How Gen Z Might Change the Way We Shop

Gen Z might be young, but many of them are recent graduates that are entering the workforce. This means that this generation is on track to earn money that they can spend on your goods and services. Gen Z is changing the landscape of shopping by having different habits than the generations before them. These habits are single-handedly changing the way we understand consumer behavior. Moving forward, Gen Z will need to be understood in order for the economy to benefit.

Gen Z Is Tech Savvy

Gen Z is by far the most tech-savvy generation. They are engaging with technology at a higher rate than previous generations and making this technology part of their lifestyle. The average Gen Z individual spends about 7 hours a day online, which is an incredible amount of time. If a business does not have an online presence, right now might be a good time to consider joining in. An online presence can be through ads, search engines, websites or social media engagement. Gen Z is online most of the time during the day, if your business isn’t present you will most likely be missed.

Gen Z Is Frugal

Another characteristic of Gen Z is their frugalness. Finances have been introduced to this particular demographic earlier than the generations prior to them. Attempting to list products or services higher than their value isn’t going to fool this generation. Price comparisons are known in this demographic more often, meaning that competitive pricing will start to become a more popular choice. Big brand names that over-price items based on their influence will need to start adjusting the way they price their items. The future of shopping for Gen Z will be based on value rather than a brand’s name or influence.

Gen Z Isn't a Huge Fan of Credit Cards

Finally, Gen Z is changing the way we previously understood consumer behavior actually occurs during the checkout process. They have grown up in an era of rapid technological advancement, which has changed their worldview and the way they spend and save money. As this age group becomes more financially independent, many are opting to use debit cards and cash rather than credit cards. This is because they don't trust the financial institutions that issue them — they think they're too expensive or unnecessary. Around 73% of Gen Z don’t have a credit card and even more so, about half don’t plan on opening one. This means that businesses will need to explore alternative payment methods in order to win this generation over. These other payment methods can include mobile payments, prepaid cards, cash, digital wallets and even cryptocurrencies.

In Conclusion,

Though we can only speculate on how Gen Z will change online shopping, one thing seems certain: they'll take it by storm. Their unique traits as a generation present myriad opportunities and challenges for online retailers, especially those who want to be taken seriously. The key to staying ahead of the curve lies in catering to Gen Z's perspective, using innovative and thoughtful technologies that they expect to find. With all this momentum working in their favor, Gen Z has the potential to be a powerful player in the future of online shopping. It will be interesting to see how this demographic will continue to grow and evolve as they mature, and how these young consumers will change the face of ecommerce in the process.