The latest report from KPMG shows that Generation Z in the Asia-Pacific region is increasingly swayed by social media platforms like TikTok and the recommendations of their favorite influencers. Unlike older generations who would visit department stores or malls to explore new styles and shop for basics, Gen Z is looking to online trends, following the styles endorsed by influencers they admire. This shift highlights the rising influence of social commerce, where shopping experiences are seamlessly integrated with social media interactions. Social commerce is the most popular form of retail tech among Gen Z – especially in China, Vietnam, Indonesia, and the Philippines.
Actually, gaining a deeper insight into Generation Z is crucial, companies can more effectively align their messaging, advertising, and content with the preferences and values of this emerging demographic. As Gen Z begins to enter the workforce and constitutes a growing segment of the consumer market, it’s essential for brands to resonate with their unique characteristics and behaviors.
The ongoing power of word of mouth and user-generated content
Younger consumers are relying on social media, as well as recommendations from family and friends, when considering new products. Additionally, both Gen Z and millennials are more inclined to trust and purchase products recommended by content creators, making user-generated content (UGC) an essential element for brands targeting these younger audiences.
Key traits of Gen Z consumers
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Significant online spending on beauty products
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Nearly a third (32%) of U.S. Gen Z shoppers spent between $101 and $500 on beauty products online over the past year, while about a quarter (24.8%) spent between $501 and $1,000, according to a December 2023 survey. Additionally, 62.8% of Gen Z consumers shop online for beauty products at least once a month, with 21.2% shopping weekly or more.
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In-Store Clothing Discovery Remains Important
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Grocery shopping and product discovery trends
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Gen Z is more likely to discover new grocery products through search engines or by browsing grocery websites and apps rather than finding them on store shelves. They are also more inclined to discover new grocery products via social media, with nearly one-third (29%) of U.S. consumers citing TikTok as the platform where they most often find consumer packaged goods (CPG) products.
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Changing preferences for drive-thrus
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Gen Z leads the low- and no-alcohol movement
Implications for E-commerce Brands
For e-commerce brands looking to connect with Gen Z, these insights into their shopping behaviors are crucial:
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Maximize social media presence: Ensure your brand is visible on platforms like TikTok and Instagram, where trends emerge and spread quickly.
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Capitalize on UGC: Collaborate with content creators who appeal to Gen Z to build trust and drive sales.
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Enhance product discovery: Use personalization and curated experiences on your websites and apps to engage Gen Z shoppers.
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Diversify shopping experiences: While online shopping is dominant, don't overlook the importance of in-store experiences, especially for product discovery.
By understanding these traits and adapting strategies accordingly, e-commerce brands can better connect with Gen Z, fostering loyalty and driving sales within this increasingly influential market segment.
Source:
Gen Z's shopping decisions are heavily driven by TikTok and influencers, report finds
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