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The Luxury Market's Flirtation With Gen Z & Gen Alpha
Talks
Consumption Shift

Gen Z & Gen Alpha: The Luxury Market’s Flirtation

read 6 min

TikTok, Instagram Reels, Live Shopping, #GRWM, KPop… Gen Z and Gen Alpha’s trends are far stronger than other generations’ fevers. They spread faster and gain more adepts in seconds. And all because of the famous social media.

Gen Z & Gen Alpha

Being born in the digital era has offered these young fashionistas a completely different relationship with content creation and fashion compared to older people. 

The ‘see now, buy now’ idea has shifted to the digital world. And, of course, this not only changed the whole industry but also brought other perspectives – and issues – to the sector. 

Gen Z Gen Alpha

Even so, there’s one thing that has been capturing people’s attention: Gen Z and Alpha’s interaction with the luxury market is established in a never seen way. 

Understanding The Generations:  Where does one end and the other begin?

Baby Boomers, Millennials, Zillennials, Gen Z, Gen Alpha… and, obviously, the list of generations’ names will keep going on and on. But, for you to have a better picture of who we are talking about in this article, here’s a gen breakdown. 

Bigger Picture 

There is no consensus on the year each one starts and ends. However, a possible division says the following:

  • Baby Boomers: born between 1946 and 1964
  • Generation X: 1965-1980
  • Generation Y or Millennials: 1981-1996
  • Gen Z: 1997-2010
  • Generation Alpha: Those born after 2010

And, the names don’t end here. 

There is also the transition generation. This is because, in recent years, changes have been enormous in a short space of time. Thus, people were born who, in their characteristics and attitudes, do not marry either the previous or next generation. Let’s say they’re in the middle of the two of them. That’s why we have the so-called ‘micro-generation’ or, the Zillennials – between Millennials and Gen Z.

Why Defining Your Generation Is An Important Matter

To better understand it, let’s take this writer as an example. 

Being born in 1997 allowed me to anxiously wait, for weeks, for movies to get to Blockbuster after their launch. I was also passionate about updating my MSN status with my favorite music at the moment. But, at the same time, I didn’t surf a lot on Myspace, like other Millennials. 

I know more about Instagram, Snapchat and TikTok than my 30-year-old cousins. However, my 19-year-old sister often calls me ‘cringe’ when I don’t understand a meme or don’t know the latest Doja Cat song. Actually, just by saying cringe, I can hear my sister mocking me. So, I’m not an entire Gen Z either. 

On the internet – but I still venture to say, in our society – there is a huge demand for the creation of ‘tribes’. That is, people want to identify with others that have similar interests and/or characteristics. It can be a singer who some like, the love for animes, addiction to some Netflix series and so on. There are many reasons why people join mutual identification groups. And, identifying with a certain generation is, of course, another one of these tribes. 

However, this generation division also has another important function. It helps us to better understand how consumption has changed over the years. And, one thing is for sure, it has changed a lot in the past years. 

So, let’s talk about it. 

Gen Z, Gen Alpha & Consumption

Luxury fashion has been amongst the industry’s most profitable parts for a long time. Today it – unfortunately – divides the podium with fast fashion. But, still, its power is undeniable. 

Gen Alpha kids are still very young today. Most of them have just become teenagers. However, due to the internet, they’ve been way more connected to the big fashion labels and Maisons worldwide. They watch the runaway shows and understand all about fashion labels just by seeing their favorite artists using them. 

But, when it comes to Gen Z, we have a lot more points to explore and discuss. 

As much as this generation is more environmentally conscious, fast fashion shopping hasn’t stopped. In fact, it’s quite the opposite. Today, the famous H&m and Forever 21 won Shein as a competitor and it is not because awareness has increased that sales have dropped.

The Luxury Fashion Hunt

As stated by KidsKnowBest, a media creative agency powered by youth, we must understand that brands are important to young people. And, yes, this is something they take into account when shopping for new pieces. 

