Younger Shoppers Take Charge
It doesn’t seem that long ago—at least to a long-time retail observer—that millennials were the most-talked-about generation.
But now younger generations are in the spotlight and their shopping preferences and demands are increasingly impacting retail decision-making. Gen Z, born between 1997 and 2012, is front and center. Gen Alpha, born between the early 2010s to 2025 (this generation’s members are still being born) is coming up quickly behind.
Retailers and brands need to connect with these shoppers, and there’s increased evidence they are doing so. We’ve all had a lot more time to observe Gen Z than Gen Alpha, so most of the insights are about Gen Z.
Attitudes Influence Behaviors
It’s important to understand how the attitudes of younger shoppers influence their buying behaviors.
Consider the topic of sustainability. A recent consumer survey by Blue Yonder found that almost half of respondents reported their interest in shopping sustainably has greatly or slightly increased in the last year. Gen Z and millennials were the most focused on the importance of sustainability (about 85% of each group), ahead of older generations.
Another survey shows Gen Z attitudes about spending. Research from Mintel shows nearly half (47%) of Gen Z shoppers say they are actively trying to shop less at Amazon. In addition, 60% of Gen Z shoppers say that Amazon is too powerful.
Social Media Drives Shopping
It’s no secret that younger consumers are heavy users of social media platforms. Some of these platforms are playing more important roles in shopping.
The TikTok Shop, an ecommerce site launched by TikTok about a year ago, is most heavily used by Gen Z, according to a survey by e-commerce marketing company Omnisend. Thirty-six percent of Gen Z shop there at least once a month.
Meanwhile, Gen Z stands out in its use of promotions. This “plugged-in” generation is the least likely to use traditional promotion media such as newspapers and circulars, according to the 2024 Shopper Outlook from Advantage Solutions. Social media and product websites connect most with Gen Z.
Younger Shoppers Aren’t One-Size-Fits-All
It’s one thing to understand trends related to younger shoppers. It’s another to figure out when these trends will and won’t apply.
Consider that despite Gen Z’s focus on the latest digital platforms, the relatively old-school platform of email is the top choice for how these consumers want to hear about offers from brands. This insight is based on a survey of U.S. and U.K. Gen Z consumers from SheerID, an identity verification technology solutions provider.
Meanwhile, despite a common belief that Gen Z is all about online shopping, its preference for in-store shopping experiences tops that of other generations, according to a study in the clothing and accessories segments by consulting and market research firm 2 Visions.
What All This Means
Retailers and brands have opportunities to act on these insights. They need to develop content that is on target for the digital platforms favored by these consumers. They also need to gear products for the quickly changing needs of these shoppers.
Many brands are already driving innovation in flavor profile, packaging and product formats based around the needs of Gen Z, according to the State of the CPG Beverage Alcohol Industry report from Circana.
In my view, retailers and brands need to understand the overall trends and customize solutions based on the specific needs of their audiences of younger shoppers. There is no single playbook that will work in all cases.
