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Customer Behaviour

A new industry report examining the ‘Generation Z’ shoppers (ages 15 to 24) has been launched today by leading independent shopper research agency, Shoppercentric, looking at their current – and likely future retail behaviours and trends. The report unveils a shop-happy and digitally-savvy generation who are open to influence by retailers, but also have high expectations of them.

“Generation Z are a fascinating section of the shopper population,” said Danielle Pinning, Managing Director at Shoppercentric. “They’ve grown up in a truly connected world and are starting to access the kind of money that means they can flex their spending power. A lot has already been written about who they are as consumers, but there’s been no particular focus for those interested in shoppers. We wanted to take a closer look at what their expectations and needs are since they may not be today’s big spenders, but they could give a real pointer to where the future of retail lies… if we take the time to listen to them.”

Findings revealed:

  • Generation Z are aware of their influence:
    • Fewer than 1 in 5 of Generation Z feel that retailers don’t think their age group is important, compared with nearly one in three of the general shopping population. And half of them believe that retailers and brands understand their age group, compared with a third of the rest of shoppers.
    • They feel empowered – with 23 percent strongly agreeing that they could make a difference to their future compared with 17 percent of shoppers in general.
    • Many claim that their happiness runs deeper than material possessions alone: 34 percent strongly agree that they want to feel they are getting good experiences – that life isn’t all about what they own, versus 28 percent of older shoppers.
  • Generation Z are open to persuasion:
    • They shop (instore/online) at least seven times a month (rising to eight times a month amongst the men in this age group).
    • Going to physical shops and malls is as much a social pursuit as it is about buying things: 52 percent of Generation Z said that going out shopping was a fun way to spend time with friends/family, versus 44 percent of adult shoppers at large.
    • Ecommerce provides a welcome distraction to Generation Z with 62 percent of them agreeing that online shopping is a great way to stop getting bored – compared with 53 percent of older shoppers. Indeed, 70 percent of Generation Z shoppers agree that they “often browse online with no intention of buying (versus 63 percent of older shoppers).
    • These shoppers are receptive to inspiration and 28 percent say that they spend lots of time on YouTube getting ideas and recommendations, compared to 13 percent of older shoppers. They’re also twice as likely as other shoppers to cite product displays as important when shopping instore, and 49 percent agree that they use the displays instore/online to give them ideas (versus 41 percent of the broader shopping population). They’re also using their smartphones instore more often with 53 percent agreeing that using their smartphone means they can get better information to help them decide what to buy when instore – compared to 38 percent of older shoppers.
    • Generation Z love a bargain just as much as anyone else and 48 percent agree that they tended to buy the cheapest they could so that they could buy more things they really like – compared to just 29 percent of their older counterparts. 62 percent are also tempted to buy if an item is on promotion versus 55 percent of older shoppers.
  • Digital DNA:
    • This is the generation that is doing much of its growing up online and as such, 97 percent have a laptop / PC, 96 percent have a smartphone and 63 percent have a tablet
    • They have no problem buying more items than they want, and returning what they don’t want. In fact 28 percent of Generation Z agree that they buy lots of things online knowing they’re going to send most back – compared with ten percent of older shoppers.
    • They’re more impulsive and willing to take risks with an order than older shoppers – for example 44 percent of Generation Z say that they often buy things on the internet that they hadn’t planned to purchase, versus 32 percent of older shoppers.
    • Speedy delivery is more important to Generation Z than to older shoppers with one in five putting same day/next day delivery in their top three most important factors for shopping online – compared with one in ten older shoppers.
    • Interestingly re-sellers such as eBay are used less frequently by Generation Z than older shoppers, which might reflect their preference for immediacy.
    • Social Media plays a huge role for Generation Z, and they are more likely than older shoppers to be connecting beyond their social groups of family and friends or even like-minded groups, to retailers or brands. More specifically:

 

Pinnington concludes: “We’re all aware that Generation Z are easily bored and have a very short attention span, but on the flip side, they have great confidence and a terrific support system provided by social media which helps them to manage risk when they’re choosing what to do and what to buy. Plus they’re aware that retailers are interested in them and that they’re worth getting to know – this is in stark contrast to how many older shoppers feel.

Generation Z know that they’re being courted, so it stands to reason that they expect to be impressed before they part with their cash. This apparent self-assurance is important because it will set a high bar against which retailers and brands will be judged moving forwards. Each touchpoint with these shoppers needs to be a positive experience and reflective of the brands’ tone of voice and values whilst remembering that this is a generation that enjoys shopping, so retailers will need to deliver to that brief and make it fun both instore and online.”

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