Gen Z in Shopping – Everything You Thought You Knew

Although Generation Z cares about financial security, they are often willing to spend more than previous generations. While older generations invest in real estate or cars, Gen Z invests in micro-experiences such as concert tickets or specialty coffee, because every purchase they make contributes to a narrative of the life they are building.

Identity is More Important Than the Product

To win over Gen, brands must help them answer the question who they are and who they become, rather than which problem a product solves. Consistent communication and emotional connection are essential. Instead of focusing solely on campaigns, brands should focus on building an environment that Gen Z wants to belong to.

While product features can easily be replicated, feelings cannot. That is why brands must decide which emotions they want to evoke with every interaction they make. One way to do this is by creating communities, providing a space where young Gen Z buyers feel like they are a part of something much greater than just a transaction.

Authenticity and quality are considered fundamental requirements. Gen Z will not buy products or services from brands whose values they perceive as fake or whose communication feels performative. If a brand fails to pass authenticity filters, it is often dismissed from the beginning. Sustainability also plays an important role in brand choice. Members of Gen Z are more willing to pay higher prices for environmentally friendly products.

TikTok as a New Search Engine

Although TikTok is primarily an entertainment platform, Gen Z often uses it as a search engine. Through it, they research products, save recommendations, compare product prices, and check authenticity before purchasing. In this way, they receive information quickly and efficiently, which means that brands must adapt their communication to this shift. In practice, brands that are not visible in that space effectively do not exist for them.

Young buyers rely on influencers when making purchasing decisions. However, because much of their content is paid, the trust in information from influencers is gradually declining. Nevertheless, recommendations from influencers promoting lesser-known brands are often perceived as more trustworthy. The most authentic are considered micro-influencers promoting smaller brands. The smaller the reach, the greater the trust.

Online vs. offline

The decision-making process for Gen Z usually starts online, yet half of them still decide to visit a physical store. Online shopping appeals to Gen Z because of its speed, convenience, and better price comparison. However, in-store experience is irreplaceable, especially for products such as cosmetics and clothing for which tactile interaction plays an important role. For this reason, brands must recognize the value of an omnichannel strategy and adjust to Gen Z, which prefers a balance between digital and in-store shopping.