Hello, this is Realworld. A generation that has known the internet since birth and grew up playing with smartphones. Gen Z is literally digital native. Perhaps that's why? Many companies are engaging in various online activities to capture Gen Z's attention. However, Gen Z's actual interests seem to lie elsewhere, not online.
According to learning creator platform Taling, different generations prefer different types of classes. Contrary to the perception of being digital natives, Gen Z showed higher offline class usage rates compared to other generations. These results confirm that Gen Z values experience in their consumption, Taling explains. This means Gen Z finds physical spaces where they can directly touch and experience things more interesting.
Gen Z spends more money in the 'real world'
This trend is not limited to Korea, nor is it a sudden tendency that appeared after the COVID-19 pandemic. According to a 2018 survey by US data analytics company Profitect, 76% of American Gen Z respondents chose offline stores over online as their shopping destination. Additionally, 42% of respondents preferred shopping at offline stores over online, while another 34% showed equal preference for both offline stores and online shopping.
Similarly, a 2018 survey by UK retail research organization Retail Week showed comparable results. 62% of Gen Z respondents either most preferred offline stores or considered them equal to online shopping as their shopping destination.
Experiences that can't be fulfilled online are satisfied in the 'real world'
Pop-up stores held throughout Seongsu-dong are still bustling with crowds. Pop-up stores have already become part of daily life for Gen Z, who value offline experiences.
According to trend media Careet's survey, an overwhelming 97.2% of Gen Z respondents said they had visited pop-up stores. When asked how often they visit, 43.1% responded once every five outings, which was the most common answer. Gen Z now chooses pop-up stores as one of their entertainment options when going out. Even if they're not fans of a specific brand, they'll stop by if there are interesting experiential elements or good photo zones.
It's not just pop-up stores. The tendency to seek experiences clearly appears in Gen Z's shopping behavior as well. Business solution company Cegid identified Gen Z's reasons for preferring in-store shopping as 'the joy of experiencing products before purchasing', 'social activities with friends and family', 'unexpected discoveries like treasure hunting', and 'interaction with staff'.
The 'real world' is a new continent for Gen Z
The reason digital native Gen Z heads toward the 'real world' is simple. It's to fulfill experiences through offline spaces that cannot be obtained online. The irony is that because they grew up in digital environments, the analog-filled 'real world' is like a new continent to them. Recognizing this contradiction will be the first step in understanding Gen Z.