Survey: Gen Z is a big influencer

Watch out millennials, there’s a new generational cohort upsetting the retail landscape.



Generation Z has become an increasingly important influencer of consumer spending, according to a new study by HRC Retail Advisory, with new shopping behaviors that focus on both malls and online shopping. (The HRC survey describes Gen Z as individuals born between 1999 and 2006).



"Generation Z has significant influence over household purchases," said Farla Efros, president of HRC Retail Advisory. "Retailers must appreciate the different expectations and habits of this group, as well as of millennial parents with kids, and develop and execute strategies that address their needs in order to stay competitive with this increasingly important consumer segment."



Gen Z is a group that is heavily influenced by friends, bloggers and social media, advised HRC.



Here are five important findings from the HRC study, which surveyed 3,100 millennial and Gen Z participants in the U.S. and Canada on their shopping habits, attitudes and influences driving their purchasing decisions:



Gen Z shoppers like malls.

Malls are still very popular, especially with Generation Z shoppers. While more than 60% of all survey respondents said they visit a mall or shopping center at least once a month, 72% of Generation Z respondents (kids 10-17) and millennial parents with kids say they do so.



But Generation Z shoppers shop malls with a purpose in that go with a specific mission and in search of specific items. They also spend more time at the mall and they visit more stores. 22% of frequent Gen Z visitors say their typical trip to a mall is more than 90 minutes and they visit, on average, four to five stores.



Gift cards are popular.

Among all study respondents with a preference, 62% would rather receive a gift card than an actual gift. Among Gen Z children, this number climbs to 69%, further proving their desire to make their own purchase decisions.



Social influences more important than celebrity endorsements.

While buying habits of all respondents, and particularly those of young shoppers are significantly influenced by others, Gen Z shoppers tend not to be strongly influenced by celebrity endorsements from athletes, actors and singers. However, over 61% of their purchase decisions are most strongly influenced by friends, with 13% being influenced by bloggers.



Social media plays a major role in purchasing decisions.

The influence of, and engagement with, social media as it relates to purchasing decisions cannot be overstated. Approximately 50% of millennial and Generation Z shoppers surveyed use social media while they shop. Of time spent social media, most popular is Facebook (61%), followed by YouTube (38%) and Instagram (24 %).



"The HRC survey sheds light on the changing demographics and influences of existing, emerging and future shoppers,” continued Efros. “As Generation Z begins to gain a foothold in the consumer spending environment, and millennials mature, their expectations are transforming the retail landscape. In order for retailers to remain competitive, they must begin to develop a balanced approach to serving baby boomers and Generation X - who still have the great majority of the spending budget - while positioning themselves to best serve the emerging and future consumer segments for longer term success.”