Introduction
Nowadays, companies do not only have to assess the demographics of their target consumers but pay close attention to their values, habits, and lifestyles. Dividing people by generations may seem oversimplified at first. However, this is an efficient method, which provides insights into a certain group’s psyche and behavioral patterns. It is especially important for businesses to gather data on each generation in order to develop the best design, promotion, and distribution strategies for their products. The purpose of this paper is to examine Generation Z in the context of their purchasing decisions. This information is crucial in identifying the needs of the newest group of influential shoppers as well as pinpointing the most pressing challenges in addressing them.
To find ways to appeal Generation Z, it is first important to define who these people are. Both after 1994 and before 2002, zoomers belong to one of the four distinct generations in the current system of commerce (Criteo, 2018). Criteo (2018) reports that there are around 74 million of Generation Z members, which amounts to approximately a quarter of the U.S. population. Given the fact that zoomers have a rather significant spending power, retailers need to be aware of the quirks this generation embodies. Young adults born from 1994 until 2002 are highly engaged and empowered due to the rise of social media networks in their childhood (Criteo, 2018). The domination of networks such as Instagram and TikTok by zoomers have numerous implications for companies, which can utilize these innovative communication channels for marketing. Members of Generation Z value connection with each other, which is why they usually focus on peer reviews to navigate their purchasing decisions (Fromm, 2019). Despite the aforementioned impact of technological advancements on zoomers, they are more tactile than other groups.
There is a common misconception that this generation are glued to their screens. However, Gen Z actually values instant gratification and touch, which are rather impossible to deliver by online shopping (Criteo, 2018). Thus, zoomers are exceptionally loyal to brands, which can provide an engrossing and memorable experience. Although they tend to have strong opinions, they are still young enough to start developing brand preferences, which retailers can use to their advantage. Kieran Mathew notes that “the average Gen-Z consumer sees more than 10,000 marketing messages a day and has thousands of brands to choose from in any category” (as cited in Fromm, 2019, para. 4). Such saturation requires companies to make more of an effort to become a trusted staple for zoomers.
How Social and Mobile Shape Their Lives
The Significance of Social Media Platforms
For companies, it is crucial to acknowledge the role social media plays in the lives of zoomers. They absorb massive amounts of content every day, which impacts their attitudes towards a certain brand or their products. In the digital era, Generation Z uses platforms such as Instagram and Facebook as their main news sources, which makes them an efficient promotion tool. According to Criteo (2018), in 2017, more than half of zoomers used Snapchat, Facebook, and Instagram several times a day. The Commerce Revolution Generation Z has been disruptive in many ways, including the transformations in retail it has contributed to. Although zoomers like to shop offline, companies have to invest in digital innovations and e-Commerce alternatives since 32% of Gen-Z transactions occur via a mobile device (Criteo, 2018). Instagram, Facebook, Telegram, and now TikTok have all implemented some changes to make it easier for users to purchase items directly on the app (Alexander, 2020). This is extremely beneficial for retailers, which no longer depend on their official site’s usability and visually pleasing design.
Content
In order for a business to truly win over zoomers, it has to implement a communication strategy that implies the right forms and amounts of content. Criteo (2018) reports that members of this generation stream much more content than other groups. Graph 1 demonstrates that zoomers lead in streaming TV shows and watching online videos. They also spend the most time listening to audio context, including music and podcasts. As for radio and live TV, Generation Z is on the bottom of the list even though they still spend an average of 10 to 12 hours a week combined on these activities. Thus, with almost 23 hours of video content being streamed by zoomers per week, it is evident that retailers have to utilize video-streaming platforms for marketing (Criteo, 2018). Most importantly, companies should incorporate these insights into their own promotional content.
Real-World Retail Matters to Them? #Definitely
Common Misconceptions
Based on the aforementioned insights regarding the digitalization of shopping for Gen-Z consumers, it would be rather rational for business executives to assume that they should stop investing in offline retail altogether. However, even if the primary target market of a company is zoomers, this does not mean that real-world stores are not profitable. On the contrary, Criteo (2018) notes that Generation Z “craves the tactile nature of the in-store experience” (slide 14). Zoomers somewhat contradict themselves as an estimate of 80% look forward to visiting stores, while 75% admit that they prefer making online purchases as much as possible (Criteo, 2018). Companies can extract various crucial insights from this data, one of them being that retailers should adopt an effective business model of combining the strengths of offline shopping and digital alternatives. Thus, Gen-Z consumers need to feel truly engaged in and excited by the purchasing experience, which has to have an online alternative due to zoomers’ need of convenience and speed in shopping. It is also important to acknowledge how this generation’s easy access to information via the Internet shapes their buying behavior. Almost 70% of zoomers use their smartphones in-store before making a decision whether to purchase a certain item (Criteo, 2018). Gen-Z purchasing patterns depend greatly on the opportunity to do additional research and engage with the brand online, while being able to experience it in real life by touching it.
