What Fashion and Luxury Brands Should Know About Gen-Zers

Delivery

This report comes in PPT.

Key Findings

Consumption patterns and preferences are evolving as Gen Z-ers come of age to be one of the biggest cohorts

Generations Z and Alpha will account for 45% of the global population by 2030 and will be the largest target segment for luxury and fashion brands. These generations’ values and preferences are significantly different to those of their predecessors, and brands are being challenged to adapt their needs in terms of products, distribution, marketing and engagement.

Gen Z pricing sensitivity will continue, giving mass tiers an advantage but luxury opportunities to diversify

Gen Z may be price sensitive, but they exhibit a willingness to spend on products that are on trend and can contribute to their health and emotional wellness. Luxury and fashion brands that deliver on efficacy, longevity, quality and include sustainable features, accessible price points and omnichannel strategies resonate the most with this cohort.

Gen Z consumers want to express their individualism and want their voices heard

As the importance of one’s mental health and self-acceptance has come to the fore among younger generations, brands that support such causes are more likely to offer a vision that resonates well with Gen Z-ers and can gain their favour. Gen Z view wellness more holistically and as an amalgamation of physical, emotional, mental, social and spiritual health.

Gen Z consumers expect digital and physical luxury and fashion worlds to work together seamlessly

Gen Z’s luxury and fashion consumer journey is heavily skewed towards the smartphone, social media, especially TikTok (Douyin in China), and early adoption of new technology and digital platforms (eg metaverse). Despite heavy dependence on digital, Gen Z shows a yearning for human interaction, which helps explain demand for a phygital approach to shopping.

Building customer loyalty in Gen Z can be difficult

Building customer loyalty among this cohort, which likes to experiment with different brands, can be difficult, especially in an oversaturated market. However, in a transactional market, the success of luxury and fashion brands depends on their ability to combine exclusivity, loyalty, quality and storytelling with an effective social media strategy.