Gen Z ditches Google for TikTok, Clean Girl to Mob Wife, and some new brands in the market
I’m changing the structure of this blog a little bit because I want to have a strong connection to the startup community here in MN. So, at the beginning of every blog, I’m going to shout out some events happening this week in the Twin Cities and wrap up with some personal reflections (so you can get to know me!) and how I plan on supporting the startup ecosystem.
Upcoming Startup Events in MN
2/19 - 2/24 startup events in MN:
2/21 @ 9am - One Million Cups
2/21 5pm - Entrepreneurs on Tap
2/22 @ 4:30pm - Beta State of the State
Macro Bites
macroeconomic consumer trends, shifts in consumer behavior, industry deep dives
1. Decades of frustrating product returns may have a solution
Product returns can be a frustrating process for customers. A Shopify report laid out that the top concerns with returns are paying for return shipping and/or paying a restocking fee. This likely stems from the ambiguity surrounding product return policies, as many large-scale retailers offer seamless, free returns but others are more stingy.
Sway is a startup on solving this problem and recently secured $19.5M in Series A funding. The company is focused on creating a “gentler and faster” returns experience for both retailers and customers. Instead of a customer having to pack up and drop the return package at a mailbox, a Sway driver will pick up the package from the customer’s doorstep and deliver the package. Since August 2021, the company has expanded to 20 cities and grown revenue 14x.
While Sway is helping with easing existing return processes, preventative solutions are essential to lower return rates overall. Since the shift to online shopping, the clothing industry has seen issues with customers purchasing multiple sizes and colors. This puts greater pressure on companies to service these costs and resell the items. A managing director at Axis Partners shares his experience that only 75% of returned items make it to resale. The issue has persisted for years and advances in shopping experiences aggravate this problem further. That said, up-front insurance payments to guarantee a full return and return fees are ways companies are combatting the return issue. You can see where the “friction” problem comes in. Creating barriers to returns lowers the customer experience and brand loyalty. Hopefully, digitizing the return process (using Sway), just like we do the shopping experience, can create a more satisfying experience for retailers and customers.
2. Gen Z uses TikTok (not Google) as a default search engine
This will be my third year hosting Galentine's and instead of searching for dinner and decoration inspiration on Google, I’m searching on TikTok. From creative recipe tutorials and sped-up decoration set-ups, TikTok is a Pinterest board that comes to life.
A 2024 Adobe survey found that one in every ten Gen Z individuals are more likely to depend on TikTok than Google as a search engine. While Google’s search engine is far too robust to become completely replaced, TikTok is putting pressure on Google to shift the default form of search. TikTok’s search creates a circular effect of loyalty, first capturing user interest through tailored content and then using search to further hone in on a user’s preferences.
Brands also have an advantage with search. TikTok’s search ads toggle feature allows brands to put ads on search results. Brands do not have to create content specific for ads; this feature uses existing in-feed content and integrates with organic search queries. Sponsored search, a familiar ad strategy, paired with high-quality short-form videos laced with storytelling elements, is a winning formula in 2024. Notable brands, such as Clinique UK, saw a 441% increase in conversion rate with this feature.
That being said, TikTok continues to be a place of discovery. TikTok’s What’s Next 2024 Trends Report found that 44% visited TikTok for a specific purpose and discovered something they didn’t expect to. It’ll be interesting to see if Google views TikTok’s growth in search as a competitive push to incorporate short-form content into their results feature or if Pinterest is looking to expand into a scrolling feature too.
Micro Bites
micro-trends, with a glimpse into the Gen Z world
Cecred, Beyonce’s newest hair care line
Beyonce’s latest hair care brand is set to launch this week! While it is a completely different direction from her perfume line, Cé Noir, I’m sure we’d all love to have hair like Beyonce’s. Beyond the physical appeal, her brand ties to her childhood roots. A news article shared that Beyonce’s first job was at her mom’s hair salon, so there is a clear cultural connection with this launch.
Mob wife is in, clean girl is out
This past weekend, I finally figured out what mob wife meant. I’m a little late to the game, considering Google Trends found that the highest number of searches for mob wife was a month ago. However, for those who don’t know what it is, mob wife encapsulates an old-money, proper lady look with fur coats and red lips or nails.
It’s interesting how “quiet luxury” and “minimalistic” was all the rage in 2023, but now the trend is to be bold and unique with your appearance. This isn’t a new trend, as the late 1900s loved the bright colors, smokey eyes, and over-the-top hairstyles. There isn’t a clear reason why Gen Z pivoted, but it does spark more creativity with your outfits and switch the norm from a timeless capsule to a “boutique” closet.
What I’m working on…
my thoughts, reflections & upcoming projects
So, I’m working on a few things right now.
1). Staying consistent with my blog. It’s been hard finding time to do some deep writing and constantly being unsure of the quality of my writing. I’m working on creating some KPIs to make sure I’m not scrambling to make a post.
2). Finding balance during my senior year. Creating a fine line between savoring the last moments of college and still having a student's flexibility is so hard. I’m so used to having a busy schedule with so many commitments and having my brain work in different directions throughout the day. Going from that schedule to one commitment, my job is going to be hard. I’m worried that I won’t have time for hobbies or investing in the startup ecosystem here in Minneapolis. Even now, walking five minutes to talk to a friend for an hour will be nearly impossible with my work schedule and not living on campus anymore. Can’t you tell I like to overthink? But I’m prioritizing my passions now while I can. It’s a privilege to explore new opportunities, such as this blog, with a job waiting for me.
3). Creating an event on consumer trends. I’m bullish on consumer, so I’ve been working with my university to host an event on latest consumer insights and trends, specifically through technology and Gen Z. Ideally, I’d like to host a broad range of perspectives, from consumer corporates to consumer investors. MN has a robust ecosystem driven by consumer brands that are often overlooked, so I’m hoping to highlight them through this event.
4). Hosting founder-investor chats. Specifically for local founders and non-local investors. Access to capital is incredibly challenging for founders here, and the network to coastal investors is not easy to build. I’m hoping to first host a small session for founders to build those relationships through a virtual event and hopefully create a long-term program for MN founders to have a pool of financial opportunities beyond our state lines.
If you made it to the end, thank you so much for reading!
Sanjana (aka consumer girl)