Shop.org 2017 Carin Sinclair-Kay, Dormify Chad Kessler, American Eagle Outfitters Dan Coates, YPulse

1. Not just mini-millennials: What makes Gen Z unique
Carin Sinclair-Kay, President, Dormify
Chad Kessler, Global Brand President, American Eagle Outfitters
Dan Coates, President, Y Pulse

2. GEN Z
SNAPSHOT

4. Raised in the boom
More optimistic
More idealistic
Thought their lives would go according to plan
Visual communication secondary to text
First generation digital
Raised in the recession
More pragmatic
Slightly more pessimistic
Planning for their futures at a younger age
Visual communication beginning to dominate
Don’t remember a time before social media
WHEN MILLENNIALS
WERE TEENS
GEN Z TEENS
TODAY
SHIFTING TO GEN Z
of 13-17-year-olds say they don’t
remember a time before the recession
(compared to 36% of 18-34-year-olds)
62%

5. As a teen today… When I was a teen…
Base: 13-17-yr-olds Base: 18-34-yr-olds
Saving money is important Saving money was important
Investing money is important Investing money was important
60% 42%
30% 13%
I am stressed most of the time I was stressed most of the time
50% 44%
I am overscheduled I was overscheduled
35% 25%
Millennials are remembering a more worry-free coming of age compared to what Gen Z is
experiencing today. The pressure is on for Gen Z, with the majority placing importance
on finances and half reporting feeling stressed most of the time.

6. of 13-17-year-olds say they
have some say in the
grocery shopping in their
household
90%
of 13-17-year-olds say
they either choose
what to buy for back-
to-school or choose
along with
parents/guardians
91%
THEY’RE INFLUENCING THEIR HOUSEHOLD SPENDING

7. 47% 42% 40%
31% 30%
24% 23% 19% 17% 17%
10%
77%
23%
52%
31%
22%
53%
78%
14%
35%
22%
66%
Dining out /
Fast food /
Take out
Video games
/ Mobile apps
/ Mobile
apps
Clothing,
Shoes,
Accessories
and Apparel
Events and
experiences
Music /
Movies
Personal care
/ Beauty
products &
cosmetics
Groceries Electronics Personal care
services /
Beauty
services
Books
(physical) / E-
books
Gas / Fuel /
Maintenance
for auto
MONTHLY SPENDING TRACKER
As evidenced by our monthly spending tracker, the foodie trend is not limited to Millennials, with dining out, fast food,
and take out coming out on top for teens and as a close second to groceries for Millennials as a frequent expenditure.
The desire for experience is also high for Gen Z, although they are still more likely to spend on
entertainment options like video games, mobile apps and software.
13-17 18-34

8. of 13-17-year-olds say they’re
optimistic for the upcoming
year
(82% of 18-34)
92%
GOALS & ASPIRATIONS THAT ARE IMPORTANT TO GEN Z
say they will be better off
than their parents
(51% of 18-34)
70%
96%
95%
93%
93%
79%
obtaining a college degree
having a meaningful career
earn a higher degree
owning a home
marrying someone they love
79%
57%
38%
32%
raising a family
becoming rich
start a business
being famous
Gen Z is seeing their futures more brightly than Millennials are. Over nine in ten are optimistic for the
upcoming new year, and seven in ten believe they will be better off than their parents, compared to only
51% of Millennials. Education, a meaningful career, and owning a home sit at the top of their goals list.

9. Although Gen Z was born into the
world of advanced technologies,
particularly online shopping, only
38% of 13-17-year-olds say they
would rather shop online over a
physical store, while 45% of 18-
34-year-old say the same. Even
in our data for back-to-school
shopping, we found that 77% of
teens did all or most of their
shopping in-store.
This difference is likely driven by
lifestage: Millennials are far more
likely to have the credit or debit
cards needed to shop online, and
to view online shopping as a
necessity because of their busy
schedules. Teens, on the other
hand, are more likely to have the
means to only buy in store,
and see doing so as a leisure
activity.
of 13-17-year-olds
would rather shop in
a physical store
over online
(45% of 18-34)
62%
did all or most of
their back to school
shopping in-store
(53% of 18-33)
77%
GEN Z HAS THEIR OWN SHOPPING HABITS…

10. PURCHASING MOTIVATORS FOR GEN Z
30%
24%
9%
8%
8%
7%
3%
3%
3%
33%
18%
7%
8%
3%
5%
3%
10%
4%
Online reviews and
recommendations
Recommendations from
friends or family
Product information
provided by the company
Reviews / recommendations
from online celebrities
Traditional advertising
Customer service
Social media posts from
friends/family
Expert opinions
Social media ads
13-17 18-34
Online reviews and recommendations are most valuable to
Gen Z looking to buy, followed by recommendations from
friends and family. For a large portion of teens, online
celebrities count as friends, which supports the rise of
influencers in marketing to the group.
47%
of 13-17-year-olds think
of online celebrities as
their friends

11. SCREENS GEN
Z USES TO
WATCH VIDEO
CONTENT
WEEKLY
68%
47%
32%
37%
22%
28%
18%
17%
10%
10%
11%
10%
69%
57%
41%
30%
28%
25%
18%
16%
14%
14%
14%
13%
Smartphone
Laptop
HD Television
Tablet
Regular Television
Gaming console
DVD/Blu-Ray player
Roku
Amazon Firestick
Chromecast
Apple TV
4K Television
Laptops are the top choice for Millennials when it comes to video content, but it comes in third to mobile and TV for Gen Z.
Although TV viewing has been eroding in favor of more portable options, it has a place when paired with streaming devices
that are increasing in popularity.
13-17 18-34

