FIRSTINSIGHTTHE STATE OF CONSUMER SPENDING:Gen Z Shoppers DemandSustainable RetailJANUARY 20203In December 2019,First Insight surveyed consumers in the U.S.onhow sustainable practices are impacting shopping habits and purchasedecisions.The results point to the growing expectation for sustainablemodels,with Generation Z making more shopping decisions based onsustainable retail practices than even Millennials and Generation X.BabyBoomers overall were the least influenced by sustainability factors.The study found that:1.The vast majority of Generation Z shoppers prefer to buy sustainable brands,and theyare most willing to spend 10 percent or more on sustainable products.2.Generation Z and Millennials are the most likely to make purchase decisions based onvalues and principles (personal,social,and environmental).3.Recommerce is growing in popularity as the majority of every generation shopssecondary or used markets.4.Every generation is buying from the secondary market more in-store versus online.5.Younger generations including Generation Z and Millennials are most likely to purchaseupcycled products.6.Resale and consignment models are most popular with Generation Z,Millennials andGeneration X.7.Clothing swaps and peer-to-peer marketplaces are the least popular sustainable retailmodels for every generation.8.Every generation ranks quality over environmental concern when asked why they shopsustainable brands.9.Giving and receiving sustainable gifts ranked most important for Generation Z,and theyalso are most likely to return and exchange a gift that is not sustainable.10.The majority of respondents across every generation expect retailers and brands tobecome more sustainable.First Insight's findings are based on the results of a U.S.consumer study of a targeted sampleof more than 1,000 respondents fielded in December 2019.The study was completed throughproprietary sample sources among panels who participate in online surveys.Birth year rangesfor each generation are as follows:Silent Generation(1928-1945)Baby Boomers(1946-1964)Generation X(1965-1979)Millennials(1980-1994)Generation Z(1995-2012)First Insight is the world's leading digital product testing and decision-making platform thatempowers retailers and brands to incorporate the Voice of the Customer into the design,pricing,planning,and marketing of new products.Through the use of online consumerengagement,the First Insight solution gathers real-time consumer data and applies predictiveanalytic models powered by machine learning and AI to create actionable insights,which drivemeasurable value.For more information,visit:www.firstinsight.comTHE STATE OF CONSUMER SPENDING:Gen Z Shoppers Demand Sustainable RetailGENERATION Z SHOPPERS PREFER SUSTAINABLE BRANDS ANDWILL SPEND THE MOST ON SUSTAINABLE PRODUCTSSixty-two percent of Generation Z survey participants prefer to buy from sustainable brands,onpar with Millennials,while 54 percent of Generation X and 44 percent of the Silent Generationsay the same.However,only 39 percent of Baby Boomers agree,pointing to a vast dividebetween Baby Boomers and younger generations.PREFER TO BUY FROM SUSTAINABLE BRANDS70%60%62%62%50%54%40%44%39%30%20%10%0%Silent Gener ationBaby BoomersGeneration XMillennialsGeneration ZGeneration Z is also the most willing to pay more for sustainable products(73 percent)compared to Millennials(68 percent),Generation X(55 percent)and Baby Boomers(42 percent).Half of the Silent Generation expressed this sentiment.The majority of Generation Z(54percent)are willing to spend an additional 10 percent or more on sustainable products,versus50 percent of Millennials,34 percent of Generation X,23 percent of Baby Boomers and 36percent of the Silent Generation.HOW MUCH MORE ARE YOUARE YOU WILLING TO PAY MOREWILLING TO SPEND FORFOR SUSTAINABLE PRODUCTS?SUSTAINABLE PRODUCTS?Generation Z27%54%73%Generation Z19%32%68%50%Millennials18%GenerationX45%55%349%GenerationX58%Baby Boomers42%23%Baby Boomers48%19%50%36%0%209%409%60%809%14%0%10%20%30%40%50%60%■No■Yes■MORETHAN10%■LESS THAN109%5GENERATION Z AND MILLENNIALS MOST LIKELY TO MAKEPURCHASES BASED ON VALUESIt's not just about finding the lowest price anymore,as younger generations includingGeneration Z (72 percent)and Millennials(70 percent)are the most likely to make purchasedecisions based on values and principles that are personal,social,and environmental.A lower63 percent of Generation X,53 percent of Baby Boomers and 58 percent of Silent Generationssay the same.PURCHASE DECISIONS BASED ON VALUE ANDPRINCIPLES (PERSONAL,SOCIAL,ANDENVIRONMENTAL)80%70%60%70%729%63%50%58%40%30%20%10%0%Baby BoorersRECOMMERCE MODELS ARE GROWING IN POPULARITY WITHTHE MAJORITY OF EVERY GENERATION SHOPPING SECONDARYMARKETSThe majority of Generation Z(59 percent),Generation X(63 percent),Millennials(64 percent),the Silent Generation(62 percent),and even Baby Boomers(52 percent)state they shop thesecondary markets,which include upcycled products,resale/consignment,clothing swaps andpeer-to-peer marketplaces.SHOP FROM THE SECONDARY OR USED MARKET70%60%62%63%649%50%59%529%40%30%20%10%0%Silent GenerationBaby BoomersMillennialsGeneration ZEVERY GENERATION IS PRIMARILY BUYING FROM THESECONDARY OR USED MARKET MORE IN-STORE VERSUSONLINEWhen looking to purchase used items,the majority of shopping is still being done in-storeversus online across every generation,with Baby Boomers (36 percent)shopping for used itemsin-store the most.While Millennials(23 percent)and Generation Z(26 percent)are shoppingthe secondary market in-store the least,they are still seen more there than onlineTHE STATE OF CONSUMER SPENDING:Gen Z Shoppers Demand Sustainable Retail(21 percent and 19 percent,respectively).Worth noting,Millennials(20 percent)and GenerationX(17 percent)showed the highest number of respondents saying they do online and in-storeshopping for secondary items equally.ARE YOU BUYING FROM THE SECONDARY OR USED MARKETMORE IN-STORE OR ONLINE?40%35%632%31%20%23%15%21%18%10%16%5%0%Silent GenerationBaby BoomersGenerationXMillennials■In-store■OnlineUPCYCLED PRODUCTS THE MOST POPULAR RECOMMERCEMODEL WITH EVERY GENERATION:GEN Z AND MILLENNIALSBUYING THEM THE MOSTThe majority of younger generations including Generation Z(59 percent)and Millennials(57percent)would purchase upcycled products made of discarded objects or materials to createa product of higher quality or perceived value than the original,whereas fewer members ofGeneration X(47 percent)and Baby Boomers (38 percent)say the same.Interestingly,the SilentGeneration embraces upcycling more than Baby Boomers,with 52 percent saying they wouldbuy upcycled products.PURCHASE UPCYCLED PRODUCTS70%60%50%57%59%52%40%47%30%38%20%10%0%Silent GenerationBaby BoomersRESALE/CONSIGNMENT MODELS MORE POPULAR WITHGENERATION X,MILLENNIALS AND GENERATION ZResale and Consignment models like The RealReal,ThredUp,Poshmark,and Tradesy arereported as the second-most popular recommerce models with Generation Z(46 percent),andMillennial (48 percent),and Generation X(46 percent)reporting they use these services.BabyBoomers (39 percent)and the Silent Generation(22 percent)are using them less,but they arestill more popular than other recommerce models.