Luxebook August 2023

Millennials vs Gen Z Millennial and Gen Z shoppers are two distinct generations with different characteristics, behaviors, and preferences when it comes to shopping. It’s important to note that generational boundaries can be somewhat fluid, but generally, millennials are born between the early 1980s and mid-1990s, while Gen Z includes individuals born from the mid-1990s to the early 2010s. As such, their experiences, upbringing, and exposure to technology have influenced their shopping habits in unique ways. Here are some key differences between them. Gen Z shoppers are true digital natives, having grown up with smartphones and social media as integral parts of their lives. They are more likely to use mobile devices for shopping, engage with brands on social media platforms, and adopt new shopping technologies and trends quickly. Millennials, while tech-savvy, experienced the rise of digital technologies later in life and may not be as native to the digital landscape as Gen Z. Gen Z shoppers tend to prefer concise and visual forms of communication. They are more likely to communicate through images, videos, and emojis, making platforms like Instagram and Snapchat particularly popular among them. Millennials may be more comfortable with longform communication and could use a mix of social media platforms for communication and engagement. Millennials are generally known to be more brand loyal compared to Gen Z. Millennials grew up during a time when brands played a significant role in shaping culture and identity. On the other hand, Gen Z shoppers are more likely to prioritize product quality, value, and authenticity over brand names, which can make them more open to exploring different brands and products. Both generations tend to care about sustainability and social responsibility, but Gen Z has shown a stronger inclination towards supporting eco-friendly and socially conscious brands. They are more likely to consider a company’s environmental and social impact when making purchasing decisions. Millennials often prefer a seamless and personalized shopping experience, both online and in physical stores. They value convenience and may be more open to online shopping. Gen Z, while also valuing convenience, tends to enjoy in-person shopping experiences as well, looking for unique and immersive experiences in brickand-mortar stores. Both generations are influenced by social media influencers,but Gen Ztends to have a stronger connection with influencers and is more receptive to influencer marketing strategies. They often seek authentic and relatable content, making influencer marketing an effective approach to reach this demographic. Gen Z shoppers are more open to alternative payment methods, such as mobile wallets and digital payment platforms. They are less likely to use credit cards as compared to millennials, who may be more accustomed to traditional payment methods. It’s important to remember that these are general trends and individual preferences can vary widely within each generation. Retailers and brands should take the time to understand their target audience’s specific preferences and behaviors to tailor their marketing strategies effectively. Spending habits Inflation has had an influence on the purchasing habits of both millennials and Generation Z. According to the latest research, 30% of Gen Z and 27% of millennials were purchasing much less owing to inflation. However, although 27% of millennials buy more private-label items to save money, only 13% of Generation Z does. Millennials are also more likely than Gen Z to shop at cheap stores (26%). This is reasonable given more millennials have families as compared to Generation Z. Millennials are choosing to reduce their grocery expenses, which are continually growing due to inflation. 22|LUXEBOOK|AUGUST 2023 AUGUST 2023 |LUXEBOOK|23