Gen Z's shopping decisions are heavily driven by TikTok and influencers, report finds

Generation Z in Asia-Pacific is taking fashion cues from idols and influencers, heavily driven by TikTok, a new KPMG report showed.

"Where past generations visited department stores or shopping malls to buy basics or check out new styles, Gen Z are looking for trends online, following idols and influencers and aspiring to wear the same clothing," the report said.

The report surveyed 7,000 consumers across 14 markets including China, Singapore, Indonesia, Vietnam and the Philippines. Nearly half of the respondents in each market were in the Gen Z age group – defined as 18 to 24 years old in the survey.

Gen Z ranked social commerce (63%) and livestreaming commerce (57%) as important to their shopping experience, the survey revealed. Social commerce was the most popular form of retail tech among Gen Z – especially in China, Vietnam, Indonesia and the Philippines.

Gen Z is known as the first generation to grow up with the internet and digital devices as a part of daily life.

"The fusion of social media and e-commerce represents the frontier of engaging Gen Z in a way that resonates with their ethos," said Irwan Djaja, partner and head of advisory of KPMG Indonesia.

As a result, brands are reassessing their supply chain strategies and emphasizing social commerce platforms to cater to Gen Z. They are particularly focused on TikTok and Instagram, where influencer recommendations play a very significant role.

"TikTok is a juggernaut. It is still growing and has an unbelievable number of viewers and influence," said Eric Pong, co-founder of AfterShip, an e-commerce experience software-as-a-service company. Pong was one of the company executives interviewed in the report.

"TikTok business – strong in Asia – gets businesses to advertise on TikTok, using influencers and key opinion leaders and serving ads to direct viewers back to websites," KPMG analysts said.

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