Price-sensitive Gen-Z prefers shopping recommendations made by friends

While Gen Z shoppers display a great deal of concern for climate change and sustainability, they are seldom willing to pay the additional cost that goes into making such products

India's Gen-Z are 50 per cent more likely to make purchases based on a friend's recommendation than that of an influencer or a celebrity endorsement, The Economic Times (ET) has reported.

This assumes significance since Gen-Z form the largest part of the audience present on social media and other online platforms. The report cited inputs from a youth media, insights, and impact company, Yuvaa that studied the behaviours of people born between 1997 and 2012.

The Yuvaa study revealed that 71 per cent, or every three in four Gen-Z consumers has a preference for brands that are environment-friendly. This is because of their awareness and concern for climate change, while 63 per cent of Gen-Z shoppers like to buy products from brands that are supporting a social cause.

 

Notably, these young customers expect brands to create sustainable products, they are not always willing to pay the additional cost that goes into making such products, the Yuvaa study revealed.

The report said that Gen-Z shoppers are price-conscious and this may be the reason behind the growth in the sales of used products. The report said that more than three-fourths of Gen-Z shoppers are price-sensitive and their buying decisions change depending on the price of a product.

With over two billion Gen-Z youngsters around the world, they form one-fourth of the global population. In India, the number of Gen-Z is even higher at 35 per cent, according to Yuvaa's study.

Talking about the subject, Dhatri Bhatt, a market expert having worked with brands like Nykaa Fashion, Christian Dior, and H&M told ET "You'll notice major apparel brands have a separate Gen-Z section that is price sensitive, focuses on latest trends, and has sustainability as a key communication theme."

The Yuvaa study also revealed some other interesting aspects of the Gen-Z population. It said Gen-Z men are twice as likely to feel lonely because of their gender than women. Moreover, 71 per cent of Gen-Z men want better safety features on dating apps, this part of the study suggests against the traditional belief that men are not concerned about safety on dating apps.