SINGAPORE: Gen Z, the world’s largest generation, is expected to drive S$12 trillion in consumer spending by 2030.
However, economic pressures are influencing their buying habits, making them more focused on value-driven purchases this Black Friday shopping season.
A new report from NielsenIQ (NIQ) and World Data Lab, Spend Z: A Global Report, looked at how Gen Z’s financial concerns, along with their desire for authenticity and sustainability, are shaping their shopping behaviour.
Rising costs and health concerns
The report revealed that more than half (53%) of Singapore Gen Zs are worried about rising food prices, while 19% are concerned about higher utility bills and job security.
These concerns are also felt across Asia, where 32% of Gen Zs are worried about food prices and 22% about economic downturns.
Beyond the cost of living, Gen Zs are also struggling to maintain a healthy lifestyle.
While many want to eat healthier, the high cost of healthy food, the convenience of fast food, and the time constraints they face make it difficult.
Nearly one in four Singapore Gen Zs (24%) reported difficulties eating healthy, the highest of any generation surveyed. In addition, 30% said they frequently opt for meals that are easy to prepare or convenient to consume.
Value-driven purchases
According to the report, this Black Friday shopping season, these economic pressures are expected to drive Gen Z to make more strategic, value-driven purchases.
The report found that 68% of Singapore Gen Zs seek out peer reviews and genuine recommendations before buying a product, while 50% said they only buy items they know they will use.
The report also showed that 75% of Singapore Gen Zs prefer shopping in physical stores that offer the lowest prices, a higher rate than the regional average of 66%.
Despite this preference for in-store shopping, their habits are “omnichannel,” as per the report.
Notably, 74% browse physical stores and online platforms to find the best prices, deals, and options, while 78% research products, prices, and promotions online before buying.
Strategic spending
To cope with economic concerns, Singapore Gen Zs have become more strategic with their spending.
One in four have switched to more affordable alternatives in recent months, while almost seven in 10 are open to switching or trying new brands for better deals. Meanwhile, 71% research the best deals first before buying anything.
Louise Hawley, Managing Director at NielsenIQ, explained that the Spend Z report shows Singapore’s Gen Z is shifting their focus to value-driven purchases—“products that reflect their values of authenticity, quality, and wellness.”
She advised businesses to go beyond “gimmicks” and align with these values. /TISG
Read also: UOB: 1 in 4 Singapore Gen Zs lack savings, life insurance, investments, and other financial plans
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