Gen Z ReportBased on the Criteo Shopper Story

IntroductionMove over Millennials — there’s a new generationof shoppers in stores.Criteo surveyed thousands of members of Gen Z in the US, UK, France, Germany, Brazil, andJapan to understand what they think about shopping: what motivates them to shop and whatthey want from the retail experience. While all countries have different economic factors atplay, members of Gen Z share a commonality in their love of real-world retail experience,albeit augmented by technology.Key findings about Gen Z:They have significant spending power.They are the most likely to value real-world experiences.They are the most likely to shop around.They are the most dissatisfied with the online experience.They expect relevance from products and marketing.

Contents12345Who is Gen Z?Get to know the newest generation of influential shoppers.How social and mobile shape their livesOr, why content and connectivity reign supreme.Real-world retail matters to them? #DefinitelyGood-looking stores and unique products are on-trend.Appealing to Gen ZThe path to purchase is paved with personalization.What Gen Z wants from retailers and brandsTop takeaways for marketers who want to win.

There are 4 distinct generations in commerceGen ZGen -1993Source: Definitions of these generations vary. For the purposes of this survey, Boomers 50 , GenX 35 – 49, Millennials 25 -3 4, Gen Z 16 - 24

Who is Gen Z?Get to know the newest generationof influential shoppers

What qualities does Gen Z embody?Engaged & EmpoweredTech & TactileInfluential & OpenThey were children when social media came to theforefront and smartphones were introduced, andthe new ways of connecting with each other havehuge implications for marketers. They navigatethe world with their phones and wouldn’t think ofbuying without consulting their online and offlinenetwork of friends.While the smartphone is their remote control forlife, they desire a world beyond the screen. They aremore tactile than older generations and personalexperience of the world and products is their aim.Online shopping doesn’t fully deliver on their desires:touch and instant gratification.They have strong opinions – formed by peer andsocial influencers and, due to their facility withtechnology, they help older generations navigatethe connected world. They are in a crucial stage ofdevelopment for brand preferences as they enterindependent life and are open to new retailers andretail concepts.

Gen Z is hugeThey make up nearly one-quarter of the US population.74M251MSource: The Hartman Group23%

They have significant spending powerBoth online and off, the amount they spend across categories is strong.Consumer ElectronicsApparelToys/Games/Sporting Goods 182 125 164 155 124 94Online SpendOffline SpendSource: Criteo Shopper Story, US 2017 n 430Numbers are average spend over a 6-month period.Online SpendOffline SpendOnline SpendOffline Spend

How social and mobileshape their livesOr, why content and connectivityreign supreme

Social and mobile are integral to their livesYounger Gen Zers may love newer platforms like Snapchat andInstagram, but older Gen Zers still use Facebook a lot, too.Percent of Gen Z using each platform several times a e: Criteo Shopper Story, US 2017 n 430, where Gen Z 16-24 year olds23%Z

They are at the forefront of themobile commerce revolutionGen Z spends more time on their mobile devices than any other generation.Average Number of Hours of Online Access per Week(not counting work and e-mail)Desktop14Mobile1232%1086of all transactionstake place via amobile device42016 to 2425 to 34Source: Criteo Shopper Story, US 2017 n 2,50035 to 4950 to 65Z

They stream more content than other generationsFrom TV shows and online videos to music and podcasts, Gen Z loves to watchand listen from the web.Average Number of Hours per Week with Video Content121016-2435-4925-3450-65823h64of video contentis streamed perweek by Gen Z20Watching streamingWatching onlineListening to streamingTV showsvideosmusic/podcastsSource: Criteo Shopper Story, US 2017 n 430Watching live TVListening to theradio (am/fm)

Real-world retail mattersto them? #DefinitelyGood-looking stores and uniqueproducts are on-trend

Gen Z shopping habits varyGen Z craves the tactile nature of the in-store experiencebut gravitates to the convenience of online shopping.80%look forward to shopping instores when they have time75%prefer to do as much onlineshopping as possibleBut the online experience is not as powerful as their desiresto truly engage with products before they buy.67%use their phones in-storeto research purchasesthey are consideringSource: Criteo Shopper Story, US 2017 n 43065%don't like to buy new thingsunless they can touch them

Gen Z values real-world retail forexperience and discoveryGen Z is in a crucial period where they develop life long brand loyalties –if they are going to buy, they want to experience it first.71%enjoy shopping in stores tounderstand what's in styleSource: Criteo Shopper Story, US 2017 n 43080%like to try new retail stores

