If you had to choose three phrases to describe Gen Z, what would they be? Align would go with “The enthusiastic young generation,” “The internet generation,” and “Frequent smartphone users.” Indeed, unlike previous generations like Millenials (people born between the early 1980s and the late 1990s), Gen Z has grown up in a world fully immersed in technology, social media, and instant access to information. Whether shopping, socializing, learning, or entertainment, Gen Z first turns to their smartphones. Their screens are windows to the world, shaping their thoughts, preferences, and, most importantly, their purchasing behavior.
Gen Z’s economic power is rapidly increasing, and businesses can no longer afford to overlook them. They currently comprise about 32% of the global population and are projected to control 40% of all consumer spending worldwide by 2025. This generation is set to redefine the marketplace with its unique values, spending habits, and brand expectations.
So, what really influences their purchasing decisions? Understanding Gen Z’s needs and shopping habits is crucial for businesses to develop effective strategies. Let’s explore the factors that shape Gen Z’s consumer behavior.
Who is Gen Z?
Gen Z, also known as Zoomers, refers to individuals born between 1997 and 2012 (Pew Research Center). They are the first generation to grow up entirely in the digital era, with smartphones, high-speed internet, and social media as core parts of their daily lives. Unlike Millennials, who witnessed the transition into the digital age, Gen Z has never known a world without technology. Which profoundly influences how they consume information, interact with brands, and make purchasing decisions.
This generation is highly diverse, socially conscious, and values-driven. It is financially cautious yet willing to spend on products and experiences that align with its values. Gen Z prioritizes authenticity, sustainability, and innovation in the brands it supports. It seeks personalized experiences, instant gratification, and seamless digital interactions. With over $360 billion in disposable income in the U.S. alone (Bloomberg, 2023), Gen Z is shaping the future of commerce and brand engagement like never before.
Understanding GenZ as Consumers: GenZ consumer characteristics
Gen Z is reshaping consumer behavior with its unique shopping habits, digital-first mindset, and value-driven decision-making. Unlike previous generations, Gen Z doesn’t just buy products; they invest in brands that align with their identity, beliefs, and lifestyle. Their approach to shopping is highly influenced by technology, social media, and a strong demand for authenticity. Here are some key characteristics that define Gen Z as consumers:
1. Smartphone-First Behavior
The smartphone is more than just a communication device for Gen Z—it’s a gateway to the world. According to GlobalWebIndex (2023), over 98% of Gen Zers own a smartphone, and they use it for everything from browsing products and watching reviews to making purchases and engaging with brands on social media. Mobile commerce is essential, with 52% of Gen Z in the US preferring shopping on their phones rather than desktops or in-store.
2. Digital Shopping and E-Commerce Preference
Unlike older generations who still enjoy in-store shopping, Gen Z heavily favors online shopping. According to the International Journal of Academic Research in Business and Social Sciences 2024, Generation Z has become a dominant force in shaping the future of e-commerce. This generation of customers, who are used to instantaneous information, also expect this convenience in their shopping experiences. For their fluid shopping journey, tracking shipments in real-time, receiving continuous updates on delivery progress, and accurately predicting arrival times are essential.
3. Research-Heavy Buyers
Gen Z doesn’t make impulse purchases as frequently as previous generations. They are highly informed shoppers, spending time reading reviews, comparing prices, and researching a brand’s reputation before making a decision. Around 68% of Gen Z consumers read or watch at least three reviews before purchasing. They trust honest customer feedback, peer recommendations, and influencer opinions over traditional advertising.
4. Socially Conscious and Value-Driven Shoppers
Compared to Millennials, Gen Z places greater importance on brand ethics, social responsibility, and sustainability. A PDI Technology report in 2023 found that 91% of Gen Z say they want to buy from sustainable companies. In fact, 77% of Gen Zers consider a company’s environmental and social policies before purchasing, compared to 72% of Millennials, 67% of Gen X, and 62% of Baby Boomers. They support brands aligning with their values—sustainability, ethical sourcing, diversity, or mental health advocacy.
5. Price-Conscious and Discount-Seeking
Despite valuing quality and ethics, Gen Z is also price-sensitive. They grew up during economic uncertainty and student loan crises, making them more cautious with spending than Millennials. They actively seek promotions, loyalty programs, and exclusive discounts before purchasing.
