Retailers should emphasise their sustainability credentials to better appeal to Gen Z and Gen Alpha consumers, a new report by GlobalData has found.
According to the data and analytics company’s Demographics in Retail and Apparel report, the sustainability of a particular product is ‘highly influential’ in terms of driving purchase decisions among these demographics, as is social media engagement.
Second-hand market
“A key trend in the purchasing behaviour of young consumers, particularly that of Gen Z, has been the rising prevalence of the second-hand market, especially for apparel but also for bigger-ticket purchases such as furniture and electricals,” commented Oliver Maddison, Retail Analyst at GlobalData.
“GlobalData’s How People Shop Survey found that globally, sustainability is the second most important driver for buying secondhand clothing and footwear after price, emphasising the importance that retailers must place on their sustainability credentials to capture spend from younger consumers.”
To adapt to this shift, some retailers have introduced their own secondhand platforms, aiming to capture a share of this growing market, rather than losing sales to established resale sites like eBay and Vinted. Notable examples include IKEA, which has already launched its Preowned platform in Spain and Norway, and plans to expand it globally by December.
Social media and affordability
In terms of social media, GlobalData noted that personalised shopping experiences on social media are leading younger consumers to favour premium retailers. Brands such as Birkenstock and Space NK are popular with these younger shoppers, especially in the health and beauty sector.
In general terms, however, affordability is also a key driver of sales in the apparel retail sector, with the success of fast-fashion retailer Shein among Gen Z in the UK highlighting the ongoing importance of price sensitivity.
GlobalData’s survey found that over 50% of 16-24 year-olds ordered from international retailers in the year to October 2023, with 40.8% buying from Shein.
The full report can be found here.
