Run at 4G speed
Shopping Centers Russia talked with representatives of shopping center developers and retailers to understand how they are working with Gen Z now and how they are going to attract them further. The L’Etoile chain of stores suggests that typical representatives of the Generation Y (who now make up a significant share of customers) and Gen Z (who are still growing and making purchases with parents’ money, but will soon start earning themselves) are people who live at 4G speed. “Most of their time they spend on the phone, they need fast and high-quality solutions.
What’s wrong with them?
The generations Y (18–35 years) and Z (14–17 years) are now form the most active part of the consumer audience, and in the future they will get an even more significant share. Researchers disagree on when Gen Z began to be born, but on average for Western countries, the calculation starts in 1995, for Russia — in 2000. “Gen Z hype” is based on the conviction that they are completely different people who grew up in a different world. As if they came from another planet. Although the difference with older consumers is not so huge. The point is that some technological innovations were initially available to the members of Generation Z. “Zets” are often called the digital generation — people who grew up in the world of computers, smartphones and video games.
There is an opinion that these people will solve all their tasks online. According to the IGD study, the buyers of the future will strive to optimize their time, take care of their health and make socially responsible decisions in various aspects. At the same time, they will appreciate individuality and experiments. IGD specialists are already identifying a group of influential buyers, which is 25% and can grow in the future.
Offline wins, but technology comes at a price
Although even malls and retailers top-managers are confident that Gen Z are already choosing online now, the future buyers themselves say the opposite. The participants of global surveys vote for offline: the ability to touch, measure, compare physical goods is still valued above the speed of purchase. According to Accenture’s research, 60% of young buyers choose offline retail, while 28% appreciate the opportunity not only to visit a physical store, but to consult with the real seller.
Surprisingly, it’s these people who do not even part with smartphones, more than previous generations are also guided by the opinion of their friends and family. So you can invest as much as you like in advisory services, but approval and environmental advice for the Gen Z may be more important. According to a survey by MAGRAM Market Research, conducted in Russia in conjunction with the international communications agency PBN Hill + Knowlton Strategies, 66% of the “zets” chooses live communication with friends. Hence the request for events in shopping centers: Gen Z will appreciate any opportunity to get together with friends in order to somehow spend time and chat. And in some cities, even quite large ones, shopping centers remain the only available place for such offline communication.
At the same time, there is still a fairly high demand for technological support for shopping. Almost 70% of Accenture survey participants said that they would like to buy goods through social networks, rather than in an online store, and 38% would like to order goods by voice. Optimization of time is indeed one of the main values: 73% appreciated the services that send clothing by subscription, and 71% appreciated the automatic replenishment of stocks in the house.
82 | SHOPPING CENTERS RUSSIA | APRIL 2019