3 ways Gen Z is paving their own path to purchase

“If you’re a marketer looking to reach Gen Z, you need to be everywhere,” our analyst Blake Droesch said. Although Gen Z spends a significant amount of time on social media, engaged in newer buying behavior such as social commerce, they also rely on physical stores. Here are three ways Gen Z’s path to purchase stands out.

Gen Zers put thought behind their purchases

“The most surprising thing about Gen Z is that they are more calculated in their purchase decisions compared with older generations,” Droesch said. Because they are younger, with less spending power, they’re looking to maximize their limited discretionary funds, “which leads to a higher degree of evaluation before making new purchases.”

Consumers have relied on word of mouth or in-store associates for product information, but digital native Gen Zers have more access and familiarity to research tools. “Gen Z is more acclimated to all of the digital resources available, whether it’s looking up reviews on Reddit or using mobile apps to enhance the in-store experience,” Droesch said. “It’s a new shopping habit that is entirely different from other generations.”

• 19.6% of US Gen Z shoppers will look up a brand or product on social media before making a purchase, compared with only 7.4% of non-Gen Zers, per our Gen Z Path to Purchase 2024 report.
• After discovering a new brand or product on social media, 44.3% of Gen Z shoppers will talk to family and friends before making the purchase, the same report found. Only 9.6% purchase the item right away.

TikTok is Gen Z’s preferred way to discover and research

“TikTok has really become the platform of choice for Gen Z, not solely for shopping, but for content in general. The platforms that attract the most eyeballs are going to become the most influential for shopping,” Droesch said.

• This year, 71.2% of all US Gen Zers will use TikTok at least once per month, per our June 2024 forecast. Its penetration will slowly rise over the next few years, per our May 2024 forecast.
• Gen Zers aged 18 to 24 will spend 57 minutes (0:57) per day on TikTok, more than any other age group.
• Two-thirds (66.5%) of Gen Zers discover new brands and products on TikTok. Instagram ranks a close second.

TikTok’s role goes beyond awareness and consideration. “As TikTok scaled, it developed a lot of shopping integrations very quickly,” Droesch said. “As a result, it matured in social commerce much faster than other platforms such as Instagram and YouTube.”

Despite the influence of social media, Gen Zers still rely on physical stores

“Physical stores are just as big of an influence on brand and product awareness for Gen Z as they are for other generations,” Droesch said.

• Half (50.6%) of US Gen Zers recently purchased a product they discovered in-store, per our survey.
• For Gen Z, physical stores were the top awareness drivers in all nine product categories we track, including clothing, shoes, and accessories.
• The physical store is the most common way for Gen Z to convert, over websites, mobile apps, and social media.

“Shopping in-store is very much a social activity for young people,” Droesch said, “which is why retailers need to capitalize on fostering fun, experiential aspects of it.”

Key takeaway: “Marketers should consider all of the little corners of the internet where Gen Z spends time,” Droesch said. For example, invest in Twitch to reach Gen Zers interested in gaming or podcasts for those interested in politics. “Because Gen Z is so digitally savvy, there’s more value in these different microcommunities.”

In addition, “digital investments shouldn’t necessarily come at the expense of traditional marketing tactics, which can also be really effective,” Droesch said. Because the physical store is still influential, coupons, smart pricing schemes, and other strategies to drive foot traffic are still effective.

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