Sitecore Study: Aussie Gen Zs Flock To Internet Commerce Sites During Pandemic

Sitecore has revealed how the digital shopping habits of Generation Z in Australia have evolved since the pandemic.

The research, conducted by Advanis, surveyed more than 2,000 consumers in Australia, including 1,000 Generation Z’s, to understand their purchasing preferences following the peak of the pandemic.

With 40 per cent of Gen Z in Australia saying that top retailers are not delivering slick online shopping experiences, it’s revealed that Gen Z quickly moves on from brands if they deliver poor Internet browsing experiences.

In the past year, Gen Z in Australia have embraced mobile and built their search skills, and are becoming savvier shoppers who are very engaged with brands via social media. The survey showed Australian Gen Z are more likely to say they are digital converts and want to keep buying almost everything online (63 per cent vs. 47 per cent among older gens).

Today, two in three Australian consumers in the Gen Z bracket find online shopping more enjoyable than in person shopping (67 per cent compared to 49 per cent among older generations).

The report focuses on Gen Z consumers and compares their shopping habits to all older consumers (Millennial’s, Gen X, Boomer and Traditionalist Generations).

Key findings from the study include:

Australia’s Gen Z will switch brands if their online experience is consistently poor: Australian Gen Z are more likely to have met challenges when shopping online; but only 1 in 10 will switch their loyalty after a poor online shopping experience – most (55 per cent) will give multiple second chances. However, Australian Gen Z shoppers have a low tolerance for browsing online stores, as most will give up after no more than 10 pages of browsing (on average, five pages of browsing).

Physical retail stores are still attractive: For Gen Z in Australia post-pandemic, the top physical retail outlets will remain attractive, particularly for exploring (shopping local, socializing, and window shopping)—but online brings the convenience (advantages of availability of products, lower cost, time saving, predetermined purchases, or staying in).

Socializing as a reason to go back to retail stores and malls is particularly strong for Gen Z (47 per cent vs. 30 per cent among older gens). Gen Z is more likely to say their online experience with local retailers was not as slick as they needed (40 per cent vs. 26 per cent among older gens).

Gen Z are mostly keen on clothing and personal care products: Compared to older generations, Gen Z in Australia are more likely to have made an online purchase of clothing or beauty/personal care products in the past year. Eight in 10 of Australian Gen Z has purchased clothing in the past year.

Clothing is also the category with the highest first-time purchasers, with over one in three purchasing it online for the first time. For Gen Z, clothing is the top category, followed by beauty and personal care products, media, groceries, restaurant food, and electronic – all of which were purchased by at least a third of Gen Z in Australia. They are stronger purchasers of clothing (79 per cent vs. 65 per cent among older generations).

Speed of Internet Experience and Immediate Delivery is Crucial:  A quarter or more Gen Z in Australia also rank same/next day delivery, easy site navigation, and having items in stock in their top three aspects of shopping online. More than four in ten Gen Z in Australia say that having a free delivery option is most important to them in online shopping.

However, free delivery is less important to Gen Z (44 per cent) compared to older generations (55 per cent). Gen Z also are more likely to say that an app/website that works well on mobile is critical to their shopping experience (60 per cent vs 49 per cent for older generations).

Sitecore said the survey data showed that Gen Z shoppers in Australia are placing high expectations on retailers following the depths of the pandemic.

“The pandemic has tested the loyalty of Gen Z shoppers in Australia, leading them to become digital converts who show less loyalty to their pre-pandemic ‘go-to’ brands. They are also opting to shop more via mobile and direct from brands,” said Paige O’Neill, chief marketing officer, Sitecore.

“Australian Gen Z treats online shopping as an experience to enjoy and expect highly personalised, exciting online experiences that work on mobile and can offer same-day delivery.”

O’Neill added: “The ability to consistently create personalized experiences is critical to secure the wallets of Gen Z. This puts technology firmly at the centre of this new battle for retailers.”