Reimagining Retail: Gen Z’s Path-to-Purchase—What Most Folks Get Wrong About Them and How Social Media Influences In-Store Behavior | Sep 18, 2024
Sep 18, 2024
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Sara Lebow, an insightful analyst, leads a discussion with fellow analysts Blake Droesch and Paola Flores-Marquez on the evolving retail landscape shaped by Gen Z. They explore how Gen Z leverages TikTok for product discovery while valuing in-store experiences. The trio highlights the importance of engaging social media strategies and how smartphones influence in-store shopping. They also discuss the balance between idealism and pragmatism in Gen Z's purchasing decisions, offering brands essential insights into this unique consumer mindset.
Gen Z values in-store experiences for product discovery, illustrating that physical retail remains essential despite their digital-native reputation.
Social media, particularly TikTok, serves as a primary source of inspiration for Gen Z's purchasing decisions, influencing their in-store interactions significantly.
Deep dives
The Role of Physical Stores in Gen Z's Shopping Journey
Physical stores play a crucial role in product discovery for Gen Z, similar to other age groups. Despite Gen Z’s reputation as digital natives, they still value in-store experiences, indicating that brick-and-mortar locations are pivotal for brand awareness. According to reports, 51% of Gen Z shoppers utilize social media for product discovery, but they don't rely solely on it; many users eventually make their purchases in physical stores. This desire for direct interaction likely stems from their experiences during the pandemic, highlighting the importance of the tactile and social aspects of shopping.
Social Media's Dominance in Gen Z's Shopping Preferences
Social media, particularly TikTok, significantly influences Gen Z's path to purchase, often outperforming other platforms. This generation engages with TikTok more than older demographics, using it as their primary source for product discovery and trends. Although Gen Z is less likely to complete purchases through social media, they often use these platforms for inspiration before buying products in-store. Consequently, brands must ensure a robust presence on various social channels to capture Gen Z's attention during the search phase.
Shifting Shopping Behaviors and the Use of Technology
Gen Z shows a distinct trend in utilizing mobile devices to enhance their in-store shopping experiences, opting for apps over traditional assistance from store staff. They actively engage with their smartphones to check reviews, compare prices, and search for product information while shopping. This tech-savvy behavior allows them to research and make informed purchasing decisions quickly. Retailers must adapt to this trend by offering competitive pricing and facilitating easy access to information on mobile platforms to effectively cater to Gen Z's preferences.
On today's podcast episode, we discuss what people get wrong about Gen Z’s path-to-purchase, their relationship with stores, and how they differ from millennials. Listen to the conversation with our analyst Sara Lebow as she hosts analysts Blake Droesch and Paola Flores-Marquez.