Understanding Gen Z Shoppers

The new kids are on the block.

Consumer research group IRI recently announced its findings from two studies examining the shopping attitudes, behaviors and emotional drivers of Generation Z. In partnership with The Family Room LLC, a strategic research and brand innovation agency, IRI conducted both qualitative as well as quantitative research for the generational surveys.

Gen Z may be young (under 21), but they carry a significant amount of influence on the consumption habits of their household. About 47 percent of Gen Z members ages 18-21 participate in their households’ grocery shopping and spend an average of $12.29 more per basket per trip compared those without one ($51.80 vs. $39.51).

Gen Z currently accounts for 23 percent of the U.S. population and, with an average weekly allowance $16.90, the generation has $44 billion to spend. But their importance goes beyond their own expenses.

“What makes Gen Z really interesting to us is not how much they currently have to spend, or what they are personally buying right now, it’s how much influence they have on the purchasing behavior of those both inside and outside of their generation,” Lynne Gillis, principal of survey and segmentation for IRI, said in an email to NOSH.

Not every brand has what it takes to connect with Gen Z; there are distinct traits that these shoppers are looking for. In particular, Gen Z is drawn to authentic brands that personally connect with its customers.

“Gen Z is notably open to personalization, as long as it’s relevant to them and done in a meaningful and authentic way,” Gillis said. “These kids abhor being ‘sold to’ and can spot that a mile away.”

How do you accomplish this without “selling” to them? IRI found that social media is an effective way accomplish personalization, noting that 38 percent of Gen Z members think its cool to see ads or promotions in their social media feeds. Through their qualitative research, IRI found that Snapchat and Instagram were the most popular applications. Gen Z considered Facebook outdated and for older consumers.

“[More] important than the platform itself is the relationship that is established between a brand and Gen Z through social media,” Gillis said. “This is a generation that is not overly impressed with celebrity. They are much more likely to be positively influenced by ‘one of their own’ – that is, influencers who are relatable, not necessarily famous.”

IRI found brands that are dynamic in their approach to personalization and that create focused, omni-channel engagement have the most success among this younger generation. They also found that those who cater to engage the consumer through their innovation processes also reaped the sales rewards. Conveying the health benefits of a product is also key, as 66 percent of the Gen Z population said that “feeling good about who I am” is part of being healthy. But above all, a successful brand connects to its customer at a deep, emotional level.

“These are kids who are driven by brands that take the time to really get to know them and meet their specific needs,” said Gillis.