Gen Z and the rise of social shopping

Our latest research, featured in Toy News, takes a closer look at Gen Z’s spending habits and what they might mean for brands.

Online overtakes offline

Ecommerce is taking off within the family industry. When kids and parents could not leave the house to browse the shops during pandemic restrictions, digital platforms became a crucial space for families to discover new games, toys, trends and clothes. Even as lockdowns eased, the online shopping experience has continued to grow, showing how much consumers value convenience and immediacy.

There is a clear opportunity for brands to produce authentic digital content that resembles the experience of in-person shopping, on the platforms that will reach their target audience.

Livestream shopping brings the human element back

First pioneered in the 1970s, livestream shopping lets brands demonstrate and advertise their products to an audience via digital platforms. Buyers can watch models try on clothes, play with toys and games and use products, bringing a human element to advertising, marketing and sales campaigns. Our data reveals that 41% of teens in the UK agree they would rather spend money on an experience than a product, and livestream shopping speaks directly to that, letting consumers interact with their favourite brands in real time.

Technological developments now mean live shopping is delivered in real time, with buyers leaving comments on streaming sites before buying directly from the platform. Being live also generates a time sensitivity that urges customers to act quickly and purchase before a product sells out, which supports the instant gratification many kids have become accustomed to.

Where teens follow their favourite shops

Social platforms including Instagram and TikTok have partnered with shopping sites, and platforms beyond social media have moved into the space too, with Spotify announcing a collaboration with Shopify.

The shop’s own website ranked fourth, which demonstrates how important social presence has become for generating brand advocacy and loyalty.

Why TikTok works for social commerce

Social shopping was a natural move for TikTok, given the nature of viral trends and hashtags such as #TikTokMadeMeBuyIt. The short, digestible format of the videos, coupled with the playful tone of influencers, makes the platform accessible and important for businesses looking to engage a younger audience.

With an audience predominantly made up of Gen Z and Millennial consumers, TikTok demonstrates the success of ecommerce within the teen ecosystem. With 29% of teens in the UK using their personal mobiles for shopping in the last six months, presence on the app is a key way for brands to get exposure and maintain interest. Teens who say they use their mobile for shopping are 15% more likely to name TikTok as their favourite app.

The influencer effect

As well as benefiting from presence on social media, brands can use the following of well-known influencers on these platforms. Two in five UK teens agree that seeing a celebrity they follow use a new product encourages them to purchase it. By identifying which influencers resonate with their target audience, brands can market their products through endorsements.

Seeing an influencer wearing a new item of clothing or using the latest gadget has a word-of-mouth effect, where audiences trust their opinion and look to follow the trends. This leads the way for an influx of micro-influencers selling their own products via a livestreaming experience, much like a live Etsy store. That promotes a more authentic community, which is likely to appeal to teens, since 46% of this group value the feeling of belonging when making purchase decisions.

All statistics taken from six months of data collected by Kids Insights, August 2021 to February 2022.

This article first featured in Toy News.