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The influence of social media and influencers
One of the most striking findings of the KPMG report is the significant role of social networks and influencers in Gen Z’s purchasing decisions. Platforms like TikTok and Instagram serve not just for social interaction; they are key business channels where trends are born and consumer behavior is shaped. A strong presence on these platforms is essential for brand success.
“In a market that demands competitive prices, top e-commerce companies are fighting hard not only among themselves but also with physical stores. Attracting new customers in a saturated market is difficult, but the specific interests of Millennials and Gen Z are a remarkable opportunity. Retailers should adapt their approach to these groups, and those who excel in analyzing customer data from both online and offline sources will have an advantage,” said Shin Jang Hun, Partner and National Leader for Consumer & Retail at KPMG Korea.
Generation Z in Asia and the Pacific relies heavily on celebrities and influencers when choosing fashion, a trend that is also reflected in Europe. Local e-commerce businesses should consider collaborating with regional influencers who resonate with the Generation Z audience. This collaboration can increase brand visibility and credibility, boost traffic and sales through authentic support.
Source: KPMG
The rise of live shopping and AI
Another trend highlighted by the report is social media sales. In Asia and the Pacific, 63% of Gen Z consumers engage in social media shopping, and 57% participate in live shopping, i.e., shopping through live broadcasts. This suggests they prefer interactive and engaging shopping stimuli. The current boom in artificial intelligence serves this well.
The report cites Nutrifood as an example, which had already been using live streamers and influencers for marketing. Last year, they discovered that young mothers are often up at night to soothe their babies and are ready to buy infant formula that the company produces. The company realized that 12-hour live broadcasts weren’t practical, so they sought a solution in artificial intelligence.
“Today’s technologies allow us to better serve consumers and reach a wide range of customers. Proactive transitions to technologies and digital platforms by offering a more integrated experience and increasing seamless shopping and value for consumers will return to the business.” Tran Bao Minh, Vice President of Nutifood.
Moreover, TikTok’s influence is particularly pronounced. Brands that effectively use TikTok for marketing can achieve significant reach and impact.
To profit, companies should develop a robust social media strategy and focus on TikTok. Create engaging and creative content that presents products in an appealing way, use popular music and trends to increase visibility, and collaborate with influencers.
Adapting supply chain strategies
The report also states that brands are rethinking their supply chain strategies to better adapt to Generation Z consumer preferences. Fast fashion and quick delivery times are key, as this customer group values immediacy and adaptation to trends.
In this case, it’s appropriate to consider investing in more agile supply chain solutions. Implementing advanced inventory management systems, optimizing logistics for faster delivery, and ensuring a seamless multi-channel experience can significantly increase customer satisfaction and loyalty.
