The Generation Defining the Future of Commerce
In 2025, Gen Z (born roughly between 1997 and 2012) is no longer an “emerging” demographic, they’re the driving force of digital commerce. With a combined spending power exceeding $450 billion globally, Gen Z has transformed how brands approach marketing, storytelling, and technology.
Unlike previous generations, Gen Z doesn’t separate shopping from entertainment. Their buying decisions are influenced by short-form video, creator culture, social validation, and authentic storytelling. They expect hyper-personalized, conversational, and visually immersive experiences, and they abandon brands that fail to deliver them.
For Gen Z, shopping is a form of self-expression. They buy into experiences, not just products.
1. Short-Form Video: The New Language of Discovery
Gen Z consumes more video than any generation before them, particularly short-form, vertical content designed for quick discovery and emotional connection. TikTok, YouTube Shorts, and Instagram Reels have trained them to expect visual storytelling in seconds, not paragraphs of text.
Nearly 70% of Gen Z shoppers say short-form video is their preferred way to learn about new products (Firework: Short-Form Video Statistics). This trend has sparked the rise of video commerce, where videos are not just promotional assets but interactive tools for education and conversion.
Why It Works
- Visual proof builds trust: Video lets Gen Z see how a product works, fits, or performs in real life.
- Authenticity wins: User-generated clips, creator content, and employee-led demos feel more genuine than glossy ads.
- Instant gratification: Shoppable video overlays allow one-tap buying moments when interest peaks.
Retailers using Firework’s shoppable video and AI-powered Smart FAQs on PDPs report conversion lifts of 30% or more—proof that Gen Z’s attention translates directly into sales.
Explore: What Is Video Commerce?
2. Authenticity Over Advertising
Gen Z has grown up surrounded by sponsored posts and influencer campaigns, but what they crave now is authenticity. They want to see real people using products, real employees sharing experiences, and brands that show vulnerability rather than perfection.
A study from Stack Influence found that micro-influencers (10K–100K followers) deliver up to 60% higher engagement rates than macro-creators, proving that relatability drives results.
What Gen Z Responds To
- Creator collaborations: Partnerships with niche influencers who share genuine experiences.
- Employee-generated content (EGC): Real brand employees sharing tutorials or behind-the-scenes videos.
- Unfiltered storytelling: Authentic, raw, or humorous content that feels spontaneous rather than staged.
3. Personalization Is the Core of Loyalty
Gen Z expects brands to know them, not in a creepy way, but in a way that feels intuitive and helpful. Generic ads and static product pages don’t work anymore. Instead, AI is powering personalization across every digital touchpoint.
What That Looks Like
- AI-Powered Smart FAQs: Answering questions in real time (“Is this available in my size?” “Is it cruelty-free?”).
- Personalized PDPs: Showing different video demos or recommendations based on browsing behavior.
- Dynamic content: Adapting homepage banners or product highlights to match past interactions.
Firework’s AI-Driven Personalization explains how conversational commerce and machine learning combine to personalize shopping journeys in real time.
And for Gen Z, personalization isn’t optional, it’s the baseline. They expect every click to teach the brand something new about them.
4. The Rise of Conversational Commerce
Gen Z doesn’t want to fill out forms or dig through menus, they want instant, interactive assistance. That’s why conversational AI is revolutionizing the eCommerce experience.
AI-powered shopping assistants and Smart FAQs can now guide customers through everything from discovery to checkout.
Real-World Examples
- On a homepage, an AI assistant might ask: “Looking for trending styles this season?”
- On a category page: “Need help choosing the right foundation?”
- On a PDP: “Does this come in sustainable packaging?”
These interactions not only improve conversion rates but also generate valuable zero-party data that helps brands refine future personalization.
5. The Community-Driven Buying Journey
Gen Z shoppers aren’t just influenced by creators, they’re influenced by each other. They rely heavily on peer validation and community discussions before buying. This is why social commerce (shopping directly within platforms like TikTok Shop or Instagram) is exploding. But leading brands are taking it a step further by embedding community-driven experiences into their own sites through livestream events, Q&As, and interactive shopping experiences.
For Gen Z, the shopping cart is social currency, every purchase is a form of self-expression.
6. The PDP Is the New Storefront
Every ad, TikTok, and social link eventually leads to one destination: the Product Detail Page (PDP). For Gen Z, that page has to feel alive, with video content, AI agents, UGC, and personalization that mimic in-store engagement.
7. Gen Z’s Sustainability and Values-Driven Shopping
Gen Z isn’t just buying products, they’re buying values. According to Deloitte, 64% of Gen Z will pay more for sustainable brands.
This means brands must communicate authenticity in how they source, produce, and market. Storytelling, especially through video content, is a powerful way to show impact, not just claim it.
Final Thoughts: Gen Z Is Redefining Loyalty
Gen Z has reprogrammed the DNA of digital commerce. They’re not brand-loyal in the traditional sense, they’re experience-loyal. They reward transparency, interactivity, and creativity with engagement and trust.
To win with this generation, brands must evolve from selling products to telling stories, and from broadcasting to conversing.
Platforms like Firework make this transformation possible by powering personalized, video-first, AI-driven shopping experiences.
Ready to transform how your brand connects with Gen Z? Book a Firework Demo to see how AI-powered video commerce can reshape your customer journey.
Frequently Asked Questions (FAQs)
1. How does Gen Z differ from Millennials when it comes to shopping?
Gen Z prioritizes authenticity and interactivity over brand legacy. They prefer creator-led videos and community validation over traditional advertising.
2. Why is short-form video so effective with Gen Z?
Because it mirrors their browsing habits—fast, immersive, and emotional. Video delivers trust faster than text and drives instant conversions.
3. How can brands personalize for Gen Z without being intrusive?
By using AI-driven tools like Smart FAQs, behavior-based recommendations, and content syndication to provide relevance without oversharing data.
4. What role does conversational AI play in Gen Z eCommerce?
Conversational AI bridges human interaction and automation—helping shoppers make confident purchase decisions 24/7.
5. How can retailers be future-proof for Gen Z?
Adopt video commerce, embed interactive experiences into PDPs, and integrate personalization engines that evolve with consumer behavior.
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