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TikTok and influencers significantly influence Gen Z’s shopping choices.

ByYasmeeta Oon

Jul 1, 2024

TikTok and influencers significantly influence Gen Z’s shopping choices.

Generation Z in the Asia-Pacific region is revolutionizing the fashion industry by taking cues from idols and influencers, significantly driven by the social media platform TikTok, according to a new KPMG report.

Unlike past generations who frequented department stores or shopping malls to discover new styles, Gen Z prefers to look for trends online. The report states, “Where past generations visited department stores or shopping malls to buy basics or check out new styles, Gen Z are looking for trends online, following idols and influencers and aspiring to wear the same clothing.”

KPMG’s report surveyed 7,000 consumers across 14 markets, including China, Singapore, Indonesia, Vietnam, and the Philippines. Nearly half of the respondents in each market were in the Gen Z age group – defined as 18 to 24 years old in the survey.

  • Social Commerce: 63% of Gen Z ranked social commerce as an essential part of their shopping experience.
  • Livestreaming Commerce: 57% of Gen Z identified livestreaming commerce as a significant factor in their shopping habits.
  • Popularity of Social Commerce: Particularly in China, Vietnam, Indonesia, and the Philippines, social commerce was the most popular form of retail technology among Gen Z.

Gen Z is recognized as the first generation to grow up with the internet and digital devices embedded into their daily lives. This unique upbringing has shaped their shopping behaviors and preferences. “The fusion of social media and e-commerce represents the frontier of engaging Gen Z in a way that resonates with their ethos,” said Irwan Djaja, partner and head of advisory of KPMG Indonesia.

As a result of these shifts, brands are reassessing their supply chain strategies and emphasizing social commerce platforms to cater to Gen Z. Platforms like TikTok and Instagram, where influencer recommendations play a crucial role, are at the forefront of these strategies.

Eric Pong, co-founder of AfterShip, an e-commerce experience software-as-a-service company, highlighted TikTok’s influence, stating, “TikTok is a juggernaut. It is still growing and has an unbelievable number of viewers and influence.” Pong was one of the company executives interviewed in the report.

KPMG analysts noted, “TikTok business – strong in Asia – gets businesses to advertise on TikTok, using influencers and key opinion leaders and serving ads to direct viewers back to websites.”

The survey revealed several critical findings about Gen Z’s shopping habits and preferences. Below is a summary table illustrating some of these key points:

Key InsightPercentage of Gen Z Respondents
Social Commerce Importance63%
Livestreaming Commerce Importance57%
Influence of TikTokHigh (especially in Asia)
Preferred MarketsChina, Vietnam, Indonesia, Philippines
  • Influencer Culture: Gen Z heavily follows influencers and idols for fashion inspiration.
  • Social Media Integration: Platforms like TikTok and Instagram are integral to their shopping habits.
  • Digital Engagement: Social commerce and livestreaming provide interactive and engaging shopping experiences.
  • Technology Savvy: Growing up with the internet, Gen Z is comfortable and skilled at using digital platforms for shopping.

The rise of social commerce and the influence of social media platforms like TikTok are reshaping the retail landscape in the Asia-Pacific region. Brands that adapt to these trends and engage with Gen Z on their preferred platforms are likely to thrive. The KPMG report underscores the importance of understanding and catering to the unique preferences of this digitally native generation, which values authenticity, convenience, and the recommendations of their favorite influencers.

With the integration of e-commerce and social media, the fashion industry is witnessing a significant transformation. As Gen Z continues to dictate trends and shopping behaviors, brands must remain agile and innovative to meet their evolving demands. The future of fashion retail lies in the seamless blend of technology, social engagement, and personalized shopping experiences tailored to the digital habits of Generation Z.

Featured Image by freepik

Yasmeeta Oon

Just a girl trying to break into the world of journalism, constantly on the hunt for the next big story to share.

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