The retail sector has been transformed in recent years by the rise of social media and has used e-commerce. As a driver of sales growth. Currently. Mexico is positioned as the number one country in e-commerce and retail growth. Worldwide with a market value of $658.3 billion pesos. Despite the growing trend in online sales. The shift towards digital has created new challenges for the sector. Generation Z also known as digital natives has presented itself as. An unknown for brands, causing the need for a change in marketing.
In this sense, LLYC, in collaboration with Appinio, carried out the study “ The future in retail. The new brand experience. A marketing guide to building genuine brands. To delve into and analyze what this generation values and contribute to the positioning of companies.
Fernando Forte, Senior Marketing
Manager at Appinio, highlights that “ Generation Z, represented by more than 20 million Mexicans, is a demanding public that demands a high degree of personalization in the shopping experience and is characterized by being very curious about trying different brands and products .” According to the report, only 18.3% of Mexicans (who are part of this generation) are loyal to their favorite brands. “ That is why, in order to establish a stronger connection and build loyalty among the younger generation, it is crucial to analyze in detail the behavior of this demographic group and adjust our strategies as retailers to their particular expectations and needs .”
“ Brands’ adaptability to create marketing strategies appropriate for their respective communication channels is essential to execute an effective campaign. Social media has become the main channel to connect with Generation Z, so it is necessary to create quality content and ensure authentic experiences for consumers in order to create valuable relationships,” says David Martín Muñoz, Partner and Director of Growth & Transformation and Paid Media Americas .
Guide to building genuine retail brands: experience, acquisition and loyalty
Generation Z or Centennials are all those young people born between 1995 and 2010, and in Mexico they represent 30% of the total population. Currently, the purchasing decisions of this group are one of the most attractive for the market. Below are the main findings in this regard from the report prepared by LLYC in partnership with Appinio:
Volatile behaviour. Generation Z is marked by the crisi shopify social media integration s and characterised by its deep mastery of technology, its inclination towards personalisation and authenticity, but it presents a contradiction between its statements and its consumer actions. 77.2% are inclined to buy a brand’s products if it pursues a purpose that is aligned with their own values. However, in the end, price and convenience are determining factors in their decision.
Meaningful connections. Only 18.3% of Gen Z say they always buy from the same brands. However, when a brand establishes authentic connections with them and understands their needs, tastes or life perspectives, this demographic stands out as the most loyal . 80.4% of respondents from this generation say they are more inclined to make purchases under these circumstances.
Social media, their main consumption channel. 66.3% of Generation Z uses social media to consume quick content, such as short videos on platforms like TikTok, Instagram Reels or YouTube Shorts, in addition to frequenting streaming platforms . This poses a challenge for retail brands. As they must compete not only with each other, but also with the entertainment sector for the attention of these users who are accustomed to short, immediate online content.
Review addicts. They are a decisive factor for this generation when it comes to purchasing. 45.7% of respondents representing Generation Z say they look for reviews and opinions from other users
on social media before purchasing
a product , and 35.6% consider these opinions to be reliable or very reliable.
Valuable content. Brand communication is no longer purely one-way, it is now two-way. More than a third say they have bought a product after seeing it posted in other users’ videos, emphasizing their greater confidence in content generated by real consumers over that disseminated by influencers .
The rise of Chinese big players . 25.7% of Gen Z respondents make at least one purchase per month from giants such as Amazon, Shein or Temu , platforms that have established an undisputed dominance in the market. 18.8% do so in traditional retail stores and 15.2% in independent, boutique or sustainable stores.
The combination of TikTok and Shein is a game-changer. Today, dig ar numbers ital-native retailers have established themselves in the mobile environment, with 52% of sales made on mobile-optimized websites and 37% through mobile apps. TikTok stands out as the main tool for influencing purchasing decisions.
With an average ticket price of 1,400 pesos
Shein leads the fashion world thanks to its accelerated growth, based on a wide range of products available at affordable prices. Consumers value the quick response to trends, virality on social networks and incentives to buy, placing these giants at the top of mind of generation Z.
How to retain them? To retain this segment of consumers, it is essential to understand the levers that drive their loyalty and meet their expectations. Which go beyond price. Generation Z’s favorite categories when it comes to subscribing to a loyalty program are fashion (61%), food (42%) and beauty (42%). They prioritize, above all, access to free samples or products, receiving gifts for their birthday celebration or personalized rewards.
This is the fourth report produced
LLYC and Appinio to understand new consumer habits. The previou gobierno de australia occidental s ones analysed the impact of online reviews as a sales lever in post-COVID retail. The effectiveness of advertising in the media to plan the marketing mix effectively, as well as the transformation of the omnichannel experience in the retail sector. In a world in constant transformation, it is essential to analyse audiences and take into account digital data to understand consumer behaviour and habits.
