Social Media Takes Center Stage in Shopping for Gen Z

The COVID-19 pandemic fundamentally altered shopping habits, particularly for younger generations. Social media platforms like TikTok blurred the lines between entertainment and e-commerce, giving rise to the viral hashtag #TikTokMadeMeBuyIt, with over 7 billion views showcasing product recommendations.

Social media has become a powerful shopping tool, especially for Gen Z. This article explores the dominance of TikTok and the challenges faced by other platforms in the social shopping wars.

Lilia Souri and AJ Pulvirenti, co-hosts of the marketing podcast "Gen Z on Gen Z," believe TikTok is winning the social shopping battle with their generation.

"TikTok's advanced algorithm and the pre-existing shopping behavior within the platform make it a leader," says Souri. "Users can seamlessly purchase directly on the app, encouraging continuous engagement."

Social shopping is a booming market, reaching $570 billion globally in 2023 and projected to exceed $1 trillion by 2028 (Statista). However, TikTok's dominance faces a potential hurdle: a possible U.S. ban unless it's sold by ByteDance, its Chinese parent company.

The Social Shopping Landscape Beyond TikTok

While TikTok boasts high engagement, Facebook holds the title for most social shopping buyers through its Facebook Marketplace, a platform still frequented by some Gen Z users, according to Jasmine Enberg, chief social media analyst at E Marketer.

Related: New York Takes Aim at Social Media with Algorithm Restrictions for Teens

However, TikTok leads in user purchase conversion. E Marketer data suggests 40% of U.S. TikTok users will make a purchase on the platform this year, surpassing both Facebook and Instagram. "It's a core activity for many users," explains Enberg.

Facing the competition, Amazon introduced "Consult-a-Friend" in 2023, allowing users to seek product advice from friends while browsing the app. Gen Z podcaster AJ Pulvirenti remains skeptical.

"Replicating features without offering unique value doesn't incentivize users to switch platforms," he says. Data.ai research supports this, revealing Gen Z spends roughly two hours daily on TikTok compared to under 10 minutes on Amazon.

The Future of Social Shopping

The battle for Gen Z's social shopping dollars is fierce. While TikTok currently reigns supreme, its future remains uncertain. Other platforms like Facebook and Instagram are adapting, while giants like Amazon attempt to capture a share of the market. Ultimately, the platform that provides a seamless, engaging, and value-driven shopping experience will likely win over Gen Z.

Source: BBC