Generation Z prefers to make their own shopping decisions according to survey
With companies and retailers formulating plans to attract the millennial customer, a survey from HRC Retail Advisory shows Generation Z has a bigger influence on consumer spending.
Generation Z, which is comprised of people born in the mid 1990s to early 2000s, may not have the same spending power as millennials since most, if not all, are in school, but they influence spending and boast new shopping behaviors in malls and online that are influenced mainly by social media.
"Generation Z has significant influence over household purchases," said Farla Efros, President of HRC Retail Advisory.
"Retailers must appreciate the different expectations and habits of this group, as well as of Millennial parents with kids, and develop and execute strategies that address their needs in order to stay competitive with this increasingly important consumer segment."
HRC surveyed millennials with no children, millennial parents of children under 18, Gen X and Baby Boomer parents of children under 18, and children ages 10-17, and found that Generation Z and millennial parents with kids said that they visit the mall once a month. 22% of Generation Z visitors spend over 90 minutes at the mall and visit four to five stores. 50% of Generation Z shoppers use social media while they shop, mostly on Facebook (61%), Youtube (38%) and Instagram (24%), and friends influence 61% of their purchases.
Generation Z isn’t swayed easily by celebrity endorsements and only 13% of respondents said their purchases are influenced by bloggers. The resounding theme is that Generation Z shoppers prefer to make their own shopping decisions. 69% of respondents said they would rather receive a gift card than an actual gift.
"The HRC survey sheds light on the changing demographics and influences of existing, emerging and future shoppers,” continued Efros.
“As Generation Z begins to gain a foothold in the consumer spending environment, and Millennials mature, their expectations are transforming the retail landscape. In order for retailers to remain competitive, they must begin to develop a balanced approach to serving Baby Boomers and Generation X - who still have the great majority of the spending budget - while positioning themselves to best serve the emerging and future consumer segments for longer term success.”
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