As Gen Z comes of age, their unique shopping behaviours are reshaping the retail landscape, challenging brands to adapt quickly to remain relevant. Born between the late 1990s and early 2010s, this generation has grown up with technology at their fingertips, valuing convenience, ethical practices, and authenticity in ways previous generations haven’t. By 2025, Gen Z is projected to account for a significant portion of consumer spending, making it essential for retailers to understand their preferences and adapt accordingly. Here’s an in-depth look at the key trends driving Gen Z’s shopping habits and how brands can thrive by meeting their needs.
The Rise of Ethical and Sustainable Shopping
Gen Z is highly conscious of social and environmental issues, driving a strong preference for brands with transparent, ethical, and sustainable practices. According to a 2023 report by McKinsey, over 75% of Gen Z shoppers stated that they would switch to a brand that prioritizes sustainability over one that does not. This shift reflects their desire to see brands taking responsibility for their environmental impact, from sustainable sourcing and eco-friendly packaging to fair labour practices.
Retailers that want to capture Gen Z’s loyalty need to integrate sustainability into their business model and communicate their efforts transparently. Brands like Patagonia and Allbirds have successfully attracted Gen Z shoppers by promoting eco-friendly products and supporting sustainable initiatives, proving that conscious consumerism is a key selling point for this generation.
How Brands Can Adapt
To thrive with Gen Z shoppers, brands should invest in sustainable materials, reduce waste, and adopt ethical manufacturing processes. Moreover, they should share their sustainability story across social media and marketing channels, as Gen Z appreciates authenticity and transparency. Certifications like B-Corp and partnerships with environmental organizations can also boost credibility and attract eco-conscious consumers.
The Shift to Online Shopping and Social Commerce
While previous generations may have preferred traditional retail, Gen Z is transforming e-commerce through their preference for online shopping and social commerce. A survey by Deloitte found that 67% of Gen Zers now make most of their purchases online, driven by a desire for convenience and the opportunity to browse a wider range of products. Social media platforms such as Instagram, TikTok, and Snapchat are not just sources of entertainment but also key channels for discovering and purchasing products.
Social commerce—where users can shop directly through social media platforms—has become increasingly popular with Gen Z, as it blends entertainment with shopping in a seamless experience. TikTok’s “Shop Now” feature and Instagram’s in-app checkout option make it easy for Gen Z shoppers to purchase without leaving the platform, reducing friction and aligning with their mobile-first lifestyle.
How Brands Can Adapt
Retailers can reach Gen Z shoppers by strengthening their presence on social media and leveraging platforms like TikTok and Instagram for direct shopping. Investing in influencers who align with Gen Z values, as well as creating authentic, relatable content, can drive engagement and trust. Moreover, brands should optimize their websites and checkout processes for mobile to ensure a smooth and user-friendly shopping experience.
Personalization and Digital Experiences
Gen Z values personalized shopping experiences that feel relevant and tailored to their interests. This generation is used to algorithms that recommend everything from movies to music, and they expect the same level of personalization in their shopping. Research from Accenture shows that 73% of Gen Z consumers prefer brands that offer personalized products and shopping experiences.
To meet this demand, many retailers are implementing advanced technologies like AI-powered recommendations, augmented reality (AR) fitting rooms, and virtual styling assistants. Personalization goes beyond product recommendations; it’s about engaging with Gen Z on their terms and creating unique, interactive experiences that resonate with them.
How Brands Can Adapt
Investing in personalization technology, such as AI-driven product recommendations and virtual try-on experiences, can significantly enhance the shopping experience for Gen Z. Brands should also leverage customer data (while respecting privacy) to create targeted marketing campaigns and offer tailored discounts. Creating digital experiences—such as gamified loyalty programs or immersive AR experiences—can keep Gen Z shoppers engaged and build brand loyalty.
Social Values and Brand Authenticity
Gen Z is notably driven by social values and is quick to call out brands that don’t align with their ethical standards. This generation values inclusivity, diversity, and corporate responsibility, making it essential for retailers to demonstrate authentic commitment to these principles. A survey by Sprout Social found that 71% of Gen Z consumers prefer to buy from brands that reflect their social values, including support for mental health, racial equality, and LGBTQ+ rights.
Gen Z is also highly adept at spotting inauthentic marketing. Brands that engage in “performative activism” or make insincere promises can face significant backlash on social media. Instead, Gen Z wants to see brands backing their values with action—donating to causes, partnering with non-profits, and actively engaging in community-driven initiatives.
How Brands Can Adapt
To appeal to Gen Z, brands must embody the values they promote and communicate them sincerely. This means fostering a diverse and inclusive brand image, supporting social causes, and being transparent about company policies. Engaging with Gen Z on social issues requires a genuine commitment, not just marketing tactics, as this generation values authenticity above all.
Embracing the Thrift and Resale Markets
Gen Z’s approach to shopping is also shaped by the growing popularity of secondhand and resale markets, driven by a mix of sustainability concerns and a desire for unique fashion. Platforms like Depop, Poshmark, and ThredUp have seen a surge in popularity among Gen Z, who view secondhand shopping as a sustainable and affordable way to experiment with fashion. A report by ThredUp projects that the secondhand market will reach $77 billion by 2025, with Gen Z leading this trend.
Retailers can tap into this market by exploring resale initiatives or creating partnerships with resale platforms. Some brands, such as Levi’s and Patagonia, have launched their own resale programs to align with Gen Z’s interest in sustainable fashion and “circular” shopping.
How Brands Can Adapt
To capture Gen Z’s interest in the resale market, brands can consider launching buy-back programs, creating vintage collections, or partnering with popular resale platforms. Offering trade-in or recycling incentives can also demonstrate a commitment to sustainability, while helping Gen Z access products at more affordable prices.
In Conclusion
As we approach 2025, Gen Z’s shopping habits are reshaping retail, pushing brands toward more sustainable, ethical, and innovative practices. This generation’s emphasis on sustainability, digital convenience, personalization, and authenticity is creating both challenges and opportunities for retailers. By adapting to these values, retailers can build meaningful connections with Gen Z, fostering loyalty and driving growth in the years to come.
Brands that understand and embrace Gen Z’s unique preferences—such as sustainable practices, online convenience, personalized experiences, and a commitment to social values—will be well-positioned to thrive in the evolving retail landscape. For retailers, adapting to the Gen Z mindset isn’t just a competitive advantage; it’s a crucial step toward future-proofing their business in a rapidly changing world.
