Generation Z, eCommerce, and Buying Behaviors: With them, no cheating allowed!
#GenerationZ #eCommerce #BuyingBehavior #Marketing
While marketing departments are getting to know Generation Y quite well, they might soon be dethroned in the hearts of brands by the turbulent Generation Z. But who are these young people, born after 1996, who set and break trends on the internet and promise a smashing entry into the job market, with significant purchasing power in tow?
These digital natives, who were born when the internet was already widely available and accessible, grew up with YouTube, Facebook, Twitter, and other social media platforms. Accustomed to online shopping, screen-dependent, and allergic to authority, no matter where you look, they face criticism from their elders. However, what if this ultra-connected Generation Z sets an example for us? With almost unlimited access to information and a heightened awareness of the major challenges of our time, they demand nothing less than transparency, authenticity, and strong values. Brands would do well to adapt accordingly!
Generation Z, a frugal generation?
The first thing to consider is the relative frugality of this generation, which is much less impulsive than it appears. Various studies show that over 70% of Generation Z prioritize their financial security. To achieve this, they are not hesitant to buy less but buy better. This new target audience is more conscious of the quality, origin, and various impacts of their purchases. Half of them consider it important to buy and sell second-hand items. In recent years, we have observed the rise of the second-hand market and upcycling, for example.
When compared to the previous generation, the findings are clear. 42% of Generation Z believe that millennials are too spendthrift. Brands must keep this specificity in mind when targeting Generation Z, in order to adapt their offerings and diverse content accordingly.
Indeed, some brands excel in the market by regularly offering capsule collections that are sometimes highly sought-after by the younger generation at premium prices. The focus is then on exclusivity, quality, authenticity, and originality, which play a significant role in attracting Generation Z customers.
Generation Z, a skeptical generation?
However, despite its youth, Generation Z is far from gullible. In France, they have an average of 4.4 social media accounts, while their Generation Y counterparts only have 3.6(1). Far from traditional communication channels, they are hyper-attentive to what is said online. They meticulously examine other consumers’ reviews, among other things.
Generation Z is hard to fool. They cannot be easily deceived, and brands should be wary of trying to deceive them, as a bad buzz is never far away! These young individuals make informed decisions for almost every purchase (impulse purchases are becoming less frequent but still exist). Nowadays, it is almost a ritual to search for information online before making a purchase. Reviews, product research, comparisons, video presentations, brand reputation – every little detail is scrutinized. Generation Z is much more analytical in their buying behavior compared to Millennials, Generation X, or even baby boomers.
Brands and marketing specialists must, therefore, ensure transparency in their communications. Communicating on the right platforms, in a sincere and authentic manner, is crucial to resonate with this generation. But that’s not all! Generation Z seeks simple, convenient, and fast consumption – just one click away! They are much more sensitive to authenticity, responsibility, and emotion. According to a study by the Barkley agency, as many as 71% of these young individuals do not appreciate advertisements and marketing campaigns that portray an almost perfect life.
Having been heavily exposed to advertising from an early age, they have become immune to television and print ads, preferring content creators instead. (In fact, nearly 2 out of 3 young people use ad blockers). They also play an essential role as influencers among their peers, sharing their opinions and experiences about their consumption habits. Embracing the latest digital trends also appears to be a loyalty factor for young people. For instance, 2/3 of them are interested in purchasing directly on applications where they find inspiration, such as Instagram, Pinterest, and YouTube, while Facebook seems to be losing its appeal (2). Exploring these new channels is becoming mandatory!
Analyzing the purchasing habits and needs of Generation Z is essential. They are the future consumers, and their visions and environments are already radically transforming consumption patterns. We can almost certainly say that they will continue to influence retail, both online and offline. Creating value-added phygital experiences is a significant challenge for e-commerce businesses.
Generation Z, an ethical generation!
The lever of sustainability appears to be an asset when engaging with Generation Z. 60% of them wish to have a positive impact on the world, which is 21 points higher than consumers of Generation Y(3).
Animal welfare, for example, is at the forefront of causes they dedicate themselves to, alongside diversity and the fight against social inequalities (1). Surprisingly, several studies highlight that price and quality are prioritized over ecological commitment when it comes to brand choices (4). Nevertheless, environmental engagement still ranks in the top 10 factors of affinity with this generation.
It could be because Generation Z is already oversensitized to the world’s environmental issues, given that they were born into a world where these problems are prominent. However, it is also a matter of age. As they are just entering the job market, their purchasing power is not yet fully established. Therefore, these trends need to be closely monitored, as they could quickly change. In such a scenario, brands that do not align with the right values may be instantly blacklisted by Generation Z.
As we have observed, Generation Z undeniably sets new rules:
- “Convenience” is their guiding principle.
- They need continuous stimulation and a touch of fantasy.
- They are conscious of the challenges and are true activist consumers.
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(1) According to a study by OC&C Strategy Consultants.
(2) According to the 2017 Consumer Survey by Accenture.
(3) As per a study by Sparks & Honey.
(4) According to a report by Affdex.
