{"id":529928,"date":"2024-11-25T15:13:00","date_gmt":"2024-11-25T15:13:00","guid":{"rendered":"https:\/\/www.capgemini.com\/co-es\/?p=529928&#038;preview=true&#038;preview_id=529928"},"modified":"2025-03-29T05:31:47","modified_gmt":"2025-03-29T05:31:47","slug":"gen-z-prefer-connected-shopping","status":"publish","type":"post","link":"https:\/\/www.capgemini.com\/co-es\/insights\/expert-perspectives\/gen-z-prefer-connected-shopping\/","title":{"rendered":"Gen Z prefers connected shops \u2013 are you ready for it?"},"content":{"rendered":"\n<header class=\"wp-block-cg-blocks-hero-blogs header-hero-blogs\"><div class=\"container\"><div class=\"hero-blogs\"><div class=\"hero-blogs-content-wrapper\"><div class=\"row\"><div class=\"col-12\"><div class=\"header-title\"><h1>Gen Z prefer connected shopping &#8211; are you ready?<\/h1><\/div><\/div><\/div><\/div><div class=\"hero-blogs-bottom\"><div class=\"header-author\"><div class=\"author-img\"><img decoding=\"async\" src=\"https:\/\/www.capgemini.com\/wp-content\/uploads\/2022\/05\/Owen-McCabe-V1.jpg?w=200&amp;quality=10\" alt=\"\" loading=\"lazy\"\/><\/div><div class=\"author-name-date\"><h5 class=\"author-name\">Owen McCabe<\/h5><h5 class=\"blog-date\">Sep 3, 2024<\/h5><\/div><\/div><div class=\"brand-image\"> <\/div><\/div><\/div><\/div><\/header>\n\n\n\n<section class=\"wp-block-cg-blocks-intro-para undefined section section--intro\"><div class=\"intro-para\"><div class=\"container\"><div class=\"row\"><div class=\"col-12 col-md-1\"><nav class=\"article-social\"><ul class=\"social-nav\"><li class=\"ip-order-fb\"><a href=\"https:\/\/www.facebook.com\/sharer\/sharer.php?u=https:\/\/www.capgemini.com\/co-es\/insights\/expert-perspectives\/gen-z-prefer-connected-shopping\/\" target=\"_blank\" rel=\"noopener noreferrer\" title=\"abrir en una nueva ventana\"><i aria-hidden=\"true\" class=\"icon-fb\"><\/i><span class=\"sr-only\">Facebook<\/span><\/a><\/li><li class=\"ip-order-li\"><a href=\"https:\/\/www.linkedin.com\/sharing\/share-offsite\/?url=https:\/\/www.capgemini.com\/co-es\/insights\/expert-perspectives\/gen-z-prefer-connected-shopping\/\" target=\"_blank\" rel=\"noopener noreferrer\" title=\"abrir en una nueva ventana\"><i aria-hidden=\"true\" class=\"icon-li\"><\/i><span class=\"sr-only\">Linkedin<\/span><\/a><\/li><\/ul><\/nav><\/div><div class=\"col-12 col-md-11 col-lg-10\"><h2 class=\"intro-para-title\">Gen Z are coming into their economic prime; the must-win audience, they are entirely digital-first, and they do not shop like the generations before them<\/h2><\/div><\/div><\/div><\/div><\/section>\n\n\n\n<section class=\"wp-block-cg-blocks-group undefined section section--article-content\"><div class=\"article-main-content\"><div class=\"container\"><div class=\"row\"><div class=\"col-12 col-md-11 col-lg-10 offset-md-1 offset-lg-1\"><div class=\"article-text article-quote-text\">\n<p>According to the recent <a href=\"https:\/\/nielseniq.com\/global\/en\/landing-page\/spend-z\/\">Spend Z<\/a> report from NielsenIQ, the purchasing power of Gen Z is expected to reach $12T by 2030, outpacing Boomer spending. By that same year, more than 64% of all new births will be to Gen Z mothers, making them a dominant force in the important consumer segment of Families with young kids.<\/p>\n\n\n\n<p>For brands and retailers, the 12 trillion-dollar question therefore is: how do we connect with this new must-win audience? The answer lies in recognizing that many of the truths about marketing and sales do not apply to Gen Z in the same way as they did to Gen Y and Gen X.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-1-change-the-channel-on-channels\">1. <strong>&#8216;Change the channel&#8217; on channels<\/strong><\/h3>\n\n\n\n<p>Unlike their predecessors, Gen Z does not stay within defined linear media or sales channels. In fact, they rarely think in terms of channels at all. To them, channels are an industry construct. Gen Z shoppers don\u2019t distinguish between stores and screens or apps and ads. These are all just various touchpoints, physical and digital, in what they perceive as a fluid, connected commerce experience.<\/p>\n\n\n\n<p>For Gen Z, more than any other generation before, retail is media and media is retail. The sooner organizations let go of pre-conceived notions about channels, and even the concept of channels altogether, the faster they can start capitalizing on the potential of Gen Z. &nbsp;<\/p>\n\n\n\n<div class=\"wp-block-columns is-layout-flex wp-container-core-columns-is-layout-28f84493 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:66.66%\">\n<figure class=\"wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<iframe loading=\"lazy\" title=\"Connected commerce: Adapt, personalize, and drive growth I Capgemini\" width=\"960\" height=\"540\" src=\"https:\/\/www.youtube.com\/embed\/UVGku2TmvEo?