Gen Z Consumer Behavior: A Retailer’s Guide

For years, Gen Z has been battling the stereotype of a young person glued to their phone (or any other screen). Like most stereotypes, this simply isn’t true for an entire generation. Sure, Gen Z consumers grew up as the first generation exposed to digital technology from the moment they were born, but they care about much more than being chronically online.

This cohort of young consumers is quickly on track to becoming the largest generation overall with a huge amount of buying power. Retailers who aren’t focusing on Gen Z will fall behind as the generation continues to grow, spend, and influence the market.

But, what does Gen Z really want? And how can brands cater to a group that might not be as loyal as previous generations? We’re diving into all of this, and more.

Who is Gen Z? 

Generation Z can be defined as anyone born between 1997 and 2012. This means they’re currently between the ages of 12 and 27—and while the younger side of Gen Z needs to turn to their parents for purchases, the latter half is well into young adulthood with personal purchasing power.

In addition to being the youngest group of consumers with buying power, Gen Z shoppers are much more savvy than older generations. They’ve grown up in a digital world, with the internet at their fingertips for as long as they can remember. While they’re used to instant gratification, they aren’t as quick to make purchasing decisions. They’re known to be highly informed consumers—they do their research.

From stalking social media reviews to researching sustainability efforts, Gen Z isn’t afraid to take the time to vet brands and determine what will bring them the most value. It only makes sense, they’ve grown up in a world where there are an unfathomable number of brands selling similar items—they have to put effort into making confident purchasing decisions.

Why should retailers focus on Gen Z? 

Simply put, the Gen Z consumer market is growing incredibly fast, overtaking Millennials and Boomers alike. According to a report from Nielsen, Gen Z accounts for over 17% of total global spending and represents 25% of the world’s population—this makes them one of the largest generations to date. Plus, according to Bloomberg Gen Z has an estimated $360 billion in disposable income.

Retailers who aren’t mindful of Gen Z’s consumer behavior while developing their market approach will have a hard time ensuring this younger population trusts their brand. But, how can retailers target Gen Z in an authentic way that resonates with the digitally-savvy customer base?

How brands can catch Gen Z’s attention 

Develop a seamless buying journey.

Because Gen Z has never known a world without technology that makes life easier, they expect the same from brands. If they find themselves on a site that takes too long to load, or a tedious checkout process, they may abandon for a more seamless experience. Brands who want to cater to Gen Z customers should ensure their sites are optimized for user experience, and mobile-friendly. This means an easy-to-navigate UX, fast-loading product images, and auto-fill within checkout.

Focus on social media platforms.

Gen Z spends a lot of time on social media, so it’s only natural they resonate with brands who have a strong social media presence. They also consider influencer recommendations when researching brands or purchasing products. In fact, Gen Z shoppers rank online reviews as the most important factor when shopping, with most of these reviews coming from influencers and peers via social media. Lastly, Gen Z tends to prefer organic, authentic content over highly-produced content.

Invest in corporate responsibility initiatives.

Gen Z consumers tend to shop with brands that align with their own values, and they’re willing to pay more to do so. The same report by Nielsen found that ‘stacking’ environmental claims (i.e. recycled materials + carbon zero) increased the perception of value to consumers, a major aspect of Gen Z’s consumer trends. They’re very aware of how their shopping behavior impacts the environment, interested in eco-friendly buying options, and willing to spend 10% more on sustainable products.

4 Gen Z Buying Behaviors To Know 

While Gen Z consumer behavior is always changing, retailers who begin to integrate this generation’s shopping habits into their fulfillment strategy sooner rather than later will have an easier time securing new Generation Z customers.

Social commerce is a must

For Gen Z, social media isn’t just for communication—it’s a direct pathway to discovering, reviewing, and buying new products. Gen Z makes purchases directly through social media platforms like Instagram, TikTok, and Snapchat. They are highly influenced by social personalities, with influencers and micro-influencers holding significant sway over purchasing decisions. Not only this, but brands’ social media profiles play an essential role in establishing credibility.

Sustainability matters to Gen Z 

Gen Z consumers are highly environmentally conscious, often choosing brands that prioritize sustainable practices. They value eco-friendly packaging, prefer brands that use recycled or ethically sourced materials, and frequently opt for recommerce options, such as online thrifting or buying secondhand. They’re willing to pay a premium for products that align with their commitment to environmental responsibility, making sustainability an essential part of any brand’s strategy.

Omnichannel fulfillment is the way to go  

For Gen Z, convenience is crucial, and they want multiple options for shopping and receiving their orders. They often prefer omnichannel fulfillment options like “buy online, pick up in-store” (BOPIS), flexible return management (buy online, return in-store, return drop-off locations, etc.), and tracking their orders in real time. Additionally, having various delivery and pickup options is important, as it allows them to integrate their shopping experience into busy schedules.

Surprising and delighting never fails

Like their desire for online community connection, Gen Z expects personalized shopping experiences that enable brand loyalty. From fulfillment marketing initiatives like branded packaging and free samples to personalized product recommendations and surprise discounts, this generation values small, meaningful touches that show a brand cares about them as individuals. They want to feel special and appreciate brands that offer “surprise and delight” moments throughout the buying journey.

The future of Gen Z Buying 

It’s no surprise that younger consumers are shaping the future of retail. As their spending power continues to grow, Gen Z’s desire for a shopping experience that’s seamless, meaningful, and value-driven isn’t going to change. For brands, this means staying agile and responsive to Gen Z’s needs, from prioritizing social commerce and sustainable practices to delivering hyper-personalized, engaging customer experiences.

In a world where consumers have countless options, the brands that adapt to customer expectations will always thrive. By aligning with Gen Z’s digital fluency, commitment to social issues, and desire for authenticity, brands can build lasting loyalty and ensure relevance in an evolving retail landscape.