Gen Z: The Digital Discerners of Skincare Brands
Authors: Luminary Retailers in Collaboration with the CU Digital Marketing Team including, Jacob Allington, Graham Bryant, Alia Burton, Emmily Chang, and Joelle Trubowitz
Gen Z is revealing itself to be a fascinating marketing conundrum: they have a combined spending power of $360 billion, yet are reported to save an average of one-third of their income (source). This thriftiness is attributed to growing up during the 2008 recession and graduating into the economic uncertainty of the COVID-19 pandemic.
In spite of this, Gen Z is the generation that spends the most on skincare products (source). Of all things, why does this industry thrive among the younger generation while so many other products flounder? This demographic’s purchasing behaviors are driven by many factors, but first and foremost Gen Z cares about quality and the science behind their products of choice (source). The importance of quality is evidence of the market’s willingness to purchase products with higher perceived efficacy. As the first generation to grow up immersed in social media, they are well-equipped to identify hollow marketing and, instead, favor data-driven results. More than any other generation, Gen Z wants to look behind the curtain and see the truth of what they are buying.
Research conducted by Luminary Retailers revealed several insights on Gen Z purchasing patterns. They prefer spending their beauty budget on skincare, with an average of 3-4 products in their routine.
When deciding on products to add to their beauty shelves, Instagram is the most influential social media platform, with TikTok coming in a close second. Gen Z shoppers are also highly likely to navigate directly to Amazon when they see a product they are curious about on social media. And the top motivator for them to finally hit that “Add to Cart” button: Product reviews from shoppers just like them, as cited by 67% of survey respondents.
In fact, when looking at successful beauty brands in the Amazon landscape, we have found that brands with a stronger efficacy validation perform much better with customers than brands without. Beyond customer reviews, consumer efficacy validation may include:
Verified clinical studies (Amazon requires sources for studies as part of their policy)
Recent industry accolades (less than 18 months old, such as yearly or top beauty awards from media outlets such as Allure, Byrdie, Women’s Health, etc.)
Dermatologist/Esthetician formulated or recommended
Consumer studies featuring before and after pictures (sources required as well)
These features can result in significant improvement in performance metrics such as:
18% higher average daily sales per product
7% higher review rating
13% higher repeat purchase rate
Higher growth rate in YoY Subscriptions, by up to 60%
Further research from Luminary Retailers showed that 72% of respondents are enthusiastic about repurchasing effective skincare products and an increasing 59% stated that their skincare budgets are on the rise. This further supports that Gen Z is willing to invest in high-quality products when they are proven to deliver results, despite their economic prudence. With Gen Z's spending power continuing to rise, brands who have an effective Amazon presence can significantly improve brand awareness within this demographic, resulting in increased topline sales and loyal, repeat customers.
