According to a report by e-commerce solution provider ESW, direct-to-consumer (DTC) e-commerce brands are gaining popularity among young cross-border shoppers. The research, which surveyed over 14,000 consumers across 14 countries, revealed that 60% of Generation Z and 63% of Millennials prefer to buy directly from brands when shopping internationally.
There is a strong appeal for DTC brands among these demographics due to the personalized experience they provide. The report showed that over two-thirds of Gen Z (69%) and Millennials (73%) believe that shopping directly from brands offers customized offers and promotions tailored to their preferences. Interestingly, a significant number of older shoppers also share this sentiment, although in slightly lower proportions (63% of Gen X and 50% of Baby Boomers).
This preference for DTC is particularly significant for retailers targeting international customers, as both Gen Z (51%) and Millennials (50%) are the demographics most likely to engage in cross-border shopping. Millennials stand out in terms of volume, with 17% making more than 11 international purchases in a year. Gen Z closely follows at 15%, while Gen X and Baby Boomers lag behind at 7% and 5% respectively.
Countries with the highest number of cross-border shoppers, such as the UAE, China, and South Korea, also have a high concentration of younger shoppers. This highlights the untapped potential of Generation Z as a purchasing force. Natashia Redfern, ESW’s Director of Sales, emphasized the importance of brands and retailers prioritizing international e-commerce strategies when targeting these younger cohorts.
The report also highlighted the trust and social media preferences of Gen Z and Millennial shoppers. It revealed that these younger demographics have a higher level of trust in online retailers located outside their home country compared to older age groups. Additionally, social media remains the dominant channel for product discovery, with in-store ranking third. This emphasizes the ongoing importance of having strong multichannel capabilities.
When it comes to social media usage, Gen Z and Millennials lead the way, using an average of three platforms for product discovery. In comparison, Gen X shoppers use two platforms, while Baby Boomers only use one. The data also showed a direct correlation between the number of social media channels used and the frequency of online purchases. Consumers making more than 11 annual online purchases access three social media channels on average, while those making fewer than 10 purchases are active on two social channels.
For Gen Z consumers, the top three social media platforms for product discovery are Instagram, YouTube, and TikTok. On the other hand, Millennials prefer YouTube, Facebook, and Instagram, with TikTok being less influential.
In light of these findings, it is evident that DTC brands have a competitive advantage when it comes to attracting and engaging young cross-border shoppers. With their focus on personalized experiences and effective use of social media, DTC brands are well-positioned to meet the needs and preferences of these influential consumer segments. Retailers and brands must adapt their strategies accordingly to remain relevant and competitive in the ever-evolving global e-commerce landscape.
Useful links:
– Direct-To-Consumer Ecommerce Trends to Watch in 2021
– Social Media for Ecommerce Ads
