TikTok might be influencing Gen Zs' financial decisions more than previously thought after a new consumer study indicates how the platform affects young people's shopping habits.
According to the KPMG report, Gen Zs are "driving unprecedented change" in online commerce with the surge of influencer-promoted products and brands as they follow online trends from their favorite idols and content creators.
(Photo : Matt Cardy/Getty Images)
This trend is particularly notable in Asia, although similar trends can be seen in North America with Gen Zs
The new study supports earlier findings on how social media, particularly TikTok and Instagram, has shaped younger people's financial outlooks.
Also Read: Gen Zs are Relying More on Social Media Influencers for Financial Advice, New Study Says
TikTok Becomes an 'Everything App' for Gen Zs
Elon Musk might have touted X (formerly Twitter) as the path toward an "everything app," but this trend seems to be more true on TikTok than on any other social platform.
As previous studies have indicated, TikTok's prominence among younger generations continues to grow as many of its users started using the app for shopping, service reviews, and even as a search engine.
A Pew Research study published last month has also shown how many young people have become more reliant on the platform for news and information.
Related Article: TikTok, YouTube Replace Google as Popular Search Engine for Gen Zs
How Will it TikTok Shopping Experience?
With how much the platform affects people's shopping attitude, the study projected an increase in influencer-promoted products and brands on the platform as businesses transition towards new marketing strategies to capture younger audiences.
This trend can already be seen with content creators receiving sponsorship from major brands due to the likely chance of their followers also having a positive view of the brand following the collaboration.
With the advent of generative AI, many influencer agencies have already secured the likenesses of their partnered content creators to be used on advertisements artificially.