6. Social Media as a Shopping Platform
For Gen Z, social media is not just a place to connect—it’s a shopping destination. 48% of Gen Zers have purchased a product after seeing it on social media. Platforms like TikTok, Instagram, and YouTube play a crucial role in influencing their buying decisions. They engage with short-form videos, influencer recommendations, and interactive shopping features like Instagram Checkout and TikTok Shop.
The Determinants Behind Gen Z Consumer Behavior
1. The Power of Emotions and First Impressions
Gen Z isn’t just buying products—it’s buying experiences and emotions. Harvard Professor says emotional factors influence 95% of Gen Z’s purchasing decisions. First impressions matter significantly—90 % of their initial product evaluations are based on color. To captivate Gen Z consumers, brands must focus on aesthetic appeal, immersive experiences, and emotional storytelling.
2. Sustainability and Ethical Consumption
Gen Z is deeply concerned about sustainability and expects brands to share their values. Nearly 60% of Gen Z shoppers prefer clean, natural, and eco-friendly products. They value ethical production, sustainable packaging, and reduced waste. They are increasingly skeptical of greenwashing and demand credible sustainability claims from brands.
However, they are not just looking for buzzwords – they demand transparency. Greenwashing (deceptive sustainability claims) can significantly damage a brand’s reputation among this generation.
3. Price Sensitivity and Smart Shopping Habits
While Gen Z values sustainability and brand ethics, price remains a key factor, especially in the U.S. market. For example, 63% of Gen Z consumers identified price as the most critical factor influencing their cosmetic purchasing decisions, followed closely by quality at 53%12 (Statista report). They actively seek discounts, deals, and loyalty programs. Brands that provide flexible pricing strategies, student discounts, and cashback incentives can gain their loyalty.
4. Brand Loyalty and Trust
Despite being digital-savvy and always open to discovering new brands, Gen Z is surprisingly loyal once trust is established. 62% of female Gen Zers will likely repurchase from brands they trust (Morning Consult, 2023).
However, loyalty isn’t just about product quality—it’s about ongoing engagement, community-building, and personalized experiences. Brands that invest in direct communication, strong social media presence, and customer appreciation programs will retain Gen Z customers.
5. The Rise of Influencer Marketing
Gen Z consumers trust influencers more than traditional advertising. Indeed, A 2023 survey noted that 83% of Gen Z beauty shoppers purchased cosmetics online because of influencer recommendations. This means that brands must:
How Brands Can Adapt to Gen Z’s Preferences
To capture Gen Z’s attention and loyalty, brands must adapt to their digital-first lifestyle, values, and shopping habits. Unlike previous generations, Gen Z demands personalization, authenticity, and seamless omnichannel experiences. Here’s how brands can meet their expectations:
1. Leverage Social Media and Influencer Marketing
Traditional advertising no longer works with Gen Z. Instead, they discover and engage with brands on social media platforms like TikTok, Instagram, and YouTube. Gen Zers have purchased a product after seeing it on social media. Partnering with micro-influencers and content creators can boost brand trust and credibility.
2. Prioritize Authenticity and Transparency
Gen Z values honest, unfiltered communication from brands. Companies should focus on real storytelling, user-generated content, and open communication about sustainability and ethical practices. Greenwashing—pretending to be sustainable without real actions—can severely damage a brand’s reputation.
3. Offer Personalization and Seamless Digital Experiences
Gen Z expects AI-driven product recommendations, personalized offers, and chatbot support. Brands that use data-driven insights to tailor experiences will increase engagement and retention.
4. Be Affordable While Providing Value
While Gen Z seeks quality and sustainability, they are also price-conscious. Offering student discounts, loyalty rewards, and installment payment options can make high-value products more accessible.
5. Optimize for Mobile-First and Fast Transactions
With 98% of Gen Z owning smartphones, brands must ensure fast, mobile-friendly websites, social commerce integration, and one-click checkout. A slow, complicated shopping experience will push them toward competitors. By implementing these strategies, brands can win Gen Z’s trust, build long-term loyalty, and stay ahead in an ever-evolving digital landscape.
Conclusion
Gen Z is reshaping the consumer landscape with its digital-first mindset, ethical expectations, and demand for personalized experiences. Brands must adapt and innovate to stay relevant as they continue to grow in purchasing power. Businesses can win Gen Z consumers’ loyalty and thrive in the evolving retail market by focusing on authenticity, social commerce, sustainability, and influencer-driven marketing. Want to reach Gen Z effectively? Start by understanding their needs, engaging authentically, and providing value-driven experiences.
