RETAIL TRENDS AMONG THE YOUTH

Dona Senara sheds light on the shopping habits of post-millennial consumers

As a critical consumer group, Generation Z has a different view on shopping. Since this demographic is nurtured by contemporary lifestyles, it’s important that brands and agencies keep track of their habits to attract their attention.

To begin with, Gen Zs prefer both online and in-store shopping. Data compiled by market research company GWI suggests that 52 percent of this group prefers online while 48 percent opt for in-store shopping.

However, being a generation of digital natives, data retrospectively indicates an emerging trend in online shopping.

The number of Gen Zs who purchase products online at least weekly has increased by 20 percent since the second quarter of 2020. This suggests that their shopping habits from the pandemic period still exist – and in fact, have become even more ingrained.

Moreover, buy now pay later (BNPL) services might be trending among many retailers but GWI data reveals that only 11 percent of Gen Zs used them in the last week of its survey. This implies that those from this generation will not deviate from their budgets if they can’t afford something.

Of the many retail trends, impulse shopping is the trend that’s most associated with Generation Z. The GWI survey confirms that 25 percent of Gen Zs say they often make impulse purchases and this has grown by eight percent annually. It was also found that this generation is the least likely to research products online before making purchases.

This behaviour is driven globally through social media – especially TikTok. Nowadays, brands actively seek their contemporary consumers at online hangouts.

Gen Zs and many others are looking for bargains. Seventy-one percent prefer to wait for a product to be on sale while 29 percent would rather buy a product immediately at the full price. Moreover, 55 percent would choose to pay more for a brand they know while 45 percent are content with paying less for a cheaper own-brand product.

As for brand affinity, the most distinctive activities Gen Zs want brands to engage in are running customer communities or forums and improving their status. Therefore, being a trend on social media, focussing on that collective sense of community and turning the spotlight on buyers are pivotal to attracting them.

In addition, some four in 10 (41%) of Gen Zs say they’re loyal to brands they like, which is a far lower share compared to older generations. However, utilising brands’ loyalty points has the potential to automatically increase their loyalty to certain brands.

GWI’s data on individuals using loyalty or rewards programmes suggests Gen Z usage is lower compared to millennials and baby boomers although this isn’t an emerging market trend.

An increase of 22 percent in Gen Zs who favour loyalty points when shopping online was observed in the fourth quarter of 2021. Largely, it’s the youth who have the least savings, purchasing power and financial security – therefore, loyalty rewards such as rewarding mobile payments are appealing.

Research indicates that Gen Z favours experiences and travel, and 54 percent prefer to spend their money on an experience.

Furthermore, Gen Zs are interested in the secondhand market and quite comfortable buying pre-owned items. This is their fastest growing retail attitude year on year. In line with this, their preference for own label products – notably own label baking and household items – is another front line shopping trend.

With the cost of living continuing to bear down, Gen Zs and others are on the lookout for ways and means to cut costs without sacrificing their desire to purchase their favourite products.

So retailers have many opportunities to leverage brands, attract contemporary consumers and increase brand loyalty in such delicate times.

Research indicates that Gen Z favours experiences and travel, and 54 percent prefer to spend their money on an experience