Shopping with purpose: How Gen Z’s buying habits differ from Millennials’

Blog 4.1.2025

Key takeaways: What REALLY drives Gen Z’s shopping decisions

  • Brace Yourself: Gen Z doesn’t just shop—they scrutinize. If your brand isn’t authentic, socially conscious, and purpose-driven, don’t expect their money (or loyalty).
  • Hot Stat Alert: A whopping 58% of Gen Z prefers familiar labels, but here’s the kicker—they’ll only stay loyal if those brands reflect their values.
  • Social Media = Ground Zero: TikTok, Instagram, and UGC (user-generated content) aren’t just extras; they’re essential. Gen Z trusts peers and influencers far more than traditional ads.
  • Gen Z Demands Action: They don’t just want products; they want proof. Show your commitment to diversity, sustainability, and social causes—or risk irrelevance.
  • For Brands Who “Get It”: Success comes from blending authenticity with tech-savvy marketing, leveraging UGC, and being brave enough to stand for something meaningful.

Miss the mark? Gen Z won’t just walk away—they’ll call you out. Adapt or disappear.

What drives Gen Z’s shopping decisions?

Gen Z, the digital natives born between the mid-1990s and early 2010s, are reshaping consumer behavior with their unique shopping habits. Unlike previous generations, Gen Z is driven by a strong desire for authenticity and purpose-driven shopping. They are not just looking for products; they seek brands that align with their values and beliefs. This generation is highly influenced by social media, where they engage with brands and peers to validate their purchasing decisions. According to a survey, 58% of Gen Z consumers prefer familiar labels, highlighting the importance of brand recognition and trust.

Moreover, Gen Z is known for their social consciousness. They are more likely to support brands that demonstrate a commitment to social and environmental issues. This generation values transparency and expects brands to take a stand on societal matters. For instance, brands that actively support diversity and inclusivity, like Fenty Beauty, resonate well with Gen Z. They appreciate brands that are not afraid to showcase their values and engage in meaningful conversations with their audience.

In addition, Gen Z’s shopping decisions are heavily influenced by user-generated content (UGC). They trust the opinions and experiences of their peers more than traditional advertising. This shift towards peer validation has led to the rise of influencer marketing, where brands collaborate with influencers to create authentic content that resonates with Gen Z. By leveraging UGC and influencer partnerships, brands can build genuine connections with this generation and drive brand loyalty.

How do millennials prioritize their purchases?

Millennials, born between 1981 and 1996, have distinct buying habits compared to Gen Z. While both generations value authenticity, millennials tend to prioritize practicality and convenience in their purchasing decisions. They are more likely to consider factors such as price, quality, and brand reputation when making a purchase. Unlike Gen Z, millennials are less influenced by social media and more by traditional advertising and word-of-mouth recommendations.

Millennials are also known for their focus on experiences over material possessions. They value experiences that enrich their lives and create lasting memories. This preference for experiences has led to the rise of experiential marketing, where brands create immersive and memorable experiences to engage with millennials. For example, brands that offer unique in-store experiences or interactive events are more likely to capture the attention of millennial consumers.

Furthermore, millennials are more likely to support brands that offer convenience and efficiency. They appreciate brands that provide seamless online shopping experiences and quick delivery options. This generation values time-saving solutions and is willing to pay a premium for products and services that enhance their lifestyle. By understanding these priorities, brands can tailor their marketing strategies to effectively engage with millennial consumers.

The role of technology in shaping shopping habits

Technology plays a pivotal role in shaping the shopping habits of both Gen Z and millennials. For Gen Z, technology is an integral part of their lives, influencing how they discover, research, and purchase products. Social media platforms like TikTok and Instagram serve as primary sources of inspiration and information for Gen Z consumers. They rely on these platforms to explore new trends, discover brands, and engage with content that resonates with their interests.

In contrast, millennials have witnessed the evolution of technology and have adapted to its advancements. They are comfortable using online shopping platforms and mobile apps to make purchases. Millennials appreciate the convenience and accessibility that technology offers, allowing them to shop anytime and anywhere. They are also more likely to use technology to compare prices, read reviews, and make informed purchasing decisions.

Both generations value personalized shopping experiences enabled by technology. Brands that leverage data-driven insights to create tailored marketing campaigns and personalized recommendations are more likely to succeed in capturing the attention of Gen Z and millennials. By embracing technology and staying ahead of digital trends, brands can create impactful brand experiences that resonate with these tech-savvy consumers.

The influence of social and environmental issues

Social and environmental issues have a significant impact on the shopping habits of Gen Z and millennials. Gen Z, in particular, is known for their strong stance on social justice and environmental sustainability. They expect brands to take a proactive approach in addressing these issues and are more likely to support brands that align with their values. This generation is not afraid to hold brands accountable and demand transparency in their practices.

Millennials, while also socially conscious, tend to prioritize convenience and practicality in their purchasing decisions. However, they are increasingly becoming aware of the impact of their choices on the environment and society. Brands that demonstrate a commitment to sustainability and ethical practices are more likely to resonate with millennial consumers. For example, brands that use eco-friendly materials or support charitable causes are more likely to gain the trust and loyalty of millennials.

Both generations value brands that are authentic and transparent in their communication. They appreciate brands that actively engage in conversations about social and environmental issues and take meaningful actions to make a positive impact. By aligning their brand values with the concerns of Gen Z and millennials, brands can build strong connections and foster brand loyalty among these socially conscious consumers.

Ready to make your brand Gen Z-approved? Let’s start the conversation at genz@bangeri.fi.