Innovation

Gen Z in Asia-Pacific Influenced by Idols and Influencers: KPMG Study Insights

A recent study by KPMG has unveiled that Generation Z in the Asia-Pacific region is significantly influenced by idols and social media influencers when making purchasing decisions. This shift in consumer behavior marks a departure from traditional shopping habits and highlights the growing impact of social commerce platforms.

Online Trends Over Traditional Shopping

Unlike previous generations who frequented department stores and shopping malls to explore new styles and buy essentials, Gen Z is turning to online platforms for fashion inspiration. They follow idols and influencers, aspiring to emulate their styles. This trend is largely enabled by the rise of social commerce platforms like TikTok and Instagram, where influencer recommendations have a profound effect on purchasing decisions.

Survey Findings Across Asia-Pacific

The KPMG report, which surveyed 7,000 consumers across 14 markets including China, Singapore, Indonesia, Vietnam, and the Philippines, found that nearly half of the respondents were Gen Z, defined as individuals aged 18 to 24. The survey revealed that social commerce (63%) and livestreaming commerce (57%) are crucial to Gen Z's shopping experience. Social commerce emerged as the most popular retail technology among Gen Z, particularly in China, Vietnam, Indonesia, and the Philippines.

The Digital Natives of Gen Z

Gen Z is the first generation to grow up with the internet and digital devices as integral parts of their daily lives. This digital nativity has shaped their shopping habits, with a strong preference for online trends and social media engagement. The fusion of social media and e-commerce represents a new frontier in engaging Gen Z in a manner that aligns with their digital-centric lifestyle.

Brands Adapting to Social Commerce

In response to these changing dynamics, brands are reevaluating their supply chain strategies to better cater to Gen Z's preferences. Emphasizing social commerce platforms, particularly TikTok and Instagram, brands leverage influencer recommendations to drive sales. This approach is seen as crucial for capturing the attention of Gen Z consumers who are highly responsive to social media trends.

TikTok's Dominance in Social Commerce

TikTok, in particular, has emerged as a powerful platform in the social commerce landscape. Eric Pong, co-founder of AfterShip, an e-commerce experience software-as-a-service company, emphasized TikTok's growing influence, noting its vast viewer base and significant impact on consumer behavior. According to KPMG analysts, businesses in Asia are increasingly advertising on TikTok, using influencers and key opinion leaders to direct viewers back to their websites.

The Role of Influencers in E-Commerce

Influencers play a critical role in shaping Gen Z's shopping decisions. Their endorsements and recommendations on platforms like TikTok and Instagram significantly influence what products Gen Z consumers choose to buy. This shift underscores the importance of social commerce as a key strategy for brands aiming to engage with this demographic effectively.

Conclusion: The Future of Retail in a Digital Age

The KPMG study highlights a transformative shift in retail driven by Gen Z's preference for social media and influencer-led shopping experiences. As brands adapt to these changes, the integration of social commerce platforms into their strategies becomes increasingly vital. Understanding and leveraging the power of influencers and digital trends will be essential for brands seeking to connect with the digitally native Gen Z consumer base.

In summary, the findings from the KPMG report underscore the profound impact of social media and influencers on Gen Z's shopping habits in the Asia-Pacific region. As this trend continues to grow, brands must innovate and adapt to remain relevant in the evolving landscape of digital commerce.