Rewriting and expanding:
The luxury industry has managed to maintain its economic strength due to its ability to constantly attract and engage first-time buyers, particularly from Gen Z. An interesting statistic from Bain & Company shows that the average age for a first luxury purchase has now dropped to 15 years old, compared to over 20 years old for millennials. Convincing Gen Z consumers is a continuous challenge as they defy stereotypes and embrace paradoxes.
To really understand and connect with Gen Z, it is important to co-create with them. This privilege has been granted to the Paris School of Luxury, which has been animating prospective laboratories for six years. Through this collaboration, four key trends in luxury consumption among Gen Z have emerged:
1. Second-hand fashion has become the antidote to luxury hyperinflation for Gen Z. They appreciate the fun, cost savings, and environmental commitment associated with purchasing second-hand items. It has now become a part of “Feel Good Luxury” where rarity and uniqueness are valued over the exorbitant prices associated with luxury brands.
2. Gen Z’s desire to protect their purchasing power has led to the rise of dupes. These are products that resemble luxury items but are of lower quality and price. The appeal of dupes lies in the illusion of saving money and a rebellious gesture against luxury conglomerates. It is a complex love-hate relationship with luxury.
3. Gen Z avoids being seen as naive luxury consumers by prioritizing quality factors such as tailoring, fine materials, selfish details, and the absence of logos. The era of flashy “bling bling” luxury no longer appeals to them, at least for now. This has given rise to the era of “Quiet Luxury.” However, there is a risk of a homogeneous market if brands do not offer enough diversity and innovation.
4. Gen Z has been dubbed the “Greta Thunberg Generation” by the media, with expectations that they will save humanity through eco-responsible consumption. While studies suggest that they are willing to pay more for sustainable products, there is a discrepancy between their declarations and actual behavior. Gen Z often treats second-hand items as fast fashion, following the “Always More” mentality promoted by influencers and online platforms. Surprisingly, it is the millennials who lead the green consumption movement.
Understanding Gen Z and their preferences poses a challenge for luxury brands. It is important to remember that they are the masters of the game, and brands must adapt and connect with them on their terms.
Useful links:
1. Business of Fashion: What Millennials and Gen Z Really Want From Brands
2. Vogue Business: How Luxury Brands Can Target Gen Z
