What trends will impact Gen Z’s shopping habits this festive season?

In 60 seconds:

• Rising inflation is causing 72% of students to cut down on non-essential spending, and 72% are looking for cheaper versions of products.
• This festive season, brands will leverage the FOMO effect to promote their viral products and launch new campaigns.
• To truly grab the attention of Gen Z this holiday season, it’s key for brands to offer a unique IRL experience.

If the weather feels unpredictable, this truism will give you a (begrudging) taste of reality. Like it or not, winter is coming. And what does winter bring? Festivities, panic, and the busiest time of year for brands.

It’s time to start thinking about your festive strategy, stat.

In this blog, we dive into the leading trends your brand needs to be aware of this festive season, from TikTok Shop to the power of IRL. We’ll be looking at how you can improve Gen Z’s shopping experience and sharing how you can tap into brand loyalty. Plus, lots of data and actionable takeaways. 

In other words, here’s how your brand can have a very merry Gen Z Christmas. 

What will the festive season look like in 2024?

It’s been a weird old year, hasn’t it? We’ve had the Kendrick Lamar v Drake beef, the brat movement, and the unexpected return of the cassette tape. 

And, amid this pop culture news, there’s been the small issue of rising inflation. Yep, it’s never-ending, and there appears to be little sign of a clean-up.

More often than not, the festive season revolves around gift-giving. Christmas is arguably the most expensive time of the year. We shop for our friends and our families, attend holiday parties, and splash the cash on much anticipated festive menus (there’s a time and place for brie and cranberry, and it’s coming soon…).

However, what happens when you simply can’t afford the holiday season?

For students anxiety, first and foremost. A Pion survey revealed that rising inflation is causing 72% of students to cut down on non-essential spending, 72% are looking for cheaper versions of products, and 54% aren’t going out very much. Not very Christmassy, right?

But here’s how brands can help. 

83% of students are more likely to shop with a brand that offers a student or young person’s discount, and 85% would try out a new brand if they offered a student discount. 

Rising inflation may be having a damaging impact on young people’s mental health across the world, but they are still willing to spend, given the opportunity. Supporting them this festive season with discounts will not only help them, but it’ll help you earn their spend and loyalty. 

{{ctaDark}}

The Gen Z trends in 2024 impacting festive shopping habits 

Social media has long been one of the most fruitful ways to reach Gen Z. A recent survey by Pion revealed that 77% of Gen Z use Instagram, 90% use YouTub, and 72% use TikTok, compared to 50% who use X (formerly Twitter) and 7% who use BeReal. 

So, when it comes to the holiday season, it’s pretty clear which platforms you should be prioritizing… 

TikTok Shop

Forget scrolling: a well-thought-out integration with Shopify allows TikTok users to shop neatly within the platform.

This integration has been a gamechanger for both consumers and brands, giving merchants the opportunity to sell directly to their audiences via in-feed videos and live streams.

Perhaps most importantly, TikTok Shop “allows brands to tap into communities”, as shared by Alice Worley, Creator Agency Partnerships Lead at TikTok, who spoke at our YMS LDN event. We’ve said it before and we’ll say it again: communities are everything when it comes to marketing to Gen Z,  and TikTok Shop allows brands to leverage these dedicated groups by getting involved in the already-existing conversations.

TikTok made me buy it...

This isn’t just a hashtag for Gen Z: it’s a way of life.

#TikTokMadeMeBuyIt has over 10.9 million posts, and this number is growing daily. This festive season, we predict brands will leverage the FOMO effect of this trend to promote their viral products and launch new campaigns. Harnessing the power of the creator is critical for success in this trend, and this is something we’re all too familiar with at Pion…

Student Beans Creators

Gen Z is becoming increasingly ad-adverse (see what we did there?). Good advertising needs to blend seamlessly into their feeds, rather than feeling like an awkward hard sell. Having a strong influencer marketing campaign comes in pretty handy, and we’re here to help…

Introducing: Student Beans Creators. 

Pion’s Student Beans Creators program uses peer-to-peer marketing to connect young people with brands. These multi-channel creator campaigns are produced by Gen Z, for Gen Z, leveraging the power of social networking sites to tap into a market of digital natives. This festive season, having a creator marketing strategy will be vital to delivering conversions. Check out some campaigns in action below:

{{ctaNeon}}

Gen Z wants the best of both worlds

Life on social might be popping, but it’s not the only place brands should be directing their marketing efforts. Gen Zers still want an omnichannel experience, with 84% preferring to shop both online and in-store. 

For many, the magic of the festive season comes from the IRL experience. We’re talking glittery shop windows, lights in the trees, and immersive in-store displays. To truly grab the attention of Gen Z this holiday season, it’s key for brands to offer a unique experience.

In fact, for a few sectors, in-person shopping is preferred amongst Gen Z. 61% of young people shopping for fashion prefer to do so in-store, along with 44% shopping for health and fitness, and 75% for doing their grocery shopping. All sectors that popular around the festive season, so take note, brands…!

And don’t forget to be flexible with your discounts too - 57% of Gen Z said they’d prefer brands to offer discounts both online and in-store. 

Quick fire tips...

1. Use QR codes throughout stores

The perfect way of blending IRL and URL, QR codes encourage interactivity. They also give you the opportunity to share exclusive content and personalized discounts that shoppers can only access by visiting an in-person store

2. Good customer service matters

This one goes without saying, but offering exemplary customer service in the online and offline worlds is essential to Gen Z - in fact, a 2024 survey by Pion revealed that 52% of Gen Z said the quality of products or services , including customer services, is more likely to increase their loyalty to a brand or retailer. 

Any negative experiences will be publicly shared, and a good experience will lead to recommendations to friends and family. 

3. Make them want to stick around

Dragging Gen Z shoppers away from the coziness of their homes over the holiday period may seem like an impossible task, but it’s up to you to make them want to visit your stores. Whether it’s live-streaming events, gamified experiences, or competitions, offer them something IRL that they can’t resist. 

Ultimately, with this young generation, it’s about blending online and offline experiences. Offering them unique experiences in both locations is something they won’t be able to resist, and when combined with money-saving and social opportunities, they’ll be queuing outside your doors before opening time.

Want to know more about how you can tap into the power of creators this Christmas?  How to tap into students’ spending power with discounts? Or how to drive Gen Z consumers into your stores? Get in touch with one of our Gen Z experts to find out more. 

‍