The Coronavirus has changed the way consumers shop. Given the various lockdowns throughout the last year, the fashion retail landscape has shifted to consumers purchasing more products online. Generation Z, those born between 1995-2010, have a significant buying impact and, according to new reports, have a spending power of 140 billion dollars annually.
With Gen Z accounting for 2.6 billion individuals worldwide, the future of shopping is heavily influenced by this age group. New reports from DealAid.org, a Toronto-based online retailer that lets consumers shop and donate to charities simultaneously, stated that 87.6 percent of Gen Z consumers do more shopping online than in-stores, with Amazon and Walmart begin the two most popular shopping apps among Gen Z.
Results were taken from surveying 1,130 Gen Z consumers in the US between the ages of 18-24. On average, Gen Z shoppers spent 294 dollars a month shopping online, with 12.1 percent using Buy Now, Pay Later options online in the past 12 months.
Furthermore, 62.8 percent of Gen Z consumers use a desktop or laptop when shopping online, while 36.3 percent use their mobile devices.
Price is the number one factor for young consumers, with 59.3 percent saying they only buy when an item is discounted. Shipping costs and delivery also play an important aspect, with 55.8 percent of consumers taking shipping into account and 46 percent saying they look for a flexible return policy.
“What’s fascinating is that an overwhelming majority of Gen Z have not even reached peak purchasing power yet but they already influence up to 600 billion dollars in spending by others,” stated Malia McCabe in the report findings.
McCabe added that it is essential for marketers to understand how Generation Z shops, where they shop, and what influences their shopping decisions. “Gen Z is projected to facilitate an astounding 680 billion dollars of transactions by 2025.”