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe>\n<\/div><\/figure>\n<\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:45%\">\n<p>Nestle committed to a <a href=\"https:\/\/www.nestle.com\/sites\/default\/files\/2022-11\/investor-seminar-2022-digital-transformation.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">channel-less commerce approach in 2022<\/a>. An example of how this plays out in practice is the collaboration between Recetas Nestle, the largest recipe platform in LATAM with 16M users monthly, and Rappi, the largest Last-Mile Delivery partner in LATAM. &nbsp;Digital-first consumers get a seamless experience combining Inspiration, how-to information, and immediate purchase options. &nbsp;Nestle and its partners gain invaluable Insights &amp; Data, access to incremental consumption occasions, and qualified traffic for their platforms. &nbsp;It&#8217;s a true win-win. <\/p>\n<\/div>\n<\/div>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-2-win-the-pre-shop-winning-the-shelf\">2. <strong>&#8216;Win the pre-shop&#8217; <\/strong>\u2265<strong> &#8216;Winning the shelf<\/strong>&#8216;<\/h3>\n\n\n\n<p>So where &#8211; in this non-linear connected commerce world &#8211; should brands be focused on to win these new high-value consumers?<\/p>\n\n\n\n<figure class=\"wp-block-image alignright size-full is-resized\"><img decoding=\"async\" src=\"https:\/\/www.capgemini.com\/wp-content\/uploads\/2024\/09\/GettyImages-578193811.jpeg\" alt=\"\" class=\"wp-image-1053175\" style=\"width:363px;height:auto\"\/><\/figure>\n\n\n\n<p>For Gen X, and indeed many Gen Y consumers, the customer journey still kicks into high gear in the store itself\u2014when you see the physical product, on a display or as part of a promotion\u2014 and it triggers a response based on latent brand messaging.<\/p>\n\n\n\n<p>For Gen Z, that bite point is often much earlier in their journey\u2014in the pre-shop phase\u2014before they get near a physical or digital shelf. Perhaps more aptly, shoppers are not so much biting as nibbling in a great many places: search platforms (including their gen AI-prompt bolt-ons such as Copilot or Gemini), social media networks, retail apps, intermediary apps like Instacart, etc., as well as traditional media.<\/p>\n\n\n\n<p>In the highly competitive consumer goods industry, the new scarce resource is not shelf space but mind space\u2014and with every digital touchpoint being a potential point of pre-order, success is more and more about triggering, and capturing, a purchase decision at the point of desire\/need.<\/p>\n\n\n\n<div class=\"wp-block-media-text is-stacked-on-mobile\"><figure class=\"wp-block-media-text__media\"><a href=\"https:\/\/www.capgemini.com\/insights\/research-library\/what-matters-to-todays-consumer-2024\/\"><img decoding=\"async\" src=\"https:\/\/www.capgemini.com\/wp-content\/uploads\/2024\/01\/WP_CRI-Consumer-Trends-1.jpg?w=960\" alt=\"\" class=\"wp-image-983527 size-full\"\/><\/a><\/figure><div class=\"wp-block-media-text__content\">\n<p>This is evidenced in the fact that nearly half of Gen Z consumers (46%) have purchased a product via social media platforms. And about the same amount (45%) have bought products from an influencer or celebrity brand in the past year, according to our latest consumer research from the <a href=\"https:\/\/www.capgemini.com\/insights\/research-library\/what-matters-to-todays-consumer-2024\/\">Capgemini Research Institute<\/a>.<\/p>\n<\/div><\/div>\n\n\n\n<p><\/p>\n\n\n\n<p>You can also see this in who is winning among CPG brands and retailers. In this new era of connected commerce, winning the pre-shop is how leaders are made. For instance, Aldi in the U.S. has an incredible $2B in sales going through the Instacart app alone.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-3-same-needs-new-expectations\">3. <strong>Same needs, new expectations<\/strong><\/h3>\n\n\n\n<p>Gen Z are not a new species, although you would be forgiven for thinking so given some of the sensationalism that surrounds their imminent emergence as a dominant force in the workplace and consumer landscape.