How Generation Z buys online

According to research by Gemius, 77 percent. Internet users have made online purchases at least once. Well-educated women over 35, living in large cities, are most likely to buy online.

However, the report indicates that 16 percent. among the buyers are people aged 15-24, i.e. representatives of the Z generation.

Generation Z - who is that?

Generation Z is the name of a demographic cohort of people born in 1996-2010. Depending on the country and the adopted research assumptions, the years of birth may differ - however, some common experiences that define this group are key.

It is primarily a generation of true digital natives - while the former Millennials cohort was just familiarizing themselves with digital technologies and colonizing new spaces such as social media, Generation Z should already be treated as “digital natives” - digital reality is an element of their everyday life.

Research by Accenture shows that Gen Z consume web content in a slightly different way than previous generations. The key difference is the popularity of media based on short, visual messages such as content present on Instagram, TikTok or Snapchat.

Generation Z at e-shops

For Generation Z, online shopping is a natural part of their everyday life, and the Internet and channels such as price comparison websites and social media are among the many tools they use. The purchasing habits of the youngest generation were analyzed by Trusted Shops together with SW research. From their joint study, the following conclusions can be drawn:

Frequency

Only a negligible percentage of this generation of users buy online less than once a year (0.8%) or once a year (1.3%). The norm is to buy once or twice a month (51.8% of responses) and at least once a week (32.5%). Only a minority buys once or twice every six months (13.5%).

Devices

For Generation Z, smartphones are one of the key elements of everyday life, which is reflected in the way they buy - 74% buy using a smartphone. Shopping using a laptop is also popular (82%). Shopping using a tablet (23%) and a desktop (44%) are less popular, although here one of the reasons may be the generally lower popularity of these devices.

How much are they spending

A survey conducted by Accenture shows that currently around one-third of Generation Z representatives are professionally active, however, they spend similar amounts of money shopping online as older and professionally active Millennials.

In the case of the most popular product categories (fashion, electronics, beauty), the majority of respondents declare expenses higher than PLN 200 per month. Such a level of expenditure is declared by 38% in the case of fashion, 30% in the case of electronics and 23% in the "beauty" category, respectively.

What influences the purchasing decisions of Generation Z

Generation Z eagerly spends money on the Internet and uses mobile devices for this purpose. However, their purchasing motivations differ from those observed in older users.

Quality- research conducted by accenture shows that up to 20% of Generation Z users are willing to pay more for a product if it is made of high-quality materials. Moreover, as part of "quality", representatives of this generation also understand the company's social responsibility and its approach to issues such as the treatment of employees and environmental protection. The respondents declare that they are willing to pay even more for ethically made products.

Luxury product - representatives of this generation are willing to buy luxury products (i.e. more expensive), which are a status symbol and often sold in limited series. According to an Accenture study, 11 percent. declare buying such items once a month, 22 percent once every three months and 20 percent once every six months.

Checking reviews before buying - the opinion of others about the products is important for this generation. Most (65%) consult their family and relatives for advice, and a little less (64%) check opinions on the Internet. For 54%, friends' recommendations are also important. Interestingly, the question of opinion when shopping in a brick-and-mortar store is also popular among the representatives of Generation Z. Among those surveyed by Accenture, 60% declare that they ask for the opinion of the people they are shopping with, and 30% use a telephone for this purpose by sending a photo or by calling.

Under the influence - 23 percent of the representatives of the youngest generation declare that the opinion of influencers about a given product is "important" or "very important" to them. The majority (49%) declare that they follow the opinions of social media stars only sometimes.

Digital shopping as a source of fun - for 67 percent. of the representatives of the Z generation, shopping is a form of spending free time. For this reason, they expect from the store not only the product itself, but also the shopping experience related to it. In the case of e-commerce, this fits in with both the design of the store and the pick-up experience, including packaging, package fillers and handwritten thank you cards.

Generation Z challenges for ecommerce

Despite their familiarity with online shopping Generation Z still experiences difficulties with purchasing products. The Trusted Shops report indicates that:

• 40% of Gen Z shopped in a store that missed the deadline
• 34% indicate that it is difficult to contact the seller
• 33% have been a victim of an online fraud
• 24% received a different product than ordered
• 17% reported problems with the return of goods

Summary

Gen Z are the first "digital natives" in history. Unlike the Millennial generation, they even spent their childhood immersed in the online world, and the opinions of Internet users are almost as important to them as the opinions of their family.

If you want to learn more about the ways in which you can reach this generation and encourage them to buy in your store more effectively, please contact us!