A significant number of Generation Z Americans plan to shop on TikTok's platform during the current season.
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As the holiday season approaches, businesses are adjusting their strategies to cater to the preferences of younger shoppers, with a particular focus on Generation Z. According to recent reports, social media platforms are becoming increasingly influential in shaping the shopping habits of this demographic.
According to Fiverr's report, 80% of businesses are offering discounts this holiday season, a significant increase from 55% in 2023. This shift reflects the growing importance of competitive pricing in attracting Gen Z shoppers.
In the U.S., nearly 54% of Gen Z will find gifts on TikTok Shop alone, a testament to the platform's growing influence. TikTok Shop, an e-commerce feature launched in the U.S. late last year, has been investing in its shopping capabilities. It has hosted discount days with brands like NYX Professional Makeup and L'Oréal Paris, and recently expanded its shopping segment to include a pre-owned luxury segment in the U.K., with plans to offer authenticated handbags in the U.S.
Instagram is also pursuing similar ventures to attract customers on its platform. A third of U.S. respondents will shop for gifts seen on Facebook and Instagram ads, indicating the effectiveness of social media advertising in reaching Gen Z shoppers.
TikTok and Instagram are not the only platforms shaping Gen Z's shopping behaviours. Nearly 70% of businesses surveyed plan to use AI this holiday season to connect with younger shoppers. Through TikTok Shop (34%), influencers' recommendations (25%), and generative AI search (14%), Gen Z is largely influenced by what's trending online for gift choices.
Influencers play a crucial role in Gen Z's shopping decisions. Almost a quarter (24%) of U.S. Gen Zers will make their purchases through influencer recommendations. This trend is reflected globally, with nearly 40% of retailers investing in social media ads.
Brands are continuing to bet on social media as a means to reach younger generations. Emerging or niche platforms like Noplace offer businesses new avenues to reach Gen Z through community-based, interest-focused engagement. While their current commercial use is less established, these platforms provide opportunities for targeted marketing campaigns that resonate with subcultures within Gen Z.
Platforms like Reddit and Tumblr, while more niche, provide brands with access to highly engaged and creative communities. Businesses can utilize these for targeted, interest-specific marketing campaigns that resonate with subcultures within Gen Z.
In summary, businesses aim to engage Gen Z holiday shoppers by combining influencer partnerships, interactive and authentic content, and seamless in-app shopping experiences on TikTok, Instagram (and Threads), while also experimenting with emerging platforms and niche communities to broaden their reach.
Interestingly, Gen Z shoppers plan to spend more for the holidays this year, with 43% of them compared to 37% of millennials, according to a report released by Fiverr. This spending trend, coupled with the increasing influence of social media, suggests a promising future for businesses that can effectively connect with Gen Z shoppers online.
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