The shopping habits of Generation Z in the Asia-Pacific region are being significantly influenced by TikTok and social media influencers, a KPMG report has revealed.
What Happened: The study, which surveyed 7,000 consumers across 14 markets, including China, Singapore, Indonesia, Vietnam, and the Philippines, found that Gen Z’s shopping preferences are heavily influenced by social media, particularly TikTok.
Among the respondents, nearly half were in the Gen Z age group, which the survey defined as 18 to 24 years old. The report highlighted that Gen Z prioritizes social commerce (63%) and livestreaming commerce (57%) as crucial to their shopping experiences.
Social commerce, especially in China, Vietnam, Indonesia, and the Philippines, is the most popular form of retail tech among Gen Z. This generation is the first to grow up with the internet and digital devices as part of their daily lives.
"TikTok business – strong in Asia – gets businesses to advertise on TikTok, using influencers and key opinion leaders and serving ads to direct viewers back to websites," KPMG analysts said.
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Why It Matters: The shopping habits of Gen Z are not just influenced by social media but are also shaped by broader economic conditions. A survey conducted by Bank of America in October revealed that Gen Z is adapting to financial challenges by cutting back on expenses like dining out and clothing. This shift is a response to rising living costs and economic uncertainty.
Additionally, a report from April indicated that 73% of Gen Z have altered their spending habits due to inflation, which stood at 3.2% for the 12 months leading up to February 2024. This economic strain is pushing Gen Z to seek more cost-effective shopping solutions, often found through social commerce and influencer-driven platforms.
Moreover, Gen Z’s financial confidence is on the rise, as highlighted in a June survey by Charles Schwab. The survey showed that over 60% of Americans, particularly younger generations, feel better positioned to achieve their financial goals compared to previous generations.
Image generated via Dall-E
This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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