Global Study: Shopping with Generation Y and Z

11Confidential © 2016

SHOPPING WITH GENERATION PARTICIPATION:HOW TO BUILD BRANDS WITH RETAIL

INFLUENCE


1980-1995Digital AdoptersCan recall a world before social media

1995-2010Digital NativesTouchscreens and social media from birth

33Confidential © 2016Confidential © 2016

More than half the global population were born post-1980.

By 2020, Gen Z alone will account for 40% of all US consumers.

IGNORE THEM AT YOUR PERIL


‘MILLENNIALS’ ARE ALREADY A HOTBED OF DEBATE IN THE MEDIA


SPECIFICALLY, WE SOUGHT TO UNDERSTAND HOW THEY SHOP

What are the key differences and similarities between them?

What are their desires, needs and shopping habits?

What are the best channels to reach them to influence their purchases?

And how should brands engage them throughout the shopping process?


METHODOLOGY

Online Quant:purchase behaviour

trends (900 respondents)

Qualitative video diary over

6 weeks(45

respondents)

Social Intelligence

listening across social media(1.1m social interactions)

Research conducted amongst Gen Y (28-30) and Gen Z (17-19)Across 4 categories: tech, fashion, food and leisureIn 3 markets


PEOPLE LIKE THESE

Bruno, Brazil, Gen Z

Rafaela, Brazil, Gen Y

Gautam, US, Gen Y Brittney, US, Gen Z

Sian, UK, Gen Y

They’re not unlike young people from previous generations.

They have similar motivations and all the same insecurities. They’re figuring out who they are and they need support and approval from others.

What IS different is how their behaviour is enormously influenced by the role of social media that is ingrained in their lives.


THE HEADLINES


SHOPPING = CULTURE

While brands have always played an integral role in culture, the act of shopping has historically been more of ‘a means to an end’.

But among these generations, we’re seeing a shift from shopping as a transaction to a cultural entity in its own right.


INFLUENCE

WE’RE WITNESSING A SHIFT FROM ‘2D INFLUENCE’…

BRAND

SHOPPER


SHOPPER

INFLUENCE

…TO ‘3D INFLUENCE’

INFLUENCE

BRAND

PEER GROUP

SHOPPER

INFLUENCE

BRAND

The big change is the desire for shoppers to exchange influence with their peers.

They want both to assert themselves on the group but also receive validation back from the group.

In that sense it echoes many of the deeper motivations that drive behaviour on social media.


THE PROCESS OF SHOPPING IS A FLUID, SOCIAL CYCLE OF INFLUENCE AND INFLUENCING

BRAND

PEER GROUPSHOPPER

ACTIVEOWNERSHIP

COMPLETEPURCHASE

PURCHASECHANNEL

INSPIRATION

VALIDATION

And this ‘influence exchange’ occurs at every stage.


THE SHOPPING BEHAVIOURS OF GENS Y & Z:UP CLOSE AND PERSONAL


BRAND

PEER GROUP

ACTIVEOWNERSHIP

COMPLETEPURCHASE

PURCHASECHANNEL

INSPIRATION

VALIDATION

They start their purchase journey with a phase of intensive research and

discovery

A FLUID, SOCIAL CYCLE OF INFLUENCE AND INFLUENCING

SHOPPER


They are more inclined to herd behaviour than independent behaviour

TRUTH OR MYTH?


They are more inclined to herd behaviour than independent behaviour

TRUTH OR MYTH?TRUTH: They invite and embrace influence from trusted and collective sources


GEN Y TEND TO INVESTIGATE ON THEIR OWN, THEN CONSULT OTHERSGEN Z ARE GUIDED BY SOCIAL INFLUENCES FROM THE OUTSET

Inspiration

Most likely to discover new brands by browsing

IN STORE (32%) and ONLINE (30%)

Most likely to discover new brands and products via PEOPLE THEY KNOW, FRIENDS AND FAMILY

(36%)

“I’ve been looking for a stylish pair of boots for a while now after

seeing someone wearing something similar, I’ve found

these and looked at them in the store and constantly look at them online and have shown them to

friends on WhatsApp“Giovanna, Brazil, Gen Z

Q5 All Markets, Base: 161

“I’ve been looking for new trainers for a while now and have seen a lot of

people wearing these and they appear on Instagram too. I like the classic style

so want to get them” Ollie, UK, Gen Z

“A lot of the time I may browse online and look for items that I may buy, when I actually buy them I go in-store and in

between this I’ll often speak to friends.“Louisa, UK, Gen Y

“When I want to buy something, the first

website I use to search is Google Shopping and the

second is ‘Buscape’, a website that gives you an overview of prices for the item and where to buy” Rafaela, Brazil, Gen Y


