The 5WPR 2021 Consumer Culture Report finds that Gen Z is moving the market as the pandemic reshapes shopping. Censuswide surveyed 2,000 US consumers for 5WPR between September 14 and 18, 2020. Consumers now shop online 30 minutes longer per day than before Covid-19. Gen Z, with $150 billion in spending power, is the group most likely to select products seen on social media. Brands selling the 2019 way lose the shoppers who decide what grows in 2021.
This is the second annual edition of the report. The full 2021 Consumer Culture Report PDF covers pandemic spending habits, e-commerce, impulse behavior, social media, brand loyalty and the role of Gen Z. The findings below come from that report unless another source is named.
How did the pandemic change shopping habits?
The pandemic pushed consumers online for more than half an hour more per day, according to the 5WPR 2021 Consumer Culture Report. Almost a fifth of consumers spend an extra 60 minutes or more a day shopping online, and 6% spend an extra three hours or more. Millennials added 46 minutes a day, Gen Z added 43 minutes, and consumers 55 and over added 17 minutes.
Stores were missed. In the report, 62% of consumers strongly or somewhat agree they missed in-store shopping during lockdown, and 25% strongly agree. Almost two thirds (65%) adjusted their shopping habits to support local businesses, including 23% of Millennials who strongly agree.
The shift shows up in national data too. The report cites US Department of Commerce figures for the first six months of 2020. Consumers spent more than $347 billion online in that period, a 30% increase on the same months of 2019.
Where does Gen Z discover and select new products?
Gen Z discovers small and new brands online but still likes to see products in person, according to the 5WPR 2021 Consumer Culture Report. Among Gen Z, 77% agree that shopping online lets them select products from new or small companies they could not find in store. That compares with 65% of all consumers.
Half of Gen Z still turn to physical shops when discovering new brands. Across all consumers, only 38% prefer finding new products in store, down from 58% a year earlier in the 2020 report. Ronn Torossian, Founder and CEO of 5WPR, said in the January 12, 2021 press release announcing the report that Gen Z's interest "will determine the industries that can expect growth in 2021."
Where do consumers splurge and save in 2021?
Electronics and technology is the top splurge category for every age group in the 5WPR 2021 Consumer Culture Report. Gen Z splurges on electronics (52%), health and wellness (37%) and beauty, cosmetics and personal care (36%). Older groups put travel and experiences second, even though travel spend dropped across all ages compared with the 2020 data.
| Rank | 16 to 21 | 22 to 34 | 35 to 54 | 55+ |
|---|---|---|---|---|
| Splurge 1 | Electronics and technology | Electronics and technology | Electronics and technology | Electronics and technology |
| Splurge 2 | Health and wellness | Travel and experiences | Travel and experiences | Travel and experiences |
| Splurge 3 | Beauty, cosmetics and personal care | Dining out | Home goods and furniture | Home goods and furniture |
| Save 1 | Fitness | Fitness | Fitness | Fitness |
| Save 2 | Home goods and furniture | Clothing and fashion | Clothing and fashion | Clothing and fashion |
| Save 3 | Travel and experiences | Beauty, cosmetics and personal care | Beauty, cosmetics and personal care | Beauty, cosmetics and personal care |
Fitness is the top savings category for every age group, despite the year's focus on health. Health and wellness appears in the top three splurges only for Gen Z. The report suggests younger consumers may see fitness, home goods and travel as expensive outlays or investments, and that these categories need a new sales model to win them over.
How much do consumers buy through social media?
Consumers who select products seen on social media rose to 46% in the 5WPR 2021 Consumer Culture Report, a 10 point increase on 2020. Among Gen Z, 58% have bought something they spotted on social media, along with 55% of Millennials and 32% of consumers 55 and over. Almost a fifth of Instagram users (19%) have bought directly from a brand's page, and 11% have done so more than once.
TikTok arrived as a sales channel. One in ten consumers has bought a product seen on TikTok. Among Gen Z the figure is 28%, with 8% buying more than once, and 29% of Gen Z use TikTok several times a day. A year earlier TikTok was the least used channel for every age group.
| Rank | 16 to 21 | 22 to 34 | 35 to 54 | 55+ |
|---|---|---|---|---|
| Most used | YouTube | YouTube | ||
| 2 | YouTube | YouTube | ||
| 3 | Snapchat | |||
| Least used | TikTok |
YouTube gained the most ground in 2021, while Facebook, Twitter, Instagram and Pinterest lost daily checks. Facebook is checked several times a day by only 21% of Gen Z, 20 points below the average, and 27% of Gen Z never check it.
