For Gen Z shoppers, who find inspiration on TikTok and often opt for homemade gifts, trips to the mall are no longer just about shopping; they've become social events where friends can hang out, attend in-store events, and connect with brands.
As this generation's spending power is expected to reach nearly $12 trillion by 2030, retailers must adapt to their unique values. Gen Z shoppers are now extremely value-oriented, feeling constrained by debt and inflation, which leads them to prioritize not only price but also the social and emotional value behind a purchase.
In order to capture this generation's attention and loyalty, retailers must shift from simply selling products to connecting with customers on an emotional level. Neil Saunders, retail analyst at GlobalData Retail, suggests that a hard sell approach can feel "soulless" and "inauthentic." Instead, he recommends focusing on creating meaningful experiences that foster brand connections.
Membership programs are one way malls can tap into Gen Z's desire for community. Malls like the American Dream in New Jersey offer perks such as exclusive sales and releases, while its sister establishment, Mall of America, has hosted fan-meets with popular K-pop groups to celebrate new store openings.
However, even though Gen Z shoppers may frequent malls frequently, they're not always buying; instead, they seek out experiences that bring value beyond transactions. Before making a purchase, many researchers compare brands, analyze product quality, read reviews, and hunt for coupons.
As a result of this "hunt for the deal," a dupe culture has emerged, where Gen Zers enthusiastically seek cheaper lookalikes rather than brand-name originals. However, when it comes to gifting, they tend to favor personalized items or experiences over dupes.
In an effort to make sustainable products more affordable, some are turning to homemade gifts and experiences. For instance, Nicholas Asiedu gives his girlfriend the gift of a lasting memory by taking her on trips to museums.
Retailers will need to adapt to this unique approach if they hope to capture Gen Z's loyalty and attention in the long run. Neil Saunders emphasizes that retailers must be focused on this generation for the here and now, as understanding their values and preferences is crucial for success over the next 10-20 years.
As this generation's spending power is expected to reach nearly $12 trillion by 2030, retailers must adapt to their unique values. Gen Z shoppers are now extremely value-oriented, feeling constrained by debt and inflation, which leads them to prioritize not only price but also the social and emotional value behind a purchase.
In order to capture this generation's attention and loyalty, retailers must shift from simply selling products to connecting with customers on an emotional level. Neil Saunders, retail analyst at GlobalData Retail, suggests that a hard sell approach can feel "soulless" and "inauthentic." Instead, he recommends focusing on creating meaningful experiences that foster brand connections.
Membership programs are one way malls can tap into Gen Z's desire for community. Malls like the American Dream in New Jersey offer perks such as exclusive sales and releases, while its sister establishment, Mall of America, has hosted fan-meets with popular K-pop groups to celebrate new store openings.
However, even though Gen Z shoppers may frequent malls frequently, they're not always buying; instead, they seek out experiences that bring value beyond transactions. Before making a purchase, many researchers compare brands, analyze product quality, read reviews, and hunt for coupons.
As a result of this "hunt for the deal," a dupe culture has emerged, where Gen Zers enthusiastically seek cheaper lookalikes rather than brand-name originals. However, when it comes to gifting, they tend to favor personalized items or experiences over dupes.
In an effort to make sustainable products more affordable, some are turning to homemade gifts and experiences. For instance, Nicholas Asiedu gives his girlfriend the gift of a lasting memory by taking her on trips to museums.
Retailers will need to adapt to this unique approach if they hope to capture Gen Z's loyalty and attention in the long run. Neil Saunders emphasizes that retailers must be focused on this generation for the here and now, as understanding their values and preferences is crucial for success over the next 10-20 years.