Understanding the Hearts and Minds of Gen Z Shoppers

As the purchasing power of Generation Z (Gen Z) continues to rise, it becomes increasingly vital for retailers to understand the nuances of this generation's shopping behavior. To understand their preferences, we surveyed over 1,000 Gen Z individuals (aged 18-29) in the United States and published our research. The insights we've gained have highlighted several essential aspects of Gen Z's shopping habits and decision-making processes. These insights help retailers refine their marketing strategies, effectively connect with a growing consumer base, boost sales, and solidify their position in the evolving landscape.

Generation of Information Gatherers

Gen Z is known for its thorough approach to decision making. Before making a purchase, they diligently consult multiple sources, considering not only the product itself but also the brand and retailer. Their journey spans a myriad of channels, with social media platforms playing a prominent role. Gen Z is truly a generation of curiosity,  always seeking new information. For retailers, adapting to their preferences and delivering consistent, engaging and informative experiences across these channels isn't just a recommendation, but a strategic imperative.

When it comes to making purchasing decisions, Gen Z is anything but impulsive. They conduct extensive research to ascertain product details and secure the best available prices. Key methods they employ include the following:

• Comparing Prices and Features: 96 percent of Gen Z utilize e-commerce websites to compare prices and features.
• Reading Product Descriptions: 95 percent read product descriptions and specifications.
• Visiting Stores: 95 percent visit physical stores to see and test products.
• Reading Reviews: 95 percent read online reviews and ratings.
• Seeking Recommendations: 95 percent seek recommendations from friends and family.
• Viewing Imagery: 94 percent value product imagery and product videos.
• Watching Videos: 90 percent watch video reviews and unboxing videos.

Although Gen Z explores various channels during their research, 78 percent primarily make their purchases online.

The Sway of Social Media

Social media wields significant influence over Gen Z's purchasing decisions. An overwhelming 84 percent of Gen Z has made multiple purchases based on social media ads or content, and this trend shows no signs of abating. Specific platforms have a tangible impact:

• YouTube: 85 percent of Gen Z credits YouTube for influencing purchase decisions.
• Instagram: 78 percent consider Instagram a pivotal factor in their buying choices.
• TikTok: TikTok affects the purchasing decisions of 73 percent of Gen Z.

Furthermore, Gen Z finds influencer marketing and brand collaborations particularly engaging. An impressive 85 percent engage with such content on social media platforms.

Given Gen Z's "always on" digital consumption, especially via mobile devices, their affinity for social media is hardly surprising. Retailers must prioritize mobile-friendly shopping experiences and invest in social media marketing and influencer collaborations to meet Gen Z's ever-evolving expectations. Adapting to these preferences is crucial for retailers to remain competitive and foster brand loyalty in a rapidly changing market landscape.

Treats Matter, But Value Trumps Loyalty

Gen Z, despite having comparatively less purchasing power than their older counterparts, often indulges in "treat yourself" moments. They turn to small, daily purchases as a form of escapism, emphasizing the significance of affordable luxuries in their lives.

Retailers must recognize and adapt to fulfill these unique needs and desires. For Gen Z, price outweighs loyalty. A striking 97 percent of this generation is at least somewhat willing to opt for a product from a brand other than their favorite if a more affordable option is available. This underlines the paramount importance of competitive pricing and value when targeting this demographic.

Gen Z’s Demand for Personal, Consistent and Sustainable Experiences

Consistency holds a vital key for brands and retailers seeking to connect with Gen Z. As this generation seamlessly shifts across various channels, those who offer reliable and engaging interactions at every touchpoint will win their loyalty.

Notably, 90 percent of Gen Z consumers place immense value on personalization. Furthermore, Gen Z demonstrates a remarkable commitment to environmental sustainability, with a striking 91 percent stating that eco-friendly business practices have a significant impact on their purchasing decisions.

Setting the Bar High

Gen Z shoppers have high expectations. They demand personalized shopping experiences and gravitate toward brands with a commitment to sustainability. To win their loyalty, retailers must adapt to meet these lofty standards. Their emphasis on product imagery and information makes it clear that high-quality, comprehensive and immersive visual content is the key to capturing the attention of the next generation of shoppers. By doing so, retailers can secure long-term revenue growth and become the preferred choice for Gen Z consumers.

The Road Ahead

As Gen Z continues to reshape the retail landscape, businesses must be agile and innovative in their approach. Navigating the intricate landscape of Gen Z shopping preferences demands a willingness to embrace change and stay at the forefront of technology. Harnessing the power of social media; providing detailed product information, including reviews, imagery, videos and descriptions; and offering competitive pricing and promotions are key strategies that will resonate with Gen Z shoppers. Retailers that prioritize high-quality, complete and immersive product imagery will secure the loyalty of the next generation of consumers, leading to steady long-term revenue and success.

Peter McCall is the chief marketing officer of Nfinite, a company that enables top brands and retailers to create powerful, customizable imagery at scale.