Zillennials — the younger millennial and older Generation Z consumers born between 1991 and 1999 — are changing the retail landscape with their distinct preferences and values-motivated buying habits, PYMNTS Intelligence research reveals. As this generation comes of age, their impact on the market is becoming increasingly apparent.
Zillennials are decisive shoppers, strongly driven by brand loyalty or price sensitivity. They also prioritize sustainability and social responsibility, and their social circles as well as online personalities often influence their purchases.
Understanding and adapting to the unique preferences of zillennials will be key for retailers looking to thrive in this evolving market.
Zillennials Are Split Between Deal-Seeking and Brand Loyalty
Zillennials tend to have strong ties to their favorite brands. For example, according to recent PYMNTS Intelligence research, they are disproportionately likely as a generation to hold brand subscriptions. This tendency might suggest that brand loyalty would hold sway for them over price when deciding where to shop. However, new PYMNTS Intelligence data suggests that zillennials are instead more polarized in their motivation by brand affinity versus the desire for the best deal.
While other generations are likelier to say brand loyalty and price are equally important, zillennials have strong preferences for one or the other. According to the study, 41% of zillennials make their choice of retail merchant based on price more than on brand availability — a moderately higher share than the 38% of the total sample that indicated the same preference.
At the same time, a substantial 21% of zillennials cite the availability of their preferred brands as more important than prices when deciding which merchants to buy retail products from. This is markedly higher than the 16% of the overall population that said the same. Only 38% of zillennials said that both factors were equally important to them when choosing retail merchants, well below the 46% of the cross-generation sample that said the same.
Younger shoppers evidently tend to have stronger preferences for either brand or price than their older counterparts, with Generation Z consumers and zillennials far more apt to be either bargain seekers or brand loyalists than Generation X consumers or baby boomers and seniors.
Zillennials Are Values-Driven Shoppers — and They Mean It
Zillennials are considerably more likely than those in other generations — including even Gen Z — to want to shop from merchants whose environmental values align with theirs. For instance, 38% of zillennials say it is very or extremely important that merchants offer environmentally sustainable products, as do 36% of Gen Z and millennial consumers. Fewer than one in four Gen X and just 20% of baby boomer and senior consumers reported sharing this concern.
Similarly, 37% of zillennials say it is highly important to them that a merchant’s social values align with theirs, well above the share of consumers in older age groups that said the same. Only 19% of Gen X consumers have strong feelings about merchants’ social ethics, and just 14% of baby boomers and seniors do so.
Plus, 38% of zillennials care whether a merchant offers locally made or sourced products, versus just 22% of Gen X, and zillennials are more than twice as likely as baby boomers and seniors to care strongly about whether a merchant is local or community-owned.
Merchants, for their part, have been noting this trend. For example, eBay CEO Jamie Iannone stated on the company’s most recent earnings call, “Younger demographics are especially passionate about the circular economy, with more than 90% of millennial and Gen Z sellers saying they value eBay’s ability to keep items out of landfills.”
Moreover, resale platform Mercari, which functions as a more sustainable alternative to fast fashion, explained on its latest earnings call that young shoppers make up its “main target group.” Urban Outfitters also recently announced a partnership on grooming products geared toward “eco-conscious Gen Z shoppers.”
Zillennials Look to Others for Shopping Inspiration
Zillennials’ shopping choices are disproportionately motivated by the decisions of others. For instance, 39% of zillennials said that in the 30 days prior to being surveyed, they had made a retail purchase at least partially as a result of recommendations from family or friends. While this share is slightly lower than Gen Z (42%), it is considerably higher than the portion of consumers in older generations that said the same. Only 19% of baby boomers and seniors said they had done so.
Social media also plays a role. Twenty-two percent of zillennials said they had made a purchase in the previous month at least somewhat inspired by a social media influencer or celebrity — a far greater share than the 6.4% of Generation X and the just 2.1% of baby boomers and seniors that had done as much.
These social commerce shoppers demand to know what other people are buying.
“[Followers] don’t really care if the lighting is great in the selfie or if it’s a mirror selfie,” Caley-Rae Pavillard, an influencer and vice president of business development and partnerships at ShopMy, told PYMNTS in an interview. “They just want to understand where you’re buying that top or where you’re buying your jeans and what are the brands you’re loving.”
The influence of social networks and the opinions of others is clear when it comes to zillennials’ shopping habits. Whether it’s through personal recommendations or the endorsements of social media influencers, this generation places significant value on the experiences and choices of others. Resonating with zillennials is not just about showcasing products — it is about connecting with the influencers and networks that shape their buying decisions.
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PYMNTS Intelligence’s Generation Zillennial reports dig deeper into the habits and preferences of these shoppers. Read on to find out more about how zillennials use voice technology, how they find shopping inspiration and which merchants they shop from.