12. SERVICES GEN Z USES TO WATCH VIDEO CONTENT WEEKLY
75%
60%
37% 35% 34%
27%
20% 17%
12% 10% 10%
6% 4%
67% 67%
37%
25% 26%
44%
25% 25%
15%
10%
15% 12%
16%
YouTube
(free)
Netflix Cable /
Satellite /
Fiber Optic
TV
Snapchat Instagram Facebook Hulu/Hulu
Plus
Amazon
Instant
Video
Network
websites
Torrent
streaming
services
Network
mobile app
YouTube
Red
HBOGO
13-17 18-34
YouTube and Netflix are clear favorites among Gen Z, who are more accustomed to streaming for entertainment.
Traditional cable is used weekly by less than two in five of both age groups.
72%
of 13-17-year-olds
would rather watch a
video on a topic than
read an article
(52% of 18-34)

13. TYPES OF APPS GEN Z IS OPENING WEEKLY
81%
75%
70%
64%
57%
47%
34%
28%
19%
16%
12%
10%
7%
5%
4%
77%
64%
54%
62%
81%
37%
30%
40%
38%
27%
43%
21%
21%
18%
12%
Social media
Messaging
Media viewing
Music
Email
Gaming
Photo viewing/editing
Shopping
News/information
Productivity
Finance
Food ordering/payment
Discount/coupon
Travel
Dating
13-17 18-35
Messaging and social media apps are dominating
Gen Z’s mobile time, followed closely by music,
gaming, and media viewing, In sixth place is email,
which comes out on top for Millennials who are
most likely using the app to check up on work.

14. SOCIAL MEDIA PLATFORMS GEN Z CURRENTLY USE
79%
68%
64%
50%
42%
33%
27%
25%
20%
19%
YouTube
Instagram
Snapchat
Facebook
Twitter
Facebook
Messenger
Skype
Pinterest
Google+
Kik
TOP 10 13-17
87%
75%
65%
61%
51%
49%
44%
43%
33%
28%
Facebook
YouTube
Facebook
Messenger
Instagram
Snapchat
Twitter
Pinterest
LinkedIn
Skype
WhatsApp
TOP 10 18-35
YouTube is the top social media space among Gen Z, while Facebook still holds the spot
with Millennials, with almost nine and ten currently using the platform. Snapchat is
catching on faster with Gen Z, and Tumblr and Kik makes their top 10, unlike Millennials
who are valuing networking sites like LinkedIn and Google+ more.

15. 65%
of 13-17-year-olds don’t mind
ads on social media as long
at they are entertaining
62%
of 18-35-year-olds agree
TYPES OF SOCIAL ADS THAT GRAB GEN Z’S ATTENTION
43%
27%
19%
18%
41%
28%
23%
21%
Short videos
Interactive features
(e.g. sponsored filters, games…)
Sponsored content that looks
like other posts on the site
Static images
13-17
Paid posts from online
influencers/creators
Paid posts from Hollywood
actors/actresses
Long videos
Short videos are the type
of ads most likely to grab
Gen Z’s attention, followed
by ones with interactive
features like sponsored
filters and games.
Source: Ypulse Monthly Surveys n=1000 | Dec 2016: Millennials ages 13-34
Paid posts from musicians
16%
14%
11%
5%
13%
15%
11%
10%
18-35

16. They wake up and first check…
TEXTS EMAILS SOCIAL MEDIA NONE
41%
14%
32%
13%
48%
28%
17%
7%
31%
41
%
20%
8%
13-17yo
Texts
18-24yo
Texts
25-33yo
Emails
Overall, texts and chat apps are the most integrated into teens’
daily routines, followed by emails and social media.
For Millennials, emails garner most of their attention,
and they are less likely than Gen Z to be
catching up on social media.
13-17yo 18-24yo 25-33yo
▲SEND ▼RECEIVE ▲SEND ▼RECEIVE ▲SEND ▼RECEIVE
Texts 35 37 50 52 28 30
Emails 3 11 6 24 15 36
Social
Media
7x
(post)
15x
(check)
3x
(post)
15x
(check)
3x
(post)
10x
(check)
Throughout the day …
DAY IN THE LIFE BY AGE

17. 46%
of 13-17-year-olds currently
use a brand/store’s app versus 60% of 18-35-year-olds
34%
have followed a brand on
social media versus 49% of 18-35-year-olds
31%
have clicked on a
sponsored post versus 42% of 18-35-year-olds
Millennials value convenience, and if having a direct line to
brands makes their lives easier they will make it happen.
But so far, Gen Z is less likely to connect with brands online
on their own, which means that brands need to go to them.
GEN Z ISN’T LOOKING FOR
BRANDS…

18. + Post-recession Gen Z are living a more wary, stressful life than
theirMillennial counterparts did as pre-recession teens, but they are still
optimistic about following their dreams and pursuing their passions.
+ Gen Z is shopping differently. They prefer shopping in-person and look
for products that will help them celebrate their uniqueness, expecting
brands to come to them and be authentic and entertaining about it.
+ Gen Z is consuming media and shopping differently than Millennials.
They prefer shopping in-person, look for products that will help them
celebrate their uniqueness and look to social media & smartphones 1st
GEN Z SNAPSHOT