SAN FRANCISCO, Calif. (Dec. 16, 2019) -- Retail Zipline, a communication and task management platform for retailers, today released its first-ever Z-Tail Report, a report dedicated to understanding the shopping preferences of Gen Z, today’s fastest-growing shopping segment that accounts for 40% of total retail purchases.
The report surveyed over 1,000 individuals aged 18-24 in the United States and reveals compelling insights into Gen Z’s opinions on traditional versus modern shopping experiences; their preference for brands that value people, not just products; how men and women shop; and more.
With the majority of Gen Z checking Instagram daily, retailers are leveraging influencers to endorse products more than ever before. Unexpectedly, Retail Zipline’s data shows that when it comes to discovering the latest fashion and beauty trends, a mere 7% look to celebrities for style inspiration whereas more than half (56%) of Gen Z respondents do not simulate trends they see on Instagram in their own style.
While the majority are disinterested in trends on social media, 69% of Gen Z will take fashion advice from store associates when shopping in stores. At the same time, 41% of respondents claim they’ll engage with a particular sales associate if they like what they are wearing, and when asked what would prompt one to shop repeatedly at one specific brand, 19% of respondents report genuine relationships with specific store associates.
Could a consumer brand’s Glassdoor rating matter more than its product rating? Surprisingly, Gen Z cares about how companies behind the products they buy treat and respect their own workforce. In fact, 82 percent of respondents claim they’re more likely to buy from a brand that uses ethical business practices. Of those respondents, 66 percent list fair treatment of employees as a key motivator. This exceeds the percentage of respondents who value:
“The prevailing cultural narrative often pegs Gen Z as a digital generation that gets caught up by trends they see on social media,” said Jeremy Baker, CTO and co-founder of Retail Zipline. “The reality is they care about connections and community -- we know this because they prefer to shop in situations where they can chat with their friends, engage with store associates, and feel confident that their purchase decisions are supporting businesses that treat employees well.”
Many retailers are closing permanent physical stores and opening smaller temporary pop-up experiences to attract the younger generation of shoppers, but Retail Zipline’s data indicates that retailers should actually invest in long-term physical spaces over pop-ups:
While Gen Z is divided on how tech-focused the shopping experience should be, what’s clear is they expect associates to have deep product knowledge, and customer service still matters. Although Gen Z is commonly viewed as the mobile-first generation, the data indicates that mobile payments in stores, such as Venmo or Apple Pay, don’t appeal to 46% of shoppers. Additionally, when asked what interaction one prefers with sales associates, the leading preference is a hands-on approach (65%) as opposed to a hands-off approach where they only assist when service is requested (35%).
Previous studies have concluded stark differences between the ways millennial men and women shop. While millennial preferences differ by sex, Retail Zipline’s study found that for Gen Z, the leading motivator for women and men to shop from specific brands is aligned: authenticity.
When asked which physical displays impact one’s decision to shop from a particular brand, the study shows both males and females feel similarly about engaging with brands using authentic marketing that centers around “real” people:
While conventional wisdom is that preferential differences exist by sex, the study reveals these differences are shrinking and gender lines blurring -- Gen Z values authentic brands that support people, regardless of their appearance, gender or any other attribute.
This report arrives on the heels of Retail Zipline’s Series A round led by Emergence with participation from Serena Williams through her venture firm, Serena Ventures. The investment was used to fuel Retail Zipline’s growth so the company could expand the team and continue building products that improve the lives of retail associates, a demographic that comprises one in four American jobs. Retail Zipline was recently recognized as a finalist in the first-ever Modern Retail Awards, while the company’s co-founder, Melissa Wong, was honored by the Stevie Awards for Women In Business as a Female Entrepreneur of the Year finalist.
To see the full report, go to: https://www.retailzipline.com/blog/z-tail-report-gen-z-shopping-habits
Retail Zipline surveyed 1,007 men and women via the online platform SurveyMonkey to better understand Gen Z’s shopping preference. Those surveyed were based in the United States and were between the ages of 18-24. This survey was administered from October 21, 2019 - October 24, 2019.
Retail Zipline is the leading communication and execution platform for retailers who believe in the power of the store experience. Built with the complexities of retail in mind, Retail Zipline helps HQ streamline and coordinate communications with the field, in a way that makes store teams happier and more productive. The company’s goal is to improve the lives of one million retail employees by 2025, and the platform is already used by leading brands such as Lush Cosmetics, BevMo!, Cole Haan, The Lego Group, TOMS, Torrid, Lumber Liquidators, and others. Retail Zipline is a 100% distributed company with employees across North America and Europe. They are backed by leading venture capitalists including Emergence, Serena Ventures, and Hillsven Capital. To learn more, please visit retailzipline.com.