Gen Z has a decidedly different approach to shopping, and based on new research from Kantar’s U.S. Monitor, that’s bad news for the many brands pouring their money into influencer marketing.
“We are at peak influencer,” says Casey Ferrell, vice president and head of U.S. Monitor, owned by Kantar. “And it’s beginning to run its course. We hear a lot about the Instagram aesthetic, and it appeals to millennials.
“But to Gen Z, who are more grounded in realism, it seems fake. They are interested in what I call micro- or nano-influencers. They want to know what real people think before making a purchase.”
Ferrell tells Marketing Daily Kantar's new Shopper DNA data also calls into question the disproportionate amount of time and budget brands devote to creating novel and compelling experiences.
“Marketers live in a kind of bubble these days, and just hear echoes from other brands about how important it is to think experientially. This research confirms that half of all consumers don’t care about all that. Shopping is a chore, and they just want to make purchases as efficiently as possible,” he says.
Kantar broke down consumer approaches to shopping into five distinct profiles.
*Utilitarians are the largest group, and account for 36% of consumers. They want to get their shopping done as quickly as they can.
Boomers make up a majority of this segment, followed closely by millennials and Gen X. They tend to make less money, with a third of this group generating a household income of less than $50,000 a year. And two-thirds are non-Hispanic whites.
“They’re not looking for novelty,” Ferrell says. “They value repetition and consistency.”
*Explorers, about 20% of all shoppers, love retailers that provide a treasure-hunt mentality, like T.J. Maxx and Costco. This group is made up mostly of millennials, followed by baby boomers. And about two-thirds of them are women.