Ages 10 to 25 make up Gen Z or the ‘Zero to Nineties’ generation. Unlike the Millennial generation before them, who grew up with analog technology, Gen Z is completely at home in the digital world and devours media in the digital realm.
Gen Zs have been called the ‘Instagram generation’ since they have helped spread the platform's popularity and expanded the app's capabilities. It's safe to assume that a sizable portion of Generation Z shares the enthusiasm for whatever ‘trend’ or ‘challenge’ has just gained traction on social media. The people from this generation are powerful influencers that can change brand and marketing tactics because they are disruptive, outspoken, and unafraid both online and off.
How Does Generation Z Shop?
Understanding Gen Z's buying habits is important since they are the newest generation to enter the workforce and have purchasing power. They are willing to buy from a variety of stores, prefer high-quality goods, and are interested in what's going on in the world.
• Sustainability Matters - Concern for the environment and future generations is widespread among today's generation, making them a promising market for long-term commercial success. They look at previous generations as symbols of excessive consumerism, corporate greed, and materialistic excess. They are more inclined to purchase environmentally friendly, high-quality goods and this trend is expected to continue among Gen Z buyers. They want personalized items and are drawn to companies that reflect their personal points of view.
• Trust Issues- It may seem strange considering that Generation Z has easy access to smartphones and electronics, but they are insistent about physically visiting the store and making the choice. Millennials were offered the advantage of internet purchasing and door-to-door delivery. However, Gen Z is a skeptical generation that needs to see and experience something before they believe it.
• Don't Just Buy the Product; Buy the Story As Well - Generation Z is not keen on your product like the generations before them unless the brand's story is fascinating to them. They might look at your online persona, but if it doesn't tell your story, they are NOT INTERESTED. Gen Z doesn't just buy the product; they also buy the story behind it and how it relates to them.
• Tried and Tested - Due to their high standards, members of Generation Z are often credited with popularising the term ‘influencer marketing’. With the advent of cutting-edge social media sites like Instagram, YouTube, Facebook, and the newest sensation, TikTok, digital influencers have risen to prominence thanks to their engaging and compact content. Influencers who have tested and proven your items have an enormous effect on Generation Z, who are more likely to trust what they say if it comes from an influencer they look up to.
Retailers, Get Ready!
Now that the core knowledge of how Generation Z spends has been established, Let's examine how retail firms may step up their game to win over the next generation of consumers.
• Be Authentic - The destiny of your business may be decided by this generation of consumers. Discover their interests, adjust to them, and develop services and content that will best engage them. Both honesty and distinctiveness are essential. Customers from Gen Z are drawn to companies that not only celebrate their uniqueness but also find creative ways to show it.
Generation Z, having grown up with social media, is looking for genuine relationships with businesses and communities. And this is altering how companies need to communicate with their customers. Generation Z appreciates it when brands demonstrate concern for them by changing to match their interests and preferences. The modern consumer expects businesses to take stands on social justice issues, adapt their business models to meet their evolving requirements, and make their services and goods accessible in ways that are both simple and fast to use.
• Make Good Use of Social Media - Social media platforms provide a wonderful chance to communicate with customers, develop emotional connections, and earn devoted customers. The current trend expects brands to appeal to Generation Z by producing little, bite-sized content that helps them avoid an overload of information while also demonstrating that you value their time. The social networking platform is no longer what it once was. Retail brands should engage their customers rather than merely preach about them.
• Stay Relevant - It is more important than ever to keep up with current trends. The greater the retail businesses' awareness of the most recent trends or buzz that Gen Z is into, the greater the likelihood that they will discover your company. The best way for marketers to stay ahead of the curve is to imitate their most beloved personalities and cultural icons. Members of Generation Z are smart consumers of digital media who can quickly assess the quality of a piece of material and decide whether or not they should invest their time in it. And if you want Generation Z to care about your business, you need to ‘Stay Woke’ and keep up with the times.
