Discover how Gen Z is transforming retail through social media platforms like TikTok, Instagram, and Snapchat. Learn about the trends driving online shopping and influencer-driven purchases.
Introduction: Social Media’s Influence on Retail
In today’s digital age, social media has become more than just a platform for sharing photos and staying connected with friends and family. It has transformed into a multi-purpose ecosystem where users can shop, discover new products, and even get inspired for future purchases. Gen Z, the generation born between the mid-1990s and early 2010s, is at the forefront of this shift, with their shopping habits rapidly changing thanks to the influence of social media platforms like TikTok, Instagram, and Snapchat.
This article delves into how social media is reshaping the retail landscape, especially for Gen Z consumers, and examines why social commerce has become such a powerful force in modern shopping habits. We will explore the role of influencers, the most popular platforms for social shopping, and the categories where Gen Z is spending the most money online.
1. Social Media as a Retail Powerhouse
For many years, traditional online shopping platforms such as Amazon, eBay, and dedicated e-commerce websites dominated the digital retail space. However, over the past decade, social media platforms have evolved from their original purposes, becoming integrated shopping hubs where consumers can browse, purchase, and engage with products—all without leaving the app.
Nick Drewe, founder of the online discount platform Wethrift, has closely observed these changes. He notes, “We’ve seen a massive change in consumer habits since the rise of social media, with platforms such as TikTok, Instagram, and Snapchat becoming online shopping hubs.”
Gen Z has led the charge in embracing this shift. According to a recent study, nearly half (49.5%) of online shoppers were influenced to buy a product due to the recommendations of social media creators and celebrities. This underscores the immense influence that social media has on modern shopping habits.
2. The Power of Influencers and Social Proof
One of the key reasons behind the rise of social media shopping is the impact of influencers. In the digital age, traditional advertising methods are increasingly being replaced by influencer marketing, where creators with large followings promote products, services, and brands to their audiences. These influencers build trust and connection with their followers, making their recommendations more effective than generic ads.
For Gen Z, influencers often serve as trendsetters. Many consumers follow influencers to stay updated on the latest fashion trends, beauty products, and gadgets. The power of social proof—the idea that people are more likely to buy a product if they see others doing so—also plays a significant role in this dynamic.
According to Drewe, “Many of these popular platforms aren’t just used for social media anymore and instead have become multipurpose platforms for both users and creators.” Consumers are more likely to trust influencers and creators who authentically recommend products they use in their daily lives, resulting in higher purchase conversion rates. In fact, research shows that 70% of Instagram users turn to the platform for shopping inspiration, with influencers and celebrities often serving as the primary source of this inspiration.
3. Snapchat: A Leader in Social Shopping
Surprisingly, when it comes to social media shopping, Snapchat has emerged as a leader. Although it may not be as heavily discussed in e-commerce circles as Instagram or TikTok, Snapchat’s user base consistently outspends those on other platforms in key shopping categories.
A study of consumers aged 18 to 55 who use at least one major social platform at least once a week revealed that Snapchat users outspend their counterparts in the following categories:
- Apparel: +24% higher spending than users on other platforms
- Beauty & Personal Care: +17% higher
- Specialty Items: +20% higher
- Household Goods: a staggering +143% higher
These statistics highlight Snapchat’s strong influence on Gen Z’s spending habits. The platform’s AR (Augmented Reality) features, which allow users to try on clothing, accessories, and beauty products virtually, have made shopping more interactive and engaging. As a result, Snapchat has become a go-to platform for younger consumers who are looking for a more immersive shopping experience.
4. Instagram: Where Inspiration Meets Retail
Instagram, known for its visually-driven content, has long been a platform for discovery and inspiration, especially in fashion, beauty, and lifestyle. With features like Instagram Shopping and Shoppable Posts, the platform has fully integrated e-commerce capabilities, allowing users to shop directly from their feeds.
According to Drewe, 44% of Instagram users shop on the platform weekly, while 800,000 shoppers actively use Instagram every month. The seamless integration of shopping features has turned Instagram into a one-stop-shop for product discovery and purchase, where users can explore new items, see them in action via influencer posts, and make purchases with just a few taps.
Moreover, Instagram’s Explore page uses algorithms to recommend products based on user behavior, enhancing the discovery experience and driving impulse purchases. The platform’s stories and Reels features have also given influencers and brands new ways to promote products, further encouraging social commerce.
5. TikTok: The Future of Social Commerce
It’s impossible to discuss social media shopping without mentioning TikTok, the platform that has taken the world by storm with its short-form videos and viral trends. For Gen Z, TikTok is much more than a platform for entertainment—it’s a space for product discovery, with users frequently turning to the app to find the latest fashion trends, gadgets, and viral products.
TikTok’s influence on shopping is only growing. By the end of 2024, TikTok Shop is expected to have 35.8 million users worldwide, with 58% of TikTok’s 1.04 billion users having already visited the store. These numbers solidify TikTok’s place as one of the most powerful social media platforms for online shopping.
TikTok’s unique selling point is its ability to make products go viral overnight. Through user-generated content, products can trend and sell out quickly, a phenomenon often referred to as “TikTok Made Me Buy It.” For brands, this has become a goldmine—advertising on TikTok not only increases brand awareness but also drives rapid sales.
6. Social Shopping Categories: What Gen Z is Buying
Across these platforms, Gen Z’s shopping habits reflect a few key product categories where social media has the most influence:
- Apparel and Fashion: Gen Z shoppers frequently turn to social media for clothing inspiration and recommendations. Platforms like Instagram and TikTok showcase trending styles, while Snapchat allows users to virtually try on clothes through AR technology.
- Beauty and Personal Care: Beauty products, including skincare, makeup, and grooming items, are popular among Gen Z social media shoppers. Influencers and beauty tutorials heavily drive this category, making it one of the fastest-growing segments in social shopping.
- Specialty Items: From tech gadgets to unique accessories, social media is a key driver for specialty item purchases. Influencers frequently review and recommend niche products, contributing to their popularity among Gen Z.
- Household Goods: As evidenced by Snapchat’s outperformance in this category, household goods, including decor and furniture, are also popular among social media shoppers.
Conclusion: Social Media’s Dominance in Modern Retail
Social media has evolved into a dominant force in the retail industry, especially for Gen Z consumers. With platforms like Snapchat, Instagram, and TikTok leading the charge, social media shopping is more convenient, engaging, and influential than ever before. The role of influencers, seamless shopping features, and immersive AR experiences are key reasons why Gen Z is increasingly relying on social platforms for retail therapy.
As social commerce continues to grow, brands and retailers must adapt their strategies to tap into this evolving landscape. For businesses targeting Gen Z, having a strong presence on social media and collaborating with influencers will be critical to reaching and engaging this digitally-savvy audience.
