When it comes to shopping, Gen Z knows how to balance discount purchases with luxury investments. According to Business Insider, this generation of shoppers has a spending power of $143 billion while simultaneously saving more than they spend.
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Who will win over their dollars? At a minimum, brands with an online presence will receive Gen Z's attention. In a 2021 Consumer Culture Report by 5WPR, Gen Z spends 43 minutes more per day on online shopping than they did prior to COVID-19. As they continue to discover more products, Gen Z said these luxury products are worth the price.
Electronic Goods
Splurging on tech, like video games and consoles or fitness trackers, matters to Gen Zers.
While other generations may consider some of these products to be unnecessary purchases, the 2021 Consumer Culture Report revealed Gen Zers don't mind paying for a few reasons. If the brand is able to create compelling content demonstrating why Gen Zers need these goods and how these goods can allow them to have fun and help improve their daily lives, they'll be much more persuaded to add to cart.
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Technology
Even budget-conscious Gen Zers understand the importance of having necessary technology in their lives. Several of the Gen Zers who spoke with GOBankingRates cited their laptops and tablets as among the most expensive purchases they've ever made and where they have no regrets.
Many Gen Zers also work remote or as digital nomads. As such, they need to own and rely on the proper tech to do their work daily. The tech bubble exceeds owning laptops and smartphones. Other key pieces Gen Zers are buying include wireless keyboards, a wireless mouse and noise-canceling headphones.
Small Business Goods
Ashlee Dozier, owner of Anuket Luxury Apothecary, recently received a customer review about a product sold at her fine fragrance company. The review was from a happy Gen Z student named Abbey. Abbey purchased the Pure Papyrus roll-on fragrance from the apothecary for $65 and described it as being "worth every penny."
"As a college student, I spend my money very wisely. Anuket's fragrance lasts all day on my skin and the product itself takes months of everyday use to even make a dent," Abbey wrote. "The scent is also gender-neutral and I recommend it to my girlfriends and boyfriends constantly. I hope you love it as much as I do!"
While small businesses may not appear to be at the luxury forefront the way famous fashion designer names may be, they are gaining significant spending traction from Gen Zers. The 2021 Consumer Culture Report noted small business spending has increased more than 260% for Gen Z since January 2020. Many Gen Zers are buying from small businesses now than before the pandemic and paying for the fine goods sold in these boutique shops.
Wellness Products
Gen Zers, alongside millennials, are putting their money toward the wellness market. According to McKinsey & Company, Gen Zers and millennials alike desire more wellness products and services at a rate which is six to seven percentage points higher than the average consumer.
What are they investing in? Think fitness classes, wearable technology like Fitbit and mindfulness apps like Calm. Their interest in growing across six dimensions of wellness including health, fitness, nutrition, appearance, sleep and mindfulness.
Beauty Products
Appearance is now part of the six dimensions of wellness, and Gen Zers are putting their money toward beauty products and accessories.
Mercedes Martinez, digital PR specialist at Green Flag Digital Media, said the one purchase which always proves to be a worthy investment is good skincare. Martinez's favorite product is the Tatcha Dewy Skin Cream sold for $69 at Sephora.
While it's a big price jump from a $10 moisturizer Martinez used to use, she said her skin has never looked visibly better than when she started using luxury skincare.
"When I run out of my products, I know it's going to be a huge hit to my bank account but that's a hit I am more than willing to take to save myself from wrinkles," said Martinez.
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This article originally appeared on GOBankingRates.com: Gen Z: These 5 Luxury Items Are Worth the Price
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