Ecommerce has made our lives so much easier. People living in cities, suburbs, or even the most rural parts of the world with access to the internet and mobile devices choose online shopping. Why? Because it’s convenient. The fact that ecommerce is so popular today has led to a massive rise in online brands and businesses. This also suggests that the competition is growing by the second. While every brand and online store strives to outperform its rivals, the foolproof way to win in the market is by understanding customer behavior.
And since Gen Z shoppers contribute to a quarter of the online shopping market, it’s about time brands learn about Zoomers, who basically live and breathe online. This group is the toughest target audience to crack. Since they are overly exposed to the online world, it’s very difficult to captivate their attention.
Recently, a friend started her brand of skin care products, and all she’s been asking and researching on is how to make her products popular among Gen Z consumers. I think she has considered everything–from changing the packaging to the messaging. The bottom line is that it is challenging to run a business without knowing consumer buying behavior. So, if you’re a brand owner with an online presence, this blog is about to get very informative. Let’s get started and learn about Gen Z consumer behavior.
8 facts about Gen Z‘s shopping habits you must know
1. Gen Z shoppers like fast fashion but also want sustainable products
Well, who doesn’t want to follow the trend? Like every other age group, Gen Z shoppers want affordable and trendy products. But, at the same time, most of them are conscious of eco-friendliness, and 73% say they are willing to pay more for products that are sustainable.
If you are a brand that is committed to the environment and aligns with their values, you already have the upper hand. That being said, Gen Z shoppers shop for fast fashion products once a month, comprising 62% of them.
2. They believe in the influencers’ choice
Yes. You read that right. Although Gen Z shoppers are big on independent brands, whether big or small, their purchasing decisions are backed by the online celebrities using your brand. If your products are being promoted online by influencers, especially the ones they follow and trust, Gen Z is more likely to buy from you.
Therefore, brands must reach out to influencers that align with their product segment to create short videos reviewing the product, unboxing, and GRWMs (in case you’re not up to date with Gen Z’s slang – it’s Get Ready With Me). They have more abbreviations than required, but we must keep up!
3. Always in a conundrum
To be or not be online. The majority of Gen Z shoppers believe they waste much of their time on social media, and yet they cannot stay away. A heck of a guilt trip, right? But do you know what this means for your ecommerce business? Social media is a popular and influential channel for brands to reach this target segment. If you haven’t established an online presence on at least the Top 3 social media platforms, you’re missing a large chunk of profits.
4. The idea of shopping from physical stores excites them
Now, as much as Gen Z loves the convenience online shopping brings them (and I mean, who doesn’t?), they also appreciate the experience physical stores offer. A study found that they shop at physical stores more than all other age groups. Who would have thought it? Let’s take the example of brands like Sephora or Nike.
Obviously, these brands have a strong online and offline presence, but Gen Z prefers to shop for certain products in person rather than buying them online. Now that I think about it, it may be because they just can’t wait for a couple of days for the shipment to arrive.
The bottom line? Your brand could do with a few brick-and-mortar stores (if you’re purely an online brand).
5. High-budget ads aren’t necessary to persuade them
The best thing about Gen Z is that they appreciate simplicity and usefulness. If your brand or products really align with their beliefs and expectations, then you don’t need to go all in on endorsements. Instead, they want to see a truthful presentation of the product, probably from someone popular and relatable, like social media influencers.
6. Gen Z consumers can afford it but are still price sensitive
This may be surprising, but Gen Z actually holds a significant share of purchasing power—$860 billion. Despite this, they are price sensitive. But can you blame them? The ever-increasing cost of living is forcing these young shoppers to seek discounts, coupons, thrift shopping, and other cheaper options. What you need is to learn how to optimally price your products so that it encourages them to buy. Having a dynamic pricing strategy can greatly impact your business through continuous competitor price monitoring and dynamic pricing models.
7. Prefers fast delivery. However, will wait for the right product
All shoppers expect convenience, and that’s one of the reasons why ecommerce is a hit. The same is true for Gen Z consumers. When we talk about convenience, one of the factors to consider is the delivery time. Usually, shoppers expect same-day delivery or the next day delivery.
Therefore, it’s important that you prioritize your inventory, order processing time, and logistics efficiency. That said, Gen Z is willing to wait for specific products when they are more committed to a brand.
8. Seeks personalization without compromising data privacy
Gen Z loves personalized experiences, with 77% of respondents saying personalization is crucial for them to move ahead in the purchasing process. However, they want to safeguard their data, as 66% of them will engage with brands that leverage advanced security measures. It’s imperative that brands use ecommerce analytics powered by AI and Machine Learning to understand customer preferences and trends using reliable data.
Gen Z’s shopping habits are surprisingly contradictory. They want the best of both worlds. This is why it’s so challenging for online brands and sellers to cater to this group. Still, brands should focus on crafting strategies that effectively engage young shoppers and convert them into buyers as their purchasing power grows.
There is unpredictability in their shopping behavior, but getting your hands on consumer data will help you learn and navigate the frequent changes in trends easily.
How can your ecommerce business keep up with Gen Z shoppers?
At Mobius, we build intelligent solutions that can provide you with detailed market insights crucial for your decision-making. Accessing this vital information and iterating your strategies according to the data will open new opportunities for your business and enable you to pivot with the ever-changing customer behavior and expectations.
