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Understanding Gen-Z Consumer Trends: A Roadmap to Business Expansion

Generation Z, also known as Gen-Z, is a demographic cohort born between the years 1997 and 2010 that is reshaping the face of the retail landscape. This group of 67 million people, which forms almost 20% of the entire US population, Gen-Z is a big deal for online businesses. Since they grew up with technology, they know a lot about it. They expect brands to impress them if they want them to keep buying from them.

Gen-Z's spending power is approximated at $150 billion annually, a figure that continues to grow as they continue to mature and expand their professional and educational horizons, according to eMarketer.

In this article, we dive into the shopping habits and trends of Gen-Z consumers and examine how businesses can leverage these insights to boost their growth.

Decoding Gen-Z's Buying Behavior

Here are some key points to understand about Gen-Z’s purchasing habits:

  1. Price and Quality: Gen-Z consumers prioritize the price and quality of a product or service before making a purchase.

  2. Authenticity: Gen-Z consumers prefer products and content that are authentic, relatable, and transparent.

  3. Sustainability: Gen-Z consumers are environmentally conscious, and they are more likely to buy products that are sustainably manufactured or sourced.

  4. Omnichannel Experience: Gen-Z consumers blend online and offline channels when shopping, valuing recommendations from friends and family as well as social media.

  5. Influencer Impact: Gen-Z consumers trust micro- and nano-influencers more than celebrity endorsers.

  6. Community: Gen-Z consumers identify with communities of like-minded people and are influenced by their buying behaviors.

  7. Video Content: A staggering 72% of Gen-Z consumers prefer video content related to products and actively engage with them.

  8. Shopping Frequency: Gen-Z consumers don't set specific times for shopping; they are digital-first buyers who are always on.

Gen-Z Consumer Trends: Keys to Engaging Experiences

Understanding these buying behaviors is only the first step. Let's take a look at some key trends that can help businesses craft engaging experiences for Gen-Z consumers.

Live Shopping Experiences

Gen-Z Consumer Trends

Live shopping is an emerging trend that resonates with Gen-Z consumers. By offering interactive experiences, brands can capture Gen-Z's attention and drive sales. According to Coresight Research, the US livestream e-commerce market is projected to reach $17 billion in 2022, up 54.5% from $11 billion in 2021.

Shoppable Videos

Gen-Z Consumer Trends

Bite-sized shoppable videos are incredibly effective with Gen-Z consumers. Brands that can create engaging, concise videos are well-positioned to drive business growth.

User-Generated Content

Gen-Z Consumer Trends

User-generated content allows Gen-Z consumers to feel part of a larger community and is a powerful tool for brands to connect with this demographic group.

Mobile Optimization

Gen-Z Consumer Trends

With Gen-Z consumers spending a significant amount of time on their mobile devices, it is crucial for brands to create mobile-friendly experiences.

Social Commerce

Gen-Z Consumer Trends

As social media continues to influence consumer behavior, brands need to create immersive social commerce experiences to engage with Gen-Z consumers.

Blending Physical and Digital Experiences

Gen-Z Consumer Trends

Gen-Zs are into the phygital approach, which is a big trend in Gen-Z retail. If you're a retail brand looking to bring in and keep more customers, giving them a mix of in-store shopping and the convenience of Gen-Z eCommerce trends can be a smart marketing move.

Emotional Connections

Gen-Z consumers appreciate authentic stories and voices, making influencers from relevant niches potentially better brand ambassadors than high-profile celebrities.

Curated Experiences

Gen-Z consumers value curated shopping experiences, which can help retailers establish trust and engagement.

Conclusion: Engaging the Gen-Z Consumer

While understanding Gen-Z consumers may seem daunting, these insights can guide brands in creating immersive and interactive buying experiences that boost conversions and promote sustainable growth.

One such platform that is revolutionizing the e-commerce landscape is TEZDA. It offers an immersive commerce experience that combines the power of Web 3.0 and Social Commerce. With TEZDA, customers can virtually try on clothes, explore furniture items in their own homes, take virtual tours of physical stores, and receive AI-based product recommendations.

Understanding Gen-Z's shopping habits and meeting their preferences opens up many chances for businesses to connect with this important group and grow their business in a meaningful way. Platforms like tezda will be a game changer for brands to start their journey in the future of retail.

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