The marketing world’s official end of summer begins with the kick off of the year’s second of two New York Fashion Weeks (Sept. 6-11; it starts all over again in February). And with it a phalanx of social media creators and advertisers are gearing up to build anticipation over the next year for trends in fashion, from couture to luxury brands and on down to chains and independent retailers.
But the question on many industry insiders' minds is: will any of the couture showcases matter to Gen Z consumers at all?
Data from Attain, along with insights from advertising and marketing industry vets, paint a complex picture of Gen Z's relationship with fashion, revealing trends that may surprise traditional retailers and luxury brands alike.
Young consumers are invariably a coveted group. But for brands to fully target this group of roughly 70 million Americans, whose ages range from 12-to-28-year-olds, examining their shopping habits and media consumption collectively is a dead end.
They don’t yet have deep brand attachments, for one thing; because their tastes are still forming, their tastes and their purchases tend to swing from one trend to another. Fashion is inherently attuned to those shifts.
It is generally agreed: there are two major factors to consider when assessing Gen Z’s influence. One is their purchasing power: Gen Z accounts for approximately $9.85 trillion global spending, according to a report by NielsenIQ, GfK, and World Data Lab. Secondly, Gen Z is the most diverse generation of Americans, according to the Pew Research Center.
Those two attributes are reflected in Attain's analytics, which show that Gen Z has maintained a marked preference for traditional clothing and accessories stores over department stores. On average, Gen Z shoppers visit clothing stores 6.2 times per year, spending more per transaction and annually compared to their department store visits.
While this trend does reflect the general decline of department stores seen over recent decades, it also represents unique aspects of Gen Z's shopping habits and values.
"In the past, the appeal of department stores was largely curation and availability,” says Vic Drabicky, CEO and founder of independent media agency January Digital. “With the arrival of digital, those advantages went away."
Drabicky points out that Gen Z, as the first truly "digitally native" consumer cohort, naturally veers away from department stores. "When we look at Gen Z's psychographics, 'authenticity' is near the top of the list and they desire authentic relationships with brands – something that is difficult for department stores to offer," he adds.
Looking at the clothing and accessories category, Gen Z gravitates towards discounted and fast-fashion retailers, Attain found. Brands like Depop, Forever 21, Shein, H&M, and Zara are top performers among these younger shoppers. Meanwhile, luxury brands like Gucci and Louis Vuitton, often associated with high-fashion events like NY Fashion Week, significantly under-index for Gen Z shoppers.
Deb Gabor, founder and CEO of branding consultancy Sol Marketing, offers insight into this trend: "Gen Z is drawn to traditional clothing and accessory stores like Depop, Shein, and Forever21 because these brands align closely with their desires for self-expression and constant novelty."
They may also be seeking bargains. While Gen Z can claim a huge collective spending power, as individual consumers, discretionary income is obviously tighter, says Rob Douglas, CEO of ad agency Left Off Madison. “High-end labels like Gucci tend to appeal to the affluent. Only a small subset of Gen Zers have the ability to fill their closets with those kinds of brand names.”
Gen Z is also driving a return to more specialized retail experiences, Douglas adds. "People want that level of specialization. And you can’t really get that in a department store, where established chains are all spread out. They want to be able to find that cute top, cute shirt, cute dress, cute bag, cute jacket, great pants, great shirt, whatever it is in a place that’s going to both have those items, while also offering some level of surprise."
While price remains a significant factor for Gen Z shoppers, it's not the only consideration. Drabicky notes, "The one common thread with Gen Z appears to be value. That value could be price, sustainability, quality, or, in the best case, a group of multiple values."
This desire for specialization is reflected in Gen Z's preference for stores like Depop, which Gabor describes as catering to "Gen Z's values of sustainability and uniqueness." She adds, "The platform's appeal is heightened by its social media-like interface, where users can follow their favorite sellers, interact through comments, and engage with a community of like-minded fashion enthusiasts."
Gabor echoes this sentiment, stating, "Gen Z demands more than just products; they seek brands that are open about their environmental impact and offer experiences that align with their personal identities."
This focus on values extends to how brands engage with Gen Z consumers. Experts agree that authentic, relatable content and a strong sense of community are crucial. Gabor advises, "To effectively reach Gen Z, fashion brands should engage through social media with authentic, relatable content and foster a sense of community."
While NY Fashion Week traditionally relies heavily on celebrity endorsements and high-profile events, the data suggests that Gen Z might be more influenced by peer recommendations and social media trends. Platforms like Depop and Shein have successfully integrated social elements into the shopping experience, aligning with Gen Z's preference for brands that offer a personalized and interactive experience.
Douglas highlights the importance of relatable staff in physical retail environments: "If I go to Forever 21, who's the salesperson? It's someone their own age. That's why Abercrombie came back, to a certain extent, because it was almost cool to be working there."
Gen Z's fashion preferences don't necessarily align with imposed fashion trends from on high. Their focus on affordability, sustainability, and personal expression suggests that the future of fashion may lie more in digital platforms, peer-to-peer marketplaces, and brands that can effectively communicate their values.
That’s how Gen Z is ushering in a new era of brand engagement, says Gabor. The era is defined by what Gabor calls "Irrational Loyalty"—where the brand transcends rational choice and becomes an essential, indispensable part of their lives. To earn this loyalty, brands need to deeply understand and align with Gen Z’s core values and personal preferences, delivering a sense of belonging.
“I always say that the best brands in the world become part of the people who use them,” she says. “What you wear, what you eat, what you drink, what you drive are all part of who you are. This couldn't be more pronounced than among Gen Z. For Gen Z, brands must move beyond being just service providers to become partners in their journey of self-expression.”
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