In today’s digital age, consumption patterns are undergoing a radical transformation, especially in the retail sector. As such, companies in this sector need to adapt and understand these changes in order to survive. Remember that this goes far beyond offering online sales, as many people think.
According to the president of Febrafar and Farmarcas, Edison Tamascia, it is necessary to understand that there are different types of consumers and companies can adapt to these changes.
“We have seen a significant evolution in the relationship models between retailers and consumers. This is crucial to the success of a business. We can no longer use the same methods as in the past. A superficial approach is no longer enough; personalization is essential,” says Tamascia.
He explains that we have moved from a traditional relational model, focused on direct and personalized service, to a transactional model, centered on prices and promotions. Today, we are in the era of the digitalized relational model, where personalization through technology becomes fundamental.
In this new scenario, interaction with the consumer is deeply personalized and technologically advanced. Tamascia believes that in a highly competitive market, differentiation is the key to winning and maintaining customer loyalty.
Generational diversity and technological adaptation
A striking feature of this new scenario is the coexistence of different generations in the market, from Baby Boomers to Generation Z (Generation Alpha, born after 2012, does not yet make consumer decisions). Each group presents distinct consumer behaviors, requiring a flexible approach from retailers.
See characteristics of each group:
Silent Generation (born before 1946) – The Silent Generation values stability and trust in their purchasing choices. They prefer brands they have known for years and are loyal to those brands. They usually shop in physical stores and their consumption is conservative, avoiding innovative or technological products.
Baby Boomers (1946-1964) – Baby Boomers prefer high-quality, long-lasting products. They tend to shop in physical stores, appreciating the opportunity to see and touch products before purchasing. They also value customer service and personal contact.
Generation X (1965-1980) – Generation X does extensive research before making a purchase, using both online and offline sources. They like to compare prices and product features. They prefer to shop online for convenience, but still frequent physical stores for specific purchases.
Millennials (1981-1996) – Millennials value convenience and consumer experience. They prefer to shop online, using mobile devices to compare prices, read reviews and make purchases. They interact directly with brands through social media and appreciate transparency and social responsibility from companies.
Generation Z (1997-2012) – Generation Z is highly digital and does most of its shopping online, using mobile devices. They value personalization and prefer brands that offer products tailored to their individual needs. Influenced by trends on social media and recommendations from digital influencers, they seek diversity and inclusion in the brands they choose.
“It is crucial that establishments are prepared to serve and understand different types of consumers, but knowing that they are increasingly digitalized,” highlights Tamascia, who emphasizes the importance of investing in technology and adopting differentiated service strategies to maintain relevance in the market.
Adapting to the Omnichannel model, which integrates different service channels, has emerged as a necessity. According to Tamascia, stores need to integrate different channels to meet the preferences of modern consumers.
For many independent businesses, adapting to this new reality may seem like a challenge due to the high costs involved. Tamascia suggests that joining together in groups, such as association networks, may be a viable alternative.
Therefore, the recommendation is that retailers seek solutions to the new reality, deeply understand the consumer journey, integrate different channels and emphasize digitalization to modernize the sector. These steps will be essential for the business’s prosperity.
Campanhas advertising e influencers
According to a survey commissioned by Mosaico, a Banco PAN company, owner of Buscapé and Zoom and manager of Shopping do PAN, the purchasing decision of all generational profiles is significantly impacted by advertising campaigns, promotions and influencers.
Of the 1,494 people interviewed in all regions of the country, between March 25 and 26, by the QuestionPro research platform, 93% of young people born in Generation Z (between 1997 and 2010) and 84% of Baby Boomers (born between 1946 and 1964) consider these approaches as important motivators for their purchases, the survey also considered those born in Generation X (1965-1980) and Millennials (1981-1996). However, the younger and older generations diverge significantly in almost every aspect of the survey.
For example, regarding the preference for shopping in physical stores or online, with the advance of e-commerce and digitalization, younger consumers opt for the convenience and speed of online shopping 46% of the time. These consumers also prefer digital payment in 51% of transactions and are attracted by cashback in 69% of cases. In contrast, Baby Boomers, familiar with digital payment (chosen by 53% of them), are consumers accustomed to in-store shopping (74%) and are not as interested in cashback or discount coupons, which are used in only 21% of transactions.
The generational gap is even wider when it comes to preferred channels for discovering new products or services. While Gen Z prefers social media and influencers 51% of the time, only 22% of Baby Boomers are impacted by these means. In contrast, 44% of Baby Boomers trust recommendations from friends and family, a form of advice that influences 26% of Gen Z’s discoveries. Blogs and product review sites rank third for both generations, impacting 23% of younger people and 22% of older people.
Generational behavior converges again when it comes to the tools used in the purchasing process: both younger and older generations prefer specific apps over retail websites. While 69% of Gen Z prefers to buy via apps, only 51% use retail websites to complete their purchases. For Baby Boomers, these figures are 53% and 47%, respectively, showing a similar preference for specific apps.
The research also reveals that while all generations prefer well-known brands, Gen Zers are more loyal. Around 17% of them prefer to always buy products from the same brands, compared to just 11% of Baby Boomers.
“Understanding the purchasing behaviors of different generations can significantly support brands in their marketing strategies. For example, when shopping on retail websites gives way to specific apps, the market as a whole needs to reassess its challenges and reposition itself to reach both younger and older customers. And this must be done not only by seeking to increase sales, but also by thinking about ensuring the best experience for a broad and diverse age group,” highlights Francisco Donato, Executive Superintendent of Mosaico at Banco PAN.
*Capa photo: iStock.
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