5 issues you need to know to win over Era Z luxurious shoppers
The fashion month came and went by clicking the “Leave Meeting” button on Zoom. For many of us, the last thing that comes to mind is buying a new designer handbag or blue chip piece of art.
The annual celebration of haute couture took place against a backdrop of massive change as a new generation moves forward and renegotiates the rules for engaging in the luxury space. Gen Z (born roughly between 1995 and 2010) already accounts for 40% of all consumers and will account for 10 to 15% of the luxury market by 2025, according to Bain and Co. If you are not already paying attention to the next generation influence, it is time to do so.
Here are our five things you need to know in order to attract the Gen Z luxury consumer:
Don't be afraid of personality. print it out
For too long, luxury brands have been built on an image of the highest precision, the utmost discretion, and in many ways exclusivity and inaccessibility. That doesn't work with Gen Z. We grow up in strange (and often overwhelming) times and we want brands to speak to the circumstances in which we live. It's no longer cool to be dilute and voiceless. As more and more people become like personal brands, we refer to brands that speak to us like people.
One of the earliest adopters of meme culture, Gucci has committed itself to self-parody and even launched its own #GucciFakeNot campaign this month. This kind of disrespectful humor cuts through the noise because it shows that even Gucci is "involved in the joke". In today's world, this often means that you are “in” as a brand too.
Look with excitement and appreciation for Telfar, who launched its Bag Security Program this summer. Rather than creating a false sense of scarcity to drive demand, Telfar's leadership found a way to be open about the production process to make the brand feel inclusive and accessible. At the same time, the company's marketing strategy was able to maintain the brand's status as an "it" bag. Brands that aren't afraid to take risks – be it in their humor or their marketing tactics – lead the way.
Establish clear values - and act accordingly
Unlike previous generations who wear brands to express their taste, we choose brands that reflect our values.
In fact, 49% of Gen Zers want brands to have a social impact initiative to participate in.
Gen Z is the most progressive, diverse, and outspoken generation in modern history – and we choose brands that build on their own clear missions. Check out MadHappy who sells high quality comfort clothing. It is a "mission to make the world more optimistic". The company developed its brand to de-stigmatize mental health with the cheerful statement "Local Optimist". MadHappy has even set up its own mental health resources, including its own branded counseling hotline.
Savage x Fenty, which disrupted the lingerie and intimate clothing space by devoting itself to wider representation of body and gender, is another example of this trend of balancing a brand with social importance.