Are you getting to know Gen Z shoppers?

If I’ve learned nothing else during my tenure reporting on the home furnishings industry, it has been these two takeaways:

1. We are anything but a one-size-fits-all sector.

2. Despite touting our lofty ability to offer consumers beautiful homes accented by color, design, beauty, fashion and style, we often lead the pack in race to the bottom when it comes to price.

When I first started reporting on the business back in the early 1990s, $300 sofas were everywhere.

News flash! They still are today.

Clearly, in our segment, some things just seem to never change. Except they do. And when we fail to keep up with paradigm shifts, our businesses turn to, well, shift.

I just read a just-released paper from McKinsey & Co. that does a deep dive on Gen Z.

You can (and should) read the entire report here, as it has some fascinating insights into what makes this group tick … and buy.  

I am not going to summarize the entire report here, but do want to share some of the findings about some of the unique characteristics of Gen Z.

The report explains that Gen Z refers to people born between 1996 and 2010. McKinsey refers to them as “digital natives,” in recognition of their being the first generation to grow up with the internet.

They are an interesting group in that the oldest Gen Zers have jobs and mortgages, while the youngest are still preteens.

Clearly, the older Gen Zers are potential customers and the younger ones will be, so it makes sense — and dollars — to understand a bit about them.

Looking for Gen Z? Go online.

According to the report, “As the first real digital natives, Gen Zers — speaking generally — are extremely online. Gen Zers are known for working, shopping, dating and making friends online; in Asia, Gen Zers spend six or more hours per day on their phones.”

The report also found that because of having grown up with social media, “Gen Zers curate their online selves more carefully than those in prior generations have, and they are more likely to turn to trends of anonymity, more personalized feeds and a smaller online presence, even as they voraciously consume media online.”

The report also looked at what Gen Z shoppers want and found the following:

  • Consumption is about access rather than ownership — Gen Zers subscribe to streaming platforms instead of buying films or music. This trend extends beyond entertainment — even to services like car shares or luxury-clothing rentals.
  • Gen Zers accept that their tastes might change, and they are more likely to spend on experiences that enrich their day-to-day lives than millennials, who are more likely to splurge on luxury.
  • Members of this generation care about ease of use: mobile pay, app-based services and simple online transactions are important, and brands have found major success by restructuring to suit Gen Z tastes.
  • Gen Zers like brick-and-mortar stores more than millennials do but still want a great online shopping experience. Some brands have even found success through online-first launches, often supported by Gen Z consumers.
  • Ads are everywhere; Gen Zers experience brands “at every moment” as they move through their digital and physical worlds.

As a generation that holds values in high esteem, it is not surprising that the study concluded that Gen Z shoppers expect the same from the retailers they frequent.

Specifically, the study found that Gen Z shoppers often select brands that convey a strong story or purpose, as well as those committed to green practices.

In fact, in another McKinsey study, 73% of Gen Z reported trying to purchase from companies they consider ethical, and nine out of 10 believe that companies have a responsibility to address environmental and social issues.

With each passing day, Gen Z shoppers are likely to be increasingly important to your business.

My question to you is this: Will you be increasingly important to them?

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