Gen Z’s shopping habits heavily influenced by TikTok and influencers: KPMG

The report surveyed 7,000 consumers in 14 markets, including China, Singapore, Indonesia, Vietnam and the Philippines. Nearly half of respondents in each market were Generation Z – defined in the study as people aged 18 to 24.

The study found that Gen Z considered social commerce (63%) and live streaming commerce (57%) important to their shopping experience. Social commerce was the most popular form of retail technology among Gen Z – especially in China, Vietnam, Indonesia and the Philippines.

Generation Z is known as the first generation to grow up with the Internet and digital devices as part of their everyday lives.

“The intersection of social media and e-commerce is the frontier in engaging Gen Z in a way that aligns with their ethos,” said Irwan Djaja, partner and head of consulting at KPMG in Indonesia.

As a result, brands are re-evaluating their supply chain strategies and emphasizing social commerce platforms to meet the demands of Gen Z. They are particularly focused on TikTok and Instagram, where influencer recommendations play a very significant role.

“TikTok is a giant. It’s still growing and has an incredible amount of viewers and influence,” said Eric Pong, co-founder of AfterShip, an e-commerce software-as-a-service company. Pong was one of the company’s executives interviewed for the report.

“TikTok’s business – strong in Asia – is driving companies to advertise on TikTok, use influencers and key opinion leaders, and run ads that direct viewers back to websites,” KPMG analysts said.