Retailers take note: Gen Z, the generation after Millennials, already have access to $44 billion in buying power.
How can you make your store and brand attractive to this generation?
Offer a flawless digital experience
For Gen Z, smartphones have always existed. If you don’t have an app or website or, worse, if it’s outdated or slow to load, you’ll lose Gen Z in an instant.
“Gen Z has different expectations because for them, it has always been fast,” said Jason Dorsey, Millennial expert and President of the Center for Generational Kinetics.
Make your in-store experience unforgettable
Despite Gen Z’s preference for digital everything, they still enjoy the in-store experience. In fact, more than 98% of Gen Z still prefers to make purchases in bricks-and-mortar stores. They enjoy the experience of shopping, as much as the ultimate purchase.
Interestingly, this is also attracting them to shopping malls, despite the perception that mall culture had fizzled out. A large percentage of Gen Z is waiting longer to get their drivers license, so many are still at the mercy of where their parents will drive them.
“They’re relying on their parents or other forms of transportation at a later age, and that can have an impact on shopping trends and when and where they shop,” said Dorsey.
Gen Z came of age in the wake of the Great Recession, and they’ve seen their parents and Millennial older siblings struggle with money and debt. Most were raised with a sense of economic caution about the future, Dorsey explained. It’s driving many of them to be more conservative about debt and more pragmatic in their spending.
“Gen Z is intentionally choosing not to buy brands with logos and pay premium prices for everyday items. Some would rather get things that were not name brand, or even from thrift stores and get more utility and value for their money,” Dorsey explained.
Offer mobile pay options
While Gen Z currently prefers paying in cash, researchers believe their strong connection to mobile devices will make them the first generation to truly adopt mobile payment. “I think they will be the first generation where digital payment is truly not only normal, but expected,” Dorsey said.
Now is the time for retailers to really pay attention to what Gen Z wants from a shopping experience. If you’re slow to adapt to the changing needs of young consumers, you might risk losing an entire generation.
Want to Solve Your Gen Z Challenges?
We lead national and international Gen Z, Millennial, and generational studies for our clients every day. We also keynote events around the world, helping businesses better understand their customers and workforce.
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