Table of Contents
Executive Summary
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- Overview
- Gen Zs love Amazon
- Multi-channel shopping is an opportunity for other retailers to engage young shoppers
- Opinions of others influence Gen Z purchases
- Use social media to socialize with young shoppers
- What it means
Market Breakdown
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- Overview: who are Gen Zs?
- Teens
- Adults
Market Factors
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- Approximately 17% of the population are Gen Z consumers
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- Figure 1: Population, by generation, 2018
- Figure 2: Distribution of generations, by race, 2018
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- Figure 3: Distribution of generations, by Hispanic origin, 2018
- Age and life stage impacts spending power
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- Figure 4: Household income distribution, shares by age of householder, 2017
- A social generation
Competitive Landscape – What You Need to Know
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- Both teen and adult Gen Zs consider Amazon the best
- Traditional retailers try to lure young shoppers back to stores
- Shopping is social
What’s Trending?
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- Teens spend on food and clothes
- Amazon evolves the meaning of seamless shopping
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- Figure 5: Teen perceptions of Amazon, March 2019
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- Figure 6: Amazon Instagram post, April 2019
- American Eagle maintains cool factor through streetwear and subscriptions
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- Figure 7: Teen perceptions of American Eagle, March 2019
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- Figure 8: American Eagle email campaign, February 2019
- Figure 9: American Eagle Instagram post, March 2019
What’s Struggling?
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- Macy’s looks to combat negative perceptions with an Instagram-worthy experience
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- Figure 10: Adult Gen Z perceptions of Macy’s, March 2019
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- Figure 11: STORY Instagram photo, April 2019
- Figure 12: STORY Instagram photo, April 2019
What’s Emerging?
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- Social shopping
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- Figure 13: Poshmark Instagram post, March 2019
- Figure 14: Winc Instagram post, January 2019
- Instant shopping through Instagram
- Don’t discount DTC
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- Figure 15: Adult Gen Z perceptions of Wayfair & Glossier, March 2019
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- Figure 16: The party starts on April 10. Get Ready for Way Day!, April 2019
- Figure 17: Glossier Instagram post, March 2019
The Consumer – What You Need to Know
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- Gen Zs prioritize clothing and entertainment
- Gen Zs love Amazon, but also show interest in emerging retailers
- Gen Zs shop on and offline
- Young shoppers seek others’ input through reviews and social media
- Privacy and policy are important to Gen Z shoppers
Items Purchased
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- Key highlights:
- Clothing is king when it comes to online purchases for Gen Z
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- Figure 18: Items purchased – Gen Z teens, March 2019
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- Figure 19: Items purchased – Gen Z adults, March 2019
- Traditional gender norms drive teens’ purchases
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- Figure 20: Items purchased – Teens, by gender, March 2019
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- Figure 21: Ntwrk Instagram post, May 2019
- Higher income young adults more likely to shop online
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- Figure 22: Items purchased – Adults, by income, March 2019
Spending, Recipients and Purchase Frequency
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- Key highlights:
- Many Gen Z purchases are made by or for others
- Parents fund most teen purchases
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- Figure 23: Beats by Dre YouTube clip, April 2019
- Figure 24: Who pays for teen Gen z purchases, March 2019
- Adult Gen Z are fulfilling gifting and household needs online
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- Figure 25: Purchase for self or others, by product type, March 2019
- Gen Z shoppers are restocking groceries online
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- Figure 26: Purchase frequency – Weekly, by product type, March 2019
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- Figure 27: Target email campaign, March 2019
Retailers Shopped
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- Key highlights:
- Three quarters of all Gen Z consumers shop Amazon
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- Figure 28: Retailers shopped, teen Gen Z vs adult Gen Z, March 2019
- Teen girls shop traditional retailers online
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- Figure 29: Retailers shopped (select) – Teens, by gender, March 2019
- Alternative retailers appeal to certain Gen Zs’ social connections
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- Figure 30: Retailers shopped (select) – Adults, by gender, March 2019
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- Figure 31: Rent the Runway Instagram post, March 2019
- Figure 32: Hello Fresh Instagram post, March 2019
- Hispanic adults shop a mix of traditional and alternative retailers
Online Shopping Behavior
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- Key highlights:
- Majority of Gen Z shoppers do a mix of online and offline shopping
- Social media and peers elicit purchases among older Gen Z shoppers
- Teens
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- Figure 33: Online shopping behavior – Teens, social media and peer integration, March 2019
- Adults
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- Figure 34: Online shopping behavior – Adults, social media and peer integration, March 2019
Attitudes toward Online Shopping
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- Key highlights:
- Gen Z shoppers base shopping decisions on trip mission, but that doesn’t make them disloyal
- Older teens do more exploring online, but have more concerns
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- Figure 35: Attitudes toward online shopping –Teens, by age, March 2019
- Hesitation and privacy are cause for concern among adults
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- Figure 36: Attitudes toward online shopping – Adults. March 2019
Attitudes toward Social Media and Reviews
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- Key highlights:
- Adult Gen Z shoppers are influenced by product reviews
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- Figure 37: Attitudes toward social media and reviews – Both groups, March 2019
- Teen girls seek social media interaction with brands
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- Figure 38: Attitudes toward social media and product reviews – Teens, by gender, March 2019
- Women seek feedback, while men are more willing to share
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- Figure 39: Attitudes toward social media and reviews – Adults, by gender, March 2019
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- Figure 40: Glossier Instagram post, September 2018
- Figure 41: Dollar Shave Club Instagram Post, March 2019
Purchase Influencers
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- Key highlights:
- Peer recommendations are most influential to Gen Zs’ purchases
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- Figure 42: Purchase influencers – Peer recommendations and social media, adults vs teens, March 2019
- Advertisements are still effective
- Influence on teens
- Influence on adults
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- Figure 43: Purchase influencers – Both groups, advertisements, March 2019
- Retailers can influence more purchases by engaging through social media
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- Figure 44: Purchase influencers – Both groups, Social media, March 2019
Important Brand Attributes
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- Key highlights:
- Gen Z shoppers consider quality, privacy and return policies
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- Figure 45: Brand attributes (net any rank) – Teens, March 2019
- Figure 46: Brand attributes (net any rank) – Adults, March 2019
- Company values are important
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- Figure 47: Aerie email campaign, January 2019
- Figure 48: Everlane mobile advertisement, April 2019
- Adult men value alternative purchase options
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- Figure 49: Rent the Runway X West Elm email campaign, March 2019
- Figure 50: Dollar Shave Club email campaign, March 2019
Appendix – Data Sources and Abbreviations
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- Data sources
- Consumer survey data
- Direct marketing creative
- Abbreviations and terms
- Abbreviations
- Terms
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