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Gen Z and Millennials inclination towards D2C brands more than traditional retail

Gen Z and Millennials inclination towards D2C brands more than traditional retail

Gen Z and Millennials inclination towards D2C brands more than traditional retail 

Gen Z and Millennials order products directly from the brands, 72% of the shoppers expect interactions with stores once the pandemic subsides. According to a Capgemini Research Institute report.

About 68% of Gen Z and 58% of millennials order directly from the brands in the past 6 months alone. While 37% of Gen X and 21% of Boomer shoppers ordered directly from the brands.

A total of 60% of the buyers cite a better buying experience as a reason for direct purchase and 59% cite access to brand loyalty programs.

In-store shopping not likely to be replaced

The boom in e-commerce over the last two years led to the notion of online purchase replacing in-store purchasing entirely which now has been disproven. The majority of consumers expect to have a proper in-store interaction after the pandemic subsides.

However, there is a blur in the distinction between online and in-store interactions. For example, post-pandemic, 22% of shoppers expect to have a high level of interactions with click-and-collect orders. This trend is highest for Millennials (33%) and lowest for Boomers (11%).

Delivery and Fulfillment

In the health and beauty and grocery segments, shoppers place greater importance on delivery and fulfillment than in-store experiences.

Post-pandemic, 22% of shoppers expect to have a high level of interactions with click-and-collect orders (i.e., ordering online and picking up in-store or curbside), indicating an enduring desire to interact with physical stores.

However, shoppers are less willing to pay a premium for fast delivery. While younger shoppers with children remain the most willing to pay a premium, consumers increasingly expect fast delivery as a standard part of the customer experience.

Health and Sustainability

Health and Sustainability continue influencing consumer decisions going forward, and organizations should consider investment in empowering customers to make informed choices around these, cites the report.

Consumers are willing to pay a premium for grocery products that have sustainable packaging. This is more noticeable amongst Gen Z (64%) and Millennials (54%) than older generations like Boomers (30%).

Capitalizing Brands and Retailers

Following are the four key actions for brands and retailers to benefit from these underlying consumer trends:

  1. Collect and analyze first-party consumer data to customize new products and services for specific customer segments.
  2. Develop an omnichannel strategy that incorporates the roles of in-store, e-commerce, direct consumer, and marketplaces.
  3. Reposition delivery and fulfillment services as a growth driver for customer experience.
  4. Set pricing of sustainable products more competitively in line with consumer expectations

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