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Gen Z Shopping Trends Uncovered

While a substantial portion of Generation Z is still too young to work and spend their own hard-earned money, they have a considerable influence on their families’ purchasing choices. Indeed, Forbes noted that 93% of parents confessed that their Gen Z children impacted their family budget. That is just one statistic, and it is far from the most interesting. The consumer behavior of Gen Z has led to some major trends in online shopping

Given their already considerable influence, marketing teams have spent significant time getting to know this younger generation and identifying the fundamental differences between generations. In this blog post, we’ve combed the web and compiled some of the amazing trends in online shopping uncovered. 

#1. Engage Gen Z both online and offline

Gen Z is a fully omnichannel generation, purchasing wherever and whenever it is most convenient for them at the moment, without regard for the mode of transport used to find what they desire. They are 56% more likely to have purchased clothes in-store and 38% more inclined to have purchased online in the recent three months.

Additionally, online communities might result in purchases. Gen Z was inspired to shop by the Tik Tok #TikTokFashionMonth challenge. The hashtag has been seen more than 5.5 billion times. We are all aware of the influence that artists have in attracting attendees to events. If the venue does not have a large capacity, we may live broadcast it to a much larger audience. 

#2. Appetite for superior quality

Since the epidemic began, one in five respondents has utilized buy-now, pay-later (BNPL) methods to purchase more costly, higher-quality things, including 22% of Gen Z respondents. 

They are leveling up investments for digitally native Gen Z’s who utilize BNPL, such as a subscription model. Consumers are now stating that they can increase their membership to, say, $250 a month. Gen Z alone has known this model, from mobile phones to content.

Meanwhile, Gen Z’s purchasing habits are being disrupted by secondhand, a market in which Gen Z respondents are 27% more inclined to purchase. Preloved and vintage marketplaces, such as Depop, possibly halt the cycle of new purchases by allowing users to experiment with a variety of different styles and things and subsequently pass them on. 

#3. Learn how to unlock the secrets of conversion

Learn how to unlock the secrets of conversion

While at the same time, Gen Z is attempting to strike a balance between a need for affordable costs and an interest in high-quality items, which is true throughout the fashion and cosmetics industries. BNPL solutions are assisting in the conversion of sales. Because of the pandemic, 123% more Gen Zs are using BNPL than they were previously, the highest rate of adoption among any generation. According to the survey, in April 2021, one-third of Generation Z said that they are likely to employ BNPL solutions in the future.

#4. Optimistic and healthy attitudes fuel sales

Gen Z makes purchases to remain relevant and boost their mood. Summer dress searches on Depop increased by 290% year over year in April. According to the report, respondents across all age groups raised their athleisure spending by 49% between August 2020 and April 2021, a significant gain given the category’s popularity during the lockdown. Heaf asserts that continuous movements toward an emphasis on health and wellbeing are here to stay, citing Nike’s Women’s yoga business’s sustained good development. In terms of fitness, he notes that “the epidemic has shed light on the evolving importance of sport in our life,” adding that it “provides a wonderful chance to build on these behaviors and continue to inspire.”

Throughout the epidemic, the most often purchased goods using BNPL have been shoes. Sneakers are the item in which they express the most desire to invest. The report indicates that shoe and sneaker sales increased by 59% between August 2020 and April 2021.

They turn to their peers and social media for inspiration more than earlier generations did, which is evident in what they purchase, how they buy it, and from whom. 

Mobile payments are becoming more popular

Mobile payments, such as mobile applications and mobile wallets, are popular among Generation Z.

Mobile applications have grown in popularity over the last several years, and they have produced impressive outcomes. Companies that have a mobile application have a significant edge over their competitors who do not have an app. Mobile applications convert at a rate that is 157% higher than just a mobile web session.

Even mobile wallets such as Apple Pay and Android Pay have seen a spike in popularity.

#6. Loyalty is a two-way street

Then there’s the issue of loyalty. The importance of loyalty programs, such as discounts on future purchases, to Generation Z, when determining whether or not to buy from a given brand or store outweighs the importance of other factors, such as rapid delivery times, corporate philosophy, and even the quality of items.

When you took all generations’ responses to the question of whether or not they would repurchase from a brand into consideration, the top choices were high-quality items (51%) and excellent customer service (49%). Loyalty programs were ranked fourth on the list. In contrast, at the height of the pandemic lockdowns in 2020, shipping delays and product availability were increasingly prominent concerns for customers.

#7. Younger shoppers make purchases that reflect their beliefs

Younger shoppers make purchases that reflect their beliefs

Younger customers make purchasing decisions based on their social values. However, as we emerge from a turbulent year and major trends in online shopping, the necessity of diverse societal perspectives and sustainability has only increased.

According to the poll, an astounding 81.7% of Gen Z and 75.5% of millennials support environmental sustainability, while 78% of both groups say companies should embrace diversity. Additionally, individuals from both age categories reported discontinuing a product because the brand did not match their beliefs, and 70% of young buyers would pay a premium for apparel from sustainability or socially aware firms.

With the rise of sustainable products and socially conscious businesses, all retailers should try to openly integrate their business operations with social problems important to their consumers. These activities may include encouraging minority perspectives on social media and updating the corporate policy on employment and inclusion publicly. They should also enhance product sourcing transparency and provide delivery alternatives that are more sustainable.

Social media is an excellent forum for these initiatives, particularly given how extensively Gen Z depended on these channels to keep connected during lockdowns. According to the report, 58% of Gen Z purchased things through social media, namely Instagram, compared to 45% of millennial respondents. These figures are growing from previous years, demonstrating that social media can assist firms in proactively showcasing their sustainable initiatives and incorporating their values in order to build a stronger connection with Gen Z buyers as they enter 2021. 

New Habits Leading To New Priorities 

It will become more critical to target Gen Z and millennials in the coming years as their spending power expands. These tech native generations are willing to experiment with new buying options. Still, they also recognize the value and nostalgia associated with pre-COVID-19 shopping habits, leading to trends in online shopping. Gen Z and millennials both value online as well as in-person social contacts, affordability, delivery convenience, and societal good across a range of themes. 

We hope this article has helped you to understand new Gen Z trends in online shopping, and if you want help with sourcing clothes, you can reach out to Fashinza. 

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