FITCH global study changes the way retailers target Gen Z with ‘Five-point path to purchase’

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Following an international study on 14-19 year olds in Europe, Russia and China, global design consultancy FITCH has identified a ‘Five-point path to purchase’ for Gen Z – the most culturally diverse generation to date and retail’s biggest challenge yet.

 

Says Alasdair Lennox, creative director of FITCH Europe & Russia: “By 2020, today’s 14-19 year olds will be the largest group of consumers worldwide and FITCH believe that these lasting behaviours will be carried forward, requiring retailers and brand owners to fundamentally reconsider their proposition.”

As credit shy, digital natives, Gen Z favour innovation, upgrades and updates; they are happy to accept a beta product ahead of a better one later which takes their feedback into account, according to FITCH’s study.

 

In contrast to X & Y, there is a marked gap between seeing and buying for the Gen Z shoppers, and so, says FITCH, brands and retailers need to adapt and connect to them during the ‘aspirational browsing’ period. FITCH uncovered the following insights about Gen-Z – the aspirational browsers – in what they have branded the ‘Five-point path to purchase’. The following distinct behaviours are as follows:

1.    Finding Out: Gen Z identify potential purchases via their natural state of ‘seamless’ multi-tasking across multimedia and social media scanning.

2.    Browsing: They start with Google before doing anything else. They then happily remix style trends, make a digital scrapbook and price-check across websites.

3.    Decision Making: Gen Z will seek approval from their peers, delaying gratification in case something better comes along, while constantly tracking prices using apps.

4.    Buying: There is no shame in using bargain websites such as eBay, nor in picking up a good deal second-hand.

5.    Show & Tell: Having made their purchase, Gen Z immediately want to connect with their peers, creating, watching and responding to ‘haul’ videos.

 

This study also found that product-focused Gen Z navigate retail at eye level. During their browsing period, touch and access are key, as are product price tags.

 

Says Lennox: “The study will change the way retailers create their shopping experience for Gen Z. In many ways they’re just like the teens of previous generations, but with new tools to express their identities, discover new information and influence their peers. Retail is on the brink of revolution: if brands and retailers are to capture the hearts, minds and wallets of a generation of aspirational browsers, they need to adapt their approach to retail now.”

 

FITCH conducted ethnographic interviews to produce the survey and collected first-hand qualitative testimony and design-focused observations.

 

*Gen-Z is comprised of everyone born after 1995. These 14-19 year olds have grown up with varied family structures, a more diverse mix of defined ethnic groups and blurred gender roles. As a result of this and the global context surrounding their formative years, their relationship and career aspirations differ vastly from those of their X and Y forebears.