A significant 43% of Gen Z shoppers express a preference for making purchases directly from direct-to-consumer (D2C) brands, according to a PYMNTS study. This inclination towards D2C brand purchases is not only a testament to the changing dynamics of consumer behavior but also highlights the potential for brands to capitalize on this trend.
With Gen Z's monthly spending power estimated at $14 billion, their predilection for D2C could translate into a substantial $72 billion annually directed towards brands. This shift towards brand websites over third-party retailers or online marketplaces among the youngest generation of consumers stands in contrast to the preferences of Baby Boomers.
Gen Z are known for their tech-savviness and are often looking for a seamless and personalized shopping experience. Brand websites typically offer this by providing detailed product information, customer reviews, and often a more streamlined customer service experience. These factors contribute to the trust and loyalty that these consumers have towards their preferred brands.
The same report found that 35% of Baby Boomers are more inclined to shop online at third-party sites rather than directly from brand websites. This inclination towards third-party sites among Boomers can be attributed to several factors that cater to their shopping preferences.
The report suggests that these sites often provide a more extensive range of products, allowing Boomers to explore a variety of options in one place. Additionally, competitive pricing found on retailer sites is particularly appealing to those who are looking for the best deals and savings on their purchases.
In addition, 32% each of millennials and bridge millennials prefer a brand website over a merchant’s online store. While trust is a crucial factor for customers, it is interesting that for those who prefer retailer sites or online marketplaces, competitive pricing and convenience seem to take precedence over trust.
The report suggests that for brands looking to attract the Gen Z demographic, focusing on enhancing the online features that resonate with these consumers is crucial. Trust, a wider range of products, competitive pricing, and convenience are among the factors that can drive loyalty and increase customer engagement.
Conversely, for shoppers like the Boomers who frequent retailer sites, pricing takes precedence once again over trust, indicating a willingness to compromise on trust for better prices and convenience.
The findings from PYMNTS Intelligence and Adobe's report provide valuable insights into the e-commerce preferences of Gen Z, indicating a strong preference for D2C brand purchases. As well as, a substantial portion of millennials and bridge millennials, the allure of shopping directly from a brand's website is strong.
Brands that wish to capitalize on this trend must ensure that their online offerings are not only trustworthy but also align with the values and expectations of these consumers. See full report here.
