How Gen Z’s shopping habits will shape the future of retail (2024)

FAQs

How Gen Z’s shopping habits will shape the future of retail? ›

Though Gen Z is into physical experiences, the bulk of young respondents say they prefer shopping online because of the wider brand selection, plus the recommendations they can get via ads and algorithms. The younger the shopper, the more inclined they are to look for inspiration online.

Gen Z has a big effect because of the talent shortage—causing employers to focus on attracting and retaining them for their skills, fresh perspectives and potential. The Gen Z effect is also based on their reach. They leverage social media platforms and amplify their own voices broadly.

Gen Z values quality and brand authenticity when selecting products and services. Recommendations from friends are also the most important factor for them.

Compared to Gen Z, millennials typically spend more money, which comes to no surprise, since they are older, more likely to be employed, and typically less reliant on their parents or guardians.

Gen Z shoppers value deals–but they're willing to splurge

And they're willing to spend that money on bigger purchases regardless of income; according to McKinsey, 55% of Gen Z consumers said they planned to splurge in 2024, compared to 54% of millennials, 31% of Gen X, and 20% of baby boomers.

Retail will need to adapt as Gen Z's purchasing power increases. This unique group of shoppers will demand everything from product reviews to social activism. Companies that rise to the occasion can expect a loyal and highly engaged following that makes the industry more dynamic, civic-minded, and downright rewarding.

They are more diverse, more educated, and more technologically adept than any previous generation. And they are poised to join the workforce at a moment of unprecedented change. The future of work will be more global, more collaborative, and more flexible than ever before.

Gen Z shoppers prioritize Health and wellness, lean brands, technology, education, and Sales. Gen Z is less likely to splurge on luxury products or brands.

Gen-Zers care more about the way they experience a brand than they do about snagging the lowest price or best promotion. These young consumers are looking for items that enrich their lives, and they don't want to compromise on quality.

What Gen Z buys the most? ›

Gen Z consumers are more likely to buy sustainable, high-quality, products. 73% of Generation Z consumers are willing to pay 10% more for sustainable products, according to a report from First Insight. They value personalised products and are often drawn to brands that share their point of view on political issues.

Generation Z vs Millennials: Key Takeaways

Millennials value stability (34%), while Gen Z puts more of an emphasis on finding their dream job (32%). More Gen Zers follow their parents' influence (42%), compared to their Millennial counterparts (36%).

While millennials tend to value a healthy work−life balance, Gen Z tend to be more career-driven and financially motivated. So if your company's employees consist mostly of millennials and Gen Z, you would do well to focus on benefits that contribute to work−life balance and on monetary incentives.

Gen Z is not just interested in buying a product to own it – they're also motivated to buy items to create social media content around it. Zoomers go above and beyond to get in on these kinds of trends.

In contrast to impulse-buying, this type of consumption involves patience. Charm says Gen Zers are willing to delay purchases until they truly need them, and also holding out until they can find the best deals. They also have exacting standards for the products themselves.

As the first generation to have grown up in a world entirely connected online, the influences of the digital world and social media on Gen Z's lifestyle and behaviours cannot be overstated. A staggering 98% of Gen Z use social media, and many turn to TikTok to research products online before purchasing.

Gen Z employees could change jobs up to 10 times between the ages of 18 and 34, based on a survey of U.S. students. “A good work-life balance holds significant importance and is prioritized over climbing the career ladder, unlike previous generations,” Malcherek says.

Technological proficiency

Gen-Z are the most technologically proficient that any other generation before them. They are extremely tech savvy as they have been exposed to technology from a very young age and they also have a very strong sense of social and environmental responsibility, much more than their predecessors.

Gen Z holds a pivotal role in marketing due to being the largest, most diverse, and highly influential generation globally. Their substantial spending power, estimated at a staggering $360 billion in the U.S. alone, underscores their economic significance.

Changing the business landscape, these tech-savvy generations, with their innovative mindset, purpose-driven outlook, and digital fluency, say they are ready to tackle their careers by starting their own companies.