The oldest Gen Zs are finishing school, starting their careers, and beginning to earn their own living wages. Every year, more Gen Zs are becoming active consumers. A report from IBM and the National Retail Federation (NRF) estimates that Gen Z numbers more than 2 billion people. That’s a powerful economic force—worth more than $44 billion.
These digital natives were born into the world of the internet, smartphones, social media and e-commerce. They are accustomed to a hyperconnected, multichannel world. Retailers and brands everywhere are scrambling to understand what this new generation is asking for. What can you do to attract Gen Z to your home?
How can retailers attract Generation Z?
Flexible and multichannel commerce
Interactive customization
Clothing Rental Services
Quality customer interactions
What is Generation Z?
People born between 1981 and 1996 are called Millennials , and people born from 1997 onwards are called Generation Z.
1. Flexible and multichannel commerce
While Millennials grew up during the Internet boom, Gen Zers were qatar cell phone number born digital natives. Except for the oldest among them, Gen Zers can’t remember a world without the Internet. The iPhone was released in 2007, and by the time many of them were teenagers, they were able to surf the Internet using mobile devices, Wi-Fi, and cell phone networks.
Gen Zs are used to direct-to-consumer omnichannel commerce , next-day fulfillment, and personalized shopping experiences. Companies like Amazon are raising expectations, and independent retailers must adapt if they want to stay competitive. While research shows that the majority of Gen Zs (67%) still shop primarily in-store, their smartphones have become essential to the buying process, whether through webrooming or showrooming .
What is webrooming?
Webrooming is the activity of searching online for products and stores where to buy them. Customers then visit the physical store to touch, feel and test the product, before making the purchase in-store .
What is showrooming?
With showrooming , the buying process begins with searching for a product in a physical store and ends with an online purchase. This type of behavior allows customers to check prices elsewhere, read online reviews, compare several possibilities and discover discounts.
When it comes to both webrooming and showrooming , online research and in-store convenience are both important. For retailers, the key is to provide a pleasant and convenient experience in both cases. Experiential commerce uses both digital and physical touchpoints to deliver exceptional shopping experiences that aren’t just retail (and that are interesting destinations, enticing younger consumers to visit and share on social media).
Gen Z wants to be able to find what they’re looking for quickly and easily. Search functions, online ordering, in-store pickup, multiple color and style options, reviews, etc.: everything has to work perfectly if retailers are to attract Gen Z consumers — who are looking for convenience and flexibility.
2. Interactive customization
The “Z” do not intend to be simple passive consumers: they want to be in a relationship with the brands and actively participate in the creation of the product itself.
This isn’t necessarily a new trend, but it’s certainly growing. Gen Z consumers particularly value the ability to add their own personal touch to products, with 48% saying they’re looking for tools that allow them to customize products.
Co-creation and collaboration will become increasingly important in retail in the future. Brands like Nike are already moving in this direction, enabling customisation of sneakers with Nike By You (formerly NIKEiD). Adidas has tested on-demand sweaters, which can be customised and knitted on-site in a matter of hours, with its Knit For You pop-up store .