Introduction
Born between the mid-1990s and the mid-2000s, the largest purchasing group to take the lead in retail dollars is Generation Z, which represents nearly 7 million Canadians, representing a significant share of purchasing power.
On the other hand, they have their expectations of what they want from retailers as digital natives, and essential things like value, choice, quality, convenience, and availability are delivered. The way they shop is new and different from other demographic factors, and success depends on them wanting to promote brand awareness and pay attention. They do not see shopping as an external, new, and exciting thing to which they are accustomed as many millennials and Gen X think.
The shopping trends of Gen Z
Millennials are more likely to look for some "spriteaser" status look, in which they wear a brand or product that is a Gen Z looking more for items that show they are different and unique. And they think these items are luxury brands, so they're willing to pay for them.
Gen Z is unique in that they never knew their life without digital technologies such as smartphones and social media. This change has changed the way we communicate and connect, and the market is now one of the world's fastest-growing consumer markets.
A new study by the National Retail Federation and IBM's Institute of Business Value on Generation Z and its brand relations, based on surveys of more than 15,000 consumers aged 13-21 in 16 countries, examines how Gen Z deals with brands. Gen Z communicates through networking, verification, and networking with brands. 53% are influenced by comments on social media.
The distinctive and disruptive Generation Z exerts influence through their wealth of experience and redefines loyalty as we know it. Creating brand connections requires high-quality products and services and active engagement. The attractiveness of Generation Z strengthens brand loyalty by offering opportunities for engagement and participation and demonstrates that brands are trustworthy and relevant.
Authentic statistics of Gen Z's shopping intentions
In addition to the monetary value, consumers of younger generations increasingly attach importance to identifying and connecting with brand and company values. For example, 43% of consumers say they are more likely to purchase products from companies whose values are in line with their own. Findings from Retail Design Students Aligned, a 2014 survey of millennials in 17 different countries, suggest that 78% recommend companies they consider good citizens, and 71% are loyal to them.
Millennials are motivated to establish a personal connection to trusted brands and are forced to buy products and services that are consistent with their values. A 2014 survey conducted by GenZ found that they communicate the best through images and connect with brands and concerns on a personal level by successful visual communication and transparent storytelling. In the same survey, 60% want a job that makes a difference and has a social impact, and 76% are concerned about the impact of humanity on the planet.
IBM Institute for Business Values conducted a survey of 15,600 Gen Z consumers in 16 countries to understand more about how Gen Z consumers are willing to shop and how brands deliver it. IBM has produced a three-part series of the report in collaboration with the National Retail Federation (NRF).
The need to track Gen Z buyers' shopping behaviors
Gen Z consumers expect accurate inventory information, the best value for money, and a wide choice of purchases. WIRED and IRI today announced the results of two recent studies on Generation Z attitudes, behaviors, and emotional drivers (under 21 years), which provide manufacturers and retailers with valuable insights into how to communicate with this new generation.
Two recent studies of shopping attitudes and behaviors of Generation Z (up to the age of 21) examined a cross-generational sample of this generation in partnership with Family Room LLC and showed that brand authenticity is more important for them than for previous generations. The results show that Gen Z's preferences tend to have a significant impact on household purchasing behavior - which means manufacturers and retailers need to adapt their marketing strategies more intelligently to win the hearts and minds of their shoppers.
While the digital generation prefers to shop in stores, Gen Z's preference for brick-and-mortar shopping reflects the importance of the shopping experience to them. They spend time researching products, and they want to see, touch, and try on products before they make a purchase. When shopping online, there is a risk of getting something they don't like and having to return it.
These findings help illuminate the way forward for brands to rebuild their relationships with consumers. As younger generations like Gen Z gain more purchasing power, brands and marketers should prioritize effective engagement to build lasting relationships. This is particularly important for younger generations, especially 55% of millennials and 47% of Gen Z consumers.
Conclusion
At the end of our conversation, luxury brands are over-thinking the next generation of consumers. Generational shifts are hard to adjust, but the coming ones will bring Gen Zs to reinforce and differentiate the trends driven by millennials. Some 56% of Gen Z have moved money from traditional luxury brands to premium, fast fashion, niche, and sports brands, compared to 52% of millennials and 46% of real luxury consumers.
Iris's study found that 47 percent of older Gen Zers (18-21 years) go shopping in their households. Consumers tend to save during planning and after purchasing: 76% of consumers compare prices across brands with in-store printed newsletters and 71% with online newsletters. Parents say their children influence what they buy at the grocery store.
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