Gen Z Shopping Habits: The Secrets of How Gen Z Shops
If there’s one thing Gen Z knows how to do; it’s shop. This generation loves a good splurge, and it’s no surprise. They grew up watching haul videos and learned how to sale shop while they were learning to read. When it comes to Gen Z shopping habits, they’re redefining how they shop. This means that brands need to rethink their strategies.
Gen Z has a digital-first mindset, and according to our Youthtellers (ages 15-27) online shopping is preferred. But just because Gen Z is saving money doesn’t mean that they’re ignoring quality. In fact, quality is just as important, if not more important than ever. When it comes to what these young consumers are looking for we surveyed our Youthtellers to find out.
How Gen Z Discovers Products
Gen Z shopping habits indicate that the majority of shopping might happen online, but from our survey, it’s obvious that personal connections still matter. While social media platforms like TikTok, Instagram, and Youtube play a crucial role in shaping shopping trends via influencer marketing and product reviews, peer influence is still important.
47% rely on social media for product discovery
33% turn to friends and family for recommendations
20% browse in stores before making a purchase
The Power of Social Media in Gen Z Shopping Habits
With platforms like Instagram and TikTok creating in-app shopping experiences, purchasing products while continuing to be entertained has never been easier. More than that, this in-app shopping allows brands to leverage influencer partnerships, shoppable posts, and create campaigns where consumers might not be aware they are advertisements.
The Role of Peer Influence and Trust in Gen Z Shopping Habits
Despite 47% of our Gen Z base telling us that they rely on social media, a large portion still trust the people in their lives to tell them if a product is good or not. This all comes back to relatability and trust. When it comes down to who Gen Z trusts for shopping, it’s clear they’re not turning to their favorite influencers as much out of fear that it could be a false ad.
What Gen Z Looks for in a Purchase
Unlike Gen X and Millennials, Gen Z has a hyper-focus on purchasing functional items that provide quality over picking something simply because of its brand name.
While brand consciousness plays a role–with Apple, Ugg, and Sephora all remaining popular mentions in our survey results- Gen Z is also making choices based on practicality and cost-effectiveness as the economy shifts.
“Now that my friends and I are moving towards living on our own, we’re not as attracted to brand names as we are with practicality.” One of our Youthtellers, a 24 Y/O from New Jersey, shared.
Balancing Brand Appeal and Practicality
While it’s clear that Gen Z is aware of high-end brands (hello, Gucci, and Louis lovers), their choice in whether or not to purchase something often centers around whether or not a product adds value to their lives. This means the brands who are winning showcase things such as durability and multi-functionality in their advertisements, not just the aesthetic appeal Gen Z has been known to love.
Gen Z Spending Habits and Price Sensitivity
When it comes to spending, Gen Z’s spending habits prove to be cost-conscious. Little splurges here and there occur, but the truth seems to be that with this generation of young consumers, luxury is taking a backseat to practicality and affordability.
45% prefer items priced between $25-$50
27% prefer items under $25
The Shift Towards Affordable Luxury
While affordability is crucial in how Gen Z shops. Younger generations are also open to spending more on items that are perceived as investments. For instance, fashion brands like Coach and Lululemon have gained popularity by offering high-quality products that also align with Gen Z’s lifestyle and aesthetic preferences. But the bonus with these big ticket items is that they last much longer than their cheaper counterparts.
The Influence of Technology on Shopping
Tech-savvy and always connected, Gen Z shoppers expect seamless digital experiences while they’re swiping their credit cards. Brands that integrate innovative technology into their shopping experiences often prove to be the best at capturing and keeping Gen Z in the palm of their hands.
Mobile-First Shopping Experience
It’s common knowledge that most of Gen Z uses their smartphones for shopping. And shopping to them isn’t just clicking ‘purchase.’ One of the key differences of Gen Z shopping habits compared to past generations is that Gen Z spends their time researching, comparing, and browsing before making purchases.
A key thing to note with this information? A good UX can go a long way in helping you convert more sales.
The Takeaway for Marketers
If you’re looking to get in the head of how Gen Z shops, here are the key details you’ll want to share with the marketing division at your company.
Leverage Social Media: TikTok, Instagram, and influencer marketing do drive discovery and sales.
Emphasize Value: Highlight affordability, durability, and functionality in messaging. Gen Z is overspending money on things that won’t last.
Tap into Community Influence: Word-of-mouth and peer recommendations remain critical. Sometimes, this is as easy as sending products out to real consumers instead of just influencers.
By aligning with Gen Z’s shopping habits, marketers can build trust and loyalty, ensuring their brand stays popular in the rapidly evolving shopping world of Gen Z. Brands that understand and adapt to these young consumers' changing behaviors will not only attract more customers but also create long-term brand advocates in the process.