With the support of our account-holding bank, K&H Bank, the Gen Z Report, prepared by Diverzum, Quantum, SteiGen, and Pwc, explores the consumer habits of Generation Z across a wide spectrum. Although this generation does not yet have the greatest purchasing power, it is the fastest-growing consumer segment, so it is important for companies to understand the specific needs of this generation, as they will shape future consumer trends.
The majority of Gen Z still lives at home with their parents (77% of university students), which reduces their financial burden, making it easier for them to make ends meet and allowing them to focus more on their studies and personal goals. This also contributes to the fact that members of this generation have a positive view of their financial situation, which is significantly better than that of other generations. Among their sources of income, pocket money from their parents stands out (53% receive it regularly), and most of them work alongside their studies/university to achieve financial independence. They estimate their ideal monthly income (“dream income”) to be 393,000 HUF on average, with only 10% wanting an income of more than 1 million HUF.
The diversity of Gen Z is not only an opportunity but also a challenge for brands. Each segment has different priorities and needs, so instead of messages tailored to the generation as a whole, targeted, relevant campaigns can be successful for them. Members of the younger generation spend an average of 4.6 hours online, but typically in the evening (rarely in the morning) after school or work. This fact can be used for targeted (evening) marketing campaigns to motivate purchases. According to them, the criteria for good advertising are as follows: it should be short, not repeated often, funny and sophisticated, and offer a solution to a real problem. It is also important to find the right platform and apply a multichannel strategy (they should be addressed on the platform where they are present). The most dominant sites/applications are Facebook, Instagram, YouTube, and TikTok. On these platforms, they not only consume content but also actively follow influencers (more than two-thirds of the generation). Influencers are more credible and direct to them than traditional (e.g., TV) advertisements. They mainly listen to the views of opinion leaders with smaller followings, because they can maintain a more personal relationship with their audience, and the authentic messages they convey effectively strengthen their connection with the generation. One of the most important findings is that the opinion of a trusted person or acquaintance is more important and influential to them than an advertisement.
According to the research, a brand can also be an influencer if it consciously positions itself and adapts its strategy to new expectations. This generation researches products very thoroughly before making a decision, so it is essential for brands to provide authentic and detailed information about their products and the background of their production—and to communicate all of this through influencers.
In terms of online shopping, Generation Z buys the most, but periodically and not repeatedly (as is the case with older generations). Based on the research, they order from both domestic and foreign online stores – the most popular foreign websites are SHEIN, TEMU, and Aliexpress.
The values of Gen Z when shopping are:
- Authenticity
- Mental well-being and loyalty
- Ethical expectations and sustainability
- Experience-based life and appearance
Their experience-based philosophy of life shapes their everyday lives, decisions, and shopping habits. They are also much more sensitive to issues of social justice and have higher expectations of brands in this area. They have a new perspective on the concept of work-life balance, increasingly emphasizing the balance between private life and work, thus placing the private sphere ahead of career (as opposed to older generations). They are characterized by an ethical and environmentally conscious approach (e.g., they recycle, reduce their use of plastic, and limit their clothing purchases). However, the biggest obstacle to ethical shopping is price, as they still find these products too expensive. Their purchasing decisions are therefore primarily determined by quality, value for money, a good customer experience, and ethical considerations.
The generation’s top 5 favorite brands are as follows: Adidas, Nike, Samsung, Bosch, and Puma. There is a duality in brand loyalty: they are loyal to established brands and open to trying new ones. For them, brand loyalty is tied to strict criteria, such as changes in quality, unethical practices, or overpriced products—in other words, they are willing to switch brands if the quality of their favorite product changes or they consider it overpriced. Their relationship with brands is not related to their financial situation. They are also open to non-branded products if their quality meets their expectations.
36% of the research participants are willing to pay extra for fast delivery, and 28% are willing to pay for ad-free services. This may contradict the finding that price discounts and promotions are a key factor in their purchasing decisions. According to the research, they are much more price-sensitive and conscious than older age groups. They regularly search for and use discounts, coupons, and free shipping options available through apps. Searching for promotions is also an important part of the shopping experience for them. However, according to Diverzum, they do not like to download a separate app for each brand, but rather look for a solution where all discounts can be found within one app.
Their everyday purchases are dominated by speed and instant experiences (food delivery, online shopping, digital services). They would spend their dream income (HUF 393,000) primarily on enjoyment and improving their quality of life (e.g., food delivery, restaurant visits, premium subscriptions, entertainment, and phone/internet subscriptions). Subscription fees stand out in their monthly budget, with 81% of respondents spending on them. Only 32% of respondents spend on travel, indicating that everyday comfort and experiences are more important to them.
According to an international study, members of Gen Z view future challenges consciously and realistically, but many are concerned about their financial stability.
Members of Gen Z represent a radically new era, not only setting expectations for brands, but fundamentally shaping the future of the market. The research highlights that values and emotions dominate their decisions, and they treat authenticity not just as a slogan, but as a fundamental expectation of brands. Today, a brand’s task is not only to sell a product, but to be a partner in the lives of this generation. The greatest opportunity for them is to go beyond the narrow confines of product sales and form a genuine, value-driven relationship with the most influential generation in the world.