Three Ways Gen Z Will Change Retail
Everyone is talking about the huge impact millennials are having on retail. Also known as Gen Y, they are usually considered to occupy the 18-to-35 age demographic. But what about Gen Z, the younger siblings (or even children) of millennials?
Based on what we’ve seen so far, here are three ways Gen Z will change retail in the next few years.
Video Killed the Retail Star
Gen Z engages with what they see as a truly seamless physical-virtual environment via video. Consider this recent Chain Store Age commentary from Jill Standish, senior managing director of retailer for Accenture Consulting.
“Gen Z get their inspiration from YouTube,” Standish said. "How do you leverage that? Video will become a means of buying goods, rather than an influencer as it still mostly is today.”
Some retailers have already begun offering shoppable videos, and YouTube now offers transactional functionality direct from its video platform. In the future, however, retailers will need to more fully integrate video into stores, mobile apps, and all other customer touchpoints, including the POS.
Community Organizers
Gen Z consumers trust each other much more than they trust brands or retailers. This means that third-party online marketplaces which connect individual buyers and sellers will become much more important in the near future.
However, established digital retail platforms should not sit back and wait for the Gen Z revenues to roll in. A perfect example of the type of retailing community preferred by the next generation of consumers is Sneakmart.
Founded by a 17-year-old “sneakerhead” entrepreneur Anthony Debrantt, Sneakmart lets online and mobile consumers buy, sell and trade new and used sneakers. However, Sneakmart serves as more than just a storefront. The platform also lets users share information and content.
“While the platform functions as a marketplace, our long-term vision is to create a social experience that encourages sneaker lovers to interact with one another and contribute content, stories and more," stated Debrantt.
Being a successful “retailer” will have less to do with having any actual physical inventory or infrastructure and more with building a community that connects consumers with the products they want and each other. Traditional retailers will need to tap into this developing shopper zeitgeist by either launching or participating in these communities.
Departing Department Stores
It’s no secret that department stores have been having a tough go of it recently, with many major chains reporting disappointing fiscal performance or even shuttering stores. The attitudes of Gen Z suggest these developments are an omen of things to come.
Although some department stores offer in-store video experiences and others operate well-developed social networks, the model simply does not lend itself to Gen Z sensibilities. Department stores offer too broad a range of merchandise to create a true sense of community around a specific interest or product. And the need to satisfy a wide range of shoppers limits how “cool” the store experience can truly be.
By attempting to satisfy everybody, department stores may find themselves satisfying nobody. Long-term survival may require scaling back on assortment and offering smaller brick-and-mortar storefronts that rely more on digital and video components and less on physical space and merchandise to connect consumers with products.