Generation Z (Gen Z) was born in the Internet era, and Gen Z members have access to technology from a young age. Gen Z is known as the citizen of the digital age, thinking about money and economics, and is hoped to be the “captain” in the process of changing and building a developed world in the future. Therefore, we can say that the future of retail 20 years from now lies in Gen Z shopping habit. In this article, we would like to provide you with some information about Gen Z shopping habits to guide the development of your business in the future.
Who is Gen Z?
Gen Z (Generation Z) refers to people born between 1995 and 2012. Gen Z is the next generation after Millennials (Gen Y) and before Generation Alpha (α), and is usually the offspring of Generation X (those born between 1965 and 1979). Around the world, there are about a billion people of Generation Z, accounting for about a quarter of the population.
Generation Z is said to be a better upbringing generation but more prone to stress and depression than previous generations. They often have high expectations of themselves that are often not met. This is a new type of shopper and consumer that businesses have to get used to.
Gen Z shopping habit
Demand sustainable shopping
Because they are inheriting a better upbringing, Gen Z has a very good sense of the environment. They are people who care a lot about the planet and the future. Therefore, the products they buy will always be environmentally friendly and the way they are consumed will also be long-term to limit emissions, which is a great opportunity for businesses to grow their business sustainably because Gen Z will be willing to pay a lot for durable products.
Spend less generally
The formative experiences of many Gen Z individuals, witnessing their parents grapple with financial hardships during the 2008 economic crisis, have left a lasting impact on their consumer behavior. As a result, Gen Z has developed a heightened sense of financial responsibility and a keen sensitivity to price. Their shopping habits reflect a thrifty and pragmatic approach, as they are mindful not to overspend on non-essential items. Gen Z’s fiscal conservatism is reshaping the retail industry, pressuring businesses to prioritize value and affordability. Brands that understand and cater to these financial sensibilities are better poised to resonate with this generation and secure their loyalty in a retail landscape defined by economic prudence.
The mobile-first, digitally native generation
Recent Gen Z shopping habits reflect that social media plays an important role. Generation Z was born in an era where there is always a phone in hand and a radically different approach to social media and digitization in general. Gen Z uses social media to find inspiration, research products, and connect with their favorite brands. Therefore, businesses should focus on developing and growing social commerce because its potential is endless.
Influencers have a great influence
In the era of social media and e-commerce, Gen Z has cultivated a distinctive approach to shopping that hinges on trust and authenticity. Unlike previous generations, Gen Z tends to place more trust in social media influencers with significant followings rather than traditional companies. They actively seek out and follow influencers who resonate with their values and tastes. These influencers wield a profound influence over Gen Z’s shopping habits, as their recommendations and endorsements hold considerable weight. This shift in consumer behavior underscores the importance of influencer marketing in the retail industry, as it has become a powerful tool for engaging and connecting with the Gen Z audience, who prioritize genuine and relatable brand interactions.
Multiple payment methods
The development of e-commerce along with the widespread pandemic has made the main consumers who are Gen Z tend to pay via mobile and contactless payment. They also prefer multiple payment methods. Over the years, there have been many mobile payments apps that have grown in popularity and yielded great results. Companies with mobile apps have an edge and are more popular than companies that don’t.
How Gen Z shopping habit are affecting the retail industry?
The shopping habits of Gen Z are undeniably shaping the retail landscape in profound ways. As the primary consumers of the future, understanding and catering to the preferences of this generation is a top priority for businesses. Gen Z shopping habits serve as a roadmap for companies, offering valuable insights into what resonates with the upcoming generation of shoppers. With their affinity for digital experiences, sustainability, and convenience, Gen Z is steering retail trends that will define the industry for the next two decades. Adapting to these shifts and aligning with Gen Z’s values is not just a smart business move; it’s a fundamental strategy for long-term success in the ever-evolving retail sector.
Capturing customers’ habits and consumption trends is not an easy thing, but if businesses want to get to the market in the future, they must learn this. Contact us to get support for your business in meeting the needs of every consumer.