A look at the future of shopping

When it comes to the future of shopping, there are a few movements that are worth highlighting. First, our shopping behaviors are shifting to social media, with 68% of Gen Z searching for products on social media and 22 percent completing those purchases, according to a study from PYMNTS. Second, the resale market, especially in fashion, is exploding, and companies are starting to embrace it. Let's take a deeper look. TikTok made me buy it

TikTok Shop, launched in the U.S. in September 2023, is rapidly reshaping the online shopping landscape. As the fourth most popular social commerce platform in the country, it has already attracted 55 million American shoppers. Bloomberg reports that TikTok aims to achieve $17.5 billion in U.S. sales this year alone. A TikTok study revealed that 55% of its users leverage the platform for brand and product discovery, with 65% relying on creator recommendations and reviews. Notably, 80% of sales are in the beauty and personal care category. Gen Z and Millennials show particular engagement with TikTok Shop. According to Earnest Analytics, 49% of older Gen Z (ages 18-26) and 36% of Millennials have made purchases through the platform. Total social commerce sales in the U.S. are projected to surpass $100 billion in 2025, according to eMarketer.

Roblox, the new mall

Roblox, boasting over 70 million daily active users who spend an average of 2.6 hours on the platform, has emerged as a prime destination for brands. In April, the platform expanded its marketplace, with retail behemoths Walmart and IKEA now selling directly within Roblox. IKEA's launch was particularly notable, featuring 'The Co-Worker Game' which attracted a staggering 178,000 applications for merely 10 paid positions on the gaming platform. While Statista reports that almost 60 percent of Roblox users are under 16, the fastest-growing demographic is the 17 to 23 age group, indicating a maturing user base. The platform's success is part of both the gaming commerce trend as well as the metaverse trend, the latter of which has a projected potential to generate up to $5 trillion in value by 2030, according to McKinsey.

Marketplace: The only reason Gen Z is on Facebook

While teen usage of Facebook has plummeted from 71% in 2014 to just 33% in 2023, the platform's Marketplace has emerged as a surprising success story. Launched in 2016, Marketplace now boasts over 1 billion monthly active users, with approximately 40% of Facebook's 3 billion+ users engaging in shopping activities. Now ranking second only to eBay for secondhand shopping in the US, Marketplace dominates social commerce, with over 51% of social media shoppers making their most recent purchase there. This success is partly attributed to Gen Z's growing appreciation for secondhand purchases.