News • 18.01.2017

98 percent of Generation Z still shop in-store

Despite living a digital life

Photo: 98 percent of Generation Z still shop in-store...
Source: panthermedia.net/Olivier-Le-Moal

Despite expectations that the first "digitally native" generation would want to shop online, a new study released today by IBM (NYSE: IBM) and the National Retail Federation found that almost all members of Generation Z prefer to shop in bricks-and-mortar stores. With the global Gen Z population set to reach 2.6 billion by 2020, retailers need to create more interactive engagement around their brands to serve the "always on," mobile-focused, high-spending demographic, according to the study.

"Generation Z expects technology to be intuitive, relevant and engaging — their last great experience is their new expectation," IBM General Manager of Global Consumer Industries Steve Laughlin said. "This presents a significant challenge for retailers and brands to create a personalized, interactive experience with the latest digital advances or risk falling behind. This kind of innovation is not linear or a one-time project — it is a new way of thinking, operating and behaving."

"Just as Millennials overtook Gen X, there's another big buying group retailers need to plan for, and it’s even larger: Generation Z," NRF President and CEO Matthew Shay said. "They appreciate the hands-on experience of shopping in a store. With technology constantly evolving but some shopping habits remaining the same, retailers need to be agile enough to serve both needs. Retailers are constantly focused on experimenting with new innovations both online and in-store to remain relevant to evolving consumer demand."

Released just ahead of NRF's 106th annual Retail's BIG Show next week in New York, the "Uniquely Gen Z" study conducted by the IBM Institute for Business Value is based on findings from more than 15,000 consumers aged 13-21 from 16 countries.

Born after the mid-1990's till early 2000s, Generation Z is the first "digitally native" group to grow up not knowing a world before cellular phones, smartphones and other digital devices. But the study found that 67 percent of Generation Z shop in a bricks-and-mortar store most of the time, with another 31 percent shopping in-store sometimes, indicating that 98 percent of Gen Z shop in store.

Generation Z consumers like to engage with brands online

The new generation is important to retailers because it has access to 44 billion Dollar in buying power, with 75 percent saying they spend more than half of the money that is available to them each month, according to the study. And the generation is demanding: the study found 52 percent of Gen Z consumers will transfer loyalty from one brand to another if the brand’s quality is not up to par. They care the most about retailers getting the basics right, with 66 percent saying product quality and availability are the most important factors when choosing one brand over another; 65 percent focus on value.

  • The study found 74 percent of respondents spend their free time online, with 25 percent online five hours or more each day. The degree to which in-store sales are influenced by digital is inevitable in today's shopping journey — and continues to grow. The study discovered a number of insights into Gen Z’s digital habits and preferences brands can leverage to reach them:  
     
  • 73 percent of Gen Z use their phones primarily to text and chat socially with family and friends, but members are willing to extend their conversations to brand relationships.
     
  • 36 percent would create digital content for a brand, 42 percent would participate in an online game for a campaign and 43 percent would participate in a product review.
     
  • They have no patience for hard-to-use technology and demand a seamless mobile/digital experience
     
  • 62 percent will not use apps or websites that are difficult to navigate and 60 percent will not use apps or websites that are slow to load.
     
  • Gen Z knows personal information is valuable to retailers, so members want to know how brands are using it and how the information will be protected

Less than 30 percent are willing to share health and wellness, location, personal life or payment information; 61 percent would feel better sharing personal information if they knew it would be securely stored and protected.

The study found that Generation Z consumers like to engage with brands online, especially with those that create an interactive environment where customers can shape their own experience. As retailers develop and engage in such practices, they will be able to capture Gen Z ideas for new products, services, engagement and shopping experiences, the study said. The generation is known to be brand champions both online and offline, especially when brands acknowledge and value their opinions.

Source: NRF

related articles:

popular articles:

Thumbnail-Photo: Walmart brings the big screen to its parking lots...
14.08.2020   #POS marketing #marketing

Walmart brings the big screen to its parking lots

Retailer’s first-ever drive-in movie theater

Walmart is lifting the curtain on plans for the Walmart Drive-in, a drive-in movie theater experience, which is rolling into 160 Walmart stores across the country beginning this month, created in partnership with the Tribeca Film Festival.Available ...

