Gen Z is reshaping holiday shopping and companies must adapt to new technologies and marketing strategies to keep pace with the shifting trends.

With a strong affinity for social media platforms like TikTok and Instagram, Gen Z shoppers are more inclined to purchase gifts through these channels than traditional retail outlets. Brands are investing heavily in influencer marketing, live streaming, and shoppable content to engage with this digitally native generation. 

Sustainability and eco-friendly practices are also significant factors influencing Gen Z’s purchasing decisions. Companies are simplifying the shopping experience through in-app purchases, augmented reality (AR) tools, and gamified shopping experiences. The traditional marketing funnel is becoming obsolete as Gen Z prefers immediate, authentic interactions that lead directly to purchase. 

Below, industry experts share their insights on how Gen Z’s preferences are influencing holiday shopping trends and how brands are adapting to meet these demands.

Temidayo Bello, Creator Manager, 500 MGMT

This year, companies are expected to continue investing heavily in TikTok and Live Streaming, where Gen Z users are 35% likely to purchase holiday gifts—20% higher than the average conversion rate. In addition, about 25% of Gen Z base their purchase decision from creator recommendations.

Brands are also simplifying the shopping experience by adapting to in-post and in-app shoppable features on social media and other apps like the LTK shopping app, making it easier for Gen Z consumers to go from discovery to purchase. We are also following the development of new tech like AR to influence Gen Z shopping decisions like the recent launch of new AR ad tools from Meta.

From a value point of view, Gen Z is obsessed with sustainability and eco-friendly practices, so we also look at companies aligning themselves with those values, as this will lead to capturing more commercial value from young consumers.

We believe companies who want to be successful with Gen Z adapt to low friction shopping experiences across social channels, embrace new tech and align themselves with sustainable values.

So, at 500 MGMT we coach our investing brand partners and creators to capture the value of this by reflecting the preferences of Gen Z whenever they create commercial content.

Gabrielle Schaefer, VP of Client Services, Fohr

Strategically, if I were a brand trying to make it into every Gen Z holiday cart, I would think back to the 90s and partner with the talk show hosts of our time—influencers. If every “kid” in America knows what the IT items of the season are, their parents are sure to hear about it.

Tactically, we’ve seen more brands driving customers to their own apps, where Gen Z is more comfortable with purchasing than other generations. And many prestige beauty brands come out with holiday kits that are luxurious, high-value, and also priced right for reaching Gen Z.

Gen Z’s shopping experience doesn’t follow a traditional funnel. Instead, think one post, one platform, purchase. Don’t count on a second or third exposure.

Danil Saliukov, CEO & Co-Founder, Insense

We firmly believe that Gen Z wants to hear stories in the content format they use in their daily lives. They ‘TikTok’ for information, they buy in social commerce, they follow influencers and engage with influencers. They want to be entertained and not be sold. So TikTok Shop is definitely one of the best activation channels to reach out to Gen Z in a way they would expect and love. So it should be bundled, it should be fun, and marketers have to tell stories with influencers.

Paul Boulet, Founder, Click Analytic

During the holiday season, it’s crucial to get your brand and products in front of your audience. Leveraging social media, influencers, and UGC is key, especially if you can target the right profiles. I’m also seeing brands find success through partnerships with complementary brands, combining cross-influencer strategies or ad campaigns for even greater impact.

Josh Williams, Co-founder, AJXI

One trend we’ve seen as Holiday season approaches is gifting to creators (PR boxes) has picked up at a rate we’ve never seen before, instead of the traditional hard sale discounts that we are used to seeing this approach requires no hard sales or price cuts, instead just an organic spread of positive feedback from creators, this paired with a tiered gamified affiliate approach, where influencers compete to receive more sales for benefits seems to be a very common strategy to not only get their product in front of Gen Z, but to sell them products in a way that they are more receptive to purchase (through influencers).

Aditya Aima, Managing Director, AnyMind Group

With AnyMind’s proprietary tools, we have a line of sight on the full marketing funnel and across APAC we see a higher index by marketers on finding a sweet spot between Content, Platform and Format for “in-moment” marketing.

Beyond traditional influencer marketing activations in APAC, clients leverage our gamified awareness solutions to deliver shoppable advertising units in mobile-first formats. These units are deep-linked to the client’s e-commerce storefronts, encouraging Gen Z shoppers to make direct purchases through advertising banners. Holiday-themed mobile AR filters and HTML5 executions for brands have demonstrated a conversion rate improvement of over 15% compared to traditional formats.

Another emerging means of commerce in APAC with Gen Z consumers is live shopping. Livestreams are a great way brands in APAC use for discovery and awareness of their products to Gen Zs, and ultimately converting on the same platform, as there is a considerable amount of time spent on live shopping platforms that contribute to this specific user mix. With AnyLive (our GenAI-powered livestreaming platform) we have seen a higher engagement and huge cost savings for brands—upwards of 75% compared to traditional methods.

Good storytelling and brand authenticity is built over consistent communique of the brand’s values. In this sense, unboxing videos highlighting ethical sourcing of ingredients, social causes and sustainable packaging are a big hit with Gen Zs.

Oded Farkash, CEO, Bambassadors.com

Companies are recognizing that Gen Z values authenticity, speed, and convenience in their holiday shopping experience, and social commerce is the perfect avenue to deliver that. We’re seeing brands lean heavily into short-form, creator-led content that feels personal and relatable, which resonates with Gen Z. Instead of traditional ads, they’re being exposed more and influenced by influencer campaigns, UGC videos, and social-first strategies that prioritize real-time engagement and peer validation. The rise of platforms like Flip.shop, TikTok Shop, and Amazon’s Live shopping experience has accelerated this shift, giving Gen Z more opportunities to shop directly from their favorite creators. As we head into this holiday season, it’s possible that companies will dedicate more of their budgets and attention to social commerce strategies, where Gen Z’s purchasing power continues to grow.

Thomas Adams, Founder and CEO,  club.co 

Gen Z is fundamentally reshaping the landscape of holiday shopping, and brands are pivoting quickly to cater to their preferences. This generation doesn’t just shop—they discover, engage, and make purchases through the content and communities they trust. As a result, brands are focusing heavily on social commerce, where authentic interaction and user-generated content drive engagement.

We’re seeing brands increasingly harness the power of their communities, leveraging ambassadors to create real-time, relatable content that resonates with Gen Z. Whether through influencer partnerships or gamified shopping experiences, the goal is to meet Gen Z where they already are—on social platforms—offering a seamless and interactive journey that transforms followers into loyal customers. The brands that succeed in the holiday season will be the ones that embrace this shift, making shopping feel less transactional and more like an engaging, social experience.