• Give Them Experience - Gen Z values experience more than material goods. Many members of Generation Z see shopping as more of an adventure than a chore. In other words, people actively seek out businesses that appeal to their need for individuality, provide them with something more than a simple product or service, and encourage them to participate in the creation of the brand's identity. This creates a whole new kind of consumer for brands to appeal to, one that expects a brand to uniquely fit their personality and way of life. Experiences, whether made possible by cutting-edge technology or gamification of the content, are what will get the attention of today's generation and bring them to your business.
• Switch to Influencer Marketing - Careful consideration must be given to identifying influencers who are in line with the brand's values and the audience they are seeking to target. Companies trying to engage with Generation Z should pick influencers who operate more like micro-influencers with peer-to-peer influence than like celebrities or brand advocates. Micro-influencers typically treat their followers like friends and seek to build a deep, personal relationship with them. That's why it's time for retail firms to switch to this kind of marketing because it works.
Gen Z is here, and they are seeking more than simply a brand's product or service. Retailers should take notice of what works well and prepare to target the somewhat more challenging next generation. With 2.56 billion Gen Zers expected to enter the market in full force soon, it is one that cannot be ignored or subdued. It's time for retail brands to make shopping more enjoyable, interesting, and profitable for both customers and businesses
In today's dynamic retail environment, understanding the nuances between store retail and non-store retail is crucial for entrepreneurs and business owners. These two retail models cater to different customer needs and preferences, shaping the way we think about shopping and commerce.
Store retail, often synonymous with brick-and-mortar stores, offers a tangible shopping experience. Customers value the sensory engagement – the ability to touch, feel, and try products. This model thrives on personal interaction and immediate gratification. A customer in Chennai shared, "I prefer store shopping for clothes, as I can try them on for the perfect fit." Indeed, a 2023 survey revealed that 65% of shoppers prefer buying certain items in-store due to these factors.
Moreover, store retail supports the local economy. Small businesses and retailers form the backbone of communities, offering personalized services. A study by the Retailers Association of India highlighted that small retail businesses contribute significantly to local employment, accounting for about 10% of the workforce.
On the flip side, non-store retail, which includes online shopping, direct selling, and telemarketing, has transformed the retail landscape. The ease of shopping from anywhere at any time is its biggest allure. A Bengaluru-based entrepreneur mentioned, "Online shopping has been a game changer for my business, allowing me to reach customers nationwide."
Statistics reinforce this trend. In 2023, e-commerce in India saw a 30% growth, indicating a shift in consumer behavior. This model also offers wider selections and competitive pricing, driven by lower overhead costs.
Balancing Both Worlds
For businesses, the key is in balancing both models. A hybrid approach caters to diverse customer preferences. An innovative example is a Mumbai retailer who integrated QR codes in their physical store, enabling customers to scan and learn more about products online.
Here's a tabular comparison highlighting key differences:
|Sensory engagement, personal interaction, immediate gratification.
|Shopping from anywhere, anytime convenience.
|Contributes to local employment (approx. 10% of workforce in India).
|Rapid growth (30% increase in e-commerce in India, 2023).
|Ability to touch, feel, and try products.
|Often relies on product descriptions and reviews.
|Preferred for certain items (65% of shoppers for clothes, as per 2023 survey).
|Increasingly popular for a wide range of products.
|Requires physical space, higher overhead costs.
|Lower overhead costs, wider reach.
|Supports local economy, community-centric.
|Less direct local economic impact, but broader market access.
|Innovating with technology integration (e.g., in-store QR codes).
|Continuously evolving platforms and delivery methods.
In summary, the retail terrain is characterized by the unique yet harmonious functions of store-based and non-store retailing. Store retail, celebrated for its tactile experience and instant satisfaction, remains a favored choice for many shoppers, especially for items where physical interaction is key. Conversely, non-store retail has transformed the way we shop through its unparalleled ease and extensive scope, propelled by the expansion of digital platforms.
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