To succeed in the 2024 shopping environment, with a bias towards 2025, requires having a deep understanding of the distinct shopping behaviour and drivers across each generational group. Gen Z, Millennials, Gen X, and Baby Boomers all shop the same stores and platforms, but their paths to purchase, decision influencers, and channel preferences are vastly different. This report is based on the latest e commerce and consumer data to explore these differences, with actionable insights to create targeted campaigns speaking meaningfully to each group.
1. Gen Z: Social Media and Video Driven Discovery
Gen Z (11–26 years old, or 18–25 in some research) is a mobile first generation growing up with smartphones and social media. For them, discovery of the product is closely associated with platforms like TikTok, Instagram, and YouTube, and 85% of them acquire knowledge of new products via social media on a regular basis. Interestingly, 79% have shopped directly through a social media application in the past month, so these platforms are crucial for driving sales. Video content is important, with 93% of Gen Z shoppers purchasing after viewing short form video content and 52% seeking out video reviews or unboxing video when shopping for information. Shoppable video and livestreaming commerce also appeal to their passion for immersive, visually driven storytelling with real time purchasing.
2. Gen Z: Starving for Authenticity and Interactivity
Authenticity drives Gen Z purchasing behaviour, with traditional advertising secondary to word of mouth. Influencer marketing is effective when genuine, as 88% are more likely to believe influencer recommendations than regular ads, and 73% prefer to learn about products via UGC. Micro and nano influencers (<10,000 followers) are the most resonant, with 81% of Gen Z preferring them as being more down to earth. However, only 12% state specific influencers individually influence buying habits, showing viral material and trends tend to have greater impact. Gen Z also craves experiential interactions, with 53% focusing on more time in virtual stores or showrooms compared to websites of physical stores. Nike boards the wave with actions like their Heel to Toe initiative, blending entertainment and commerce with AR try ons and gamified experiences.
3. Gen Z: Seeking Instant Access and Premium Services
Gen Z’s native nature in the digital space propels a quest for instant access. In contrast to previous generations, 55% of 18–34 year old shoppers would pay extra for instant availability in the event that an item is not in stock, as opposed to 36% of customers aged over 35. This underlines the importance of optimized inventory and fulfilment practices. Furthermore, 77% are retail membership subscribers such as Amazon Prime, with 19% exclusively shopping with subscribed retailers. Interest in paid VIP services is strong, with 42% intrigued and 21% open to perks like expedited lines or early product access, signalling that traditional loyalty programs may not suffice for this cohort.
4. Millennials: Omnichannel and Values Driven Shoppers
Millennials (ages 27–42, or 26–40) account for over 50% of U.S. e commerce sales, blending tech savviness with a connection to physical retail. 72% of them visit physical stores to touch and see products first before they buy online, and this indicates the significance of harmonious omnichannel strategies. They are value driven, and their purchase is guided by values with 87% being guided by a company’s sponsorship of Diversity, Equity, and Inclusion (DEI) and social justice, and 64% paying more for eco friendly options. Transparency is important, with 94% researching a company’s values, manufacturing, and political leanings before making a purchase. Brands need to get in line and provide information to foster trust.
5. Millennials: Personalizers and Info Seekers
Millennials are seeking personalized experiences, and 85% join paid loyalty programs, while 72% take services like Stitch Fix or Dollar Shave Club for customized products.
They want information, and it shows, with 72% reading reviews before they buy, and 66% searching online for items before they shop. Additionally, 69% of them prefer to spend money on experiences, not physical products, so brands that position products as the enablers of experiential moments virtual or live enjoy an edge. Employing AI to provide personalized recommendations is an age old way of reaching out to this group.
6. Gen X: Functional Omnichannel Experts
Generation X (43–58, or 41–56) is the richest cohort, with rising retail spend as they move into peak income years.
