Mimi Allen, a 21-year-old Newcastle University graduate from London, is currently working in food operations in the British capital, and is a member of agency Berns Communications Group’s (BCG) Gen Z consultant network The Z Suite. When asked what she wants for Christmas this year, her first response is pragmatic. “I’d like my student loans paid off. And I’d love to be able to afford a house!”
She jokes, but the economic climate has had a bearing on Allen’s Christmas list this season, particularly as she’s entered the world of work and is now “fending for herself”.
“All of a sudden, weirdly, socks now make me really happy. If four years ago, you gave me socks, I’d be like, what the [hell]? Now, I’m like, yes, please,” she says. “I want things that I need to buy anyway. My entire Christmas list is just restocking essential things that I would need to buy myself, like makeup or a jumper for winter.”
Gen Zs are now aged roughly 12 to 27, meaning there’s a lot of variation in their circumstances and behaviours. Following high inflation and the rising cost of living, some Gen Zs are adopting a more practical approach to gifting and wishlisting this holiday season, be it shopping earlier or, like Allen, asking for something they need rather than a nice-to-have.
Student discount platform Pion, which boasts a database of two million students across the US and the UK, surveyed 3,000 Gen Zs on their holiday shopping plans. Fashion is the top category on their holiday wishlists (cited by 69 per cent of UK Gen Zs and 65 per cent in the US), followed by beauty (65 per cent in the UK, 56 per cent in the US). In addition to gifting friends and family, 45 per cent of Gen Zs plan to buy themselves a gift over the festive period this year, per Pion, which could be a further opportunity for brands.
TikTok has become a key destination for holiday ideas and shopping, particularly for younger Gen Zs below working age and those sensitive to price. Some 65 per cent of millennials and Gen Z combined will use TikTok for inspiration this holiday, according to research from e-commerce platform ESW. Pinterest is another go-to for holiday gifting inspiration, with searches for “teen Christmas wishlist” already up by 720 per cent year-on-year.
TikTok content
“On TikTok, we’re seeing a transformative shift in how Gen Z engages with holiday shopping, turning inspiration into action,” says Natasha Ingham, brand partnerships manager at TikTok, speaking of the evolution in behaviour since the emergence of TikTok Shop. Now, brands can build community, boost brand discovery and drive purchases all within the TikTok universe.
What Gen Zs are buying
Gen Z Christmas wishlists will reflect a strong inclination for luxury, selfcare and experiential gifting this year, early TikTok data suggests. Currently, a beauty product sells every two seconds on TikTok Shop, according to the platform, and fragrance is one of the most popular categories when it comes to holiday spending. Popular fragrances include 1 Million by Paco Rabanne, Prada Paradoxe and scents from Jean Paul Gaultier and Carolina Herrera.
There has been a nostalgic return to ’90s men’s fragrances. TikTok Shop seller @PerfumePlusDirect reports that sales of its Dior Joop! Homme (launched in 1989) scent have increased by 381 per cent over the last 30 days, making it their bestselling product. Likewise, purchases of Calvin Klein’s Eternity Men (launched in 1990) have increased by 228 per cent over the last 30 days via @PerfumePlusDirect. Beauty and fragrance are trending holiday categories for Gen Z on Pinterest, too.
Lipsticks, lip glosses, makeup palettes and body wash are also essential gift picks, per TikTok. In fashion, knee-high boots are expected to perform well this year.
TikTok content
Elsewhere, among Pinterest’s growing Gen Z demographic, searches for “boyfriend gift basket” (featuring a selection of smaller gifts for boyfriends from boxers to toiletries) have surged by 2,000 per cent year-on-year in month, according to the platform.
There’s also a focus on DIY gifting on Pinterest, amid budget concerns. Searches for “handmade Christmas gifts” have increased by 60 per cent from October 2023 to October 2024, “3D print gifts” by 90 per cent and “homemade gifts” by 70 per cent, highlighting a growing trend across Gen Z users towards personalised and DIY gifting ideas — from handmade tree decorations to food.
Planning and wishlisting
TikTok’s data suggests that young consumers start their holiday planning early, typically engaging with holiday and gifting content from late September onwards. Pion’s research, meanwhile, suggests that almost a fifth of Gen Zs (21 per cent) began purchasing Christmas gifts in October, 40 per cent waited until November and 14 per cent will start in December (only 9 per cent began in September).
Clay Lute, a 23-year-old fashion merchandiser based in New York (who is also a part of BCG’s The Z Suite) began thinking about Christmas in August, as summer came to an end, so he could plan and budget for gifts for his boyfriend, friends, family and colleagues. “In previous years I’ve shopped in November. But over the past few years, economically, inflation has forced me to think about holiday shopping earlier and plan ahead,” he says. “I’ve talked to some fellow Gen Zers too, we all do the exact same thing, where we have our iPhone Notes app, and we have everyone’s names of who we’re gonna gift for that year, and throughout the year we start pre-planning it.”
Allen has a similar approach. “I have a running list of items in my Notes that I want to buy or purchase and I’ll paste that into an email as my Christmas list,” she says.
Pinterest is a “big vehicle” for wishlisting among Gen Zs, Lute adds. He and his close friends have access to each other’s Pinterest boards, where they pin images of items they like across fashion beauty or homeware, providing prime intel for gifting one another.
Quality still matters
While many Gen Zs are price sensitive, others are not shying away from luxury this season, placing a big focus on quality. Lute is looking for “small luxuries” that he wouldn’t necessarily buy himself in this economic climate, whether that’s Aesop hand soap, a nice cologne or a massage.
So far, there’s been a 28 per cent increase in average basket spend this year through Pion’s student discount portal, compared to 2023. It’s surprising during a cost of living crisis, but indicative of the nihilistic attitude Gen Z are adopting. “They’re thinking, never going to buy a house — may as well live for the moment,” says Pion senior content editor Alexandra Haider.
“Despite the cyclical and fast-paced nature of the consumer landscape, product quality is still a deal breaker this festive season,” Haider adds. “In fact, according to recent data, the number one driver of loyalty is product quality (90 per cent of Gen Z say this is the most important thing when choosing to shop with a brand). Young people would rather save up and spend on — or receive — fewer products that are going to last a long time, are luxurious and nice and make them feel good and look good.”
Experiences over physical gifts
Experience gifts are gaining traction. “A lot of my friends are now very much focused on doing stuff instead of getting items,” Allen says. “For one of my friends, we’re going to go clubbing together for a Christmas present, we’re going to take him out for dinner, we’re going to cover the bill and we’re going to take him to this exhibition because that’s what he wants to do. That’s more fun because we get to do it together.” Likewise, Lute says he would rather have an experience than a “dust-collecting” present that he might not need.
Nostalgia will be a key factor in successful holiday marketing this year, according to Pion research. Around 43 per cent of Gen Z say they will shop with brands that they find “comforting” this season, while 19 per cent will shop with a brand that “reminds them of happier times and feels sentimental”, per Pion’s survey. In the US and the UK, over half of Gen Zs (61 per cent and 54 per cent, respectively) want to see nostalgic marketing this Christmas.
“Nostalgia is a positive coping mechanism,” Haider says. “Tough economic circumstances, bleak news across the world, endless exposure via smartphones — Gen Z will want to turn back the clocks this festive season, to claw back the magic of Christmas from their childhoods.”
Correction: Story updated to reflect Mimi Allen is from London and graduated from Newcastle University
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