World News: 12:45 GMT Tuesday 14th January 2020. [First Insight, Inc. via Businesswire via SPi World News]
As the oldest members of Generation Z move into the workforce, a recent study bythe world’s leading technology company transforming how retailers and brands make product investment, pricing and marketing decisions, found that they are making more shopping decisions based on sustainable retail practices than even Millennials and Generation X. Further, the study found that Baby Boomers are far less concerned with sustainability when it comes to the items they buy, even less so than their predecessors, the Silent Generation.
According to The State of Consumer Spending: Gen Z Shoppers Demand Sustainable Retail, 62 percent of Generation Z survey participants prefer to buy from sustainable brands, on par with Millennials, while 54 percent of Generation X and 44 percent of the Silent Generation said the same. However, only 39 percent of Baby Boomers agreed, pointing to a vast divide between Baby Boomers and younger generations.
Generation Z is also the most willing to pay more for sustainable products (73 percent) compared to Millennials (68 percent), Generation X (55 percent) and Baby Boomers (42 percent). Half of the Silent Generation expressed this sentiment. The majority of Generation Z (54 percent) are willing to spend an incremental 10 percent or more on sustainable products, versus 50 percent of Millennials, 34 percent of Generation X, 23 percent of Baby Boomers and 36 percent of the Silent Generation.
Of note, the majority of respondents across generations expect retailers and brands to become more sustainable, according to 73 percent of Generation Z, 78 percent of Millennials, 84 percent of Generation X, 73 percent of Baby Boomers and 68 percent of the Silent Generation.
“While Baby Boomers seem to be the holdouts when it comes to expecting more sustainable practices within retail overall, the research shows that with every generation, sustainability is becoming further embedded in purchase decisions,” said Greg Petro, CEO of First Insight. “It’s incredibly important that retailers and brands continue to follow the voices of their customers. With Generation Z on track to becoming the largest generation of consumers this year, retailers and brands must start supercharging sustainability practices now if they are to keep pace with expectations around sustainability for these next-generation consumers, whether it is through consignment, upcycling, or even gifting around major holidays.”
The results were announced today during NRF 2020 in New York. Download the report to see all the key findings from the study.
Other significant findings of the survey include:
Recommerce Growing in Popularity as Majority of Every Generation Shops Secondary Market
Recommerce is gaining traction across every generation with Generation Z (59 percent), Generation X (63 percent), Millennials (64 percent) and the Silent Generation (62 percent) and even Baby Boomers (52 percent) say they shop the secondary markets. When considering sustainable models:
All Generations Rank Quality Over Environmental Concerns on Reasons They Shop Sustainable Brands
When asked why respondents shop sustainable brands, quality ranked higher than environmental concerns across every generation. Seventy-eight percent of Generation Z, 85 percent of Millennials, 81 percent of Generation X, 83 percent of Baby Boomers and 70 percent of the Silent Generation ranked quality as important. While both factors were rated as important, environmental concerns ranked lower, with only 70 percent of Generation Z, 71 percent of Millennials, 70 percent of Generation X, 72 percent of Baby Boomers and 66 percent of the Silent Generation respondents ranking it as important.
Giving and Receiving of Sustainable Gifts Ranks Most Important for Generation Z
The vast majority of Generation Z believe both giving and receiving sustainable gifts to be somewhat or very important (64 percent and 65 percent respectively), with the majority of Millennials (62 percent and 55 percent) feeling the same. By comparison, older generations, including Generation X (51 percent and 46 percent), Baby Boomers (40 percent and 36 percent) and the Silent Generation (44 percent for both giving and receiving) reported fewer than half of respondents feeling the same way.
Of note, Generation Z is the most likely to return/exchange a gift that was not sustainable (56 percent) versus Millennials (44), Generation X (30), and Baby Boomers (19). Thirty-four percent of the Silent Generation respondents reported the same.
First Insight’s findings are based on the results of a U.S. consumer study of a targeted sample of more than 1,000 respondents fielded in December 2019. The study was completed through proprietary sample sources among panels who participate in online surveys. Definitions including birth year ranges for each generation are listed out below:
About First Insight, Inc.
First Insight is the world’s leading digital product testing and decision-making platform that empowers retailers and brands to incorporate the Voice of the Customer into the design, pricing, planning, and marketing of new products. Through the use of online consumer engagement, the First Insight solution gathers real-time consumer data and applies predictive analytic models powered by machine learning and AI to create actionable insights, which drive measurable value. Retailers, manufacturers and brands use the First Insight solution to design, select, price, plan and market the most profitable new products for reduced markdown rates and improved sales, margins and inventory turnover. Customers include some of world’s leading vertically integrated brands, sporting goods companies, department stores, mass merchant retailers and wholesalers. For further information, please visit.
Business Wire: 12:45 GMT Tuesday 14th January 2020
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