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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.
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.
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:
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/
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