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The QVC of Generation Z: How social media influences generational shopping habits

The QVC of Generation Z: How social media influences generational shopping habits


Chay_Tee // Shutterstock

The QVC of Generation Z: How social media influences generational shopping habits

A social media influencer shows off a package in live video with her phone set up for recording.

If you think you don’t need a Lululemon fanny pack, Scrub Daddy sponges, or a Revlon one-step hair dryer, your social media feed might convince you otherwise. These are just two sold-out items that went viral thanks to #TikTokMadeMeBuyIt. The hashtag has been viewed more than 129 billion times since its inception.

Social media has morphed into social commerce, a trend that emerged long before TikTok, owned by Chinese company ByteDance, launched its Shops feature last year. In the U.S., e-commerce sales accounted for over 15% of all sales in the second quarter of 2024, and the value of sales increased 9% from the same period last year, according to Census data.

But TikTok’s seamless shopping experience, which features live streams and videos that allow – and even encourages – viewers to shop directly in the app using the “Shop” button, has changed the game. According to a 2024 survey by social media forecaster eMarketer, the rise of e-commerce, which pushes consumers to make decisions based on social media ads and promotional videos, has profoundly influenced Gen Z’s shopping habits. Just over 2 in 3 Gen Z say they are likely to make an in-app purchase on TikTok, compared to less than 1 in 5 social media users across all other generations.

In theory, their creators designed social media platforms for interpersonal contact, not commerce. But like Facebook Marketplace, apps like TikTok and Instagram are also doubling their role as retailers. Thanks to the Shop feature, TikTok gives millions of users the opportunity to buy a wide range of things, like home goods or Taylor Swift for President flags for $10 – but it potentially destroys what users love about the app love.

One way TikTok has turned the app into a virtual mall is by integrating the TikTok Shop into the main feed so that product videos appear as users browse. The feature has turned the curated content on the app’s “For You” page into “a scrolling infomercial,” and some media critics see it as a far cry from the app’s original goal of promoting discretion and credibility in favor of blatant selling. It’s also a win for TikTok, which receives a third-party commission.

But how exactly does this affect shopping? Collabstr analyzed surveys from PYMNTS, eMarketer and others to illustrate how social media influences young consumers’ shopping habits.


Collabstr

When scrolling becomes shopping

A stacked bar chart showing what percentage of consumers in each generation say they have made a purchase influenced by a social media influencer in the last 30 days. Gen Z leads the way with 28% saying they have made an influencer-influenced purchase, followed by 22% of Millennials, 6% of Generation X and 2% of Baby Boomers.

For online shoppers, calling the 1-800 number on the screen to purchase that newly featured gadget or beauty product may seem decidedly old-fashioned. However, the approach perfected by network shopping channels like QVC and HSN, which offers an in-home shopping experience built on relationships, exclusive discounts, big names and even bigger personalities, shares many similarities with Canvas Beauty. The cosmetics brand made a record-breaking $1 million in sales after a six-hour livestream on TikTok Shop, showing that if you get someone’s attention, you can potentially win their money too.

There are surprising similarities and stark differences in the way different generations spend their money, especially in an age where every social media platform is now a virtual mall. This full integration begs the question: are these new platforms different from older models for the generation

The younger generation’s reliance on influencers has given rise to a number of new marketing strategies. Internal purchasing generates large revenues from apps that receive commissions from third-party providers. The profit potential is so great that TikTok was prepared to lose money in 2023 when it launched in the US and increased seller fees.

In some ways, TikTok Shop still has an untapped audience. While older generations are less inclined to make purchases directly through social media, they are more established and have great purchasing power.

The data also reveals clear generational differences in a brand’s relationship to sustainability and social justice. Hubspot’s 2024 Consumer Trends Report found that younger consumers place more value on ethical shopping. They value more sustainable products that are better for the environment and prefer to shop from companies that take a stand on social issues, particularly racial justice, LGBTQ+ rights, gender inequality and climate change. Conversely, the majority of baby boomers believe that companies should not take a strong stance on social issues.

While Gen Z and Millennial shoppers are more interested in virtual marketing and online shopping than baby boomers, who still let TV ads and retail stores dictate what they buy, baby boomers tend to spend more, according to a 2024 Whop survey per purchase.

The popularity of TikTok Shop represents something new that will inevitably impact all generations: the complete integration of shopping and entertainment. But despite the platform’s continued growth, the pendulum could swing back if trading ever completely eclipses engagement.

Take, for example, the rise and fall of Instagram Live Shopping, which began in 2020 and was relatively successful. However, sales and engagement quickly plummeted, and Instagram discontinued the feature in 2023. By devaluing retail, Instagram could refocus on the app’s mission of “bringing people together” around concepts of connection and creativity, Instagram CEO Adam Mosseri explained in a video post, rather than turning an app about community into one long infomercial .

Generation Z is the first cohort to come of age in a fully immersive virtual marketplace. As they grow up and their purchasing power increases, who knows whether the inevitable and endless product cycle will age with them? In this sense, baby boomers may have one advantage over Generation Z: at least with shopping networks and infomercials, you can always just change the channel.

Story editing by Alizah Salario. Additional editing by Kelly Glass. Editing by Kristen Wegrzyn.

This story originally appeared on Collabstr and was produced and
Distributed in collaboration with Stacker Studio.