Thumbnail-Photo: The importance of effective complaint management...
12.08.2020   #customer satisfaction #customer relationship management

The importance of effective complaint management

A strategic and cross-channel approach to handling negative customer experiences

Customers are more demanding than ever, while brand loyalty is declining. Even a couple of negative experiences can alienate consumers and erode loyalty. Shoppers increasingly share bad reviews and complaints on public communication channels for ...

Thumbnail-Photo: Come together: local retailers connect with local customers...
15.09.2020   #brick and mortar retail #customer relationship management

Come together: local retailers connect with local customers

The online platform Ladenfreun.de connects local retailers with potential customers. The common denominator: A product.

How can you bridge the gap and connect online retail to pedestrian zones? A Nuremberg startup wondered how this could be accomplished and came up with a solution: Ladenfreun.de. In this interview, founder Matthias Hueber talks about the idea behind ...

Thumbnail-Photo: Inviting customers to learn new skills in virtual classes...
21.08.2020   #digital marketing #online marketing

Inviting customers to learn new skills in virtual classes

Whole Foods Market launches “Home Ec 365” with modernized lessons in #adulting

Whole Foods Market launched Home Ec 365, a digital curriculum designed to modernize the fundamentals of home economics. Through a series of virtual classes, each with a contemporary take on mastering everyday home tasks and need-to-know life skills, ...

Thumbnail-Photo: Virtual pop-up stores
29.06.2020   #virtual reality #pop-up store

Virtual pop-up stores

Here today, change Up tomorrow

They spring up like mushrooms, only to vanish again shortly thereafter – pop-up stores are trendy and now they also increasingly “pop up” online. We spoke with Mohamed Haouache, CEO and Founder of Storefront, about the magical ...

Thumbnail-Photo: 3 steps to personalisation in e-commerce
04.08.2020   #online trading #e-commerce

3 steps to personalisation in e-commerce

How retailers can build trust and foster customer loyalty

The COVID-19 pandemic has left a visible mark on the retail sector, and companies have had to find new ways to reach consumers effectively in a very short time. Many companies that had previously focused on stationary retail have expanded their ...

Thumbnail-Photo: AfterPay: Survey on the shopping behaviour of Germans...
20.07.2020   #online trading #e-commerce

AfterPay: Survey on the shopping behaviour of Germans

German consumers will make a larger share of their purchases online in July

AfterPay Insights’ end of June research – now covering more 7.400 interviews with German online shoppers – indicates that German consumers will reduce their overall purchases in July. But at the same time, German consumers say ...

Thumbnail-Photo: Labor Day ads up, consumers’ planned spend down...
04.09.2020   #online trading #e-commerce

Labor Day ads up, consumers’ planned spend down

Half of consumers plan to purchase items for Labor Day

Numerator has launched a consumer sentiment survey to understand how people plan to celebrate, shop, and spend for Labor Day. Overall, almost two-thirds of consumers expect to celebrate and shop for Labor Day differently this year and 49% expect to ...

Thumbnail-Photo: Which businesses should be open?
17.06.2020   #brick and mortar retail #coronavirus

Which businesses should be open?

MIT study looks at tradeoffs between economic value and public health, across different types of retail

Banks and bookstores. Gyms and juice bars. Dental offices and department stores. The Covid-19 crisis has shuttered some kinds of businesses, while others have stayed open. But which places represent the best and worst tradeoffs, in terms of the ...

Thumbnail-Photo: Merchants can build their own businesses by choosing the right daily...
10.08.2020   #e-commerce #online platform

Merchants can build their own businesses by choosing the right daily deal platforms

Bargaining and the three-way transaction that defines the daily deal market

Researchers from the University of Maryland and Harvard University analyzed the bargaining process between the daily deal platforms Groupon as well as LivingSocial and merchants to identify the trade-offs made by both parties during the transaction ...