… when it comes to their shopping habits
Who are they?
Those born between 1980 and 1995 are generally considered the Millennial generation. In 2020, Millennials are between 25 and 40 years old. Generation Z, or Gen Z for short, generally includes those who are born between 1996 and 2012. In 2020, the age range of Gen Z will be between 8 and 24 years.
Both generations are young. However, the way Millennials and the Generation Z interact with companies, brands or retail is very different for various reasons. It is crucial to know and to understand these reasons, for example for e-commerce.
|Observed how new technologies, innovations, digital media and social networks emerged and learned how to use them.
|They are digital natives, their world is digital from the start. The use of digital media, social networks and digital channels is quite naturally for them.
Use of mobile
|Mostly use mobile devices to go online, but they tend to use desktop computers and laptops when shopping online.
|Have a mobile-first mindset. They go primarily online with mobile devices and also use them to make purchases.
Economy & Finance
|Raised during an economic boom, Millennials are more idealistic. They tend to purchase products or services that give them instant gratification and a positive experience.
|Growing up during recession, their attitude toward money is more pragmatic. Gen Z focuses more on saving, which leads to more practical expenses that offer long-term value.
Experience vs. value
|Focus on the experience of buying something. They are more likely to make impulse purchases.
|Looks also for an experience, but buys wherever they get the best value for their money.
Trust in companies
|They are a critical generation. To gain their trust, companies and brands must be authentic, transparent and committed to their values.
|They are even more sceptical and highly informed. Authenticity, transparency, social and ecological responsibility are the most important facts to gain their trust.
|Brand names were incredibly important in their youth. Today they are willing to pay more for their preferred brands, provided they get reasonable benefits (e.g. quality).
|They are not really loyal to any brand and do not want to be defined by them. Instead, Gen Z celebrates individuality and uniqueness.
In-store & online shopping
|They were the first generation to have contact with online shopping; and they use it intensively. Which forced retailers to rethink their online sales strategies.
|Gen Z is almost always online, but in-store shopping is very important for them. They like to see and feel products to check whether they are worth buying.
Find out how exactly how Gen Z shops and how companies, brands and retailers can reach them in our blog post “How does Generation Z shop?”.