They want more from storesTo Gen Z aesthetics, great store design and unique products matter.Factors Motivating In-Store Visits(percent of respondents)45403530252015105016 to 24Store designSource: Criteo Shopper Story, US 2017 n 2,50025 to 34More unique merchandise35 to 49Displays show product use50 Better ways to try product

They are omnishopping in all modes regularlyThey are more likely to regularly Scan & Scram, less likely to Click & Collect. They are alsothe most prepared shoppers: They are more likely to research online but buy in store.Percentage of Gen Z Shoppers Who Do These Activities Regularly34%WebroomingResearch online, buy in-store27%15%17%Source: Criteo Shopper Story, US 2017 n 430Click and CollectBuy online, pick up at astore or kiosk18%Scan and ScramSee in-store, buy in-storefrom another retailer onlineClick and ShipSee in-store, buy in-storeon retailer's mobile site/appShowroomingSee it in-store, buy itonline

They like to shop aroundGen Z is on the hunt: They are more likely to comparison shop.When it comes to health & beauty products:51% 930%28%compare products within a sitepoints abovethe averageSource: Criteo Shopper Story, US 2017 n 430regularly visit multiple websitesoften put items in a cart withoutpurchasing right away

The shopping experienceis letting them down38%35%find it difficult to find what theyneed or love onlinedon't feel comfortable makingpurchases onlineSource: Criteo Shopper Story, US 2017 n 430

At the same time, retailer websites are becomingas influential as social media on Gen ZMedia Influence on Making Purchase Decisions706050403020100Social MediaYouTubeSource: Criteo Shopper Story, US 2017 n 2,500Retailer WebsitesBrand Websitesand Appsand Apps16-24Search EnginesOnline VideoAdvertising25-3435-49TV AdvertisingOnline Ad Banners

Appealing to Gen ZThe path to purchase is pavedwith personalization

How eCommerce sites can improveconversion among Gen ZPercent of shoppers that say these website factors are very important:62%58%57%51%49%36%AvailablediscountsFree productsProductrecommendationsSource: Criteo Shopper Story, US 2017 n 430

Gen Z likes personalized everything, including ads62%like ads thatprovide valueSource: Criteo Shopper Story, US 2017 n 430They say they like ads they see on other sites for things they wereshopping for if they get a discount or it reminds them to purchase

What Gen Z wants fromretailers and brandsTop takeaways for marketerswho want to win

What do retailers and brands that embodyGen Z values offer?1. Personalized experiences2. Limited-edition merchandise3. Unique products4. Good-looking stores5. Authentic brand stories

Keys to reaching Gen ZTake advantage of real-world retailImprove the online experienceThey are young and mobile – they crave novelty and experience.Online-only retailers will extend their impact by entering the realmof “bricks” either through store-in-a-store or stand-alone efforts.With online shopping not able to provide a tactile experience, upthe quality of what you can control: spot on product descriptionswith dynamic content, aesthetically pleasing images, 360 rotations,video demos geared to their age group, and reviews optimized fortheir skeptical minds.Clean up and enhance store display/designUse data to deliver a personalized experienceThe Instagram generation lives by visuals and expects their retailersto make it cool, show how products are used, and feature them intheir best light. They have to be desirable, accessible, touchable.Their desire to have it tailored to them is delivered by technology:customized products as well as a customized marketing experience.But, do it well, with the right offer, dynamic content, etc."Uniquify" your mechandising mixYouTube and social media present a window into millions ofinfluencers – Gen Z doesn’t want to look like everyone else.Retailers would be wise to find way to bring new and differentmerchandise into the mix, and not be afraid to run out of it.

About CriteoTo learn more about how the Criteo CommerceMarketing Ecosystem drives sales and profits forthousands of brands, retailers, and publishersworldwide, visit additional commerce marketing content,including the latest research on how shoppersare browsing and buying around the world,visit

Based on the Criteo Shopper Story Gen Z Report. Criteo surveyed thousands of members of Gen Z in the US, UK, France, Germany, Brazil, and . Gen Z spends more time on their mobile devices than any other generation. Source: Criteo Shopper Story, US 2017 n 430 . Advertising TV Advertising Online Ad Banners 70 60 50 40 30 20 10 0