What is Generation Z’s top retailer?
No, this is not a trick question. Yes, the correct answer is Amazon.
Our latest round of Consumers Insights Now research, fielded by researcher extraordinaire Dana French, offers critical insights on why Gen Z consumers love Amazon, and, more importantly for the bedding crowd, on why they love buying mattresses on Amazon.
First, let’s set the stage.
Gen Z consumers were born between 1997 and 2012 and range in age from 14 to 29 this year. There are 72.2 million of them, and they account for 21% of the U.S. population.
Those 14-year-olds are a bit young to be making furniture and mattress purchases, so we focused on Gen Z consumers between the ages of 18 and 29. We conducted an online survey of 1,000 of those consumers in August.
They told us they are under enormous pressure with their current finances and their planning for the future. Half of Gen Z furniture and mattress shoppers say they are worried about food and gas prices, and more than half have delayed a major life decision (marriage, buying a home) because of their financial situation.
Amazon dominates as Gen Z’s top retailer, accounting for an average of three out of 10 of their purchases. Why Amazon? Low prices and affordability. Convenient, easy to shop and fast delivery. Wide selection and easy to compare products. And Gen Z consumers believe in Amazon’s product quality based on what they regard as reliable reviews.
One quarter of the Gen Z consumers we surveyed – 26% – said they bought a mattress on Amazon this year.
Here’s why they chose Amazon for mattress purchases:
+“I bought on Amazon because I’m on a budget.”
+“Because Amazon is always cheaper.”
+“It was more convenient to order it rather than having to go into a mattress store.”
+“I needed something quick and fast.”
+“Amazon has the widest selection to choose from.”
+“Amazon is a trusted retailer.”
+“Trusted reviews and I really love Amazon.”
Surprisingly, Amazon is not the most-favored retail channel for the Gen Z consumers who bought a mattress this year. Leading that parade are furniture and mattress stores, where 35% of Gen Z consumers bought their mattress. Amazon ranked second with 26% of Gen Z mattress purchases.
We asked several questions about how and when Gen Z consumers will be trading up to higher-quality furniture, as Gen Z consumers will be in stronger buying positions as they move up the salary scale and become more financially secure.
Our findings on trading up were a bit of a surprise – and welcome news for brick-and-mortar retailers. Asked where they will be buying higher quality furniture (including mattresses), almost six out of 10 Gen Z consumers – 58% – said they will be buying at furniture stores, such as Ashley, Rooms To Go, and local stores. Amazon ranked second on the trade-up list, with 50% of Gen Z consumers saying that’s where they will seek their trade-up goods.
Our survey found great news here for the mattress category. The No. 1 product on Gen Z shoppers’ upgrade lists, favored by 71% of Gen Z shoppers, is a mattress for themselves. Sofas, favored by 60% of Gen Z shoppers, are No. 2 on the upgrade list.
But our survey also found some bad news: Gen Z consumers mostly view furniture and mattresses, at the moment, as disposable home furnishings.
One-quarter of Gen Z shoppers say they only plan to own their mattress for 1 to 2 years before replacing it. And 40% plan to replace their mattress in 3 to 4 years. That means two-thirds of Gen Z shoppers are only looking for a few years of comfort from their mattress.
And that’s why Amazon’s average mattress sales tickets are in the $200 to $300 range, industry sources estimate.
When those Gen Z consumers have bigger paychecks and perhaps a new house to furnish, how much money will they be spending on mattresses? That’s a question of critical importance to the mattress industry.
Another key question: When will those consumers be trading up? Our survey has the answer: Most of the Gen Z shoppers say they will be ready to trade up in one to five years.
Let’s hope they do so on the shorter end of that range. We need the business.
We will have more insights on Gen Z’s affinity for Amazon mattresses in an upcoming column.
And we want to give a special shout-out this market week to Bread Financial, our sponsor for this fascinating Gen Z research. Bread Financial, which shows on the third floor of Furniture First on Main, understands the key role that consumer insights play in driving success these days. We do, too. That’s why thought-provoking consumer research is a regular feature on our editorial calendar.
