Featured in Yahoo Finance Article on Gen Z’s Impact on the Luxury Market
I’m thrilled to share insights from a recent Yahoo Finance article where I had the chance to discuss a topic that’s gaining serious momentum: Gen Z’s impact on the luxury market!
According to a new report from Bain & Company, Gen Z is set to account for nearly a third of all luxury purchases by 2030. This discovery carries a massive impact. Gen Z, still in their early stages of adulthood, is already reshaping industries from retail to travel and hospitality to technology. While their current spending power isn’t yet on par with older generations, Gen Z’s spending power is growing quickly and should cause all brands from entry-level to luxury to take fast notice. That’s why I believe that the earlier brands connect with Gen Z, the greater their long-term growth potential. This is particularly true with luxury brands because they often start as aspirational purchases but then can become statement pieces or experiences for Gen Z as our research at CGK has shown.
What’s key is that Gen Z prioritizes authenticity, quality, and inclusivity, which are paramount for luxury brands to deliver with their own unique twist. While our research shows that Gen Z are not as brand loyal as previous generations what we’ve also uncovered is that Gen Z are deeply committed to brands that resonate with their identity and values. With that said… If another brand offers better quality or aligns more with their ideals, they’re open to make the switch. This presents both a challenge and a tremendous opportunity for luxury brands to attract and keep Gen Z, and win them over from other brands, by staying true to the brands’ roots yet adapting to the evolving tastes of this influential generation of tangible luxury meets experiential luxury.
With luxury spending projected to reach $2.79 trillion by 2030, getting this balance right is more important than ever. Brands that wisely adapt through research-driven insights to meet Gen Z’s consumer desires and expectations will be well-positioned to thrive in this rapidly changing luxury marketplace.
In our research at The Center for Generational Kinetics, we consistently see how informed and discerning Gen Z shoppers can be, from everyday purchases to luxury items and experiences they view as an investment. With Gen Z now redefining what luxury means, it’s a shift that every brand leader should be paying close attention to understanding.
Now is the time for brands and brand leaders to embrace this exciting future together to make the most of Gen Z and their trendsetting abilities. Click here to read the full article and share with your favorite person who likes luxury brands and trends.
Posted: September 10th, 2024
Categories: Consulting | Gen Z | Generations | Media | Trends | Zconomy | Zillennials
Written by Jason Dorsey
Jason Dorsey is an acclaimed generations and behavioral researcher and speaker. He's received over 1,000 standing ovations for his unique keynote presentations. Jason has led over 120 research studies. Adweek calls him a "research guru." His mission is to deliver new insights and practical strategies that solve business challenges for leaders.
