Last week, we talked about how Gen Z has become a “formidable force in the retail world,” per the US Gen Z and Millennial Online Shopping Behaviors Consumer Report 2024, from Mintel, a global market intelligence firm. But Gen Z’s power goes beyond that. It is essential for small business owners to understand that these young adult tech-savvy shoppers are changing the retail industry.
How Gen Z is changing retail
While we noted last week that Gen Z has embraced online shopping, they still value in-store shopping experiences. Mintel suggests that this calls for “a seamless approach that integrates online and offline shopping. Retailers should include options, such as ‘buy online, pick up in store’ (BOPIS), QR codes for in-store browsing, and mobile apps with perks for in-person shoppers.
What drives Gen Z purchasing decisions?
Digital fluency, practicality, and strong values drive Gen Z’s shopping behaviors, both in-store and online. Mintel says they “prioritize convenience, authenticity, and purpose, and make their buying decisions based on ease, ethics, and alignment with their personal identity and beliefs.”
Some of their shopping preferences include:
- They routinely compare brands and products before making a purchase and are open to buying pre-owned or second-hand items.
- Mintel writes, “As true digital natives, Gen Z prefers mobile-first shopping experiences and often discovers products through social media. They actively engage with brands online and expect fast, seamless, and highly convenient digital interactions across channels.”
Does Gen Z value brand loyalty?
Sometimes. Their loyalty is conditional and are quick to pivot if a company’s values don’t align with theirs. They want meaningful engagement and shared ethics. The report says you can earn their loyalty through consistent, transparent, and value-driven actions.
And Gen Z is more likely than previous generations to boycott businesses or reduce their purchases with a company if their demands aren’t met.
Using social media for shopping
Much of Gen Z’s shopping habits are shaped by social media. They view it as entertainment, and a key channel for discovering, researching, and buying products. They often start their shopping journeys on TikTok or Instagram. In fact, 40% of Americans have bought a product or service directly from a social media platform.
How can you meet Gen Z’s needs?
Be authentic and transparent
Offering behind-the-scenes content, founder stories, and open discussions about processes that clearly communicate business practices, supply chains, and pricing can help build trust.
Highlight your participation in sustainability and social responsibility activities
Sustainability isn’t just a buzzword. Mintel advises demonstrating tangible, eco-friendly efforts backed by data or certifications to avoid greenwashing. To prove your claims, you can use tech like QR codes for traceability.
Innovate with omnichannel engagement
Mintel says focusing on the omnichannel is key. It advises combining mobile-first strategies with in-store experiences to offer a holistic brand presence that adapts to Gen Z shopping habits and their browsing behaviors.
Personalize the experience
Gen Z appreciates curated experiences, such as tailored recommendations and co-creation. The ability to vote on designs or try products virtually through augmented reality can create stand-out experiences.
Are you ready to connect with the Gen Z consumer?
The Mintel report says, “Gen Z is transforming the e-commerce landscape. They are practical, digitally engaged, and highly value-driven, and they expect businesses to be just as dynamic and value-driven.”
It adds that businesses “that can innovate, engage authentically, and take a digital-first approach while still offering a seamless link between online and offline shopping will not only capture Gen Z’s attention but also earn their trust.”
Support SCORE
After more than 60 years of supporting small businesses, SCORE needs your support. To date, over 55,000 letters have been sent to Congress, asking them to fund SCORE. Please join those supporters—here’s how:
- Fill out this form (it takes less than 2 minutes), which will be sent to your congressional representative’s offices.
- Contact your congressional representative and senators via phone or social media. Tell them to save the people who save small businesses. Include @scorementors in your post. And the hashtag #StandwithSCORE.
- If possible, donate to SCORE.
- Tell everyone you know to #StandwithSCORE.
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
Photos courtesy Andrej Lišakov for Unsplash+