Post-Millennials, Gen Z, Next Gen… they are the generation that saw the birth of online retail, and their shopping habits, preferences and expectations will shape the future direction of the digital and retail space.
Power Retail, the leading resource for Australian online retail industry insights, has just released their nationwide ‘Shopper Profile’ research report titled, “Next Gen Shoppers”. The report provides over 80 graphs and key statistics drawn from 25,000 interviews with online shoppers aged under 25, in the last 6 months.
Managing Director of Power Retail, Grant Arnott says, “Clearly the next generation of shoppers have behaviours wildly different from the last – and it’s changing at a pace no marketers can keep up with. Our research has uncovered some critical insights about next generation shoppers that have serious implications for retailers – knowing how to navigate the next gen jungle will define how retailers are able to grow profitability in the near future.”
Key findings include:
- Shifting the payments landscape
- 17% of Gen Z shoppers paid for their last online purchase using Afterpay.
- Although this doesn’t seem like a huge figure, the fact that as a payment form it’s ahead of credit cards (at 12%), speaks volumes.
- Once these shoppers have used Buy Now, Pay Later at a retailer, they are 75% more likely to shop at that retailer again, which is a huge opportunity.
- The importance of social
- The fact that Next Gen online consumers do most of their shopping and browsing in bed (72%) or while on social media (61%), also reveals the incidental nature of their shopping behaviour and demonstrates to retailers that their communications have to be more interesting than social media and general browsing, in order to capture their attention.
- The impact of reviews
- While they may shop on the go or while scrolling Instagram, this doesn’t mean that all purchases are impulse. In fact, this segment of shoppers check an average of 2.7 product reviews before purchasing the most expensive item in their last online purchase. The research also found that on average, only 1 item was ‘unplanned’ in their last online order.
- Conversions are hard to come by
- They are also a fickle folk! Nearly 60% frequently abandon their online shopping cards prior to completing a purchase. This means that in order to capture their purchases, retailers have to put in the hard yards to make the purchase process as quick and easy as possible and reduce the potential for the shopper to have second thoughts and abandon their cart.
- Picture of a Next Gen Shopper
- Their average order value is $117. The majority (47%) believe that standard delivery should take 4-6 days and 89% prefer home delivery to other methods such as click and collect. 1/4 also have more than 6 retailer apps on their smartphone. Elements like Buy Now, Pay Later and app usage draw attention to subtle shifts that will only increase as this generation continues to develop on their purchase journey. continues
- Fashion dominates, with 43% saying most of their items in their last order were related to this category, with electronics or electrical products coming in behind at only 19%. to develop
- Shoppers look to online stores VS brick & mortar stores, with 89% stating that if they’re thinking of buying something, they will first look for it online, and 88% stating online shopping encourages them to be more of a bargain hunter.
- 45% state that most of the items they buy, are on sale or promotion. on their purchase digital space.
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