Generation Z is now a “formidable force in the retail world,” according to the US Gen Z and Millennial Online Shopping Behaviors Consumer Report 2024, from Mintel, a global market intelligence firm. Small business owners should understand their shopping habits.
These young adults are tech-savvy shoppers, “growing up as digital natives, [they’re] well-acquainted with technology, social media, and e-commerce platforms, and live in a reality shaped by economic challenges such as the rising cost of living and student debt, yet they control a significant and growing amount of buying power.”
Gen Z consumers have high expectations of the companies they’ll do business with and expect them to “align with their values, particularly around diversity, inclusion, and sustainability.” And there’s no guarantee of loyalty; businesses must consistently deliver ethical practices, transparency, and meaningful engagement to earn it.”
How Do Gen Z Consumers Shop
Online shopping is their venue of choice, due to its “efficiency, flexibility, and affordability.”
Nearly half of Gen Z teens and 59% of adults shop online at least once a week. Many shop “online even more frequently, with some browsing and purchasing twice a week or more.”
Why Does Gen Z Prefer Online Shopping?
Convenience is key
Online shoppers don’t have to wait in long lines or should during limited business hours. Gen Z consumers prefer to shop when and wherever they want. If you want to attract them, they’re looking for “seamlessly designed platforms with streamlined checkout processes, mobile accessibility, and various payment options, such as buy-now-pay-later.”
Speed gets your business ahead of competitors
Fast delivery is a must-do for businesses wanting to attract Gen Z shoppers. Mintel says delays or hefty shipping fees can be deal-breakers for them.
Cost-effectiveness is a priority
Gen Z is very concerned about affordability. Mintel says they “routinely compare prices across multiple platforms, hunt for discounts, and wait for promotions before making a purchase. Beyond price, they also consider the value equation, including product quality.”
What Products Do Gen Z Buy Most?
Gen Z buys lots of stuff online, but some categories consistently stand out. Mintel reports:
- Clothing and footwear dominate (about 70%), with teens especially active in buying sneakers and apparel.
- Entertainment, like video games and streaming services, is also popular, with over half of Gen Z consumers making online purchases in this product category.
- Electronics, such as headphones or smartphones, attract about 38% to 46% of Gen Z
- Beauty and personal careproducts are particularly popular with female Gen Zers.
What are Emerging Gen Z Trends and Product Categories?
Groceries are increasingly purchased online, particularly fresh produce and convenience products, such as prepared meals. Alcoholic beverages are more likely to be purchased online by Gen Z consumers than older generations.
Home and garden products, like furniture and décor, are gaining traction.
Sustainable goods are attracting more consumer interest. Two-thirds of Gen Z teens are open to shopping for previously owned items, reflecting a shift towards sustainability and a circular economy.
Personalized products from customized accessories to tailored skincare appeal to Gen Z’s “desire for individuality and unique experiences. The technology, often at the center of personalization, using real-time data, AI, and DNA testing to craft solutions, also speaks to Gen Z as digital natives and early adopters.”
Phone First
Mintel reminds us that Gen Z’s lives are stored almost entirely on their phones. Most use mobile devices to shop online, far outpacing their use of laptops or tablets. “Retailers with mobile-optimized apps, frictionless checkout, and exclusive mobile deals are ahead of the game.”
Next week, we’ll learn more about Gen Z, including how you can appeal to Gen Z’s needs.
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Rieva Lesonsky is President of Small Business Currents, LLC, a content company focusing on small businesses and entrepreneurship. You can find her on Twitter @Rieva, Bluesky @Rieva.bsky.social, and LinkedIn. Or email her at Rieva@SmallBusinessCurrents.com
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