Gen Z are now at peak spending power and their habits are rewriting the rules of retail. Brands that understand the distinct behaviours and preferences of this cohort can gain a lasting competitive edge. Here’s what you need to know, and how to adapt.
Tiktok commerce goes mainstream
In 2025, Tiktok is now a full-fledged marketplace. Recent data shows 66% of Gen Z shoppers are likely to purchase directly through Tiktok, outpacing Facebook (54%) and Instagram (51%). The platform’s shoppable videos, in-app checkout and viral product challenges create a seamless path from discovery to transaction.
Action points:
- build shoppable Tiktok campaigns with clear calls to action
- partner with creators who have high engagement in your niche
- optimise product tags and use trending audio to boost visibility
Emotional spending and micro-indulgences
Amid economic pressures, Gen Z are turning to small, feel-good buys as a coping mechanism. Known as the “lipstick effect,” this emotional spending sees them favouring affordable luxuries (artisanal candles, stylish phone accessories or fun stationery sets). These micro-splurges provide instant gratification and shareable content.
Action points:
- highlight low-price hero products in social ads
- craft seasonal or limited-edition bundles around “treat yourself” themes
- encourage user-generated content showcasing real customers enjoying your products
Authenticity as currency
Gen Z are digital natives, and they can spot inauthenticity a mile off. Glossy, hyper-produced ads feel stale to them. Instead, they crave genuine brand narratives, real customer reviews and transparent sourcing stories. Authenticity isn’t optional, it’s what builds trust and loyalty.
Action points:
- showcase behind-the-scenes footage of your team and production process
- share unfiltered customer testimonials and influencer reviews
- align campaigns with a clear brand purpose (social, environmental or cultural)
Sustainability drives purchase decisions
While price remains a key factor, Gen Z will gravitate towards brands that demonstrate real eco-credentials. They expect companies to deliver on sustainability promises—carbon-neutral shipping, recyclable packaging or fair-trade sourcing—all of which can tip the scales in your favour.
Action points:
- publish an annual sustainability report or impact update
- label products with clear eco-badges (eg, “made from 100% recycled materials”)
- partner with recognised environmental organisations for co-branded campaigns
The rise of webrooming and omnichannel convenience
Gen Z are hybrid shoppers. They love browsing online but still value the immediacy of in-store pickup. Features like real-time inventory checks, store locators and click-and-collect options (collectively known as webrooming) are hugely popular, providing a seamless journey from screen to store reduces friction and builds extra touchpoints.
Action points:
- integrate in-app stock visibility and local pickup scheduling
- use geotargeted ads to promote in-store events and flash sales
- train store staff to upsell and collect customer feedback at pickup
Flexible payment options as a baseline
Interest-free instalments and subscription models are now expected by Gen Z. Buy-now-pay-later (BNPL) offerings reduce cart abandonment and make higher-ticket items accessible to younger budgets. Equally, subscription boxes and replenishment services lock in recurring revenue and lifetime value.
Action points:
- partner with leading BNPL providers and display options at checkout
- experiment with subscription tiers for consumable or replenishable products
- highlight total cost comparisons (single payment vs instalments) to demonstrate value
Future-proof your brand
2025 is the year Gen Z cements its influence on retail. Shoppable social videos, catering to emotional spending, prioritising authenticity, championing sustainability, uniting online and offline touchpoints and embedding flexible payments, you can forge genuine connections and drive growth.
Ready to transform your marketing strategy? Partner with Nfinity Influencer and let’s turn insights into impact.
