Just when we thought we were perfecting millennial preferences, there’s another generation hot on our toes. Yes, we’re talking about Generation Z. 

Gen Z is the newest generation to be named and was born between 1995 and 2015. They are currently between 4-24 years old and taking a solid stand as the fastest-growing demographic.

The widespread use of the internet has started to give us fresh instances on the changing tastes of the upcoming generations. Bear in mind, this is the first generation that is purely born into the digital world. There’s very little chance that most of them know a world before the internet and social media.

Generation Z is exactly how complicated as you would expect them to be. We took a look at their numbers and we could infer that they are a generation with high expectations, changing tastes and shifting loyalties.

While most of Generation Z hasn’t joined the workforce yet, brands have been strategizing for years on how they can cater to Gen Z’s needs efficiently. According to Gen Z planet, they possess close to $300 billion in direct purchasing power!

It won’t be completely false to say that some of Gen Z’s characteristics are borrowed from millennials. After all, these two groups are the most digitized generations yet.

What do studies show about Gen Z?

There are a plethora of companies that are currently examining the next generation’s preferences. Here are some findings from various studies that we observed:

  • Social media is the new disruptor

New-gen ways of promotion through Instagram and Facebook ads are the latest fad. They also prove to be effective ways to gather a wider reach for your product or service. 44% cite social media as a popular source for product inspiration. 37% have increased their use of social media for purchase-decision-making in the last year. 

  • Speed and scheduling are equally important 

As fast as they would like to make the purchase, Gen Z also maintains scheduling orders as an important preference. Timely delivery is the name of the game. Subscriptions are also a great way to entice Generation Z. 73% of Gen Z shoppers are interested in curated subscription-type offerings for fashion. Click here to know how you can easily offer a subscription model for your customers.

  • Feedback is fun!

Gone are the days when merchants needed to bend over backwards to receive legitimate feedback. This tech-savvy generation is certainly turning things around in the customer feedback experience. Almost 70% of Gen Z shoppers say that they have written reviews. 40% of all of Generation Z also says they give feedback often. 

  • Brick-and-mortar stores are back in trend 

One of the most surprising trends we noticed is the interest of Gen Z in in-store shopping. 60% of Gen Z shoppers prefer to purchase in stores! And keep in mind, Gen Z wants to stay well-informed about every purchase they make. 46% will check in-store to get more information before making an online purchase. 

  • A picture is worth a thousand words

The most defining aspect of this generation is perhaps their affiliation towards visual imagery. Generation Z is leading a shift in preferences where they want to see the product before buying it. This can be accounted to the rise of social media usage for commerce and the imagery used to sell the products online. 

66% of Gen Z shoppers use Instagram compared to 40% of millennials and they are more than twice as likely to use Snapchat!

  • Garnering their loyalty is more difficult than you think

It’s no surprise that garnering loyalty in a world full of options is a humongous task. With a plethora of similar options available at their fingertips, Gen Z can hardly be blamed for their shifting loyalties. 

But, here’s the thing– Gen Z hasn’t even figured out their loyalty yet. Studies show that only 16% shop at a single store for clothing/fashion while the global average for older millennials is at 26%. In terms of health and beauty, 19% of Gen Z shop at a single store for health and beauty items while older millennials average at 34%.

  • Impulse purchases alert!

Impulse buying has significantly shot up over the last few years owing to a lot of reasons. It’s important that the merchants keep an eye out to keep impulse purchases in check since they form a significant reason to Return-To-Origin. When a customer makes an impulse purchase and later cancels the order, this can incur severe costs due to double shipping costs. 

We at Razorpay Thirdwatch even noticed that merchant could lose up to INR 150 in just shipping the cancelled order. One study shows us that  Gen Z shoppers are more likely than millennials to make a purchase just because they want to buy something. 

This can significantly up the rates of shipping the returned items back and forth. For merchants to stay one step ahead, fraud prevention tools like Razorpay Thirdwatch help online shop owners detect suspicious orders, non-deliverable addresses, impulse purchases and so on.  

  • Be mobile-friendly

The shortest route to Gen Z’s heart is through a well-made, mobile app. Over 40% purchase more than 50% of their apparel and consumer electronic items online, hence, optimizing your website for mobile is essential, if you don’t have an app.

In order to make a solid impression with the generation of the future, online shop owners must adapt to the changing times and the preferences that come with it. This is, of course, just a fraction of Generation Z’s preferences. We will be covering more like these in the future, so make sure to stay tuned!


Writer. Payments enthusiast. The most curious person in the room.

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