The shopping behaviour of Generation Z
The members of Generation Z are getting older - and with that, their purchasing power increases. But what are the preferences of these individuals, and how can retailers attract Gen Z customers, and gain their loyalty? Learn more about Generation Z shoppers here!
There are plenty of differences between Gen Z and other generations.
Who belongs to Generation Z?
While the opinion regarding who belongs to this generation differs slightly, it is usually said that individuals born between 1996 and 2012 are Gen Z. This generation is the successor to Millenials, and are followed by Generation Alpha.
As with other generations, the identity of Generation Z has been shaped by various contemporarty factors and happenings such as the financial situation, new technologies, major events and other culturally significant trends. This includes the Covid-19 pandemic, the increased climate awareness and the rise of digital platforms.
These events affects not only the identity of the Generation Z, but also influences the way they act. Retailers should be aware of these differences in terms of shopping behaviour, and account for the underlying factors that decides whether or not Gen Z shoppers will visit their stores. As the purchasing power among Generation Z consumers is increasing as the generation gets older, it is wise to be prepared.
Factors that influences Gen Z shopping behaviour
There are various factors that influence the Gen Z shopping behaviour, and based on these factors retailers should make decisions on how to elevate the over-all experience. Whether it is to add a social media manager to the marketing team, or to re-design the store layout, there are surely improvements to be made when adapting the business for this generation.
The desire for an elevated shopping experience
Surprisingly to some, almost 50% of Gen Z shoppers prefer in-store shopping. However, these individuals are not only looking to buy a product – they want a great in-store experience. A well-designed store layout, exciting customer events or personal shopping assistants are way to enhance the purchasing journey, and to make Gen Z shoppers to feel valued and appreciated. Moreover, they are unlikely willing to compromise when it comes to product quality – and will not return if the product requirements are not met. Social media also plays a role here – it is likely that the Gen Z shoppers visit a store that they have heard about online, or that they will post content about their own visit afterwards. Furthermore, it is noted that the shopping journey is both digital and offline, as these both play a part in the purchasing decision of the Gen Z consumer.
The need for frictionless shopping
Members of Generation Z cares greatly about the shopping experience being easy and convenient, whether the purchase takes place online or in-store. For self-service solutions such as self-scanning, the younger generations are a driving force especially when it comes to using the smartphone. Mobile Pay, NFC and other tech solutions have made these shoppers used to a seamless shopping experience, and Gen Z shoppers are the generation most likely to use a buy now, pay later services when making a purchase. Also the connection between a retailer’s website and its offline stores should be seamless – for example when reserving a product or purchasing online but collecting in-store.
The implications of the need for a frictionless shopping experience are applicable both for online retailers and brick-and-mortar stores, as there are solutions available to improve both.
Sustainability and strong values in focus
Generation Z consumers are prioritising sustainability and values higher than previous generations – and this affects their consumers behaviour greatly. Where other generations’ purchases were driven by ideology or a desire for luxury, the consumption of Gen Z shoppers is more focused on being ethical. Moreover, in an effort of reducing their environmental impacts, the Gen Z consumers wants to purchase their products from companies who are authentic, responsible, and transparent.
Generation Z consumers are also more likely to defend and support causes related to identity, and more interested in human rights issues. Aligning with their other related priorities, it is important to acknowledge that the shopping trip does not start when entering the store – it starts when the Gen Z consumer first comes in contact with your company brand.
The influences from Social Media
The generation Z are digital natives and spends more time online than any other generation – and the content they view online also affects their offline purchases. The content on social media can be focused on a variety of things, such as the company brand, the store layout or a specific product. Furthermore, the content can have various formats:
Reviews
Reviews are a common way to showcase a specific product or in-store experience, with the purpose of providing information and either encourage or discourage potential customers to visit the offline store. With recent studies showing how Gen Z users are using social media platforms such as Tik Tok as search engines, it is clear that the reviews can affect the potential customer base greatly.
Values
As mentioned the values of a company does affect whether or not Gen Z customers will visit their stores – and the demands for ethical business practices have increased. Growing up with concepts such as greenwashing, performative allyship and other “fake” initiatives, this group of customers wants companies that stand up for their community. Thereby, companies are putting great effort also into their presence on social media, a great way to showcase the brand personality. It is also a way to affectl the narrative whenever potential scandals and bad customers interactions happens.
Marketing
Social media consists of both organic and paid content, and both affects the purchasing decision among Generation Z. Companies have the opportunity to be highly creative with their marketing campaigns, with campaigns running simultaneously showcasing different parts of the company product portfolio. Also more native content is used frequently, such as influencer collaborations.
How can retailers adapt to Gen Z shopping behaviour?
As previously mentioned, there is a variety of differences between Generation Z shoppers and other generations, but how can retailers attract more Gen Z shoppers to their store? This depends on a variety of factors, such as the ones mentioned before. It can thereby be a good start to identify how your store concept can be upgraded to fit the needs and preferences of Gen Z shoppers.
However, even if Gen Z is a generation of its own, its members are not identical. It consists of people with individual preferences, therefore retailers should conduct surveys and have ongoing communication with its customers to gain information about pain-points and to get an idea of how to enhance the shopping experience. Moreover, as Gen Z is not an isolated group of people, their behaviour will likely influence individuals from other generations as well.
“While we have noticed an increase in the popularity of self-scanning, it is not only younger customers who uses this type of technology. It is possible that Gen Z is influencing and encouraging peoples of various ages to try the solution!”, says Fredrik Englund, Managing Director at Datema Retail.
Regardless of what the current customer group looks like, it is always a good idea to enhance the shopping experience for generations to come, and adapt to the new preferences that arise.
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