Gen Z's shopping habits are evolving and distinct across different categories, presenting both opportunities and challenges for retailers.
Beauty:
Gen Z spends significantly on beauty products online, with a considerable portion spending $101-$1,000 annually.
However, in-store discovery remains crucial, as it's equally important as social media for finding new beauty brands or products.
Apparel:
Gen Z prefers discovering clothes in-store, followed by brand websites/apps and social media.
Both Gen Z and general consumers value taking their time while shopping for clothes, indicating a need for engaging and personalized online experiences.
Groceries:
Gen Z relies heavily on search engines and grocery sites/apps to discover new products, with social media platforms like TikTok and Instagram also playing a significant role.
Fast Food:
Gen Z is less inclined towards drive-thrus compared to other generations, favoring online ordering and pickup or delivery apps.
Delivery fees are a deterrent for a significant portion of consumers, highlighting the need for affordable or value-added delivery options.
Beverages:
Gen Z is driving the low- and no-alcohol trend, with a high interest in initiatives like Dry January and a significant portion abstaining from alcohol altogether.
This trend presents an opportunity for non-alcoholic beverage brands and legacy producers to cater to this growing market segment.
Implications for Retailers:
Beauty brands should invest in both online and offline channels to cater to Gen Z's diverse shopping habits.
Apparel brands should focus on creating engaging and personalized online experiences that allow for discovery and exploration.
Grocery retailers should leverage search engine optimization and social media marketing to reach Gen Z consumers.
Fast food chains should optimize online ordering and pickup options while addressing delivery fee concerns.
Beverage companies should expand their low- and no-alcohol offerings to capture the growing market of Gen Z consumers embracing this trend.
Overall, understanding Gen Z's unique shopping preferences and behaviors is crucial for retailers to remain competitive and effectively target this influential demographic. By adapting their strategies and embracing emerging trends, retailers can capture the attention and loyalty of Gen Z consumers.
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