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While in-store is the No. 1 way Gen Z discovers clothing, 39.0% of US Gen Z clothing buyers have used social media to discover new apparel brands or products over the last six months, according to our September 2023 survey.

Gen Zers will drive the growth of emerging payment methods, opening the door for providers to reach them through digital and mobile. But card-based payment methods are still relevant. To tap their rising spending power, providers must align their offerings with how Gen Z prefers to pay.

Gen Zers are ready to spend. The majority will be adults in 2023, meaning increased spending power. And they rely heavily on digital when making purchases: Gen Z will surpass Gen X in the number of US digital buyers by 2025, per our forecast.

TikTok remains Gen Zers鈥� preferred social network in terms of time spent, but its growth is hitting a wall. That鈥檚 natural, given the enormous amount of time they鈥檙e already spending on the app.

Gen Zers make up about 20% of the US population, and they鈥檙e growing up. The digitally native generation has unique shopping habits after going through the pandemic during their formative years. From TikTok to the creator economy to payments trends, here鈥檚 how our analysts predict Gen Z will change shopping.

Gen Z consumers are tech-savvy digital natives that feel more comfortable searching for products on social platforms like TikTok over traditional search engines like Google. Even when they鈥檙e shopping in-store, they employ technology to help them, browsing mobile phones and using self-checkout to make the shopping experience more seamless.

Gen Z will make up 20% of the population in the US this year, putting it solidly in line with millennials, Gen X, and baby boomers, per the US Census Bureau. That said, 42% of Gen Zers will still be minors, and as a result their spending power will remain below that of older generations.

Just 39.6% of US Gen Z mobile banking users feel comfortable saving for the long term given their financial situation, per our September 2023 survey.

Gen Z is slightly less concerned than any other generation about buying from brands that reflect their social values, according to December 2022 data from Morning Consult.

Over half (51%) of Gen Z consumers worldwide use social media to look up a brand versus 45% who turn to search engines, per GWI Core data from 2023.

For Gen Z, music festivals like Coachella or Stagecoach aren鈥檛 just about the music鈥攖hey鈥檙e about self-expression. Because of how closely Gen Z links festivals and fashion, apparel brands like Pascun are using the events to connect with the young festivalgoers. And Pinterest is tapping both online and on-site activations for Coachella.

Marketing to Gen Z requires a different approach than marketing to millennials. Abercrombie & Fitch learned this the hard way as its millennial playbook became outdated for younger shoppers, earning it the title of 鈥渕ost hated retail brand鈥� in the US in 2016 by the American Customer Satisfaction Index.

Gen Zers are more calculated in their purchase decisions and are less likely to make impulse purchases compared with older generations. Social media is just one tool they use to evaluate products.

Gen Zers provide a pivotal opportunity for banks as at least 4 million of them will open accounts each year through 2026.

By 2027, there will be a combined 135.5 million Gen Z and millennial social network users in the US, over half of total US social network users, according to our forecast.

Don鈥檛 let the myths get you down, social shopping is alive and well. Gen Z is full of contradictions. And 鈥淭ikTok-famous鈥� is becoming synonymous with Hollywood famous. Here are three key takeaways from Shoptalk 2024.

As Gen Zers鈥� buying power grows, retailers need to understand the best ways to connect and engage with them, whether that鈥檚 through leaning into product discovery or creating a more seamless payment process. We take a look at some of Gen Z鈥檚 shopping habits and what they mean for retailers.

Life insurance ownership is dwindling among US consumers, but demographic trends can shape acquisition strategies of new life insurance policyholders. Addressing pain points of Gen Z consumers can help marketers boost ownership rates of policies.

On today's podcast episode, in our "Retail Me This, Retail Me That" segment, we discuss how Gen Zers discover products; where they stand on buy now, pay later; and how loyal they really are to brands. Then, for "Pop-Up Rankings," we rank three campaigns that really worked with Gen Z. Join our analyst Sara Lebow as she hosts analyst Arielle Feger and editor Catherine Ollinger.

Of US Gen Zers on Threads, 40.1% downloaded the platform because it looked fun, while 38.7% wanted to try something new, according to our survey data.

On today's episode, we break down everything there is to know about banking and the Gen Z demographic. In our 鈥淗eadlines鈥� segment, we discuss the article our analyst Tyler Brown published a few weeks ago about Greenlight, a neobank for kids, teens, and families. In 鈥淪tory by Numbers,鈥� the conversation revolves around why Gen Z is different from other generations and how banks need to cater to their mobile preferences. And in 鈥淔or Argument鈥檚 Sake,鈥� host Rob Rubin takes the position that in 10 years, there will be fewer than 500 consumer banks. Tune in to the conversation between Rubin and analysts Tyler Brown and Tiffani Montez.

Following TikTok trends is vital for staying relevant when working with influencers, creating content on owned channels, or developing paid social ads. But trending content on the platform also reveals greater patterns of what works (and what doesn鈥檛) with Gen Zers, 71.1% of whom will be on TikTok next year, according to our May 2023 forecast.

Gen Z women trust beauty influencers: Roughly eight in 10 Gen Z women shop for creators鈥� beauty and personal care recommendations.

Every marketer wants to know: What do Gen Z consumers care about? How do they shop? What motivates them to make a purchase?