They dominate “webrooming,” with 79% researching online before buying in store, and 86% checking out products online before significant purchases. Convenience is top of mind, with 74% taking advantage of online ordering for in store or curb side pickup. Physical contact is still necessary, as 79% want to see, touch, or experience products in stores. Gen X incorporates digital and physical very smoothly, and companies must deliver smooth, connected experiences through multiple touchpoints.
7. Gen X: Value Driven and Long Term Orientation
Touched by financial downturns, Gen X prioritizes quality, value, and convenience over cost. An astounding 91% participate in loyalty programs for tangible rewards, and 73% have used “buy online, pick up in store” (BOPIS) in the past month to avoid shipping fees. Longevity matters, as 64% want durable products and 58% read descriptions twice to ensure craftsmanship. Brands must highlight functionality, durability, and everyday utility through authentic customer feedback to appeal to this utilitarian crowd.
8. Gen X: Multichannel Media Consumption
Gen X product discovery is both online and offline. The primary sources are retail websites and search engines, with Facebook and YouTube being their favorite social sites. Old school marketing never goes out of style, with 60% purchasing after promotion through email and 49% finding ideas through television. Mobile optimization is crucial as 67% use smartphones as the primary shopping device. Brands must have an aligned message on social ads, emails, and TV if they want to effectively target this multi channel audience.
9. Gen X: Socially Conscious Spending
Gen X uses its purchasing power to support value like brands, with 45% dropping firms that fail to address social or environmental issues. Also, 57% will pay a premium for products that leave society or the environment in a better place, and a third has donated more to charity, with racial justice and climate change at the top of their list. Businesses need to get their message across through cause related promotions to gain this influential consumer segment’s loyalty.
10. Baby Boomers: Blending Digital and Off line Buying
Baby Boomers (59–77) control over half of U.S. consumer purchasing power and are increasingly digitally savvy with 85% buying online in 2024. However, 92% still want to shop in store for the instant gratification and human contact.
Webrooming is prevalent with 89% of them researching online before buying in store. Search engines, retail websites, and TV are their main sources of discovery, although social media, and particularly Facebook (used by 63%), contribute less to purchases.
11. Baby Boomers: High Service and Quality Standards
Engaging, informed sales staff drive the Boomer shopping excursion, with 95% of them willing to change brands based on a single bad experience. Quality and durability are more important than price, with 89% willing to pay more for durable, well made products. Brands will highlight superior construction, quality materials, and solid guarantees to give Boomers peace of mind about long term value.
12. Baby Boomers: Health and Comfort Priorities
Comfort and health drive Boomer purchasing, with 84% of them placing priorities on comfort in the purchase of apparel and shoes. Their search filter of choice when shopping groceries is “healthy,” an indicator of desire for foods that support health. Boomers spend a larger proportion of their money on medical care and personal care than any other generation, so brands need to utilize educational content to highlight the role of products in healthy aging.
13. Universal Trends: The Strength of Physical Retail
Although online shopping is growing, physical stores remain relevant to consumer generations, with over half of shoppers preferring to shop in person. Inspection of quality and logistics drive food, beverages, bicycles, and home goods to be top categories for offline purchases. Food retailing experiences a strong appreciation (71%), showing the importance of experiential, physical shopping.
14. Universal Trends: Value and Seamless Experiences
All demographics are seeking value, with 54% of them wanting free shipping and discounts.
Both Gen Z and Millennials care most about free shipping, with over 55 year olds concerned about offers (61%) and past brand experiences. Millennials care more about loyalty programs (40%) than Gen Z (35%), and older generations do not care as much about personalization (7%). Environmentalism is being appealed to by younger generations but works for only 22% of Gen Z as something that inspires purchases, suggesting price and convenience triumph over the rest. With a sense of these generational nuances, brands can transcend formulaic strategy to design real, contextual experiences. From Gen Z’s digital immersion to Boomers’ service expectations, meeting consumers where they’re at constructs loyalty and propels lifetime value in an evolving retail ecosystem.
