Zillennials — who were born between 1991 and 1999 — are reshaping the retail market with a blend of millennial values and Generation Z’s tech-savviness.
A PYMNTS Intelligence report, “What Makes Zillennials Shop,” examines this cohort as it drives change with a mix of brand loyalty, deal-seeking and values-driven purchases. Influenced by social proof and peer recommendations, zillennials are emerging as a powerful force in retail.
Zillennials are divided in their shopping preferences, often favoring either low prices or brand loyalty. According to the report, 41% prioritize price over brand when shopping, compared to 38% of the general population. Meanwhile, 21% of zillennials place more importance on brand availability than price, significantly higher than the 16% of the broader population. These figures illustrate the sharp contrast in priorities within this group.
Unlike older generations, zillennials are less likely to seek a balance between price and brand loyalty. While Generation X and baby boomers tend to value both equally, zillennials are more inclined to lean strongly toward one factor. Retailers can capitalize on this by tailoring their marketing and offerings to appeal to either bargain seekers or brand loyalists within this demographic.
Zillennials are committed to shopping with brands that reflect their values, especially around sustainability and social responsibility. According to the study, 38% prioritize environmentally sustainable products, outpacing both Gen Z and millennials at 36%. In contrast, only 20% of baby boomers and seniors share this concern, highlighting a clear generational divide on environmental issues.
Social values also matter deeply to zillennials, with 37% saying it’s important for retailers to align with their ethics, far higher than the 19% of Gen X and 14% of baby boomers who feel the same. Additionally, 38% of zillennials value locally made or sourced products, compared to just 22% of Gen X. Retailers are responding to these values, with platforms like eBay and Mercari offering sustainable and resale options that appeal to this demographic.
Social proof plays a significant role in shaping zillennials’ buying decisions. According to the report, 39% of zillennials made a purchase in the last 30 days based on recommendations from family or friends, a figure higher than the 19% of baby boomers who reported the same. Zillennials are also heavily influenced by social media, with 22% saying their purchases were inspired by online influencers or celebrities, compared to just 6.4% of Gen X and 2.1% of baby boomers.
For retailers looking to appeal to zillennials, understanding the importance of social influence is crucial. This generation values recommendations from both their social circles and online personalities. As such, brands that foster authentic relationships with influencers and craft relatable marketing campaigns are more likely to capture zillennial attention and loyalty. To succeed, brands must also align with zillennials’ values, including sustainability and social responsibility, while recognizing their strong preferences for either price or brand loyalty.
Zillennials are not just looking for a product; they are seeking a brand that resonates with their values and provides a sense of community, making them an exciting yet challenging demographic for marketers to reach.
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