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48% of Gen Zers will do their holiday shopping on TikTok, Instagram this year—they trust the ‘wisdom of their friends,' expert says

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Americans between the ages of 18 and 29, a majority of which are Gen Z, have already gotten a jump on their holiday shopping, according to a recent Shopify-Gallup Survey.

And almost half, 48%, say they will do at least some of their year-end buying on social media platforms like TikTok or Instagram. This is much higher than the one-third of overall shoppers who said the same. 

For brands attempting to capture the Gen Z customer, a compelling social media presence is key.

About 86% of Gen Z shoppers say social media sways their buying decisions, according to a report by ICSC

Shoppers have been able to purchase products through Instagram since 2016. As of September of this year, they can shop on TikTok, too.

Young consumers aren't using search engines or official brand websites to shop anymore, says Savannah Wei Shi, an associate professor of marketing at Santa Clara University. Shi researches consumer decision-making on digital platforms. 

"They moved from the wisdom of the crowd to the wisdom of their friends," she says. 

In other words, a product is no longer cool just because everybody has it. For Gen Z, a product is cool because the right person — usually one who came across their TikTok feed — has it. 

Gen Z buys from 'peers' not celebrities

In the early aughts, celebrity endorsement made a product feel special and therefore desirable. Gen Z, however, doesn't believe or care if a millionaire uses a certain type of face wash. 

A peer with good skin is a more persuasive advertisement. And even if the "peer" is an influencer, Shi says they are much more accessible than a brand. 

"They can still communicate with an influencer on an equal footing," she says. "It's not like you are talking to a brand where you send a message to an email address and they never reply to you. They do give the presence of a friend or trusted information source. It's a lot more persuasive." 

'The official website … is not going to be the future'

Lisa Bühler, 37, started her clothing shop Lisa Says Gah! in 2015 with zero money for advertisements, she says. Touted "Gen Z's favorite brand," the retailer is known for its quirky prints and 90s grunge aesthetic. 

"We did launch our Instagram before the site was available for purchase as kind of a lead up for inspiration and to say the mission of the business," Bühler says 

The Instagram account posted photo after photo of Lisa Says Gah! pieces on "cool gals we knew who weren't with a modeling agency" she says. 

 "It looks like, 'Oh, my friend is giving me my styling tips,'" she says. 

Going forward, Bühler feels that TikTok and Instagram will play a bigger role in the retailer's sales than the official website. 

"TikTok has actually been a huge discovery point for us in the past 18 months," she says. "The official website, having that one destination, is not going to be the future."

'There's a reason why the phrase 'TikTok made me buy it' is so prevalent'

December might feel like a long ways away, but shoppers are already being fed holiday deals through social media apps, says Julie Ramhold, a consumer analyst with DealNews.com.

"There's a reason why the phrase 'TikTok made me buy it' is so prevalent amongst users, and it's because that platform in particular is ideal for showing off products and their benefits," she says.

"And the fact that TikTok reels are often shared to Instagram too just means capturing more audience with the same piece of content."

With in-app shopping features, the pathway to purchasing a products is even shorter.

"I wouldn't be surprised if many consumers, especially the younger generation, get their ideas for shopping from social media this year, versus other more traditional means like scouring websites or browsing stores in-person," Ramhold says.

And this year, all shoppers are ready to spend some money: 74% of survey respondents said they plan to spend the same or more on holiday gifts.

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