38% of Zillennials Value Locally Sourced Retail Products

Navigating retail demands an understanding of the consumers shaping its future. Arguably, the future belongs to zillennials, a pivotal demographic.

The PYMNTS Intelligence report “What Makes Zillennials Shop?” explored the preferences and values-driven buying habits of zillennials, defined as consumers born between 1991 and 1999. It highlighted their growing impact on the retail market as they come of age.

The report revealed that zillennials are not a monolithic group; rather, they exhibit a polarization between brand loyalty and a pursuit of the best deals. While many prioritize price when choosing retailers, a higher percentage compared to the general population places greater importance on the availability of their preferred brands.

Zillennials are less likely than older generations to view brand loyalty and price as equally important, per the report. This suggests a more decisive shopping behavior driven by either a strong connection to specific brands, as evidenced by their disproportionate likelihood of holding brand subscriptions, or a focus on maximizing value.

Beyond price and brand, the report underscored the role of values in zillennials’ purchasing decisions. They are more inclined than older generations, including even Generation Z, to favor merchants whose environmental and social values align with their own. Many actively seek out environmentally sustainable products and prioritize merchants with ethical social practices.

Furthermore, 38% of zillennials show an interest in locally made or sourced products, the report revealed. This demographic is more likely than others to care whether a merchant is local or community owned.

The influence of others also heavily shapes their shopping habits. Recommendations from family and friends impact their retail purchases, and social media influencers and celebrities play a more substantial role in their buying decisions compared to older demographics, per the report. This highlights the importance of social networks and the opinions of peers in resonating with this generation.

Here are three key data points from the PYMNTS Intelligence research:

Forty-one percent of zillennials prioritize price over brand availability when choosing a retail merchant, a higher share than the 38% of the total sample.

Twenty-one percent of zillennials consider the availability of their preferred brands more important than price, higher than the 16% of the overall population.

Thirty-eight percent of zillennials consider it very or extremely important that merchants offer environmentally sustainable products, a higher percentage than Generation X (less than 25%) and baby boomers and seniors (20%).

The PYMNTS Intelligence report also uncovered other aspects of zillennial shopping behavior. For instance, their engagement with voice technology and further details on their sources of shopping inspiration are explored in the full “Generation Zillennial” reports. The findings underscore the necessity for retailers to understand and adapt to the distinct preferences of this influential demographic to succeed in the evolving market.