&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-image alignleft size-full is-resized\"><img decoding=\"async\" src=\"https:\/\/www.capgemini.com\/wp-content\/uploads\/2024\/09\/GettyImages-1473875390-600x400-f5be660.jpeg\" alt=\"\" class=\"wp-image-1053181\" style=\"width:372px;height:auto\"\/><\/figure>\n\n\n\n<p>They have the same needs for shelter, food, security, harmony, socialization, and self-actualization as all previous generations. What is different \u2013 and this is shaped by the fact that they are the first generation to be brought up entirely within the digital age \u2013 is their expectations about how they satisfy these needs.<\/p>\n\n\n\n<p>Practically every aspect of their purchase decision journey is shaped by their warm embrace of data and digital touchpoints to add utility to their lives. They are more willing than Gen Y and Gen X to trade their data for a value exchange of more personalized content, offers, and fulfillment options. They are more likely to build their consideration set online, and to advocate on product performance or retailer delivery performance than any of the previous generations.<\/p>\n\n\n\n<p>Perhaps the ultimate expression of this is the speed with which Gen Z have adopted Gen AI tools for shopping. According to our most recent consumer trends tracker, 56% of Gen Z shoppers and 61% of millennials believe that generative AI tools improve their user experience, as compared to 52% of Gen X and 43% of Boomers.<\/p>\n\n\n\n<p><strong>This improved customer experience takes two forms: <\/strong><\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li>Automating routine replenishment of essentials <\/li>\n\n\n\n<li>Adding value to the shopper experience to ensure better outcomes<\/li>\n<\/ol>\n\n\n\n<figure class=\"wp-block-image aligncenter size-full\"><img decoding=\"async\" src=\"https:\/\/www.capgemini.com\/wp-content\/uploads\/2024\/09\/Gen-AI_preference_by_consumer_age.png\" alt=\"\" class=\"wp-image-1056495\"\/><\/figure>\n\n\n\n<section class=\"wp-block-cg-blocks-custom-quote undefined section-quote-layout\"><div class=\"quote-layout\"><div class=\"container\"><div class=\"row\"><div class=\"col-11 offset-1\"><p class=\"quote-title\"><strong>A good example:<\/strong><\/p><p class=\"quote-layout-content\">NYX Professional Makeup&#8217;s collaboration with Snapchat to launch <a href=\"https:\/\/www.prnewswire.com\/news-releases\/nyx-professional-makeup-launches-spring-2024-collection-301995350.html\" target=\"_blank\" rel=\"noreferrer noopener\">Beauty Bestie<\/a>, a virtual makeup experience tool, is a great example of winning the pre-shop and raising the bar on experience. \u00a0It uses AR, AI, and gesture control to allow users to try on various beauty looks, tailored to consumers\u2019 individual tastes and desires &#8211; giving them the confidence to experiment and broaden their palette of purchases. <\/p><\/div><\/div><\/div><\/div><\/section>\n\n\n\n<div class=\"wp-block-columns has-white-background-color has-background is-layout-flex wp-container-core-columns-is-layout-28f84493 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:50%\">\n<h1 class=\"wp-block-heading has-vivid-cyan-blue-color has-text-color has-link-color wp-elements-9b6dfa03bfd3f91db9a06cb5a7b76798\" id=\"h-47\"><strong>47%<\/strong><\/h1>\n\n\n\n<p>Gen Z and Millennials would like a chatbot with features such as ChatGPT to facilitate a quick Q&amp;A<\/p>\n<\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:50%\">\n<h1 class=\"wp-block-heading has-vivid-cyan-blue-color has-text-color has-link-color wp-elements-a679e1735d70a4acbee9c699d835476b\" id=\"h-54\"><strong>54%<\/strong><\/h1>\n\n\n\n<p>Gen Z and Millennials prefer generative AI over traditional search engines for product\/service recommendations<\/p>\n<\/div>\n<\/div>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-4-value-ahead-of-values-closing-the-think-do-gap\">4. <strong>Value ahead of values: Closing the think-do gap<\/strong><\/h3>\n\n\n\n<p>Our research revealed that the majority of consumers maintain a consistent demand for sustainable products, especially Gen Z. It also confirmed what they value most is time and freedom\u2014and what they want from a shopping experience is convenience, affordability and social awareness.<\/p>\n\n\n\n<p>This throws up some intriguing contradictions. The evidence points to the ability of Gen Z to absolutely hold all these values to be true but not of equal consideration in their purchasing behavior. In particular, as much as Gen Z say they value sustainability, it is clear from behavioral data, that convenience and price come first in their purchasing decisions.