WHAT AND HOW DOES GEN Z SHOP?

Gen Z makes up 26% of the world’s population (Issuu). And their participation in the job market has already begun. They started spending their own money. The ones who are still out of the workforce still make an important target audience for the retail industry because 70% of them have the power to influence their families’ purchasing decisions (Forbes).

As the first generation who is digitally native, they are all about the online shopping experience; they demand fast and seamless payment and are active consumers in re-purchase, re-use, and re-purpose. Since they are well-educated and surrounded by unlimited information, they are considered to be the most critical shoppers ever: They seek fair pricing and high-quality products. They were born during the global economic crisis and global warming; they have a more pragmatic approach to money and resources. They mandate brands to be fairly priced, more diverse, and sustainable.

Due to their dominance in the total population, their influential power over other generations, and their ability to create agendas on social media, Generation Z is the most important target that retailers should listen to, understand and serve accordingly.

Gen Z Buying Behaviours

1. They demand sustainable products and services

Gen Z genuinely cares for the future of the planet. This also affects their consumption habits and purchasing preferences. They not only prefer ethical and sustainable brands and products but are also the main users of re-commerce platforms. As eBay’s latest annual re-commerce report shows, 80% of Generation

Pelin Bork

Director

Graduated from Marmara University Faculty of Communication Public Relations and Advertising. She worked in Istanbul’s renowned local & global advertising agencies leading top international and local accounts such as McDonald’s, P&G, PM, Diageo, Axa, Chevrolet, Ford, Turkcell, and Turkish Airlines. She then transferred to Leo Burnett’s Kuala Lumpur office leading McDonald’s regional account and new business development. Pelin continued her career at McDonald’s as Marketing Manager after she returned to Istanbul. She joined Happy People Project in 2016.

Z buys second-hand goods, and almost one in three started selling in the previous year. Buying and selling second-hand items is a way to generate income for Gen Z as well as a contribution to the sustainability of the planet. This is what makes them truly “smart shoppers”.

2. They choose access over ownership

Although sharing economy is a concept invented by millennials, Generation Z made it a lifestyle out of it. In a world where money and resources are decreasing daily, the experience-oriented Gen Z is not interested in owning but definitely having access. As large investments and materialistic commitments seem like a barrier to a diversity of experience, innovative rental services are turning into a huge service market all around the world.

There is no end to what they can rent and share; vacation houses, cars, scooters, shoes, books, etc. Brands like Airbnb, Uber, and Swap Society created a culture of renting, borrowing, and trading assets or products, and now this has become a mainstream culture.

3. They react to social commerce & influencers

Gen Z never knew a time when ordering takeout online, sending WhatsApp messages to a friend, or Facetiming their family wasn’t possible. So, shopping online is nothing but natural for them. But Gen Z has already moved beyond e-commerce, now, it is the era of social commerce. Social commerce platforms for Gen Z include Instagram, TikTok and Pinterest. In fact, the hashtag #tiktokmademebuyit has upwards of 2.3 billion views on TikTok, and #amazonfinds has more than 6.7 billion views. 30% of Gen Z say they want a fast and simple checkout experience (Forbes). This is why social commerce is the most increasing shopping trend. It accelerates customer decision journeys from awareness to purchase almost instantly.

According to Kantar, 44% of Gen Z relies on influencers when it comes to shopping decisions. 70% of Gen Zers follow at least one influencer on platforms like YouTube or Instagram. At a time when knowledge, innovation, and product diversity are at their peak, the “trusted person” recommendation seems to be the most logical way to reduce the risk in the purchasing process. On the other hand, since influencers are perceived as trendsetters, the way to catch the hip and fashionable is, again, through influencer recommendations. However, there is also much criticism that brands’ influencer collaborations could be more sincere and less interestoriented. Therefore, only organic and genuine influencer collaborations have the power to influence Gen Z.

In summary, it is imperative that retailers targeting Gen Z focus on meaning and purpose. Remember, Gen Z prefers brands that share the same values as themselves. Make sure your brand meets the same value universe as your target audience.

In addition, brands that can enter Gen Z’s radar are not the ones that have the loudest voice in mass media, but the ones that have an organic presence on social media. But, again, remember that the people who produce the best content for social media today are also Gen Z. If you can’t be as real and sincere as they are, let your target audience produce the content for your brand.