In this case purchase follows perception. As a direct result of their concerns, Gen Z shoppers purchase products in the categories of health and wellness more frequently than other generations. Forty-six percent of the Gen Z members polled said they were “very much” concerned about their personal health and mental well-being, second by only one percentage point to Baby Boomers whose aggregate age explains an intensified concern with health issues.

Gen Z wants a better world—they just don’t want to pay a premium for It

But interest in certain categories shouldn’t be misinterpreted to mean that Gen Z will blindly consume any wellness-oriented product. Gen Z respondents told Kearney they value simple and sustainable products but are markedly unwilling to pay for socio- and eco-conscious premiums.

Sixty-seven percent of respondents said they prefer to buy products made with ingredients they can understand. As to how those products are packaged, 65 percent preferred simple packaging and 58 percent wanted that packaging to be eco-friendly. Half of Gen Z respondents said they wanted products that were locally sourced or made and 57 percent are looking for products that are environmentally sustainable.

Despite their clear interest in eco-friendly, locally sourced, and sustainably packaged products, only 38 percent of Gen Z respondents strongly agreed/agreed with the statement “I am willing to pay a premium for locally-sourced products,” and even fewer (33%) strongly agreed/agreed they would be willing to pay a premium for sustainably packaged products. This mirrors similar findings in Harvesting the Green Opportunity for CPGs and Retailers, an earlier consumer survey released around Earth Day 2019.

Gen Z shoppers’ clear unwillingness to pay a premium for sustainable or enviro-friendly products and services puts the onus back on brands to figure out how to get the value/values equation right, suggesting that lower-cost goods or smaller margins may become table stakes for consumer goods manufacturers and retailers.

A renewed opportunity for brick-and-mortar retailing

Perhaps surprising to some, despite being digital natives, members of Gen Z reported they are still reliant on brick-and-mortar retailers. Although they were raised with technology, Gen Zers still value the brick-and-mortar experience for all phases of the shopper journey—more so than Millennials and Gen Xers.

Asked to respond to the proposition, “Shopping in-store allows me to disconnect from social media and the digital world,” Gen Z led all other generational respondents in answering, “almost always true” or “usually true” with a 58 percent agreement rate.

Asked where they liked to shop (for all categories) on different legs of their consumer journeys, 73 percent said they used in-store for discovering products; 65 percent liked in-store for trial; and a staggering 81 percent like to purchase in-store. As to what they are looking for once they arrive in-store: 83 percent of Gen Z respondents indicated support tools (maps, kiosks) were extremely or moderately important; 79 percent think security considerations such as the presence of guards are important; 86 percent of respondents are looking for “Exclusives and promotions including free samples, giveaways and contests”; and almost three out of four (74 percent) Gen Z shoppers told Kearney a “well curated store experience focused on a limited number of products” was extremely or moderately important to them.

Gen Z respondents also reported a love–hate relationship with social media. In response to feeling more overwhelmed by social media than other generations, 28 percent of Gen Zers told Kearney they “very much” want to spend less time on social media and use shopping as a means to “disconnect.” This isn’t to say that social media isn’t a major part of their lives, but seems to reinforce the fact that it is a major element in their personal and social life they can’t afford to ignore—even if they want to.

Keeping up with the digital Joneses

Gen Z seems to be redefining the upper limits of what past generations defined as “retail therapy.” Twenty-six percent of Gen Z consumers reported feeling pressured to keep up with trends, saying they use shopping to boost confidence, even when they can’t afford it. Thirty percent of respondents said they often buy things they can’t afford, reinforcing the survey finding that 44 percent of Gen Z respondents strongly agree/agree with the statement, “Shopping helps me feel more confident and secure about myself.”

Twenty-six percent said buying products “online influencers” endorse makes them feel personally closer and more connected to those influencers, and 27 percent said these kinds of purchases make them feel closer and more connected to celebrity endorsers.

And Gen Z respondents rely on those influencers’ opinions, reporting valuing both celebrity and non-celebrity (for example, peers’ and influencers’) endorsements more than previous generations, with the opinions of influencers far outweighing those of peers when it comes to making purchasing decisions. Gen Z respondents also place a high value on personalized recommendations.

A generational intolerance of sub-par shopping

The collective emotional fragility of their cohort also makes Gen Z far more sensitive to what they perceive as sub-par shopping experiences. Put another way, they are far more intolerant of poor service than other generations, making them appear fickle at times. Gen Z consumers are more likely to let negative experiences stop them from making purchases—both online and in-store—than respondents in the other three generations (see figure 2). They also are looking for a different kind of shopping journey, preferring a well curated experience focused on a limited number of offerings.