ICSC: 85% of Gen Z says social media impacts purchase decisions

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Dive Brief:

Brands betting on social media to achieve Gen Z could also be heading in the right direction. Eighty-five % of respondents within the era mentioned social media influences their buying decisions, in line with a report by the International Council of Shopping Centers launched Wednesday. Eighty-five % of males and 86% of girls mentioned social media sways their shopping for decisions. 
Forty-five % of Gen Z respondents named TikTok and Instagram as the highest platforms influencing their buying decisions, adopted by YouTube (38%), Facebook (24%), Snapchat (17%), Twitter (14%) and Reddit (7%). 
In phrases of which retailers Gen Z retailers, virtually half (48%) mentioned they most often store at low cost or off-price shops, adopted by greenback shops (25%), specialty retailers (24%), fast-fashion retailers (22%) and shops (21%). Only 13% of survey respondents mentioned they store secondhand most often, and simply 9% mentioned the identical of luxurious retailers.

Dive Insight:
ICSC’s new report additionally affords insights into Gen Z’s monetary habits and issues. Forty-one % of Gen Z respondents mentioned they save extra money than they spend, however 36% mentioned they spend greater than they save. Eighty-four % of older Gen Z customers, between 23 and 26 years previous, are involved concerning the U.S. economic system, a higher share than the 71% of 16- to 17-year-olds who mentioned the identical. 
The report builds upon different analysis indicating that Gen Z consumers are fearful about their funds. In a spring 2023 Piper Sandler survey, teenagers’ self-reported spending rose 2% from the yr prior. However, a September 2022 Bank of America report discovered that 73% of Gen Z customers mentioned the financial surroundings was making it difficult to put aside cash. And greater than half (56%) mentioned inflation had put extra stress on them financially. 
The report additionally sheds some mild on what components of the procuring expertise matter most to Gen Z consumers. Nearly half (46%) of Gen Z respondents mentioned a seamless checkout course of is essential to their procuring expertise, adopted by quick delivery (45%) and instant in-store availability (39%). Under a 3rd of respondents (31%) additionally mentioned free returns, and fast and useful customer support (27%) are essential for his or her procuring expertise. 
“Gen Z is an more and more necessary demographic as extra of them graduate from faculty, transition to their first full-time job, and mature into extra spending energy,” ICSC President and CEO Tom McGee mentioned in an announcement. “Our research discovered that many of the stereotypes and preconceived notions connected to this cohort are unfounded, nevertheless, their habits will affect retail technique, market make-up and broader financial developments for years to come back.”
With Gen Z’s reliance on TikTok and Instagram, some legacy manufacturers have leaned extra towards social media advertising and marketing to court docket Gen Z consumers as a substitute of spreading their spend throughout extra conventional channels. But whereas social media holds sway over the demographic’s decisions, ICSC’s report additionally discovered that greater than half (56%) of respondents say household and mates have essentially the most vital affect over their shopping for decisions, adopted by product opinions (54%) and third-party evaluate web sites and boards (47%).

https://www.retaildive.com/information/generation-z-social-media-influence-shopping-behavior-purchases-tiktok-instagram/652576/