BOTH GENS Y & Z HAVE TRUSTED SOURCES AND ‘GO TO’ BRANDS

Inspiration

“I first discovered Etsy through my Pinterest app. I found it a very unique source to find nice gifts, clothes and

decoration objects. I have suggested it to friends when looking for something cool to give someone a gift or when you want to

get ideas.“Katrin, UK, Gen Y

“I have certain brands that I will go to first for inspiration and see what they have. I

like to get ideas from them and look further to see what else is out there. Makeup

Addiction is one of those ” Emmy, UK, Gen Z


BRAND

PEER GROUP

ACTIVEOWNERSHIP

COMPLETEPURCHASE

PURCHASECHANNEL

INSPIRATION

VALIDATION

They have some potential choices in mind


SHOPPER


They are fickle and impulsive: the ‘swipe-right’ generations

TRUTH OR MYTH?


They are fickle and impulsive: the ‘swipe-right’ generations

TRUTH OR MYTH?MYTH. They ALWAYS seek to purchase something they have had the chance to screen and vet. It’s too risky to make impulse purchases, but also very easy to avoid that risk by researching and consulting others.


GEN Y INVARIABLY VET ONLINE AND THEN ASK FOR ADVICEGEN Z ACTIVELY INVOLVE THEIR PEERS FOR IMMEDIATE APPROVAL

Validation

“I think that one of the most important things is seeing what people like me think about it,

that they like the brand too. In the end I want to get a product that

other people will admire.“

Lorenzo, Brazil, Gen Z

“There are times when I’ve seen

something I liked on Instagram and

I’ve tagged people in the comments just to find out

what they think.”Brittney, US,

Gen ZBrazil favour more direct routes via WhatsApp and emailIn the UK this is done via snapchat or Instagram The US favour Facebook, Instagram and Pinterest.

0% of the Gen Zs we spoke to said they make impulse purchases“If I see

something I like I will spend a good amount of time finding out more about it and then, when I feel that I

have a good understanding of

it, I’ll speak to friends who might already own it or know about it and

see what they think.”

Beth, UK, Gen Y Q11, Base: BR 84 , US 83, UK 66


BRAND

PEER GROUP

ACTIVEOWNERSHIP

COMPLETEPURCHASE

PURCHASECHANNEL

INSPIRATION

VALIDATION

They’ve done the research and checked their choices.

Now they’re getting ready to buy…


SHOPPER


They care less about physical retail experiences and prefer to execute their shopping online

TRUTH OR MYTH?


They care less about physical retail experiences and prefer to execute their shopping online

TRUTH OR MYTH?

MYTH. Physical retail experience still plays a critical role: it’s where expectation needs to meet reality


BOTH GENS Y & Z WANT TO EXPERIENCE HOW THE BRAND BEHAVES, BUT IN-STORE OFTEN UNDERWHELMS

Purchase Channel

“I’d like to think that in-store is going to be a lot more interesting, maybe more

learning about the product or the history than you can do now…to give you

something to tell others.“Fabio, BR, Gen Y

“I like it when stores have brands separated out and merchandised

well because it helps you get a vibe for what each brand is about, like if it is young, trendy, flashy or

retro”Daniel, Gen Z, UK

In-store experience is the most important factor for influencing their purchase:

• 34% of UK Gen Z• 29% of US Gen Z• 22% of BR Gen Z

Q17, Base: BR 68, US 80, UK 66

“When I bought my Samsung VR, I couldn’t try it in the

store and no-one seemed to know that much about it, but

online you could get more information about the

product and sort of see it working so you could make a

better decision.”Taylor, US, Gen Z

48% of Gen Y made their purchase in-store

46% of Gen Y made their purchase online

Q9 All Markets, Base:223, 215

53% of Gen Z made their purchase in-store

46% of Gen Z made their purchase online

Q9 All Markets, Base:233, 201


BRAND

PEER GROUP

ACTIVEOWNERSHIP

COMPLETEPURCHASE

PURCHASECHANNEL

INSPIRATION

VALIDATION

They’ve made their decision and have committed to the

act of transaction itself


SHOPPER


They just want the moment of purchase to be as easy as possible

TRUTH OR MYTH?


They just want the moment of purchase to be as easy as possibleTrue for Gen Y, but Gen Z also want to celebrate their purchase

TRUTH OR MYTH?


