The Gen Z Shopper
Last week on Outside In we took a deeper look into The Gen Z Tribe here on Outside In: https://outsideinlens.substack.com/p/the-gen-z-tribe. This week we dig deeper to scan and understand how the Gen Z shops and what it would mean for Retailers (both Online and Offline ones) in their efforts to really ‘connect’ with them. Let’s go…
Understanding the Gen Z Shopper Expectations
Simply put, Gen Z Shoppers want personalization, easy navigation and payment process:
17% wants customization of products in store
37% want ability to quickly and conveniently navigate the store ‘front’
31% are looking for quick and easy payment options
16% look out for personalized offers sent to the mobile when inside a store
12% want exclusive services like personal shoppers
Despite being the most digitally savvy generation, Gen Z very much loves to shop in physical stores. But their motive is different than older consumers’ and that spells change for brands. While Gen Z may research online, they view visiting stores as a social excursion. 81% of Gen Z prefers to shop in stores and more than half do so because it allows them to disconnect from social media and the digital world for a while, a Kearney study has found
When asked what they are looking for once they arrive in-store, 75% Gen Z shoppers told Kearney that a “well-curated store experience focused on a limited number of products” was extremely or moderately important to them
Decoding the Gen Z Shopping Style
Four Cs of Shopping style—Comfort, Convenience, Community and Communication — drive this generation’s Retail Habits
1) Comfort (is primary Psyche):
Gen Z doesn’t see a brand as some kind of top-down authority that influences you. They expect a brand to be their partner, not their instructor
‘If I like it, I buy it’,
‘It should be trendy but help me express my individuality’,
‘It should match the aesthetic of my Pinterest mood board’,
‘Small businesses and Instagram thrift stores are great’,
‘Top handle bags are hardly comfortably,
‘I’d rather buy the sneakers Travis Scott is wearing’
Forget the expensive designer jeans, they’d rather get the hype sneakers
Their aesthetic can be dubbed as ‘college canteen but luxe’. In their universe, comfort rules—think sweatshirts, tees, trans-seasonal shift dress, luxury streetwear, athleisure, gender neutral clothing, sneakers and cross body bags
Local brands, sustainable labels and ethical practices hold value for them, as does anything deemed unique
According to Adwaita Nayar, CEO of Nykaa Fashion – They want versatility, but also the option to personalize whatever they can
The Isobar-Ipsos survey on the Indian gen-Z by Business Insider points in the same direction, revealing that ‘78% will personalize to look good and 79% will make their own fashion statement to stand out.’
Also, this is a generation that prefers a Cool ‘Product’ vs. a Cool ‘Experience’:
2) Convenience in Shopping
They seek the same ease (read: comfort) in the shopping experience too. ‘At the click of a button’ is the only way they know
Gen-Z doesn’t know a life without technology. They are always connected, often via multiple devices simultaneously. As shopper, they are in the driver’s seat, and perceive technology as a means to information and empowerment
This has given rise to ‘everywhere commerce’, allowing consumers to shop however, wherever and whenever they want—in stores, online, via mobile apps, through voice assistance or by click-and-collect
It follows that they want less clutter and more convenience. This includes easy access to information and products, seamless transactions and digital payment methods
However, it doesn’t mean that the Gen Z Shopper is seeking minimalism. For Gen Z Shoppers, physical retail spaces are all about escaping the algorithm, to see things outside their filter bubble. It means brands have to move away from rollout strategies and design each of their retail fronts with more modular, flexible concepts, that allow touch-points and architecture to be set up and dismantled with more ease
3) Community Contribution
Gen Z is paying more attention to the stories that are telling of a brand’s values and mindset. They are enquiring about ethical practices and asking for accountability. They also want to engage with the brand in meaningful ways
They are not passive. Instead, there is a sense of purpose to their purchases. While history and craftsmanship are still important when purchasing luxury products, they also want to be more involved in the brand story, and feel a personal connection, according to Deepika Gehani SVP of Reliance Brands
They want brands to be transparent, trustworthy, authentic and relevant, attesting to their urge to identify with brand narratives and mission. Bhaane, for example, partnered with animal welfare NGO Friendicoes last year to donate 100% of their e-shop revenue during the initial 21-day lockdown period. They admit to a sharp rise in engagement as a result
Marketoonist captures this insight beautifully:
4) Communication (Marketing) to Gen Z
Gen Z is not just an age bracket. We need to consider some beliefs and attitudes and then try to figure out what are their interest areas, which can then help narrow down to a right set of cohorts brands want to target. In this case, even the spillover might be better rather than segmenting them into a different set of age groups
Gen Z wants to be spoken to as an individual and not a group. They are the first ones acting as BS detectors. So, they will call you out, at a platform or brand level. In North America, there is a concept called cancel culture which is Gen Z using social channels to cancel brands, people or otherwise. I am willing to bet it is already existing in other markets as well, including India
