Company Website:
http://www.nrf.com
WASHINGTON -- (Business Wire)
Despite expectations that the first “digitally native” generation would
want to shop online, a new study released today by IBM (NYSE: IBM) and
the National Retail Federation found that almost all members of
Generation Z prefer to shop in bricks-and-mortar stores. With the global
Gen Z population set to reach 2.6
billion by 2020, retailers need to create more interactive
engagement around their brands to serve the “always on,” mobile-focused,
high-spending demographic, according to the study.
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“Generation Z expects technology to be intuitive, relevant and engaging
— their last great experience is their new expectation,” IBM General
Manager of Global Consumer Industries Steve Laughlin said. “This
presents a significant challenge for retailers and brands to create a
personalized, interactive experience with the latest digital advances or
risk falling behind. This kind of innovation is not linear or a one-time
project — it is a new way of thinking, operating and behaving.”
“Just as Millennials overtook Gen X, there’s another big buying group
retailers need to plan for, and it’s even larger: Generation Z,” NRF
President and CEO Matthew Shay said. “They appreciate the hands-on
experience of shopping in a store. With technology constantly evolving
but some shopping habits remaining the same, retailers need to be agile
enough to serve both needs. Retailers are constantly focused on
experimenting with new innovations both online and in-store to remain
relevant to evolving consumer demand.”
Released just ahead of NRF’s 106th annual Retail’s
BIG Show next week in New York, the “Uniquely Gen Z” study conducted
by the IBM Institute for Business Value is based on findings from more
than 15,000 consumers aged 13-21 from 16 countries.
Born after the mid-1990’s till early 2000s, Generation Z is the first
“digitally native” group to grow up not knowing a world before cellular
phones, smartphones and other digital devices. But the study found that
67 percent of Generation Z shop in a bricks-and-mortar store most of the
time, with another 31 percent shopping in-store sometimes, indicating
that 98 percent of Gen Z shop in store.
The new generation is important to retailers because it has access to $44
billion in buying power, with 75 percent saying they spend more than
half of the money that is available to them each month, according to the
study. And the generation is demanding: the study found 52 percent of
Gen Z consumers will transfer loyalty from one brand to another if the
brand’s quality is not up to par. They care the most about retailers
getting the basics right, with 66 percent saying product quality and
availability are the most important factors when choosing one brand over
another; 65 percent focus on value.
The study found 74 percent of respondents spend their free time online,
with 25 percent online five hours or more each day. The degree to which
in-store sales are influenced by digital is inevitable in today’s
shopping journey — and continues to grow. The study discovered a number
of insights into Gen Z’s digital habits and preferences brands can
leverage to reach them:
-
73 percent of Gen Z use their phones primarily to text and chat
socially with family and friends, but members are willing to extend
their conversations to brand relationships.
- 36 percent would create digital content for a brand, 42 percent
would participate in an online game for a campaign and 43 percent
would participate in a product review.
-
They have no patience for hard-to-use technology and demand a seamless
mobile/digital experience.
- 62 percent will not use apps or websites that are difficult to
navigate and 60 percent will not use apps or websites that are
slow to load.
-
Gen Z knows personal information is valuable to retailers, so members
want to know how brands are using it and how the information will be
protected.
- Less than 30 percent are willing to share health and wellness,
location, personal life or payment information; 61 percent would
feel better sharing personal information if they knew it would be
securely stored and protected.
The study found that Generation Z consumers like to engage with brands
online, especially with those that create an interactive environment
where customers can shape their own experience. As retailers develop and
engage in such practices, they will be able to capture Gen Z ideas for
new products, services, engagement and shopping experiences, the study
said. The generation is known to be brand champions both online and
offline, especially when brands acknowledge and value their opinions.
IBM IBV Lead Researcher Jane Cheung and STORES Magazine Editor Susan
Reda, along with two Generation Z students from the Fashion Institute of
Technology’s Fashion Business Management (FBM) program, will participate
in a live online discussion of the study’s findings at 11 a.m. Eastern
time on Friday. Reporters can watch the discussion at https://zoom.us/j/719741456.
About IBM Institute for Business Value
For more information, http://www.ibm.com/iibv
Download the IBM IBV app from iTunes and
Android
Market
About IBM Retail
For more information about IBM Retail: https://www-935.ibm.com/industries/retail/
For more information about IBM Consumer Products: https://www-935.ibm.com/industries/consumerproducts/
About NRF
NRF is the world’s largest retail trade association, representing
discount and department stores, home goods and specialty stores, Main
Street merchants, grocers, wholesalers, chain restaurants and Internet
retailers from the United States and more than 45 countries. Retail is
the nation’s largest private sector employer, supporting one in four
U.S. jobs — 42 million working Americans. Contributing $2.6 trillion to
annual GDP, retail is a daily barometer for the nation’s economy. nrf.com
About the Fashion Institute of Technology (FIT)
The Fashion Institute of Technology, a part of the State University of
New York, has been a leader in career education in art, design,
business, and technology for more than 70 years. With a curriculum that
provides a singular blend of hands-on, practical experience, classroom
study, and a firm grounding in the liberal arts, FIT offers a wide range
of outstanding programs that are affordable and relevant to today’s
rapidly changing industries. Internationally renowned, FIT draws on its
New York City location to provide a vibrant, creative community in which
to learn. The college offers more than 50 majors and grants AAS, BFA,
BS, MA, MFA, and MPS degrees, preparing students for professional
success and leadership in the global marketplace. Among notable alumni
in fashion are Calvin Klein, Michael Kors, Amsale Aberra, Reem Acra,
Brian Atwood, Dennis Basso, Francisco Costa, Norma Kamali, Nanette
Lepore, Bibhu Mohapatra, Ralph Rucci, John Bartlett, and Michelle Smith.
Other prominent graduates include Leslie Blodgett, creator of
bareMinerals; international restaurant designer Tony Chi; Nina Garcia,
creative director, Marie Claire; and Joe Zee, executive
creative officer, Yahoo Style. Embodying the mantra “where fashion meets
business,” the Fashion Business Management (FBM) program at FIT is the
largest and oldest degree program of its kind in the country. Blending a
curriculum of design knowledge and business practices, students study
fashion marketing, product development, planning, and fashion
management, and can earn a one- or two-year AAS degree, and a two-year
BFA degree. Visit fitnyc.edu.
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View source version on businesswire.com: http://www.businesswire.com/news/home/20170112005337/en/
Contacts:
NRF:
Ana Serafin Smith, 855-NRF-PRESS
press@nrf.com
or
IBM:
Katie
Leasor, 212-671-9356
kleasor@us.ibm.com
Source: National Retail Federation and IBM
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