Gen Z refers to anyone who was born between 1997 and 2012. This age group plays a huge role in the rise of social commerce. Read on to find out why.
The oldest of Gen Z are now young adults in their early 20s. This is the stage where they begin to enter the business world. Moreover, Gen Z is the first generation of true Digital Natives. They’ve begun their lives in the era of online orders, instant messaging, and video calls. Furthermore, they are the first generation that is active and available almost 24/7.
How Gen Z Impacted the Rise of Social Commerce
There is a constant increase in Gen Z’s device usage. Recent statistics showed that 98% of Gen Zs own a smartphone. In the third quarter of 2020, they averaged more than 4 hours a day on apps – and that does not include the time they spent on gaming.
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However, their platform usage has shifted slightly. Most millennials (anyone born between 1981 and 1996) prefer e-commerce. Yet, Gen Z has moved beyond and has favored social commerce – the practice of completing the whole purchasing journey within a social media platform. In fact, 97% of Gen Z consumers mainly turn to social media to find shopping inspiration.
There is a good reason behind this. Social media algorithm has the ability to learn the users’ preferences to suggest relevant recommendations. This results in a personalized shopping experience.
Reduced friction is another advantage of social commerce. Many e-commerce sites usually have a quite lengthy buying process. However, social commerce shortens the process as the user no longer needs to leave the platform. As result, the risk of abandoned carts is reduced.
Moreover, social commerce offers a more engaging shopping experience with the use of in-app filters, AR features, and live streams.
How Platforms React to This Trend
The most famous social commerce platforms for Gen Z are Instagram, TikTok, and Pinterest. In fact, the hashtag #tiktokmademebuyit has more than 2.3 billion views on TikTok. A recent study reported that 30% of Gen Zs say an easy checkout process is important to them in making a purchase.
Brands need to adapt to the rise of social commerce and consider a more seamless experience – from discovery to checkout. You may achieve this by minimizing distractions and being cautious to avoid directing shoppers away from your business page. Thus, it is crucial to develop strategies that enable consumers to complete their purchases with as little friction as possible.
The big platforms have anticipated the rise of social commerce and made actions. For instance, they have ensured purchases are not only frictionless but also safe and reliable.
In November 2020, Instagram released the “shopping” tab that enabled brands to achieve more brand visibility. This means brands can now promote their offerings to a wider audience. Meanwhile, Facebook, Instagram, and Pinterest have also strengthened their Spotify partnerships. This ensures fast, secure payments that don’t require users’ financial details.
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