According to KidsKnowBest report, “KKB: Deep Dives 2022”, there is an aspiration to own luxury brands such as Gucci, Louis Vuitton, Chanel, or Prada, particularly as they enter their late teens and early twenties. As the company affirms, “When we ask people what influences the clothes they buy, friends and family come top for both parents and young people. However, social media influencers have a larger impact on what clothes 0-24s buy than it does on what clothes parents buy for their children. TikTok and Instagram are key sources of influence for young people’s clothes purchases.”

Therefore, as mentioned previously in this article, there’s no denying the power of social media in Gen Z’s lives. It’s how young people keep up with fashion trends. These platforms are a more common way to keep up with fashion than celebrities or influencers and increase in importance as children grow older.

Thus, this suggests that young people are gaining fashion inspiration from a range of people on their favorite social media platforms, rather than just following specific celebrities or magazines as older generations may have. 

Luxury brands & the flirt with Gen Z 

It was never very common to have luxury brands relating to a younger audience. As its pieces and accessories were always more expensive, at the end of the day, these brands were focused on interacting with the public with greater purchasing power. That is, who already had a salary and financial independence.

But, Gen Z has changed it! 

Pop singers and celebrities began to wear luxury brands more and more. With the mix of these personalities, influencers and social media, the youngest began to get closer to these brands. 

Therefore, in the past years, we’ve been seeing a shift in the scenario. Luxury brands are flirting with younger generations throughout different activations. Either it is by publicizing with TikTok Influencers or even… games! 

Conquering Stylish Gen Z Gamers 

The famous skins are not only cool clothes for digital avatars. They are now part of the social construction of the visual version of the gamers themselves. 

Therefore, virtual world enthusiasts want their digital version to relate with their personal tastes – in the physical world. But actually, the possibilities of exploring the gaming world, or, on a bigger scale, the Metaverse, are endless. 

As stated by KidsKnowBest, the “Metaverse is to some extent the internet 2.0 – way you need to think about it is borderless – so brands will become borderless they can exist anywhere and be engaged with in any way.” 

An example is Roblox. They are being designed as a ‘Metaverse company’. However, what they do, in a kid’s eyes, goes beyond that term. The company is allowing gamers to interact across platforms in spaces with friends, celebrities and artists. Everything is done with a currency that exists and that they can actually place value on. “That isn’t a metaverse, it’s just a play space and they love it”, says experts at KidsKnowBest. 

And not only luxury fashion brands are placing activations with the game. Nike and other companies are also getting closer and more creative on ways to explore the digital universe. 

https://www.youtube.com/watch?v=U1yX7awE5P0

Fashion, Younger Generations, the Metaverse & the Future

Nowadays things shift in the blink of an eye. Therefore, what we expect from the future might happen closer than we think. But, a good practice is to take a look at past events to better understand what – might – come next. 

AlessandroMicheleGucciandRobloxcreatorsnominatedfortheaward Photo Business Wire
Alessandro Michele, Creative Director of Gucci. He presented the first-ever Fashion Award for Metaverse Design in The Fashion Awards experience on Roblox. (Photo: Business Wire via Roblox)

A great case study from last year was the British Fashion Awards 2021 presence on Roblox. The audience could experience the awards shows online with the entire Roblox community, engage in fantasy roleplay of being a high profile guest and walk the red carpet. There was plenty of opportunities to celebrate the Roblox community designers nominated for the first-ever Fashion Award for Metaverse Design

“With lots of looks to explore, quests to complete and portals to explore it was a truly interactive experience. I think we will see a lot more of these types of events and move into different industries beyond fashion and music, with sports events or new brand product releases all having a stage in Roblox or similar platforms”, says KidsKnowBest expert.

Check out our article about the Metaverse and its different perspectives! 

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Credits:
Júlia Vilaça

Head of Content & Social Media

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Author:
Júlia Vilaça

Head of Content & Social Media

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