Momentive study: US+APAC Gen Z shopping habits
According to a Van Westendorp pricing sensitivity analysis, $90 is the optimal price of special-edition sneakers among US Gen Zers, with acceptable pricing ranging between $60 to $130.
Key findings:
- According to a Van Westendorp pricing sensitivity analysis, $90 is the optimal price of special-edition sneakers among US Gen Zers, with acceptable pricing ranging between $60 to $130.
- Travel is a leading savings goal across all markets (US, India, Japan, Korea), while Gen Zers in the US are much more likely to save up for car purchases and paying off debt.
- Social media is a leading source of purchase inspiration for Gen Zers, with the majority in India, Korea, and the US having made a purchase on social media within the last 12 months.
- While Gen Z consumers across all markets prioritize affordability, and quality, those in Japan and Korea place less emphasis on brand values.
- Mobile payment apps are now a leading payment method for Gen Zers in India and Korea, while US Gen Zers remain heavy users of debit cards, and Japanese Gen Zers cash.
- Convenience and payment flexibility drive interest in ‘Buy Now, Pay Later’ services across all markets, with usage exceeding or nearing half of all Gen Zers in India, Korea, and the US.
According to a Van Westendorp pricing sensitivity analysis, $90 is the optimal price of special-edition sneakers among US Gen Zers, with acceptable pricing ranging between $60 to $130.
Following the announcement of another high-profile sneaker collaboration, this time by NIke and Tiffany priced at $400 USD, we used our Van Westendorp Pricing Sensitivity Analysis to determine the optimal price point for limited-edition sneakers among Gen Z consumers in the US. Our findings revealed that the lowest acceptable price for such sneakers is $60, while $130 is the maximum they are willing to pay. $90 is the sweet spot, determined as the optimal price of special edition sneakers. Affordability will be an issue among this age group, with sneaker collaborations routinely priced at retail for above $100 and can reach four-digit prices on resale platforms.
Travel is a leading savings goal across all markets (US, India, Japan, Korea), while Gen Zers in the US are much more likely to save up for car purchases and paying off debt.
Gen Z consumers love to travel, and are willing to save for it. Nearly four in ten Gen Zers in the US (39%), Japan (37%), and Korea (43%) regularly save up to travel, compared to 51% of those in India. Investing and home purchases are among the top goals for all markets except for Japan. Other larger financial milestones, including paying off debt and car purchases, are more prevalent among US Gen Zers.
Social media is a leading source of purchase inspiration for Gen Zers, with the majority in India, Korea, and the US having made a purchase on social media within the last 12 months.
Social media is a leading source of purchasing inspiration for Gen Zers, equal to or surpassing the influence of ‘friends and family’ and ‘online reviews’ across all markets. Japanese Gen Zers, however, predominantly prefer in-store shopping, compared with only 36% of those in India, and 25% of those in Korea. A significant majority of Gen Zers in India (90%) and Korea (78%) have made at least one purchase from social media within the last 12 months, followed by 64% of Gen Zers in the US and 49% in Japan.
While Gen Z consumers across all markets prioritize affordability and quality, those in Japan and Korea place less emphasis on brand values.
Affordability and quality of products are key factors for Gen Z consumers in all markets when purchasing from a brand. Customer service, however, is less important among those in Japan (69% vs. 90% in the US, 96% in India, and 82% in Korea), while brand values and brand authenticity are lower priorities for consumers in Japan and Korea.
Mobile payment apps are now a leading payment method for Gen Zers in India and Korea, while US Gen Zers remain heavy users of debit cards, and Japanese Gen Zers cash.
Debit cards (63%) are the preferred payment method for US Gen Zers, significantly ahead of cash (49%) and credit card (43%), and almost twice as popular as mobile payment apps (33%). In Japan, cash (65%) takes the lead, followed by credit cards (52%), mobile payment apps (43%), and debit cards (14%). Mobile payments apps are the leading choice among Gen Zers in India (77%) and Korea (51%).
Convenience and payment flexibility drive interest in ‘Buy Now, Pay Later’ services across all markets, with usage exceeding or nearing half of all Gen Zers in India, Korea, and the US.
More than half (61%) of Gen Zers in India have used a ‘Buy Now, Pay Later’ service in the past twelve months, compared to 46% in Korea, 45% in the US, and 31% in Japan. Convenience of use and flexibility in payments are main reasons for using these services across all markets. In India, the easy approval process and interest- or fee-free payments are primary drivers for their usage.
Read more about our methodology here.
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