I sometimes pity marketers. Just when it seems like they might have a handle on Millennials and their habits, along comes Generation Z, who, if the results of a recent Accenture study are any indication, seem likely to further flummox and test the patience of marketers aiming to reach them.
Accenture surveyed 9,750 respondents from 13 countries across six continents who have shopped both online and in stores within the three months prior to the survey, which was conducted in October and November 2016. Survey respondents were selected and vetted by ESOMAR. Respondents belonged to one of three age groups: Gen Z (18 to 20 years), young Millennials (21 to 27 years) and older Millennials (28 to 37 years). Each of these three age groups accounted for approximately one-third of all respondents.
The upshot? Gen Z shoppers lurve their social media and their digital tools, they crave and get validation on their purchases from their (online and real-world) friends and family, they are still forming their brand preferences and they are open to new shopping methods such as curated subscription-type offerings for fashion and automatic-replenishment programs.
Here are some highlights, as taken from the study’s press materials:
They are all about visuals – videos and pictures. YouTube is the most-regularly used social media platform, cited by 84 percent of Gen Z respondents, while Facebook is still the most popular social platform for both younger (21-27 years old) and older (28-37 years old) Millennials. Two-thirds (66 percent) of Gen Z shoppers regularly use Instagram, compared with only 40 percent of Millennials, and Gen Z shoppers are more than twice as likely as Millennials to use Snapchat (54 percent versus 38 percent for younger and 22 percent for older Millennials).
They regularly turn to their influencer circles. Gen Z consumers are more likely than both younger and older Millennials to purchase an item due to: what their family thinks; recommendations from watching YouTube videos; what their friends think; and comments on social media. In addition, when shopping online, Gen Zs are usually more likely than both younger and older Millennials to: chat with an online sales assistant; check in-store for more information; ask friends’ opinions via social media, text or phone; and ask family members’ opinions via social media, text or phone.
They haven’t formed strong brand loyalty. Only 16 percent of Gen Zs shop at a single store for clothing/fashion (compared with 26 percent of older Millennials); only 19 percent shop at a single store for health and beauty items (compared with 34 percent of older Millennials); and fewer than 38 percent shop at a single place for groceries (compared with 55 percent of older Millennials). In U.S., brand loyalty among Gen Z is even weaker, with only 5 percent of U.S. Gen Zs shopping at a single place for clothing.
They are impulsive buyers and willing to pay for speedy delivery. Gen Z shoppers are more likely than Millennials to make a purchase because: they just wanted to buy something; they randomly saw something they liked; or it was recommended by a friend or family member. In addition, Gen Zs crave speedy delivery more than Millennials do and are willing to pay for it. In fact, more than half (58 percent) of Gen Z respondents said they would pay more than $5 for one-hour deliveries.
Come to the rescue?
With reports each day of large retailers shuttering stores and facing declining sales, the future of retailing is uncertain. Might Gen Z shoppers come to the rescue? Sixty percent of Gen Z shoppers surveyed still prefer to purchase in-store and nearly half (46 percent) will still check in-store to get more information before making an online purchase. In the U.S., over three-quarters (77 percent) of Gen Z respondents said that the brick-and-mortar store is their preferred shopping channel.
While it’s one thing for Gen Z shoppers to shop in-store and another thing completely for them to buy in-store, perhaps at this point retailers should be happy that the store-based method of shopping is still so popular with these nascent consumers.