Where Does Generation Z Shop
Generation Z is going to be significantly bigger than the millennial cohort. Experts estimate that on average, it is going to have 1.5 million more people than millennials. Commerce-oriented statisticians have also found out that in as few as the next two years, generation Z may account for as much as 40% of the consumer base.
The above numbers put onstage the reality that the preferences of generation Z will mean doom or bloom for establishments depending on the level of alignment to the demographic’s desires. On that wavelength, below is a breakdown of where generation Z shops to equip stakeholders with useful insight.
Tech-based shopping
To build a contextual framework that will help in the comprehension of generation Z’s shopping decisions, it is important to note that like millennials, tech and the internet play a prominent role. Virtually all of generation Z’s shopping decisions are influenced to some degree by online forces.
One can thus arrive at the conclusion that enterprises looking to maximize success have to cultivate an online presence. This underscores the most important shopping location for generation Z: online.
Online
Shopping online has many benefits over brick and mortar shopping, and while millennials made it crucial for businesses to establish an online e-commerce and marketing presence, generation Z’s preferences will ensure that the trend holds steady.
The biggest reason behind the significant role online forces play in this generation’s purchase decisions is convenience. Generation Z loves convenience and they dislike situations that present unnecessary hassle. Moreover, generation Z is impatient which means that queues do not work for them.
Traditional shopping
Despite the internet being central to how generation Z shops, in one study, about half of the respondents reported that they still preferred an in-store experience. This is in contrast to millennials who prefer to do most of their shopping exclusively online.
In this light, the typical centennial’s shopping process is likely to be catalyzed online. He/she may be influenced by an ad, then undergo a priming process which is likely to involve research and discovering other people’s experiences with the product.
He/she may also consider reviews, make comparisons, check a YouTube video, etc., depending on individual thoroughness. Once convinced, the centennial has a 50/50 chance of either ordering online or going into a store and buying the predetermined product.
Malls, and retail establishments
This is music and balm to retailer’s ears and financial wounds. It would be an understatement to say that millennial’s preference of exclusive online shopping dealt damage to retailers. To date, some are still counting the losses, while some brands were unable to recover.
To capture generation Z, therefore, brands have to ensure both superb online and in-store presence, keeping in mind that centennials want express, hassle-free checkout. Trailblazing companies such as Apple and Amazon are in the process of implementing and perfecting technologies to this effect.
In Apple’s case, once a customer picks a product in the store, attendants equipped with portable checkout gadgets scan the product and capture customer details. The customer pays for the product through his smartphone and the receipt is sent electronically. In Amazon Go stores, machine learning will detect when a customer puts a product into the cart. Through an app, one will then be charged instantly at checkout which eliminates the need for queues.
Social media
Generation Z loves social media, and it only makes sense that their shopping is influenced by, or through social sites. When social media is not the actual purchasing platform, generation Z use it as a tool to help them decide what to buy by sourcing for recommendations.
On all devices
A typical generation Z individual is likely to have a tablet, laptop, and smartphone. Per day, he/she may divide a minimum of four hours between these devices as research has found out. This makes it clear that generation Z shops on multiple devices.
As such, brands should ensure omnichannel presence to maximize exposure to promotional material to drive generation Z down conversion funnels.
Not necessarily where the price is lowest
Generation Z is materialistic, and for this reason, they love discounted deals, and anywhere where there is value for money. It is not uncommon to find a group of centennials in stores holding big sales. This fact notwithstanding, when price and experience are pitted against each other, generation Z mostly opts for the latter.
Final thoughts
Experts have coined the phrase ‘millennials on steroids’ for generation Z and considering the economic upheavals millennials instigated and the consequent restructurings that were necessitated for brands to survive and grow, it is only natural for stakeholders to have some apprehension.
However, this need not be the case as generation Z responds to much of what millennials respond to. The only alteration enterprises have to make is to equally share efforts between building and maintaining online authority and a tech-based retail presence that offers an excellent shopping experience.