Analysis: Younger consumers pamper themselves during pandemic
Shoppers 18-55 are shifting online purchases toward self-care and enjoyment as COVID-19-based social distancing continues.
According to analysis of transactions made through payments provider Klarna, younger consumers who use the Klarna app decreased their share of e-commerce spending on apparel, footwear and accessories and shifted some of that spending toward health and beauty and leisure and hobby items during the week ended April 4, 2020.
The company analyzed purchases by Gen Z (ages 18-23), millennials (ages 24-39) and Gen X (ages 40-55). Week-over-week in the week ended April 4, the apparel, footwear and accessories category's share of all purchases made through the Klarna app decreased by 11% among Gen Z, by 9% among millennials and by 10% among Gen X.
Meanwhile, the health and beauty category's share of wallet is showing an upward trend among Klarna app users in all three age groups. In the week ended April 4, Gen Z increased their share of spending on the category by 20% week-over-week, while millennials and Gen X both increased their share of spending on the category slightly.
Klarna users increased their share of spending on leisure, sport and hobby items week over week. In addition, purchase share on the Klarna platform in the leisure, sport and hobby category was up 6% among Gen Z, up 5% among millennials and up 10% among Gen X. According to Klarna, this likely indicates that consumers are looking to puzzles, crafts and other hobbies to entertain them while they are stuck at home.
Other interesting findings include:
• The home and garden category's share of all Klarna app-enabled purchases grew slightly among Gen X and millennials week-over-week, and was roughly flat among Gen Z.
• Klarna-enabled purchases on marketplaces (which include sites such as Amazon.com, Walmart.com, Target.com and eBay.com) rose among all three age groups in the week ended April 4. Among Klarna users, Gen Z’s share of spending on marketplaces was up 5% week-over-week, while millennials' share was up 4%, and Gen X’s share was up slightly.
• Gen Z Klarna users slightly increased their share of spending on electronics week-over-week in the week ended April 4, while millennials' and Gen X’s share of spending on the category was roughly flat versus the prior week.