Video would be a preferred medium of communication: According to a Kantar report, online video saw greatest increase during the pandemic lockdown, with 72% traffic coming from Gen Z
Medium doesn’t matter as much as storytelling does.New-age brands like Swiggy and Zomato continue to explore email marketing regularly. Mondelez’s lion’s share still goes to traditional media and they believe that message supersedes the medium
Mondelez further personalizes its campaign for Gen Z according to their common interests and finds a perfect time slot when they are open to receiving more information. They try to personalize to an extent that we send out 100-150 creatives at different points of time so that it resonates better with that particular consumer cohort
Millennials want brands to have a sense of purpose. Gen Z has taken that a step ahead. They are not just satisfied with a purpose – they want real action from brands. The understanding of what is real and fake is way more nuanced right now
As Internet natives, a majority of their lives play out online. So, it’s a given that this generation is constantly chasing the visually appealing. The photogenic. The double tap-worthy. ‘Will this look great on Instagram’ is a consideration that drives some subliminally and others more overtly. But drive them, it does
They are the real hype beasts. Their aspiration is not for the finer things in life, but for big-ticket promoters of cult. They aren’t wearing something to impress their parents’ friends or society at large. They want to impress their peers. Or buy it because their friends in London are wearing it
They are very influenced by what they see and read, since a lot of their time is spent on social media. Therefore, they care less about brand loyalty, and more about what they’re after
What This Means for Today’s ‘Omnichannel’ Retailers
Retailers are going to have to offer a more well-rounded experience in store as well as on their online avatars, focusing on creating the feeling of community while offering a selection of products that appeal to Gen Z tastes. The isolation created by the pandemic lockdowns only reinforces the need to attract these shoppers with a new approach
There’s going to be a massive influx of sensory engagement in retail, according to Ciara Larkin of Crowd DNA, a cultural insights and strategy consultancy that specializes in youth culture
And, there are early adopters already. While browsing the website of Gen Z Fashion Brand Entire World, which focuses on basics, consumers will hear ambient sounds of everyday moments such as someone mowing the lawn, dogs barking in the park and the hushed rustling of a coffee shop. Check them out here at: https://theentireworld.com/
These are built into the online browsing experience to create a moment of pause. It is this impetus to slow down and focus on one thing at a time. Brands need to be building that kind of meditative calm into the shopping experience
TX Huaihai Youth Energy Center in Shanghai is a brand new museum-like innovative space bridging the worlds of art and fashion. It receives 40,000 shoppers a day consuming a mix of retail, clubs and food offerings; providing an experience that Gen Zs can spend all day in. The Center will be considered as a pioneer in curated retail – Expect mass collaboration between artists and global designers, with inspiring digital and interactive features:https://www.wonderlandmagazine.com/2019/12/20/tx-huaihai-shanghai
The Maker Lab at the Adidas flagship store in The Dubai Mall offers shoppers a space to customize their products through patches, laser engravings, printing and embroidery
In Conclusion
Gen Z is craving tactile and immersive experiences as a push back against the excessive screen fatigue they experience. Brands need to start dedicating space for ‘decompression zones’ if they want to attract the Gen Z Shopper
According to Steve Ubsdell, CEO & CCO of UK interior design studio Checkland Kindleysides (whose portfolio of designing stores includes Hermès, Hunter and Adidas), a good Gen Z Store should be hyper-focused. There’s a real job for brands to identify what areas of their particular business or brand that people are really interested in, put their money and capital behind that, and amplify that within their physical spaces
And, as always, Marketoonist sums this ‘Gen Z Marketing’ approach perfectly:
References and Sources
1) My Notes from ET MarTech Summit, IAMAI Conclave, Cannes Lions Live, Adobe Summit, WPP Commerce, PHYGITS, Nudgestock (and any other Event that I might have inadvertently missed)
2) Gen Z Tribes: https://www.highroadsolutions.com/blog/recruitnewgen
3) Gen Z Marketing: https://www.businessinsider.in/advertising/brands/article/most-effective-ways-to-market-to-genz-in-2020/articleshow/79025178.cms
4) Vogue Gen Z Shop: https://www.vogue.in/fashion/content/how-does-the-indian-gen-z-shop
5) Gen Z Marketing: https://heyorca.com/blog/social-media-planning/authentic-marketing-stories-live-video/
6) Marketoonist on Gen Z Marketing: https://marketoonist.com/2015/03/generation-z.html
7) Marketoonist on Gen Z Targeting: https://marketoonist.com/2017/06/genz.html
8) Financial Express: https://www.financialexpress.com/money/how-covid-19-is-changing-gen-z-millennials-spending-and-financial-habits/2024609/
9) Gen Z seeking Cool Experience and Finding Themselves Creatively: https://www.business2community.com/infographics/generation-z-characteristics-5-infographics-gen-z-lifestyle-01394477
10) Gen Z Shopper/Shopping: https://www.voguebusiness.com/consumers/post-pandemic-playbook-what-gen-z-want-from-physical-retail-adidas