GEN Z DECODED: How they shop and influence

The following is part four of a five-part Pavone Group series about Gen Z. See part one for an in-depth look at who Gen Z is and what they want.  

As the first generation to grow up fully immersed in the digital world, Gen Z has transformed the way brands connect with consumers. Known for their brand curiosity and desire for novelty, this generation approaches shopping with a unique blend of digital savviness and in-person engagement. From discovering brands online to influencing others’ purchases, Gen Z sets trends that ripple across generations and industries.

Here’s a closer look at how Gen Z shops, broken down into key behaviors and trends.

DISCOVERING BRANDS IN THE DIGITAL AGE

For Gen Z, brand discovery is deeply rooted in the digital landscape. Social media platforms like Instagram, TikTok, and Snapchat serve as gateways to new products and experiences, with 73% of Gen Z shoppers using social platforms to find new products. Influencer recommendations play a massive role, as 70% of Gen Z has made purchases based on influencer endorsements that align with their values and interests.

A 2024 survey found that 64% of Gen Z respondents have used TikTok as an online search engine, the highest rate among all generations. One in 10 Gen Zers rely on TikTok more than Google. This trend highlights TikTok’s growing role as a search and shopping tool among younger consumers.

But it’s not just about social media. Gen Z trusts online reviews and personalized recommendations powered by algorithms on platforms like Amazon and YouTube. While digital channels dominate, in-store experiences remain valuable. Whether through pop-up shops or events, physical spaces offer the tactile connection Gen Z seeks, complementing their digital-first approach.

YOUTUBE’S ROLE IN PRODUCT DISCOVERY

YouTube stands out as a key platform for product discovery among Gen Z. With 80% of the generation spending time on the platform, it’s no surprise that 62% of Gen Zers use YouTube to research and explore new products. Whether watching unboxing videos, tutorials, or reviews, YouTube offers a visually immersive and trusted way for Gen Z to evaluate products before buying.

MASTERS OF OMNICHANNEL

Gen Z is redefining what it means to shop across channels. They seamlessly blend online and offline experiences, expecting consistency wherever they engage. For example, 76% of Gen Z shoppers want the same seamless experience whether they’re browsing online, shopping via mobile, or visiting a physical store.

Research plays a key role in their journey, with nearly half (45%) starting online before making an in-store purchase. Mobile shopping dominates, with 80% of Gen Z using their phones to shop and embracing social commerce for instant purchases directly from their feeds. Even in-store, they leverage technology like kiosks, augmented reality (AR) try-ons, and digital price tags, with 62% utilizing AR to enhance their shopping experience.

THE ONLINE SHOPPING MYTH: Contrary to the myth that Gen Z exclusively shops online, research shows they value in-store experiences. Nearly 75% of Gen Z shoppers prefer browsing physical stores, appreciating the tactile experience and instant gratification. Retailers can thrive by blending digital convenience with engaging, personalized in-store experiences Gen Z craves. 

GUIDING OTHERS’ PURCHASING BEHAVIOR

Gen Z isn’t just shopping for themselves—they’re influencing how others shop too. Parents of Gen Z teens are 20% more likely than others to say their kids shape the brands they choose. Similarly, siblings of Gen Zers are 56% more likely to be influenced by their younger family members.

Gen Z’s impact even extends across generations. Take Starbucks’ “Pink Drink” craze, for example. Initially popularized by Gen Z influencers on social media, the drink gained a dedicated following among older consumers, highlighting how Gen Z’s preferences can create broader cultural trends.