Unlike millennials and older generations who were more loyal to brands, Gen Z consumers prefer brands that give them the best value based on their price.
With a purchasing power of more than $143 billion, Gen Z has the power the shake up the retail industry. According to Afterpay’s 2021 Next Gen Index, Gen Z accounted for an estimated 5% share of the total spending in the US. But, the number is expected to grow 10% by 2030. But, these young consumers shop and spend money much differently than their predecessors.
In addition to that, a 2021 Consumer Culture Report by 5WPR found the demographic is online for 43 minutes more than they did before the pandemic. 77% of Gen Z said online shopping allows them to discover products from new or small businesses they would not find in person. In contrast, only 38% of Gen Z consumers prefer in-store shopping.
The 5WPR study further found that Gen Z prioritises electronics and technology along with health and wellness. But, 80% of Gen Z also reported they would wait for an item to go on sale before buying it. The youngest demographic also places more value on small businesses than their past generations.
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