Gen Zs are fueling a social shopping explosion, with 39% now having purchased and 76% having discovered products on social media platforms, according to Salesforce’s latest Connected Shoppers Report.
The future of retail hinges on capturing the market for Gen Zs, a demographic born between the mid-to-late 1990s and early 2010s that is expected to command up to $9 trillion in global spending power by 2034 – more than any other generation.
Social media shopping — a fragmented landscape made up of dozens of platforms like TikTok, Instagram, and YouTube — is a key battleground.
Retailers need a unified commerce platform that combines AI capabilities, a centralised data foundation, and seamless application interoperability to manage these increasingly complex shopping journeys.
53% of all shoppers now discover products through social platforms, up from 46% in 2023.
- Gen Z is leading the charge, with 76% using social media to find products.
- While YouTube dominates overall, TikTok is a Gen Z hotspot, attracting 40% of younger shoppers compared to just 4% of Baby Boomers, born between 1946 and 1964.
“Social commerce is the latest channel for digital spending that is fragmenting across a constellation of marketplaces, retailer websites, brand sites, and delivery apps, rather than consolidating into a single channel,” said Linda Saunders, country leader and senior director, Solutions Engineering, Africa. “Brands that fully embrace its potential will be in prime position to capture their share of the growing Gen Z market.”
The AI effect
Gen Z is also adopting AI to find and evaluate products at a much higher rate.
- More than half (54%) of Gen Zers have used generative AI to discover and evaluate a product, versus 39% for the total population.
- Gen Z shoppers are also 10x more likely than baby boomers to frequently use AI to discover new products and 2.7x as likely to want product recommendations from AI agents (63% vs 23%).
Connected Shoppers Report Key Findings:
- While physical stores remain vital, their purchase share is declining — from 45% in 2024 to a projected 41% by 2026 — and digital spending is fragmenting across a variety of channels.
Retailers see AI agents as a way forward
- Retailers are deepening their commitment to AI, with 76% saying they’re increasing investment over the next year.
- As adoption continues, customer service emerges as retail’s top agent use case.
Unified commerce boosts AI capabilities
- With better, more unified data, agents can provide more personalized and real-time responses.
- 86% of retailers have unified commerce initiatives underway.
Shoppers show readiness for the AI era
- Consumers are already exploring AI in their shopping journeys, with 39% of shoppers — and 54% of Gen Z — using AI for product discovery.
- 63% of Gen Z shoppers are interested in agents purchasing items on their behalf.
