KBB retailers should prepare their businesses for next gen consumers who shun e-commerce websites in favour of alt-commerce – shopping on social media and soon the Metaverse.

Speaking at the Kbsa Kitchen & Bathroom Conference, retail futurist Kate Ancketill said in eight years, half of the world’s population will be Gen Z and Alpha.

She added they will have more money to spend than millennials and baby boomers combined.

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Ancketill commented on these richer, younger consumers: “They are not really into the traditional omnichannel issue of how to integrate online and offline, which has been the predominant workflow priority for most retailers for the last 10 years.

“The question was how do you bring those two together? That is not as relevant to upcoming Gen Zs and Alphas because it feels a bit like their Dad’s world, because they are the first generation, in human history, to make no distinction between the physical, real world and their digital lives.”

Ancketill stated nearly 40% of Gen Z prefers using TikTok and Instagram for search over Google, and 62% of 13-39 year olds are interesting in purchasing from their social media feed.

“That is not going to shrink as a figure, that is only going to grow. That is where they want to be inspired but also increasingly where they want to buy”, she said.

She added in China, where TikTok is known as Douyen, Gen Z consumers spend $26billion on the social media channel, which is more than the GDP of the country Iceland.

Seeking a merging of entertaininment industry with entertainment, led by gaming, Ancketill said 80% of Gen Z are gamers.

She said this is reflected in the numbers wishing to buy using Augmented Reality or Virtual Reality: “92% of Gen Z have said they want to shop using Augmented Reality and at least 30% have shopped using Augmented Reality (AR).”

IKEA has introduced an AR game to encourage people to “Escape the Clutter” and clear the room with storage, which can be acquired through the social media.

She stated, like digital channels, Gen Z  expected physical stores to be more social, more inclusive, gamified, more entertaining, with experience first and products second.

“Physical space is all about experience and community and gathering your tribe of customers together”, said Anketill.

She highlighted a Volvo showroom in Netherlands which is a club, bar, restaurant and meeting place for members who are buyers, renters or owners of these cars.

And introducing a Brazilian bed-in-a box brand, she explained the retail space focused on sleep, health and lifestyle.

Moving on to the future of retailing in the Metaverse, Ancketill explained 75% of US Gen Z shoppers have already purchased an item in a VR video game.

“You might be thinking what do I care?” exclaimed Ancketill, adding “people aren’t going to be buying kitchens in the Metaverse.

“Well, Walmart has filed several new trade marks that would indicate intent to sell virtual goods including electronics, home decorations, toys, sporting goods and personal care products.

She pointed to a Metaverse called Solarno which sells luxury items like cars, clothes, and which Ancketill says could include kitchens.

Using  e-commerce furniture store Olivia’s, as an example, she reported it already offers an Avator home design consultation to people in the game Animal Crossing, which is more female orientated in its user base.

“All of this will take another leap once we have more web 3.0 phones, which are now just coming on to the market”, said Ancketill.

And she highlighted the possible advantages of Non-Fungible Tokens (NFT), programmable assets which are used in the Metaverse, and how they could benefit real world retail: “Once somebody holds an NFT which might give them discounts on purchases from your brand – you can constantly send them content, emails or other social content.”

Ancketill asked if kbb retailers were ready to meet the needs of the new consumer base: “ The question is are you telling the most compelling stories in those channels of media favoured by these younger consumers?

“Younger generations are demanding increasingly morphed physical and digital combined experiences, and they do translate their digital and virtual behaviours into real life.

“So I would suggest that even if the Metaverse feels a bit far away at the moment, it’s probably time to start learning about it.”