Are consumers still impulse buyers?
Impulse buying fell from 50% of consumers in 2020 to 38% in the 5WPR 2021 Consumer Culture Report. Gen Z remains the most impulsive group: 47% agree they often buy on the spur of the moment, against 28% of consumers 55 and over. Millennials are most likely to always buy at first sight (11%), followed by Gen Z (8%) and consumers 55 and over (3%).
Bargain hunting held up better. Four in five Gen Z consumers watch for sales on an item they want before buying it. Across all consumers the figure is 76%, down from 85% in 2020. Dara A. Busch, President of 5WPR, said in the press release that the behavioral findings "help to give context to these changes."
Do brand values still drive selection?
Values alignment lost ground in the 5WPR 2021 Consumer Culture Report. Overall, 51% of consumers agree that brands they select from must share their values, down from 71% in 2020, and 15% disagree. A fifth of Gen Z strongly agree, falling to 12% of consumers aged 55 and over.
Boycotts fell too, from 58% of consumers in 2020 to 43% in 2021. Consumers 55 and over are now the most likely to have boycotted a business (48%), ahead of Gen Z (45%) and Millennials (39%). Gen Z leads on wearing beliefs: 36% enjoy buying products that display social and political beliefs, against 12% of consumers 55 and over.
How do consumers find trends and new products in 2021?
Consumers learn about new products in store (49%), through word of mouth (48%) and on social media (41%), according to the 5WPR 2021 Consumer Culture Report. Gen Z flips the order, with social media at 70% and mainstream media at 18%. Among consumers 55 and over, 34% turn to mainstream media and 45% say they cannot spot a trend, against 12% of Gen Z.
Influencer power looks softer than a year earlier. Only 11% of consumers agree their favorite purchases are used by famous figures, rising to 21% of Millennials and 16% of Gen Z. In the 2020 report, 19% found influencer marketing more impactful than traditional ads and 36% had bought an Instagram influencer's recommendation. The report asks whether the age of the influencer is ending.
What should brands do with the 2021 findings?
Brands should invest in the online experience, meet Gen Z on new channels, and rethink both influencers and stores, according to the 5WPR 2021 Consumer Culture Report. The report closes with ten actions. The table below pairs the main ones with the finding behind each.
| Recommendation | Finding it answers | Action for brands |
|---|---|---|
| Invest in the online experience | Consumers shop online 30+ minutes more per day | Speed up access to products, services and information |
| Change the channel | Gen Z discovers brands on YouTube, Instagram, Snapchat and TikTok | Show up on new platforms with content made to engage, not sell |
| Go small | 65% adjusted habits to support local businesses | Speak to shoppers who now favor small and local brands |
| Rethink influencers | Paid-looking partnerships are losing relevance | Build partnerships that produce content both sides would share |
| Reimagine brick-and-mortar | Only 38% prefer discovering products in store | Use stores as showrooms, pickup points or brand experiences |
| Find a cause and commit | Gen Z shops with its conscience and boycotts disingenuous brands | Back the cause with money and action, not statements |
| Help consumers add to cart anywhere | 46% have bought products seen on social | Remove friction from social discovery to checkout and returns |
| Create a two-way dialogue | Gen Z and Millennials want to be part of the conversation | Listen, respond in real time and invite input on decisions |
How was the 2021 Consumer Culture Report researched?
The 2021 Consumer Culture Report is based on a survey of 2,000 US consumers aged 16 and over by Censuswide, an independent market research consultancy. Fieldwork ran between September 14 and 18, 2020, with a nationally representative sample of American adults. Censuswide abides by and employs members of the Market Research Society, which is based on ESOMAR principles. Gen Z is defined in the survey as consumers aged 16 to 21.
The full report includes the complete channel rankings and age breakdowns. Download the 2021 Consumer Culture Report as a PDF. Other editions and 5W studies are collected on the 5W research hub.
CONCLUSION
The 2021 Consumer Culture Report shows a shopper who spends more time online, buys from social feeds, favors small and local brands, and expects brands to earn loyalty rather than assume it. Gen Z leads every one of those shifts. 5W's consumer PR practice builds programs that reach these shoppers for beauty, wellness, food, travel and consumer technology brands. Get in touch at info@5wpr.com to brainstorm how these findings apply to your brand.
