“Uniquely Gen Z,” the first in a three-part global study, explores Gen Zers’ technology preferences, “cyber-savviness” and economic influence. The rest of the series will look at ways to build strong brand relationships — both in growth and mature markets — and to create authentic omni-channel shopping experiences with Gen Zers. This study, co-sponsored by the IBM Institute of Business Value and the National Retail Federation, is one of the largest studies to date of the post-Millennial generation, surveying 15,600 members of Gen Z on six continents.

1. UNIQUELY GEN Z
JANUARY 2017

2. GEN Z’S INFLUENCE ON HOUSEHOLD SPENDING
In the U.S. alone, consumer
spending on Gen Zers totaled
a whopping USD $829.6
billion in 2015. *
60%
55%
41%
20%
30%
48%
61%
63%
37%
47%
77%
66%
73%
76%
Influence family spending
Clothes and shoes
Books and music (physical copies)
Apps
Toys and games
Events and outings
Personal care
Electronic goods
Eating out
Digital streaming
Sports equipment
Food and beverages
Travel
Household goods
Furniture
77%
77% of Gen Zers say they
influence their families’ food
and beverage purchases.
Gen Zers have significant influence on family spending.
* “Gen Z: Get Ready for the Most Self-Conscious, Demanding Consumer Segment.”
Fung Global Retail & Technology. August 29, 2016.
https://fungglobalretailtech.com/research/gen-z/
nrf.com/GenZ

3. Gen Zers are an online generation, but also spend substantial
amounts of time with friends and family
74%Spend time online
Watch TV and movies
Hang out with my friends
Spend time with my family
Try to earn extra money
Read books, magazines, newspapers
Exercise or keep fit
Participate in extracurricular activities
Learn new things
Volunteer
Participate in religious activities
Participate in organized group activities
25%
7%
8%
44%
44%
44%
29%
23%
23%
6%
22%
TECHNOLOGY IS SECOND NATURE TO GEN Z
As the first true digital
natives, Gen Zers have
never known a world
without the Internet
and mobile devices.
Gen Zers expect to
move seamlessly
between physical and
digital worlds, and are
less tolerant of technical
glitches than Millennials.
How Gen Zers spend their free time.
nrf.com/GenZ

4. Those ages 19 to 21 make up the dominant group of Gen Z smartphone users, while younger Gen Zers more often
have access to a desktop computer.
Mobile/smartphone
75%
Laptop computer
45%
Desktop computer
30%
Tablet
10%
Xbox/gaming console
8%
Interactive/smart TV
3%
Wearable devices
1%
Desktop computer
30%
Tablet
10%
Xbox/gaming console
8%
Interactive/smart TV
3%
Wearable devices
1%
GEN Z’S MOST FREQUENTLY USED DEVICES
Mobile phones are the device of choice for Gen Zers.
nrf.com/GenZ

5. Texting dominates device activities and technological-performance expectations are high among this group.
Do
schoolwork
Text and chat
73%
Access
entertainment
59%
Play games
58%
36%
Learn new
things
28%
Shop and
browse
17%
GEN ZERS USE DEVICES FOR A WIDE-
RANGING MEDLEY OF ACTIVITIES
nrf.com/GenZ

6. QUALITY AND BRAND STANDARDS
Two-thirds of surveyed Gen Zers said
quality is the most important factor
when choosing one brand over another.
It matters to me
that the brand
sells high-quality
products
66%agree:
46%agree:
45%agree:
My friends’
recommendations
and opinions matter
to me when I am
choosing a brandI choose brands that
are eco-friendly and
socially responsible
Question: Thinking about the brands you
like, to what extent do you agree with the
following statements? Percentage who said
“important” or “very important.”
nrf.com/GenZ

7. AVAILABILITY, VALUE AND EXPERIENCE
65%want:
To get a lot for
their money, with
discounts, coupons
and a rewards
program
Very few products to
ever be out of stock
66%want:
The store experience
to be fun so they won't
get bored
56%want:
Gen Zers tend to care more about
retail basics than about the “bells
and whistles.”
Question: Think about what makes you
decide where to purchase a product. How
important are the following to you?
nrf.com/GenZ

8. PERSONAL INFORMATION
Establishing trust with
Gen Zers is vital when
engaging with them as
future customers.
Before they share, they
expect brands to be
transparent about how
their personal data will be stored and used.
My purchase history
62%
My contact details
42%
My online history
28%
My photos and videos
28%
My location
27%
My health and wellness information
27%
My personal life information
Offer secure storage and
protection of personal data
Provide clear terms and conditions
for using my information
Explain clearly what data will be
collected and how it will be used
61%
43%
39%
Gen Zers’ preference for protecting their personal information.Personal information Gen Zers said
they’d be willing to share with a brand:
My purchase history
62%
My contact details
42%
My online history
28%
My photos and videos
28%
My location
27%
My health and wellness information
27%
My personal life information
21%
My payment information
18%
Provide clear terms and conditions
for using my information
Explain clearly what data will be
collected and how it will be used
43%
39%
nrf.com/GenZ

9. GEN ZER SOCIAL MEDIA USE
Gen Zers use social media mostly to share with friends. Social media is an important tool for Gen Zers; however,
they restrict their posts to a tight circle of family and friends.
72%Comments on my friends posts
My photos and videos
My opinions
Blogs, articles or news
Reposts of other people’s content
Links to songs/playlists
My location
Reviews of products/restaurants, etc.
62%
45%
36%
31%
31%
23%
20%
Which of the following have you shared on social media in the last month?
nrf.com/GenZ

10. HOW GEN ZERS GET MONEY TO SPEND
Make money
online
Receive an
allowance
59%
Work
part-time
24%
Receive money
as gifts
22%
22%
Work for
myself
16%
Work full-time
9%
Motivated, creative and tech-savvy, Gen Zers have applied their entrepreneurial skills to create a
new array of careers in the digital world ––using new capabilities that enable them to innovate.
nrf.com/GenZ

11. HOW GEN ZERS PREFER TO MAKE PURCHASES
Shopping
in a store
Using a
web browser
Using
an app
Calling
by phone
67% 31%
22% 54%
35%
Most of the time Some of the time
20%5%
13%
98 percent of Gen Zers
make their purchases in
bricks-and-mortar stores.
This may be due in part to the
age of younger Gen Zers and
lack of access to credit cards.
nrf.com/GenZ

12. Methodology:
To understand what drives Gen Zers in choosing a brand, we surveyed 15,600 consumers aged 13 to 21 in 16
countries across six continents. We asked them about their digital habits, preferences in choosing a brand
and priorities in making purchases. We analyzed responses by age group, gender and market (growth versus
mature). In addition, we conducted interviews with 20 senior executives in the consumer industry.
nrf.com/GenZ