New Delhi: In an evolving retail ecosystem, a new report by pricing intelligence company Sciative Solutions highlights a dramatic shift in consumer loyalty among young shoppers. Generation Z and millennials, often at the forefront of digital adoption, are showing diminishing attachment to legacy brands, with only 12% of Gen Z and 14% of millennials remaining loyal regardless of cost.
This presents a pivotal opportunity for agile, tech-savvy brands to carve out significant market share by prioritizing value, speed, and personalized experiences over heritage.
According to the report, 66% of Gen Z and 68% of millennials prefer online shopping over traditional brick-and-mortar experiences. This digital-first behavior is mirrored even by older generations, who are also migrating to e-commerce platforms for their ease of use, better price visibility, and faster checkout.
On the pricing front, value-consciousness is the dominant trait. Gen Z favors flash sales and trend-aligned deals, while millennials prefer informed purchases backed by peer reviews. Promotional pricing remains influential, with more than 45% of respondents across both cohorts citing discounts as a key driver in purchase decisions.
However, the real disruptor is the growing impatience with brand allegiance. The report underscores a shifting paradigm where brand loyalty no longer guarantees repeat business, and 95% of consumers are willing to switch platforms for a better shopping experience.
Vijeta Soni, Co-founder & CEO of Sciative Solutions, remarked, “Generation Z is reshaping the retail narrative by placing fairness, transparency, above shallow discounting tactics. For them, it’s not just about buying a product—it’s about connecting with brands that resonate with their identity and offer more than just functionality, offering meaningful experiences.”
Dr. Anshu Jalora, Founder & Managing Director of Sciative Solutions, added, “Our study signals that pricing strategies must evolve beyond cost-optimisation. AI-driven dynamic pricing enables brands to stay competitively agile while cultivating a seamless and personalised experience that takes priority, with long-term loyalty emerging as a natural outcome rather than primary driver. Retailers need to realize that it’s not only Gen Z – millennials have also adopted these changing expectations. For retailers, acknowledging and embracing this pervasive shift is essential because it mirrors the desire of a large and influential consumer group, not a niche market. Satisfying these expectations is now imperative for propelling significant, long-term growth in an increasingly competitive marketplace.”
The study also reveals that while 68% of Gen Z prioritize price in initial purchases, 80% are willing to pay a premium for quality, and 50% are ready to pay extra for faster delivery and exclusive experiences. These statistics emphasize that loyalty is being redefined by convenience, transparency, and experience, rather than long-standing brand recognition.
With 83% of Gen Z relying on peer reviews and 85% open to switching marketplaces for better deals, Sciative’s report urges retailers to evolve. Outdated loyalty programs and generic discounts must give way to tech-enabled, personalized strategies driven by intelligent pricing and superior customer experiences.