<\/p>\n\n\n\n<p>This sustainability \u201cthink-do gap\u201d\u2014the difference between sentiment and action\u2014poses a big problem to brand owners and retailers alike who are trying to do the right thing as sustainability often comes at the expense of convenience, as well as adding an on-cost to price. &nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-image aligncenter size-full\"><img decoding=\"async\" src=\"https:\/\/www.capgemini.com\/wp-content\/uploads\/2024\/09\/Type-of-consumer_wanting-sustainable-products.png\" alt=\"\" class=\"wp-image-1056499\"\/><\/figure>\n\n\n\n<p>The obvious solution, if not the easiest solution for brands and retailers, is to remove the trade-off and, with it, the dilemma away from the consumer. Instead of forcing the shopper to make a choice between convenience and the planet, bake sustainability into a fairly-costed solution that preserves convenience in form, function and fulfilment for the consumer.<\/p>\n\n\n\n<p>One of the brands to successfully adopt more sustainable practices while avoiding trade-offs in terms of price or convenience is <a href=\"https:\/\/www.ikea.com\/fi\/en\/this-is-ikea\/climate-environment\/the-ikea-sustainability-strategy-pubfea4c210\">IKEA<\/a>. They have enhanced their sustainability credentials in parallel (rather than in compromise) through increased use of renewable materials, a shift to 100% renewable electricity in factories, and eliminating print copies of their catalog. With these changes, IKEA is enabling all consumers, but especially reassuring Gen Z consumers, that with IKEA they can make sustainable choices they are proud of.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-forging-a-new-connection-with-gen-z-and-beyond\"><strong>Forging a new connection with Gen Z and beyond<\/strong><\/h3>\n\n\n\n<p>Gen Z is the vanguard of a new digital-first era\u2014a new Connected Commerce era. Already Generation Alpha are entering their teens and queueing up to take their place in 2035. &nbsp;Generation Beta (sic!) are unlikely to be the throwback their name suggests.&nbsp;<\/p>\n\n\n\n<p>The time for brands and retailers to let go of old \u201ccertainties\u201d and lean into this change is now, because the lead time to equip yourself with the data and technology platforms required to succeed is at most 2-3 years \u2013 and that\u2019s on top of whatever investments your organization has made to date.<\/p>\n<\/div><\/div><\/div><\/div><\/div><\/section>\n\n\n\n\t\t<section\n\t\t\tclass=\"section section--lifeatcap-learning section--event-slider-careerInvent \">\n\n\t\t\t<div class=\"container\">\n\t\t\t\t<div class='career-invent-header'>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t<\/div>\n\n\t\t\t<div class=\"slider slider-fader 6f7f10fa-bf25-4bf2-8f42-7fc3b534d77f\">\n\t\t\t\t\t\t\t\t<div\n\t\t\t\t\tclass=\"slider-list 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\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\tdata-maxlength=\"34\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\tSolution<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<div\n\t\t\t\t\t\t\t\t\t\t\t\t\t\tclass=\"content-title expBlock\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<h3 class=\"explore-header\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\tdata-maxlength=\"34\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\ttitle=\"Connected commerce\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\tConnected commerce\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/h3>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<div\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\tclass=\"box-title expBlock\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<h4 data-maxlength=\"144\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\ttitle=\"Digital channels remain the fastest-growing global channel for consumer products companies, outpacing others by a rate of three or more.\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\tstyle=\"white-space: pre-wrap;\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\tDigital channels remain the fastest-growing global channel for consumer products companies, outpacing others by a rate of three or more.\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/h4>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<div class=\"bgColor\"><\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<div class=\"brand-logo-wrapper smallDevice\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<div class=\"btnDiv\"> <a class=\"more2\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\tdata-maxlength=\"24\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\taria-label=\"Explore now sobre Connected 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