Vietnamese Gen Z is reshaping the online shopping experience, driving trends in e-commerce with their unique preferences and behaviors. Born between 1997 and 2012, this generation is not just purchasing products; they are seeking enriched shopping experiences characterized by personalization, seamless transactions, and interactive engagement.
According to recent insights from YouNet ECI, Gen Z consumers prioritize social media as their primary shopping platform, where they can discover products, read reviews, and interact with brands, reflecting their desire for transparency and community engagement. It is noted, for example, "Brands need to provide entertainment-driven, trendy, and authentic shopping experiences to connect with Gen Z," highlighted Mai Cam Linh, a YouNet ECI expert. This perspective signals the shift marketers must embrace when targeting the youth demographic.
Interactive elements such as live chats and augmented reality features are pivotal for this generation. They prefer engaging directly with sellers through platforms like Shopee, Lazada, Tiki, and TikTok Shop. Interestingly, Gen Z currently accounts for 53.4% of weekly online shoppers, showing their significant presence within the e-commerce sector. For them, the act of shopping has transformed from mere transaction to participatory experiences—from social media discoveries to engaging livestream sales.
Exploring their purchase habits, the average Gen Z shopper engages online 2-3 times per month, opting predominantly for personal care and lifestyle products, spending between $4 and $20 per order. This demographic seeks products which not only meet their needs but allow for expression and individuality. Retailers are recognizing this trend, adapting to offer sound experiences infused with creativity and authenticity.
This trend emphasizes the necessity for brands to redefine their strategies. They must engage with sustainable practices and align their values with those of Gen Z, who are increasingly aware of social and environmental impacts. "Understanding their deep desires is key for brands targeting Gen Z's online shopping needs through 2028," said Cam Linh, outlining the long-term importance of adapting to these cultural shifts.
The anticipated growth of e-commerce spending among Gen Z is staggering, with projections showing their total expenditures could soar from $4.5 billion this year to $20.3 billion by 2028 if companies correctly tap their unique needs and preferences. Businesses are encouraged to innovate within the beauty, fashion, and personal care sectors, emphasizing product presentations through methods like unboxing videos and reviews to build authenticity and connect with Gen Z shoppers.
This generation's aim is for more than just purchasing goods; they want to be part of the product discovery process, hence, brands should focus on creating and nurturing community ties. Influencers and Key Opinion Leaders (KOLs) are key figures whom Gen Z trusts—they are not only product recommenders but also friends and advisors who validate purchases.
To capitalize on this trend, companies need to establish partnerships with KOLs whose audiences mirror Gen Z values, particularly within fashion and cosmetics. By presenting authentic content and facilitating interactions, brands can create meaningful connections, leading to increased loyalty and higher spending.
Meanwhile, alongside Gen Z, the Millennial demographic (born from 1981 to 1996) also plays a significant role, accounting for 46.6% of online shoppers. Millennials present ample growth opportunities due to their greater economic stability and varied consumption habits. This highlights the competition within e-commerce, creating opportunities for brands to cater collaboratively to the desires of both generations.
With Millennials increasingly concerned about quality and sustainability over price, e-commerce platforms must invest in environmental transparency and ethically produced goods. The expected expenditure among Millennials could surge from $6.5 billion to $29.7 billion by 2028, allowing businesses to target both groups effectively.
Business strategies must include clear return policies, convenient payment methods, and adaptable shipping options to resonate with expectations of the modern consumer. Online platforms should continue enhancing user experiences and customer service, including follow-up communications post-purchase, facilitating customer engagement through detailed order updates and warranty activations, thereby reinforcing brand trust.
The overarching sentiment, as gleaned from both generations, indicates shifting consumer priorities toward sustainability coordinated with lifestyle demands. Looking forward, companies need to embrace engagement-driven approaches with innovative solutions to thrive amid the increasing competition, directly fueled by Gen Z's unique trends. E-commerce businesses can thrive by adapting quickly, ensuring they stay aligned with the rapidly changing demands of online shoppers.