PwC Study: Gen Z Curtails Spending but Demands Greater Value

JAKARTA, KOMPAS.com – Generation Z (Gen Z) is increasingly demonstrating a significant influence in shaping global consumption patterns. However, unlike previous generations, this group exhibits unique behaviour: a tendency to curb spending while maintaining high expectations for a product’s value. The PricewaterhouseCoopers (PwC) report titled “The Gen Z paradox: Spending less, expecting more” highlights that Gen Z consumers are not merely shopping more thriftily, but are more selective in determining what is worth buying. Conversely, only around 21 per cent routinely pay the full price. This phenomenon indicates a shift in consumption behaviour, from simply hunting for cheap prices to a more planned and value-based approach. PwC emphasises that Gen Z’s orientation is not solely on price, but on the perceived value of a product. This means that Gen Z purchasing decisions are influenced by emotional, social factors, and the product’s relevance to their personal identity. Price remains important, but it is not the only consideration. Searches for discounts have also seen a significant increase. PwC notes a 14 per cent rise in promo code search activity, while browsing activity has increased by 17 per cent. However, this increase does not entirely reflect traditional frugal behaviour. PwC describes it as a form of “intentionality” or deliberate shopping. On one hand, Gen Z tends to hold back on spending and seek more affordable alternatives, such as second-hand products or rentals. On the other hand, they still expect high quality, good experiences, and personally relevant value. PwC views this phenomenon as a challenge for the retail industry. Consumers no longer just compare prices, but also consider experiences, brand authenticity, and the social value offered.