Gen Z, Millennials interact more with brands directly, willing to provide data for offers

Gen Z and millennial shoppers are more likely to order products directly from brands instead of traditional e-commerce stores, according to a report by Capgemini.   

“Younger consumers’ willingness to go straight to brands when purchasing goods presents a real opportunity for consumer product companies. This enables them to collect consumer data and helps create a more mature direct-to-consumer channel,” said Tim Bridges, Global Head of Consumer Goods and Retail at Capgemini.   

The study showed that 72% of consumers globally are expected to have significant interactions with physical stores when the pandemic subsides, this was at 12% pre-Covid.   

Conducted on over 10,000 millennials and Gen Z showed that 68% of Gen Z (Born between 1997-2012) consumers and 50% of millennials (1981-1996) have ordered products directly from brands over the past six months. This is higher than the average of 41% across all age groups. In contrast, only 21% of boomers and 37% of GenX have ordered directly from a brand in the last six months.   

Why go directly to brands? 60% cited a better purchasing experience, while 59% pointed towards brand loyalty programs.  

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However, consumers were also willing to share data in exchange for these benefits. About 45% of shoppers were willing to share data on how they use products, while 39% agreed that they were willing to share personal data such as demographics or product preference. 54% of these respondents said that it was very likely that they would share data directly with brands in return for offers. 

The report also showed that the surge in e-commerce over the last two years owing to the pandemic has plateaued. Boomers, at 76% were the most likely to interact in-store, while Gen Z, at 66% were the least likely.   

The report took into account respondents over the age of 18 across 10 developed countries, with the criteria that they must have completed an online purchase atleast once over the past six months.