WHO IS GENERATION Z AND HOW WOULD THEY PREFER TO SHOP?

The period 1997-2012 marks the birth of Generation Z preceded by Generation X(1965-1980) and Generation Y(1981-1996).

On the technological front, Generation X grew up in the shadow of the computer revolution. It was Generation Y that saw the explosion of the Internet, whose scope into the lives of people continues to grow each passing day.

Generation Z is the first generation to have had access to all these things and more, right from when they were born. Born into the zenith of technological advancement, they cannot think of life without smartphones, high-speed internet, on-demand entertainment, and social media. Although its too early to comment on the behavior of Generation Z, ongoing research shows that these technological advancements seem to have both positive and negative impacts on their behavior.

IMPACT ON SHOPPING BEHAVIOUR

As discussed earlier, the different generations grew up witnessing different technology. But it is the Generation Z that was born with all the technology into their hands. Although we expect them to splurge on brands, Generation Z is thrifty. Price is a more significant criterion than the brand value when it comes to shopping. So, getting a GenZer to be loyal to a brand is impossible. A brand does not represent their identity as it did for the past generations. GenZers value uniqueness, transparency, and youth empowerment in a brand. Social media influencers who promote brands have a great influence on the Gen Z decision making.

The retail market is waking up to this reality as it may not thrive if it does not keep up with the changing needs of generations. Brands that were adamant about sticking on to standard designs and regular products have already begun to suffer a setback over brands that bring forth something new each season. Although Generation Z currently has limited purchasing power, they are the future.

With the older generations having limited access to technology and their unwillingness to adopt technology, retail shopping through physical stores and payment methods using cash were prominent. However, Generation Z prefers to shop online from their smartphones through apps and social media. They prefer self-service checkouts, informative touchpoints, and new payment methods such as Apple Pay, Google Pay, or Pay Pal.

It is indeed a more independent generation that likes to do things on its own. And shopping is no different. They need to find products easily without the assistance of sales staff, avoid long billing queues and have access to simple payment methods.

HOW THE RETAIL INDUSTRY OUGHT TO ADAPT TO THESE CHANGES?

With significant changes in shopping behavior, consumer expectations, and the need to provide a unique shopping experience, the retail industry is setting up virtual shops through E-commerce apps, informative touchpoints, self-service checkouts, and interactive changing rooms.

Generation Z prefers ‘fast fashion’. While the older generations believed in buying commodities once in a while that lasted longer, GenZers prefer shopping frequently and changing their possessions too often. So an e-commerce portal needs to regularly bring in new products, new designs, and new offers. Generation Z is savvy in finding good deals and are not willing to pay a full price.

Change is the only constant. We cannot stop change. The only thing we can do is to change ourselves with the changing times and generations.

HOW?

• Leverage technology to provide seamless and hassle-free shopping experiences.
• Replace stand-alone retail platforms with hybrid versions.
• Change the structure of your business by replanning transport and logistics components to provide ease, utility, and quick delivery to the customers.

It is high time that the retail industry realized this and brings forth changes in its functioning to adapt to the needs of Generation Z. The future belongs to them!