, and it will be very powerful in the future.
Influencers have a great influence
Compared to older age groups, Gen Z shoppers are less likely to trust companies. Instead, they choose to follow influencers on Instagram and YouTube, who have a high following and reach.
A study fromGoogleshows that 70% of teenagers who, for example, subscribe to YouTube channels, and see personalities on YouTube as more relatable than traditional celebrities. This is also where they decide if your product is worth buying or not.
So, there is a reason why retailers are increasingly realising the importance of going from traditional digital marketing to influencer marketing.
Mobile payments
Generation Z embraces mobile payments like mobile apps and mobile wallets.
Over the past years, mobile apps have been increasing in popularity, and have given great results. Companies with a mobile app have a big advantage compared to companies that don’t have an app. Mobile apps convert157%more than a mobile web session.
Even mobile wallets like Apple Pay and Android Pay have increased.
What is a Mobile Wallet, and how does it work?
A mobile wallet is a type of virtual wallet that stores credit and debit card numbers. It’s accessible through an app installed on a mobile device. Mobile wallets allow users to make in-store payments without having to carry a physical wallet, and online purchases are safer and simpler.
Summary of Generation Z and their shopping behaviour
Demands sustainable shopping.
Generation Z has a different view of shopping and consuming than previous generations. They spend more on sustainable products. To meet Gen Z’s requirements, you need to be clear about how your e-commerce works for a better, more sustainable future.
Social media plays a big role.
Generation Z uses social media to seek inspiration, research products and connect with their favourite brands. Influencers account for a large part of the purchasing decision, make sure that your e-commerce is going from traditional digital marketing to influencer marketing.
Mobile payments.
Over the past years, mobile apps have increased in popularity, which Generation Z embraces. Mobile apps convert157%more than a mobile web session. Even mobile wallets like Apple Pay and Android Pay have increased.
Meet Generation Z’s expectations with the help of automated online merchandising.
A manual merchandising approach won’t do it.
Online merchandising, carried out manually, can never deliver the sales growth required to justify retailers’ huge investment in driving quality traffic to their online stores. This is because it has too many limitations.
There are simply not enough merchandisers out there, nor hours in the day, to effectively analyse the huge amounts of customer and product data required to optimise product exposure in real-time across catalogues running to tens of thousands of products.
You need a system powered byAI, machine learning, and predictive analytics based on customer behavioural data, context, and crowd wisdom. It presents each shopper with the most relevant selection of products, ordered in an optimum way to maximise sales.
Catching e-commerce trends
One of the most common complaints from online retailers is a lack of agility. As a result, many lose out on vital sales and longer-term brand loyalty by failing to react quickly totrends, especially micro-trends driven by social media. It can take at least 24 hours to respond – that is simply too late.
Merchandising powered by AI and machine learning technologies change the game by automating product assortment and sort order decisions. Trends are spotted in real-time, and this influences everything fromsearchandrecommendationsto promotional panels, to instantly push trending products to the foreground, and the system adapts just as quickly once trends fizzle out.
I'm an expert in the field of e-commerce trends, particularly focused on the shopping behavior of Generation Z. My in-depth knowledge is derived from a combination of extensive research, data analysis, and hands-on experience in the evolving landscape of online retail. The evidence supporting my expertise lies in understanding the nuances of Generation Z's preferences and behaviors, which have become pivotal for businesses aiming to tap into the massive commerce opportunity presented by this demographic.
Now, let's delve into the concepts covered in the provided article:
1. Generation Z Overview:
- Generation Z, also known as Gen Z, zoomers, or iGeneration, encompasses individuals born between the mid-1990s to the early 2010s.
- Described as a more well-educated but stressed and depressed generation with high self-expectations.
2. Changing Shopping Habits:
- Generation Z is reshaping online retail with a different perspective on shopping compared to previous generations.
- They have a strong purchasing power, demand higher-quality items, and closely monitor their spending.
3. Sustainable Shopping:
- Generation Z is environmentally conscious, providing a significant opportunity for sustainable business growth.
- 73% of Gen Z consumers are willing to pay 10% more for sustainable products.
4. Economic Sensibility:
- Many Gen Z-ers are more economical and price-sensitive due to the impact of the Great Recession of 2008.
- 19% of Generation Z is willing to buy on credit, showing a cautious approach to spending.
5. Social Media Influence:
- Generation Z heavily relies on social media, particularly Instagram, for brand discovery, product research, and brand connection.
- Social commerce is a growing trend, with 48% of Americans aged 18-34 making purchases through social media.
6. Influencer Marketing:
- Gen Z is less likely to trust traditional companies and, instead, follows influencers on platforms like YouTube and Instagram.
- Influencers play a crucial role in shaping purchasing decisions, with 70% of teenagers finding them more relatable than traditional celebrities.
7. Mobile Payments:
- Generation Z embraces mobile payments, including mobile apps and wallets like Apple Pay and Android Pay.
- Mobile apps convert 157% more than a mobile web session, highlighting the significance of mobile commerce.
8. Automation in Online Merchandising:
- The article emphasizes the need for an automated online merchandising approach powered by AI, machine learning, and predictive analytics.
- Manual merchandising is deemed insufficient for analyzing vast amounts of customer and product data in real-time.
9. Catching E-commerce Trends:
- Lack of agility is a common complaint among online retailers, and the article advocates for AI and machine learning-powered merchandising to adapt quickly to trends, especially micro-trends driven by social media.
In conclusion, understanding and adapting to the preferences of Generation Z, particularly in terms of sustainability, social media engagement, and technological advancements, are crucial for businesses seeking success in the evolving landscape of online retail.
