A new KPMG report reveals that TikTok and social media influencers heavily influence Generation Z in the Asia-Pacific region in their shopping decisions. Unlike previous generations who frequented department stores or malls for fashion trends, Gen Z looks online, following their idols and influencers to keep up with the latest styles.
The report surveyed 7,000 consumers across 14 markets, including China, Singapore, Indonesia, Vietnam, and the Philippines. Nearly half of the respondents were Gen Z, defined as 18 to 24 years old. It found that 63% of Gen Z respondents ranked social commerce as important to their shopping experience, with 57% also valuing livestreaming commerce. Social commerce, viral in China, Vietnam, Indonesia, and the Philippines, is this age group's most favoured retail technology.
Irwan Djaja, partner and head of advisory at KPMG Indonesia, highlighted the fusion of social media and e-commerce as the key to engaging Gen Z in a way that resonates with their digital-first lifestyle. As the first generation to grow up with the internet and digital devices, Gen Z’s shopping habits are deeply integrated with their online activities.
Brands are adapting by reassessing their supply chain strategies and emphasizing social commerce platforms like TikTok and Instagram. Influencer recommendations play a crucial role in this strategy. TikTok is particularly influential due to its vast and growing viewer base. Eric Pong, co-founder of AfterShip, noted that TikTok’s business model in Asia involves using influencers and key opinion leaders to drive traffic back to business websites through targeted ads.
The KPMG report underscores the pivotal role of social commerce in the retail landscape. It's especially crucial for brands aiming to engage Generation Z consumers, who prioritize online trends and influencer recommendations over traditional shopping venues.