Gen Z – a new hope?
The British Retail Consortium’s research into consumer expectations for the next three months shows Gen Z emerging as a source of hope for retail, as the demographic with the most optimism for the future. A number of factors shape them as shoppers and motivate their purchases – information which should inform retailers’ strategies if they want to maximise engagement with Gen Z and secure their business. They have a world of choice open to them, and they will vote with their wallets if retailers don’t live up to their expectations.
Motivator: show, don’t tell
This demographic has never known a world without all the benefits of technology at their fingertips, and most have embraced enhancements in visual social media to such a degree that they are primarily influenced by people showing them how products work on platforms such as Instagram and TikTok.
Retail opportunity
As Gen Z are generally entirely comfortable with tech-led demonstrations on their phones and tablets, they’re an ideal audience for virtual consultations where they have one-to-one access to an expert advisor. This is their territory – many will be more in tune with video chats than store visits.
Motivator: buying ‘clean’ – ethical, sustainable and recyclable
This demographic tends to be cost-conscious, but willing to go outside their budget to buy products that are proven to be ethically and sustainably manufactured. A survey by research company First Insight found that 62% of Gen Z shoppers prefer to buy from sustainable brands, and 73% are willing to pay more for sustainable products. As demonstrated by the growth in Gen Z purchases of ‘clean’ cosmetics and pre-loved items, they want to know that what they’re buying meets their personal code – details about materials sourcing, manufacturing and ethical production all play an important part in the buying decision.
Retail opportunity
Openness and transparency are key to winning over the Gen Z shopper – make full details about your entire range, complete with manufacturing and sustainability information, available to them whenever they need it. Store associates with all the facts at their fingertips will be able to handle every question and provide everything the customer needs so that they can be sure they’ve made the right decision.
Motivator: ease and availability
Gen Z are used to the speed and simplicity of using technology to browse and order goods at a time when it’s convenient to them. They’re accustomed to being able to access shopping services that fit with their lifestyle, and fully expect retailers to accommodate that.
Retail opportunity
Flexibility through omnichannel shopping is at the heart of this opportunity – being able to choose and buy products seamlessly online and in-store with no barriers is fundamental to their experience and they would expect it as standard.
The generation game
More than any other demographic, retail technology is essential for retailers to tap into Gen Z’s optimism and opportunity. But, while each generation has its individual characteristics, what they all have in common is a desire to build a two-way relationship with retailers – one that allows them to tap into store associates’ expertise and be part of a conversation that reflects their personal wants and needs. Whatever stage they may be in the tech cycle, from early adopter to digital native, it’s evident that intelligent application of its benefits is the key to engagement across all demographics.
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