Gen-Z consumers are the real movers and shakers in today’s e-commerce landscape.
Born between 1995 and 2010, Gen-Zs are true digital natives whose exposure to a myriad of social networks and mobile systems have made them a highly cognitive generation comfortable with various information sources and integrating virtual and offline experiences. And they will soon surpass millennials as the most populous generation on Earth, comprising over one-third of the world’s population.
Click to read our e-book “Malaysia – How BNPL empowers retailers and e-tailers to reach outside the box” to discover more about the Gen-Z consumption growth story and gain insights on how brands can reach and resonate with this market.
In this blog post, we highlight the three key trends that make Gen-Z a unique cohort of consumers and how retailers can unlock new opportunities for retailers seeking growth.
Trend 1: The rise of the singles economy
Households are getting smaller. Over the past twenty years, the average size of households has declined in advanced Asian economies, with nearly one-third of households being single-person ones, which has formed a robust “single economy”.
The growing number of single people will spur new consumption habits. It’s set to boost segments of the economy where single people historically spend more, including health and sport, personal care, food away from home, and luxury and electric automobiles. To win over this group, brands need to truly understand the lifestyle of singles and their motivations.
For instance, single people’s desire for companionship could boost the pet industry. Unlike the past where pets may be seen as an accessory for the owner, they could now be considered to be a real family member. Along with the soaring ownership of pets, the pet food market and pet fashion market may also see huge growth as well.
Trend 2: More wellness enthusiasts
The growing number of singles living alone may spark a rising emphasis on healthy living and health consciousness. As a result, this could lead to rapid expansion of the health and sports market.
Athletic brands like Nike, Lululemon and Under Armour, are expected to benefit because both single men and women tend to spend more time exercising than their married counterparts, increasing the need for workout gear, according to a Morgan Stanley study.
The Covid-19 pandemic has also reinforced consumers’ awareness of the importance on health and wellness. Amid the restrictions, demand for athleisure and activewear has surged and even sales of bicycles.
The world has seen a shift towards digital-enabled fitness solutions too. As consumers continue their work-from-home arrangements, they are naturally drawn to the convenience and personalisation such solutions bring. Digital solution providers can channel their efforts to build a community and look at ways on how to build a high-quality fitness environment.
Trend 3: SHEconomy
According to a Morgan Stanley report, “the Rise of SHEconomy”, never-married women have become the fastest-growing segment of the female population. Furthermore, single women outspend the average household.
Naturally, Gen-Z, which has contributed to a more diverse and inclusive society, will continue this trend. We can expect to see more single women who are more willing to lead a high-quality and niche lifestyle. For instance, spending more on personal care products, beauty products and so on.
Interestingly, Gen-Z are spending more on makeup than any other generation did at the same age. In the restaurant space, fast casual chains should capitalise on how single women may favour small and fancier coffeehouses, for instance.
The future ahead is truly exciting and retailers need to be equally agile as well.
In order to capture the attention of Gen-Z, brands can consider harnessing live-streaming to enable Gen Z viewers to watch, interact and shop simultaneously. Traditional retailers also need to reinvent their operations, create new services and experience tools and create an omnichannel approach. Convenience will be a top priority for Gen Z consumers who demand a seamless shopping experience across different channels.
Headquartered in Singapore with over 5000 partnered merchants and available in 9 markets, Atome offers its users the choice and convenience of flexible payment options for a variety of products and services. The app allows shoppers to split their purchases over three interest-free monthly payments by scanning a partner retailer’s in-store QR code or upon website checkout. By splitting their payments, Atome users will be able to better manage their budget while making quality products and services more reachable.
Find out more in our e-book “Malaysia – How BNPL empowers retailers and e-tailers to reach outside the box” on the key actions and strategies to better attract this market.
They are the game-changers. If you overlook Gen-Z, you will miss the future.