Real-World Retail for Generation Z: Strengths and Challenges
In order to create an efficient retail strategy for Gen-Z buyers, it is important to determine why they enjoy a certain shopping method. When it comes to real-world stores, zoomers value them for a chance of experiencing or discovering something exciting (Wu, 2019). A group of young and impressionable young adults are at the start of developing brand loyalties. Thus, it is crucial for retailers to stand out and allow Gen-Z shoppers to experience the product before purchasing. According to Criteo (2018), 8 in 10 members of Generation Z report that they enjoy trying new and different retail spots, which is an exceptionally optimistic statistic for small and emerging brands. There are a number of factors that contribute to a zoomer’s decision to visit an offline store. They include store design and creative, extraordinary merchandise, which means that the retailer’s ability to surprise and demonstrate something unique is what matters the most. Overall, it is important to recognize that Generation Z is full of prepared consumers who research extensively online before visiting a store.
The Rise of Online Shopping
As more businesses move online, the competition in digital retail is growing steadily, which urges companies to rethink their positioning strategies to find more effective ways to appeal to Gen-Z shoppers. Zoomers are the ones who are less likely to stick to one brand because they enjoy comparing products. For example, I’m the beauty and health section, half of them compare items on the chosen website, while 30% visit multiple online stores on a regular basis (Criteo, 2018). Although the primary strength of online purchases is its convenience, it is reported that they are letting Generation Z down. More than a third of zoomers admit that they experience difficulties finding what they need online and feel uncomfortable shopping in digital platforms (Criteo, 2018). As for the trends in marketing products online, social media, YouTube, and retailer websites remain the most effective in reaching an average Gen-Z consumer (Criteo, 2018). It is important to note that brand and retailer platforms online are almost as influential as social media. Business executives need to utilize these insights to ensure their online presence is strong.
Appealing to Gen Z
Retailers worldwide have to adapt quickly if they want to reach young consumers. Appealing to Generation Z is difficult due to the constant shifts in the digital realm as well as the unpredictability of an average zoomer as a consumer. Criteo (2018) suggests that the main source of competitive advantage for businesses targeted at Gen Z is the personalization of their products, services, and communication strategies. Zoomers prefer personalized advertisements that provide value, which is why they respond better to “friendly reminders” related to the products they have been looking for recently (Criteo, 2018). Forbes columnist Chris Gerbig (2018) notes that authenticity and responsiveness are crucial in marketing to Gen-Z shoppers. Although zoomers might not have the highest purchasing power at the moment, it would be extremely beneficial for brands to explore the most efficient methods of communicating with such a consumer group in the long run.
What Gen Z Wants from Retailers and Brands
Companies can attract members of Generation Z by embodying the values prioritized by this group. Zoomers appreciate personalized experiences either online or in-store since brand associations are often strong enough to sway them in a certain direction while making a purchase. Although they are rarely loyal to a specific retailer, authentic brand stories are greatly appreciated by Gen-Z consumers who often navigate the retail world by researching the company’s mission and values. Creative limited-edition merchandise and unique products are essential to reach young shoppers. Lastly, the visual appeal of the products and stores play a role in attracting a zoomer.
Conclusion
Taking everything into account, there are many misconceptions surrounding members of Generation Z and their purchasing behavior. Although they might not have the highest income for spending, they remain crucial for business, which think ahead and want to develop long-lasting marketing strategies. Zoomers value personalization and convenience in shopping, which companies can utilize in creating a shopping experience with engaging storytelling backed up by a strong digital presence of an authentic and unique brand.
References
Alexander, J. (2020). TikTok creators can soon sell merch directly in the app with the new Teespring integration. The Verge. Web.
Criteo (2018). Gen Z report. Web.
Fromm, J. (2018). Community building and the Gen-Z purchasing path. Forbes. Web.
Gerbig, C. (2018). Three effective steps for appealing to Generation Z. Forbes. Web.
Wu, J. (2019). Gen Z shopping habits can fuel brick-and-mortar resurgence, report says. CNBC. Web.