It seems like there is a new article every week about how millennials are killing industries. First there was home ownership, then the diamond industry and even breakfast cereal. Brick and mortar businesses are also another industry that has been said to be on the endangered species list.
But there’s good news on the horizon with the next generation of shoppers -- Gen Z.
New research commissioned by Vibes, in conjunction with the Kellogg School of Management, shows Generation Z values the brick and mortar store. In fact, more than half (67%) prefer to shop in a store most of the time.
The team surveyed 100 Gen Z students and used secondary data to generate findings which offer insights into the kind of relationships Gen Z prefers with their phones and brands. The study affirmed the hypothesis that the best way to reach Gen Z is via the device they are on the most: mobile. After all, this generation was practically born with a phone in their hand.
According to the data, Gen Z relates to their phones in the following ways:
• Gen Z spend nearly 4 hours a day on their phone (compared to 3 hours for millennials)
• 50% of Gen Z primarily use text while shopping in a store
• 54% of Gen Z would be open to using mobile wallet to pay for goods in-store
You might be seeing now that Gen Z has the potential to be retail game-changers. The generation represents over a quarter of the U.S. population and holds a $44 billion purchasing power. Some retailers and brands have taken notice and have switched up the in-store experience store by creating “showroom” spaces where customers can interact with the product and then buy online. Most recently, Reformation, a sustainable women’s clothing brand, made headlines with its unique model of digital dressing rooms.
View all the findings in The Enormous Purchasing Power of Generation Z infographic.
The key to success for marketers is embracing the latest technology and offering a personalized experience for the shopper. This means there are huge opportunities to capitalize on SMS marketing, mobile wallet offers and rich push notifications to get Gen Z’ers through the doors. This group will value and stay loyal to a brand that engages in a personalized, 1:1 manner with them and takes note of their habits and preferences.
It’s become increasingly clear that how big-name retailers engage with customers will determine their ultimate survival – and how that engagement must stem from where their customers are: their phones.
Want to know more about consumer wants and needs in the age of the connected consumer? Check out our 2018 Mobile Consumer Report to get more insights.