Retailers Must Adapt to Emerging Generation Z Consumers
24 January 2017 - 1:30AM
Business Wire
HRC Retail Advisory Survey Finds Gen Z
Influences Parents’ Purchases, Shops in Malls and Ranks YouTube as
Top Social Platform
With Generation Z expected to comprise 40% of the North American
Population by 2020, retailers must address the needs of this
generation and understand its purchasing power in households.
According to a survey conducted by HRC Retail Advisory, recognizing
the differences between generational segments and understanding the
implications of Generation Z’s influence will be critical in
successfully targeting and serving this age group (10-17).
“Retailers must be nimble in order to effectively appeal to
Generation Z consumers,” said Farla Efros, President of HRC Retail
Advisory. “Resonating with this group at a young age can have a
huge impact on retailers’ long term consumer retention and brand
loyalty. Social media and digital advertising will be dominant in
marketing strategies targeted to Generation Z, but retailers must
adopt these mediums in interactive ways to inspire and engage this
emerging generation of consumers.”
To better understand the growing influence of Generation Z and
the implications for retailers, HRC surveyed 3,100 participants
from the US and Canada on their attitudes, shopping habits and
influences driving their purchasing decisions.
Significant findings of the survey include:
Generation Z Strongly Influences Parents’ Purchases
Generation Z has a strong voice and expects to be heard,
especially when it comes to what their parents are buying. A
significant 82% of parents surveyed admitted that their children
have some influence over purchasing decisions, while 93% of the
Generation Z respondents say they have influence over certain
categories such as clothing, footwear, accessories and
cosmetics.
YouTube Tops Facebook As Most Visited Social Platform
YouTube is the top social platform for Generation Z with 54% of
respondents stating that they visit YouTube daily in order to
receive information. This is a significant deviation from
Millennials who named Facebook as their most visited social
platform. About 50% of Generation Z visits Facebook daily, with
Instagram and Snapchat falling behind at 34% and 29%
respectively.
According to Generation Z, Malls are Not Dead
Despite being raised with the internet, Generation Z is still
going to the mall to shop. While approximately 60% of all survey
respondents said they visit a mall or shopping center at least once
a month, a whopping 72% of Generation Z respondents said they
visited the mall at least once a month and stayed for at least an
hour, visiting 4.4 stores on the trip. Generation Z-ers are not
browsers, as 60% of these high frequency visitors go to the mall
with a clear intention of making a purchase for themselves.
Generation Z Votes Friends as Most Influential
Moving forward, retailers will need to reconsider the
implications of their selection of spokespeople to represent their
brands. A majority of Generation Z respondents (62%) deemed friends
as the most influential party on their buying decisions. Athletes
came in a distant second at 14%, with Bloggers/YouTubers closely
following at 13%. Celebrity and singer endorsements were ranked the
lowest, at 6% and 7% respectively. 89% of Generation Z respondents
also said they would be more likely to enter a store based on where
their friends shop.
Digital in their DNA
Generation Z is already buying online, and often. 50% of
Generation Z respondents stated that they shop online at least once
a month. Of those making online purchases within the last 12
months, 77% stated they have purchased something from Amazon, and
34% have purchased something from eBay.
Tips For Retailers
HRC Retail Advisory notes that retailers need to consider the
following five factors to most effectively serve Generation Z
consumers:
- Depict them as diverse (ethically,
socially, fashionably)
- Communicate more frequently in short
bursts using content
- Allow them to personalize, give them
control and preferences
- Talk to them about values and social
causes
- Instead of creating demand using
Hollywood celebrities, use real people or internet/YouTube stars to
market your brand
Notes on Survey Methodology and
Analysis
HRC Retail Advisory’s survey findings are based on a targeted
sample of four distinct demographics: Millennials with no children,
Millennial parents of children under 18, Generation X and Baby
Boomer parents of children under 18, and children ages 10-17. The
sample size was 675 per group in the United States, and 100 per
group in Canada. The survey was fielded in October 2016 and was
completed through proprietary sample sources amongst panelists who
participate in online surveys. The total sample size was 3,100
completes.
About HRC Retail
Advisory
HRC Retail Advisory is a leading strategic retail advisory firm
based in Northbrook, IL that helps retailers unlock value
across key operating functions: including helping retailers to
develop cost-effective cost infrastructures to transform their
businesses in this new economy, enhance merchandise strategy,
margin and inventory optimization, merchandise planning and
allocation, store operations including more effective labor
management and more cost-efficient supply chains. For more
information, visit www.HRCadvisory.com.
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Berns Communications GroupStacy Berns / Danielle
Poggi212-994-4660sberns@bcg-pr.com / dpoggi@bcg-pr.com