Gen Z shoppers are opening up their wallets this holiday season, according to new data from Shopify.
Indeed, 37% of respondents said they plan to spend more this holiday season compared to a year prior, which is “nearly double the average across all age groups,” Shopify reports.
Leveraging Discounts to Capture Gen Z Market
A good deal is driving many Gen Zers to spend big this year. Some 48% of respondents in this age group even said they would likely start shopping earlier than usual if retailers offered holiday promotions ahead of the busy season.
Retailers focusing on targeting this specific demographic should consider a bigger marketing push on social media, including influencer marketing. In fact, Shopify found that almost half of Gen Z respondents (48%) plan to purchase at least a few gifts via social media. That’s no surprise given Gen Zers—more so than their older cohorts—grew up on social media.
TikTok and Instagram continue to be two of the most popular social media platforms where Gen Zers are likely to shop for their holiday gifts this year.
“It remains to be seen if Gen Z will actually lead the spending charge this holiday season, but the merchants should be targeting the age group to tap into their potential for increased spending,” said Daniel Keyes, Senior Analyst of Merchant Services at Javelin Strategy & Research. “That means offering deals that appeal to them and developing social media campaigns that tap into their interest in social commerce.”
Omnichannel Shopping
While in-store shopping will see a lot of foot traffic coming through the weeks before the holiday season, the majority of holiday shopping is expected to take place online. In fact, 93% of respondents polled said they “will buy at least some gifts online.” And, 47% of respondents said they plan to buy all of their holiday gifts digitally.
For retailers and merchants, ensuring an omnichannel strategy is in place will be imperative. This way, whether consumers shop in-store, online, or through social media, retailers and merchants are able to meet them when and how they want.