GEN Y PRIORITISE A FUNCTIONAL, FRICTIONLESS TRANSACTION GEN Z WANT TO CELEBRATE THE PURCHASE

Purchase Complete

“Once I decide I am ready to buy, the money will burn a hole in my pocket until I

make the purchase.“Gavin, US, Gen Y

“If I see that other people want it or like it then that reassures me I’ve made the

right choice and in some cases I’ve been lucky to get it.”

Lowri, UK, Gen Z

Adidas Ultra Boost – Share how you wear it


BRAND

PEER GROUP

ACTIVEOWNERSHIP

COMPLETEPURCHASE

PURCHASECHANNEL

INSPIRATION

VALIDATION

The physical ownership begins


SHOPPER


Post-purchase, they proudly display their spoils via social media

TRUTH OR MYTH?


Post-purchase, they proudly display their spoils via social mediaThey warily share purchases as the need for validation reaches its peak

TRUTH OR MYTH?


GEN Y REVEAL & RECOMMEND TO RECEIVE INDIRECT APPROVAL GEN Z TENTATIVELY SEEK OUT DIRECT FEEDBACK

Peer-to-Peer Feedback

“A lot of people used to really show off what they have gotten recently, like

dresses, cameras and phones but now I think everyone has got a bit tired of

that and it’s nice to get a more direct comment from someone… I still post

pictures but make sure that the picture is of the product in context, like wearing

a new dress to an event.“Allison, US, Gen Y

“This is my new camera. I haven’t really shown it to anyone yet as want to learn how to use it and

make sure I’ve made the right decision.”

Vitoria, Brazil, Gen Z

“So, I got the trainers! I’m really pleased with them and quite a few

of my friends have made good comments

about them which is always nice to hear.”

Ollie, UK, Gen Z


PURCHASE JOURNEY SUMMARIES


BRAND

PEER GROUP

ACTIVEOWNERSHIP

COMPLETEPURCHASE

PURCHASECHANNEL

INSPIRATION

VALIDATION

SUMMARY: GEN Y PURCHASE JOURNEY

They investigate on their own before consulting with

others. They have go-to sources for inspiration.

They invariably vet online before going in-store. They

will also directly request guidance from the experts

in their social spheres.

They need to check the brand fits with them and get the

story to tell about their new product.

They reveal and recommend in order to

receive indirect approval. They are conscious of

oversharing and diluting the impact of what they

post and talk about.

They want the product as conveniently as possible, without

compromising on the quality of the experience.


BRAND

PEER GROUP

ACTIVEOWNERSHIP

COMPLETEPURCHASE

PURCHASECHANNEL

INSPIRATION

VALIDATION

SUMMARY: GEN Z PURCHASE JOURNEY

They love to research, often because they can’t afford to

buy straight away. They use their social group to discover and share. Trusted

brands often serve as a starting point.

They actively involve their peers for immediate

approval. They indulge in ‘virtual ownership’ and

show off their discoveries to determine if their choice

will be accepted.

They want to experience how the brand behaves to ensure it

fits their lifestyle.They will buy via the channel that best meets their needs. The store experience plays a

big role in reassuring them but also the one that feels the most

‘broken’.

They need reassurance that they have made the right choice, but won’t shout about it instantly.

If it doesn’t meet immediate approval they

will ‘bury it’ and may even seek to save face by

warning others away from it.

They want to celebrate the purchase. They like brands to re-validate their choice, demonstrate the reasons they bought it and help

them turn their purchase into social currency.


THE 6 BIG IMPLICATIONS TO BECOME ‘A BRAND WITH RETAIL INFLUENCE’


1. CELEBRATE COMMUNITIES OF SHOPPERS

WHO SHARE THE SAME VALUES

4040Confidential © 2016Confidential © 2016

GLOBAL EXAMPLE?

2. GIVE THEM A COLLECTIVE EXPERIENCE WITH A PERSONAL TOUCH


3. MAKE YOUR PRODUCT CULTURALLY RELEVANT WITH SMART PARTNERSHIPS


4. HELP THEM EXPERIENCE AND BUY YOUR PRODUCT IN THEIR CHANNELS IKEA ‘Diner Party Apartment’,

Warsaw


5. MAKE THE ACT OF PURCHASE SUPER SIMPLE AND SUPER SOCIAL


6. HELP THEM ENJOY OWNING THEIR NEW PRODUCT: BEFORE, DURING AND AFTER THEY BUY


iris-worldwide.com

Date post:	07-Feb-2017
Category:	Marketing
Upload:	iris-worldwide
View:	69 times
Download:	0 times

Global Study: Shopping with Generation Y and Z

Marketing