Will Generation Z become the dominant consumer in the online market? The purchasing power of Generation Z in the United States is amazing

Recently, Pitney Bowes released the latest BOXpoll survey , highlighting the current contribution of young American online shopping groups to British retailers . Through a survey of 1,254 American cross-border online shoppers, it was found that a quarter ( 25% ) of Generation Z and more than a fifth ( 22% ) of Millennials buy from British online retailers once a month or more.

As they gradually enter society, the spending power of Generation Z is rising rapidly . According to Bloomberg data , the collective purchasing power of Generation Z worldwide is $360 billion , of which American Generation Z accounts for almost half .

A report by research and consulting firm Gen Z Planet shows that more and more Generation Z in the United States are working full-time or improving their financial capabilities through side jobs, which also means that their disposable spending power is increasing. Based on this, this group has become a new "sniper" target for retailers in the market .

It is reported that among the Generation Z group in the United States, 37 % said they often use Amazon , and 15% use second-hand websites such as eBay to purchase non-essential items .

On TikTok, 55% of American Gen Z users purchased products after watching product promotion videos . Gen Z has created new trends in consumption forms and content, such as the rise of social e-commerce. Like millennials, American Gen Z is willing to try new technologies when shopping online, including live shopping (40%) and trying on clothes with augmented reality technology (24%) , and more than half of American Gen Z participate in social e-commerce consumption .

Statistics from the National Retail Association show that 72% of Generation Z say they are more willing to follow brands and make purchases on social media .

According to a survey of Generation Z in the United States , factors that influence their online shopping include: reviews ( 82% ), personalized recommendations ( 77% ), lower prices ( 62%), free shipping ( 54 %) , simple payment process ( 28 %) , quality ( 27%) and influencer recommendations (21%) .

The environmental awareness of Generation Z in the United States is very strong. 71% of Generation Z pay attention to the natural ingredients of products when purchasing , and 72% of Generation Z express their willingness to buy recyclable products .

Currently, there are about 67 million members of Generation Z in the United States , accounting for more than 20% of the total U.S. population. They have strong spending power and are recognized as a potential consumer group. Data shows that the term " Generation Z " was mentioned 64 times in the S&P 500 earnings call, more than twice the number for the whole of 2020. Tapestry Inc., the parent company of fashion brand Coach , once said that 40% of its current new customers are Generation Z or millennials , and beauty and personal care brand Estee Lauder has also listed Generation Z as its primary target.

As Generation Z in the United States gradually becomes an influential buyer, major brands and sellers need to understand their unique shopping behaviors and new shopping preferences and adjust their strategies to capture the interest and purchasing power of each new rising consumer class.

USA

Generation Z