Generation Z Unleashed: How the Young Generation is Turning the Fashion Trade Upside Down

Customer expectations of retailers are rising. Consumers have long been using online and offline channels in sync and no longer limit their purchasing decisions to just one channel. This is forcing retailers to combine their brick-and-mortar business with an online presence. Generation Z in particular, born between 1997 and 2010, is demanding in terms of the shopping experience and values compelling omnichannel services. Generation Z is a particularly relevant target group for fashion retailers, as they place almost half of all online fashion orders (e-Commerce Magazine, 2023).

In order to meet the demands of Generation Z, new focal points are required. An important source of inspiration for the young generation is social media, especially Tik Tok and Instagram. In a survey, 62% of Gen Z say they look to social networks for inspiration (Stylight, 2023). In addition, a seamless user experience, personalized offers and recognizable communication across all channels are important to young consumers. They want to shop both online and offline with their favorite retailer anywhere, anytime, complete purchases within a few clicks, and receive them via flexible delivery and pickup options.

As the first generation to grow up in a digital world, Generation Z spends more time online than any other age group, which has an impact on their buying behavior. However, this does not mean that brick-and-mortar stores have become irrelevant for young customers, who still spend 42% of their money in stores (Google/Bain, 2022). They often start an intensive online research before buying a product and accordingly make their purchase decisions online. However, the purchase then often takes place offline. Retailers who want to successfully retain Generation Z as customers should therefore focus on a seamless omnichannel experience.

The environmental awareness of companies is also relevant for the purchasing decisions of Generation Z. In a survey, 79% of consumers say they attach great importance to sustainability when shopping for fashion (UNiDAYS, 2021). Through environmentally friendly delivery methods and transparency in the supply chain, retailers can demonstrate their environmental awareness. Click & collect and ship-from-store are ideal ways to reduce negative ecological effects through shorter or fewer delivery routes. By shipping from a store close to the customer through ‘Ship-from-Store’ the delivery routes are shortened. This in turn reduces both CO² emissions and shipping costs.

Generation Z does not yet make up the largest part of the market for fashion retailers. But in order to not lose touch and to remain competitive, retailers should already adapt to the growing demands and expectations of young consumers. One way fashion retailers can do this is by integrating their online and offline business with a sophisticated omnichannel strategy to offer a consistent shopping experience across all channels. Retailers can provide their customers with the following services as part of an omnichannel strategy:

• Display product availability in the online store: Customers want cross-channel information about product availability in the individual stores.
• Offer Click & Collect: With Click & Collect, retailers increase the relevance of their stores, reduce CO² emissions and promote spontaneous purchases..
• Speed up deliveries through Ship-from-Store: Ship-from-Store speeds up the fulfillment of orders and reduces the carbon footprint as well as transportation costs.
• Simplify returns management:: Retailers should offer their customers the option of returning clothing to the store – this increases footfall in their stores and customer loyalty.