Over One-Third of Gen Z and Young Millennial Shoppers List TikTok As Their Top Shopping Resource, Prompting Retailers to Consider Generational Approach This Season
37% of Gen Z and young Millennial shoppers (18-34) report using TikTok as their primary shopping method, compared to 11% of middle-aged shoppers (ages 35-54) and 2% of older shoppers (55+).
Online retailer sites remain a popular shopping method across generations, with 36% of younger, 44% of middle-aged, and 52% of older shoppers using it as their primary shopping method.
The majority of the 18-34 age group (55%) are willing to pay more than the sticker price to have an item immediately available rather than waiting on a restock.
With 37% of Gen Z and young Millennial (18-34) shoppers relying primarily on TikTok for their shopping needs, retailers hoping to make the most of the upcoming holiday shopping rush should keep generational differences top of mind, according to recent research from Lightspeed Commerce Inc.. Online retail stores and websites (36%) and Instagram (32%) follow TikTok in ranked preference for the 18-34 shoppers, signaling the importance of social media as a critical part of retailers’ marketing strategies to reach a younger demographic.
Lightspeed’s State of Retail Report reveals that the ways different generations are shopping varies – significantly– and the importance for retailers to be prepared to meet them where they’re at. In addition to prioritizing platforms like TikTok for their shopping needs, the younger generations of shoppers revealed an increased likelihood to subscribe to retail memberships such as Amazon Prime, with 77% reporting that they are subscribed to one or more such services and 19% stating they exclusively shop with retailers they have subscriptions with. The 18-34 age group also showed the most interest in VIP services from retailers such as skipping lines, personalized shopping recommendations, and early access to products, with 42% saying they would be interested and willing to pay more for this.
New preferences of the younger generations bring with them new opportunities for retailers to expand and improve customer experience and meet customers where they are. Additional insights unique to Gen Z and young Millennial shoppers include a willingness to pay more to have an item immediately available to them from another merchant rather than waiting for it to be restocked (55%) – all other demographics would prefer to wait to purchase. Insights like this signal the critical importance of maintaining stock well into the season for last-minute shoppers.
For retailers targeting an older demographic (55+), those buyers are most frequently using a retailer’s online store (52%), friend and family referrals (36%) and online review sites (34%) to research their purchases, reflecting a more traditional shopping approach. Middle-aged buyers (35-55) have similar preferences, but rely more on a retailer’s online presence (44%) and review sites (37%) than on friends and family (34%).
Dax Dasilva, CEO of Lightspeed, added: “Retailers need to understand where shoppers are, and how they behave in order to properly address their needs. With those insights, they can assess and get creative with how they connect to generate a smooth shopping experience. To slay the holiday retail game, retailers should stay ahead of trends.”
For more insights on generational retail habits and the full State of Retail Report, visit here.
Methodology
Lightspeed initiated a consumer survey throughout July 2024 using third party survey vendor Medallia. Over 2,500 responses were collected amongst Canada and the United States. Respondents were required to be over the age of 18, and have purchased retail goods within the past six months. All responses collected were anonymous.
