Klarna and Drapers 2019 research results on Gen Z buying behaviours.

1. The Customer of The Future
How Gen Z Buys and Spends
Colin Creagh
Klarna
Commercial UK and Ireland

2. We surveyed 2,000 consumers aged 18 to 38.
MillennialsGeneration Z
Who is Gen Z?
What makes them different?
Where are the opportunities for retailers?
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You can download it here

3. A smoooth brand.
Shopping is fun. Paying and managing finances should be too. Klarna is all about creating smoooth experiences for a wide
net of consumers and merchants. Our brand highlights that message.

4. Who is Gen Z?
What makes them different?
Where are the opportunities?
What we have found at Klarna
What Shall We Talk ABout Today?

5. The Same But Different

6. Who Is Generation Z!?
Born between
1995 and 2015,
making the youngest
4 and the oldest 25
40% of consumer spending will be contributed my Gen Z by 2020
(Spredfast, 2018).
2.6 hours more content a Gen Z consumes compared with the
average, daily across all devices (Adobe 2018).
81% said money was their common stressor with 89% feel
empowered planning their financial future (Visualcapitalist 2017)
Gen X born between 1965 - 1979
Millennial (Gen Y) born between 1980 to 1994

7. The Attention Economy
60% of Gen Z shoppers won’t use apps or websites
that load slowly or are difficult to navigate (Forbes 2019).
58% of Generation Z shoppers would pay more than
$5 for one-hour deliveries (Accenture, 2018).
I Want It
Now!
73% Vs 48%
% of Millennials Vs Gen Z
motivated by traditional Loyalty Programs

8. Philanthroteens - Values Led Consumers
72% of Gen Z would pay more for
sustainable products (Greenmatch 2018)
83% of Gen Z said it is important brands
show they are pro-equality (Drapers 2018)
55% would abandon a purchase if they
felt a brand was not sustainable. (Drapers
2018)

9. The Saviours Of The High Street?
95% Gen Z
75% Millennials
58% Gen X
Visited a mall in Feb - April 2018
International Council of Shopping Centers (2018)
46% of U.S. Gen Z consumers
research items on mobile devices
before making purchases in-store.
(Precision Dialogue 2018)
40% said they like browsing and
finding things they weren't looking for
in store.
(Drapers 2019)
Gen X born 1965 to 1979

10. Final Thoughts...
Experience + Convenience + alignment of values =
Gen Z Loyalty
Payments can form an important part of winning
the hearts of Gen Z.
Will Gen Z make the world a better place?

11. Get Smoooth for
Gen Z

12. Trusted by
U.K. and
Global
brands.
Our merchants include:
Platforms we’re integrated with:
130K Merchants
60m users
15 countries

13. Two
complementary
payment
methods.
Shop Now. Pay later.
No credit. No interest. No fees.
Pay later
Shop now & pay 30 days later
Pay in 3
Interest-free instalments
Klarna payments
Pay later with Klarna
Defer your payment for 30 days.
No card details taken at checkout.
● Reduce customer anxiety around
size & fit with ‘Try before you buy’
● Impulsive shopping, FOMO
● Ideal on orders up to £200
Split the payment in 3 equal instalments.
First payment taken from card at checkout.
Remaining instalments debited on day 30
and 60.
● Increased purchase power
● Pay over time
● Ideal on orders £50 - £500
Enabling consumers flexible ways to pay, without the risk of paying
interest or late payment fees.

14. Of Gen-Z customers come back within a 12 month period.
Increasing customer retention.
Creating super-users (top 10%)
Driving purchase frequency.
The number of transactions a Gen-Z customer makes in a 12
month period.
Our top 10% Gen-Z customer shops more than 3x a month.
91%
16.4
3x
month
… but most importantly, Gen-Z has 10% lower returns rate vs older age groups.

15. Thank you for listening,
Stay Smoooth.
Questions?