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Latest Trends in Personalized & SNS-Integrated E-Commerce for Gen Z and Gen Alpha

1. Social Media Usage and E-Commerce Behavior of Gen Z & Gen Alpha

Various studies indicate that approximately 90% of Gen Z consider social media their primary source of information. Gen Alpha also shows high engagement with platforms like YouTube and TikTok, making social media a central starting point for purchase behavior.Many Gen Z consumers are influenced by posts from influencers and their favorite creators (“oshi”), while in Gen Alpha, peer “leader-type” influencers play a key role in setting trends.

2. Advancements in Personalized E-Commerce and Measurable Outcomes

Personalization powered by AI contributes to improvements in customer lifetime value (LTV) and revenue, making it a key strategy for targeting Gen Z and Gen Alpha.Major e-commerce platforms report that a significant portion of sales comes from AI-driven product recommendations. AI-based email marketing has shown increased open and click-through rates.Personalized ads and content linked with social media are also expected to improve conversion rates (CVR).

3. Latest Examples of SNS-Linked E-Commerce and Live Commerce

Using shop functions on Instagram and TikTok has led to increased traffic and conversions on e-commerce sites. User-generated content (UGC) displayed on EC platforms has also been associated with improved purchase rates.Social media-driven acquisition costs have shown potential for reduction compared to traditional methods.

Live commerce is gaining popularity among Gen Z and Gen Alpha, who are familiar with short videos and real-time content. Some cases have demonstrated significantly higher purchase rates compared to standard e-commerce.Limited-time offers and storytelling during live streams help foster empathy-driven consumption and strengthen brand engagement.

4. The Evolution of Omnichannel and Seamless Experiences

Gen Z and Gen Alpha often follow a seamless customer journey—searching for products online, experiencing them in-store, sharing on social media, and then completing the purchase.Omnichannel strategies have shown potential to improve both sales and repeat purchase rates.In-store inventory checking, pickup services, and cross-channel product suggestions (such as automatic recommendations of items "liked" on social media) are gaining traction.

5. Future Outlook and Challenges in E-Commerce for Gen Z & Gen Alpha

Sustainability and ethical consumption are important values, with surveys showing that about 70% of Gen Z prefer environmentally friendly products.They also value entertainment, experiential content, and diversity—and increasingly expect one-to-one engagement and a sense of warmth in service.

Looking ahead, immersive shopping experiences through AR/VR and new payment methods via social platforms are advancing.Integrating and utilizing customer data will be essential for delivering higher-level personalization tailored to generational needs.

6. Conclusion

Gen Z and Gen Alpha are highly compatible with digital technologies such as SNS, AI, and live video. To connect with these consumers, companies must align with their values by offering experience-focused and empathy-driven e-commerce strategies.Data-driven personalization and seamless SNS integration will be key to gaining a competitive edge in the evolving market.

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© JASEC 2017

Japan E-Commerce Association

Japan Academic Society for E-Commerce

 

Shoji NISHIMURA Lab., Faculty of Human Sciences, Waseda Univ.
2-579-15 Mikajima, Tokorozawa, Saitama 359-1192, Japan

info@jasec.or.jp +81-4-2947-6717

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