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Press release

One in Four Gen Z Americans Shop Weekly on Temu, Shein & Other Chinese Marketplaces

Gen Z Boosts Chinese Marketplaces' Growth, but Amazon Still Tops Consumer Favorites

Charleston, SC August 6, 2024

Ecommerce marketing company Omnisend surveyed 1,000 US citizens and found that 73% of American Gen Z have shopped at Chinese marketplaces Temu, Shein, TikTok Shop, and AliExpress in the past year. 24% shop there once a week.

Shein seems to be most popular among Gen Z, with 44% making at least one purchase on a monthly basis almost two times more than older generations (23%). Temu is in close second, with 41%. For TikTok and AliExpress, the number is 36% and 24%, respectively. 

“Gen Z is on track to surpass baby boomers in the workforce this year and is estimated to carry close to $400B of spending power in the US alone. With that, their distinctive tastes and shopping habits are also transforming the online retail sector,” says Greg Zakowicz, Sr. Ecommerce Expert at Omnisend.

Chinese marketplaces taking on Amazon

Gen Z shoppers rate their Temu shopping experience 6.4 out of 10. For Shein and TikTok Shop that number is 7.1. Amazon dominates Gen Z favorability, with a rating of 8.

Despite the favorable perception from Gen Z, Amazon has reported sluggish growth of its retail business in its latest earning’s call, whereas PDD Holdings, Temu parent company, has more than doubled its revenue YoY. To counter Temu’s growth, Amazon has announced a discount shop of its own, selling directly to consumers straight from China.

“Our survey has shown that consumers identify low prices as Temu’s (58%) and Shein’s (49%) biggest advantage. Whereas for Amazon, it’s fast shipping (58%). If Amazon’s new discount store manages to meet the prices offered by Chinese rivals, Amazon’s household name and trust among consumers can pose a very serious threat to the Chinese newcomers,” says Greg Zakowicz, Sr. Ecommerce Expert at Omnisend.

How to market to Gen Z

As Gen Z becomes a dominant force in the consumer market, understanding their unique preferences and behaviors is crucial for brands looking to capture their attention. Below, Greg Zakowicz lists some pointers to tap into Gen Z consumers:

  1. Embrace authenticity and transparency. Gen Z values authenticity in brands. Share genuine stories, behind-the-scenes content, and honest practices to build trust and connect with this generation on a deeper level.
  2. Leverage social media and influencers. Utilize platforms like TikTok, Instagram, and YouTube where Gen Z spends their time. Partner with influencers who resonate with Gen Z, especially micro-influencers, to create engaging and targeted content.
  3. Personalize the shopping experience. Offer personalized recommendations and customized offers based on individual preferences and shopping behaviors. Make Gen Z feel valued with tailored experiences.
  4. Focus on mobile-first strategies. Ensure your website and online store are optimized for mobile devices with fast load times, intuitive navigation, and seamless checkout processes.
  5. Highlight Competitive Advantages. Emphasize your value-for-money propositions and showcase fast and reliable shipping options to meet Gen Z’s expectations for affordability and quick gratification.
Methodology

The survey was commissioned by Omnisend and conducted by Cint in April 2024. A total of 4,000 respondents were surveyed across 4 countries. Quotas were placed on age, gender, and place of residence to achieve a nationally representative sample among users. The margin of error is +/-3 percent. “Gen Z” in this survey is defined as respondents between 18-24 years old. More: https://www.omnisend.com/temu-vs-amazon/

For further information, please contact us
[email protected]

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