ESW Data Reveals Gen Z and Millennial Consumer Preferences for International Shopping and Discovery – WWD
According to ESW’s Global Voices: Q2 2022 survey, a large majority of Millennials (60%) and Gen Z (63%) shoppers have a strong preference for purchasing through direct-to-consumer channels over across major marketplace platforms, with 73% of Millennials and 69% of Gen Zers finding they appreciate the more personalized experience that includes offers and promotions targeted to specific preferences.
In contrast, only 63% of Gen X consumers and barely half of Baby Boomers felt the same way.
At the same time, social media was identified as the top driver of product discovery, with in-store shopping ranking third. Among younger Gen Z consumers, the top three social media platforms were found to be Instagram at 52%, YouTube at 51%, and TikTok at 43%. Only 34% of Gen Z consumers said they use Facebook, revealing it as a less important discovery platform for the generation, while for Millennials, TikTok was the least important platform with just 32% l using for product discovery.
The findings, the report authors said, serve to underscore the importance of an omnichannel strategy.
“Young consumers’ shopping preferences indicate that retailers and brands need to adopt a strong content and direct-to-consumer e-commerce strategy in order to remain competitive in the future,” said Patrick Bousquet-Chavanne, President and CEO from the leadership of ESW Americas. . “Our data reveals that 78% of Millennials and 74% of Gen Z have a better experience when shopping on a brand’s website, while only 69% of Gen X and 60% of baby boomers feel the same.”
Notably, the survey found that Gen Z and Millennial consumers have a higher degree of trust in online retailers located outside of their home country. Confidence was 30% higher than Gen X and twice that of baby boomers. These younger generations shop cross-border twice as often as Gen X and three times as often as Baby Boomers.
Yet 54% of Gen Zers and 56% of Millennials believe it’s irrelevant for an online retailer to be located overseas. More than a quarter of all consumers said the reason they bought overseas was that the desired product was not available at a local retailer.
Across all generations surveyed (Gen Z, Millennials, Gen X and Baby Boomers), consumers say they will reduce online shopping by around 30% over the next year, citing inflation and other economic concerns.
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