Gen Z and Millennials Social Commerce Habits

THE INFLUENCER MARKETING FÄCTORY GEN-Z & MILLENNIALS SOCIAL COMMERCE HABITS WHAT 350 AMERICAN GEN-Z AND MILLENNIALS THINKS ABOUT BUYING THROUGH SOCIAL MEDIA WHAT IS SOCIAL COMMERCE? Social commerce is the process of selling products directly on social media. The entire shopping experience, from product discovery and research to the checkout process can happen without the consumer having to leave the social media platform. WHAT IS NOT SOCIAL COMMERCE? Social commerce is not simply a way for social channels to increase traffic to your traditional sales channels. Social commerce is not eCommerce. It is also not social selling. Our agency The Influencer Marketing Factory surveyed 350 American Gen Z and Millennials to know more about their experience and behaviours on social commerce. AND THIS IS WHAT WE FOUND OUT: This is, on average, how long it takes to make a purchase from first seeing an item on social media: ***** Weeks/months *** A few days After a few hours Right away I like to carefully research the product online before buying 40% bought at least an item or service while watching a live stream on a social media app. 60% purchased at least one item on their smartphone thanks to social media brands' posts and/or influencers' content. YES NO NO YES 46% of the responders buy something at least once a month, thanks to social media brands posts and/or influencer's content More than Once a year once a week Once a week Once a month A solid 41% buy mostly Apparel and 23% Beauty products thanks to social media brands' posts and/or influencers content. Other Food and bev Home products Beauty care/Make-up Тech Apparel Overall, what do Gen Z and Millennials prefer? Both In-store Shopping Online Shopping Gen Z and Millennials have different approaches to typically find out about brands/services. Gen Z Millennials 150 120 90 60 30 Word of Influencers Online research Social Media Ads In-store TV commercials mouth (organic content) Buy on 3rd-party website Add To Cart 61% of the responders prefer to "Add To Cart" an item (paying directly in the app) compared to the other 39% that prefer to "View on Website" (buying on a third-party website). TECHNOLOGY IS NOT EVERYTHING "Even if we, Gen Z, know how to buy directly in-app without leaving a certain social media, I feel that the majority of the time we prefer to save a specific item seen on a social media post and visit the brand website to gather more information such as brand values, customers' reviews, and also we want to use desktop browser extensions like Honey to find potential discounts!" Natalie Hey-Shipton Student at University of California, Berkeley How important are online product reviews to Gen Z & Millennials? AVG 7.85/10 30 25 20 15 10 1 4 5 6 7 8 9 10 Learn More downloading our FREE 40+ pages report that includes: The Online Shopping Experience, Apps, Platforms and much more. DOWNLOAD OUR "STATUS OF SOCIAL COMMERCE" REPORT From expert quotes to a comparison between China and US, passing by the best apps and upcoming trends. Download it at theinfluencermarketingfactory.com/social-commerce-report MARKET SIZE IS HUGE The global Social Commerce Market that was estimated at $89.4 Billion in the year 2020, is projected to reach a revised size of $604.5 Billion by 2027, growing at a CAGR of 31.4% over the analysis period 2020-2027. The number of US social commerce buyers grew by 25.2% to 80.1 million in 2020 and will grow another 12.9% to 90.4 million in 2021. US retail social commerce sales will rise by 34.8% to $36.09 billion this year, representing 4.3% of all retail e-commerce sales. "The [BUY NOw] feature is a necessity for me to purchase when I browse online on a social media app*" 30 AVG 3.15/5 25 20 15 10 1 2 4 5 *Where 1 star equals to "Strongly disagree" and 5 stars to "Strongly agree" YES 78% has never used a “Buy Now Pay Later" service (e.g. Klarna, Affirm, etc) NO Below is how Gen Z and Millennials rated the actual status of their online shopping experience on Instagram and TikTok. LJ | Instagram TikTok 15 10 1 2 3 4 6 7 8 9 10 TikTok 5.3/10 Average rating 4.1/10 Average rating RESOURCES NOTE: This infographic is NOT associated or paid in any way by TikTok, Instagram or any other social media and companies mentioned. THE INFLUENCER MARKETING FACTORY Global Influencer Marketing Agency theinfluencermarketingfactory.com 20