蘑菇AV

鈥淭丑颈蝉 [Gen Z] consumer, the attributes are totally different from different generations. They鈥檙e not consuming ads the same way,鈥� said Leo. 鈥淚f they see something that really feels like an ad, they鈥檙e just going to swipe up and skip them.鈥�.

Gen Zers and millennials are particularly demanding when it comes to personalization. For online shoppers ages 18 to 42, personalized product recommendations are a bigger priority than frictionless payments, per Klarna. Baby boomers are still focused on the in-store experience.

Grocery shoppers are omnichannel shoppers, our analyst Blake Droesch said on a recent 鈥淏ehind the Numbers: Reimagining Retail鈥� podcast. That means consumer packaged goods (CPG) brands should employ a mix of digital and in-store advertising strategies to engage customers where they shop.

It may be an olive branch for Gen Zers and millennials who may be upset over its decision to stop accepting Amex. It鈥檚 a win for Venmo鈥檚 monetization journey

For example, Gen Zers are over three times more likely to feel more confident in their bank鈥檚 use of AI than baby boomers. Interestingly, while 11% of Gen Zers are open to their bank using AI, they don鈥檛 want it to have their financial details. That鈥檚 compared to 7% of baby boomers and 10% of respondents overall who said the same.

Key stat: Nearly two-thirds (63%) of Gen Z consumers plan to splurge and treat themselves in Q3 2024鈥攖he highest among all generations鈥攁ccording to a May 2024 survey by McKinsey & Company. Gen Zers also reported the highest increase in intent to splurge compared to Q1 2024. What it means: Gen Zers are prioritizing the present.

Gen Zers (25%) and millennials (22%) most often see ads for medications, treatments, or doctors on social media platforms, per our survey. Weight loss drug ads are a prime example of this trend. Gen Zers see more GLP-1 medication ads on social media (55%) than on linear TV (48%). Consumers compare and evaluate healthcare products and services online鈥攚hen they can.

US ecommerce sales will grow 9.3% to reach $1.137 trillion in 2023, per our forecast, thanks to cost-conscious consumers looking for better deals and an increasing number of digital grocery buyers. As 2023 wraps up, ecommerce will go out on a high note, with online holiday sales growth outpacing brick-and-mortar sales.

But many 鈥淪ephora kids鈥� are now reporting rashes, sunburn, and irritation after frequent use of popular skincare products, putting pressure on retailers like Ulta and Sephora鈥攁s well as top brands like Glow Recipe鈥攖o make disclosures about products鈥� potential harms more visible, and possibly even limit sales to shoppers below a certain age.

Forty percent of Gen Zers have stopped purchasing from brands that contradicted or reversed DEI efforts鈥攕o brands that remain vocally committed to mental health stand to benefit. Our take: Brands will benefit from investing in mental health messaging during May鈥攂ut those that show sustained commitment will gain the most, earning long-term trust and loyalty.

As a potential TikTok ban looms, brands are considering what a world without TikTok Shop would look like. I probably won鈥檛 look all that different, but there are a few places where TikTok鈥檚 absence will be felt more than others.

蘑菇AV one in five (19%) of Gen Z consumers in the UK and 12.5% of UK millennials routinely turn to digital wallets for bill payments, per a July 2024 PYMNTS Intelligence survey. Other P2P payment providers have also been pushing innovation for this use case.

Shoppers, especially younger ones, are cash-strapped this holiday season. But after two years of restrictions, many want to spend, even as the cost of goods goes up. 鈥淲e might be seeing a bit of YOLO spending, like you only live once,鈥� said our analyst, Sky Canaves. People want to 鈥渕ake the most of these holidays,鈥� which is pushing them toward BNPL.

Loyalty programs encourage discount-minded shoppers to spend their limited budget with retailers. But they also are a way for retailers to collect valuable data on shoppers, which can be used within retail media networks to personalize advertising. Shopper data is also important for personalizing deals within loyalty programs.

Expanding into BNPL, for example, could help attract younger users: 50.1% of Gen Zers will use BNPL by 2026鈥攖he most of any generation, per Insider Intelligence research. But flawed systems can prevent banks from integrating BNPL products. Customer acquisition. Banks can improve customer service and product quality if they adopt new payment systems.

Retailers like Dollar General, Walmart, and Target are rethinking the self-checkout experience, scaling back on kiosks or removing self-checkout from their locations altogether. But considering 55% of US adults prefer to get through their in-store grocery shopping as fast as possible (according to a November 2023 survey from Kearney) it鈥檚 unlikely self-checkout will be leaving stores anytime soon. Here are five stats on self-checkout, including how and why consumers like to use it, the reason some retailers are pulling back, and what the future holds for the technology.

Adoption of digital wallets is approaching critical mass, but they won鈥檛 replace physical wallets anytime soon. However, a super app may be on the horizon, especially if companies can crack the ability to integrate payments with shopping services.

For example, 98% of baby boomers consider security features very important, but 80% of Gen Zers do. And baby boomers scored customer service as high as security features. 92% of baby boomers believe a banks鈥� reputation is very important, compared to 72% of Gen Zers. But what about crypto?

Three-quarters of shoppers will think twice about shopping at retailers that charge for returns, and the same proportion expect a return policy between 30 and 60 days. Expand gift card options. Around three in four (72%) shoppers plan to purchase gift cards this year, and much of that demand is being driven by Gen Z.

鈥淚 think a big part of the story of Aritzia is Gen Z, which we call Gen Zed in Canada,鈥� said Briggs. 鈥淸Aritzia brands] their clothing as everyday luxury and I think that it comes at a price point that appeals to younger consumers.鈥�. Briggs pointed to Aritzia鈥檚 success using familiar Gen Z marketing tactics, such as leveraging influencers and pushing content on TikTok.