Generation Alpha Is Set to Transform Retail as M-Commerce Becomes the New Standard

COMMERCEGeneration Alpha Is Set to Transform Retail as M-Commerce Becomes the New Standard

According to estimates, by 2029 the economic impact of Generation Alpha, meaning people born between 2010 and 2025, is expected to reach USD 5.5 trillion, or more than PLN 20 trillion. This is higher than the projected real value of the money that Gen Z and millennials will hold combined at that time. It turns out that this consumer group, often overlooked in business analyses, already has a significant impact on retail chain revenues. Despite their young age, in 2024 as much as 10% of purchase value was generated by spending from representatives of this generation. This means that every tenth zloty earned by stores came from the wallets of children and teenagers. Tapping into this potential requires an understanding of who Generation Alpha consumers are now and who they will become in the next few years. The success of retailers will largely depend on adapting sales platforms to the expectations of the youngest consumers.

Retail faces an m-commerce revolution

The screen generation and digital natives: these terms used to describe Generation Alpha reflect the world in which they have always lived. It is a world filled with new technologies, widespread internet access and dominated by mobile devices. For them, this is the natural environment. Already, 46% of children aged 7–9 have their own smartphone, as do 68% of those aged 10–12 and 89% of 13- and 14-year-olds. Young consumers use mobile devices to look for inspiration, but they still mainly go shopping in physical stores. This is confirmed by as many as two in three parents of Generation Alpha children.

The list of products currently bought by the youngest consumers is dominated by snacks at 59%, toys at 55% and entertainment-related gadgets at 34%. Preferences, however, change with age. Compared with younger children, teenagers aged 11 to 14 are much more likely to buy electronics, clothes or cosmetics, while 9% of them already purchase household and furniture products. In the next few years, as Generation Alpha enters adulthood, this share will be significantly higher, and new categories will appear on their shopping lists: from home appliances and standard food products to everyday household items such as cleaning products or kitchenware. As Witold Miśniakiewicz, President of INEOGroup, explains, retailers should bear in mind that Generation Alpha mainly uses m-commerce solutions.

“Among everyday technologies, teenagers primarily choose mobile devices. Apart from gamers, few of them use laptops. To prepare for the needs of the youngest e-consumers, it will be necessary to shift the centre of gravity from e-commerce to m-commerce. Some retail chains are already doing this, as shown by drugstore and pharmacy chains such as Super-Pharm Polska, Rossmann and Hebe. However, many retailers assume that Generation Alpha is not their target group. Today, that may be true, but in a few years young consumers will become much more interested in the offer of stores operating in the construction, furniture and home appliance sectors. The time to prepare for this change is now. The first step should be to look at the sales management platform, which should enable simple integration with m-commerce solutions and mobile payments. Only then will it be possible to meet the expectations of a new generation of consumers for whom shopping by phone is standard. Unfortunately, many retail chains still rely on systems designed for the analogue consumer, meaning one who does not use digital conveniences,” said Witold Miśniakiewicz, President of INEOGroup.

The expert adds that companies still using outdated systems face a transformation towards modular solutions.

“In a modular architecture, individual functionalities such as transactions, promotions or m-commerce sales are handled by separate modules. This structure makes it possible to implement further components in stages and expand them without the risk of failure across the entire platform. This is highly important in the context of the technological changes that undoubtedly await us,” added Witold Miśniakiewicz.

Generation Alpha and different social media habits

As many as 61% of Generation Alpha representatives say that social media persuades them to buy specific products. This is the most important factor influencing their purchasing decisions. The youngest consumers spend an average of 3.6 hours a day in front of a screen. Unlike their parents, however, they tend to avoid traditional social media. Only 16% use Facebook and 13% use Instagram. This is partly a matter of preference and partly a result of platform rules, as accounts on these services are available only from the age of 13.

Generation Alpha primarily chooses YouTube, used by 68%, and gaming platforms, used by 54%. This is confirmed by the constantly growing popularity of Roblox, which is used mainly by people under the age of 16. In the final quarter of 2025, an average of 144 million people logged in to the platform daily, 69% more than in the same period a year earlier. Roblox allows users to create their own games, virtual worlds and rules of play, as well as personalise their avatars. Immersive advertisements can be displayed in these environments. Some brands have created their own games on the platform to reach not only Generation Alpha, but also Gen Z and representatives of “Zalpha”, a group combining traits of the two previous generations. This option has already been used by brands including Hello Kitty, Żabka and Nike. Nike created the Nikeland space, where users can dress their avatars in clothes from real collections.

Generation Alpha gamers spend most of their time in digital environments where play is combined with shopping. However, they stop using an app when they get bored with it or when they encounter too many advertisements. Beyond gaming enthusiasts, other groups with specific shopping interests are also clearly visible within Generation Alpha. These include “Fit Checkers” and “Glow Getters”. The former search online for clothes and accessories aligned with their identity, while the latter look for beauty products that they are eager to recommend on social media.

Young consumers look for inspiration from influencers and mobile apps

In addition to gaming platforms and YouTube, young people also feel comfortable on TikTok. Almost half, or 46%, of 13- and 14-year-olds have the app. As Krzysztof Łukaszek, Vice-President for Sales at INEOGroup, notes, it is precisely on this social media platform that young consumers look for inspiration and recommendations. This means that reaching the youngest consumers requires retailers to move beyond traditional ways of thinking about promotion.

“For the youngest consumers, influencers are not just well-known people from TikTok. They are figures with whom Generation Alpha builds close relationships. They follow their stories, leave comments under posts and actively ask for product recommendations. This is one of the main reasons why teenagers are happy to spend their free time in drugstores, testing and buying cosmetics recommended both by micro-influencers and well-known TikTok creators such as Julia Jeleniewska and Gabriela Orzechowska. This trend should set the direction for retail chains’ marketing strategies in the near future if they want to reach Generation Alpha. This is already being done by brands that are targeting the youngest consumers today. One example is Rossmann’s promotional campaign featuring Tymek and Kamka, rappers popular with this audience,” said Krzysztof Łukaszek, Vice-President for Sales at INEOGroup.

The expert also points to the role of mobile applications, which are the main source of information about store offers for the youngest consumers.

“The mobile app will become an increasingly important communication channel between stores and customers. It gives users access to transaction history, personalised promotions and virtual gift cards. In addition, they can learn about a brand’s products and look for shopping inspiration. The strength of this form of promotion is demonstrated by the popularity of apps from brands across various sectors, such as Empik, Action and Super-Pharm Polska,” said Krzysztof Łukaszek.

The youngest consumers, who today mainly buy food, clothes and cosmetics on their own, will soon begin using the offer of stores operating in other sectors as well. Without the development of new channels for reaching customers and the integration of sales with mobile solutions, acquiring and retaining this group may prove too difficult. The trends currently being set by cosmetics and fashion brands should soon become part of everyday operations for retailers in other industries.

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