Editor's Picks, Retail

Gen Z prefer “real-world retail” over online shopping

Criteo has released findings from its Gen Z Report, based on the Criteo Shopper Story. The report analysed shopping perceptions from thousands of members of Generation Z (Gen Z) and found that this powerful group of shoppers share a love of real-world retail experience, augmented by technology. The report also revealed key findings about the demographic’s spending power, retail behaviors and expectations.

“In the Middle East, youth under 24 years of age make up about half of the total population, providing immense opportunities for retailers and marketers. The same set of rules that worked with millennials don’t apply to this generation, with the prime difference being that Gen Z embraces physical shopping again, supported by the use of technology. Retailers must therefore target this mobile-focused generation with a highly personalized ad experience and take a powerful omnichannel approach to address evolving consumer behavior and needs,” Alexander Gösswein, Regional Managing Director Central Europe, MEA and Russia, Criteo said.

Gen Z is young and mobile – they crave novelty and experience. The Instagram generation lives by visuals and expects their retailers to make experiences cool and aesthetic, show how products are used, and feature them in their best light. To do this, retailers must improve the online experience and enhance store display and design. Retailers and brands that embody Gen Z values, and ultimately win their loyalty, offer personalized experiences, limited-edition merchandise, uncommon products, good-looking stores and authentic brand stories.

According to the report, Gen Z demonstrates significant spending power both online and off. The amount Gen Z spends across categories is strong, particularly in consumer electronics where they spend an average of $220 online and $169 offline over a six-month period.

Gen Z spends more time on their mobile devices than any other generation, clocking in 11 hours of mobile online access per week (not counting work and email).

They are also frequent web watchers. From TV shows and online videos to music and podcasts, Gen Z loves to watch and listen from the web. This group streams 22 hours of video content per week.

Gen Z values real-world retail for experience and discovery. While 77 percent prefer to do as much shopping as possible online, 80 percent look forward to shopping in store when they have time.

Over 50 percent of Gen Z indicated that retail websites and apps are more influential in the purchasing process than search, TV ads or online banner ads.

Gen Z is more likely to regularly Scan & Scram and less likely to Click & Collect. They also research online but buy in store, with 34 percent engaging in Webrooming (research online, buy in-store) and 23 percent engaging in Showrooming (see it in store, buy it online).

Lastly, the study noted that Gen Z wants everything personalized, including ads. 63 percent say they like ads that provide value.


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