Generation Z, also known as Gen Z, is the demographic cohort following the millennial generation. Born between 1997 and 2012, they are currently between the ages of 7 and 24 and make up a significant portion of the population. As they come of age and enter the workforce, Gen Z is becoming a major force in the luxury market.
Gen Z is known for their digital savvy and comfort with technology, and this is reflected in their shopping habits. They are highly influenced by social media and the opinions of their peers, and are more likely to research products and brands online before making a purchase. This has led many luxury brands and retailers to focus on building a strong online presence and using social media to connect with Gen Z consumers.
Unlike previous generations, Gen Z is less focused on material possessions and more interested in experiences. They are willing to spend money on experiences such as travel, concerts, and other events, rather than buying luxury goods. This has led luxury brands to focus on developing unique and exclusive experiences for Gen Z customers. For example, luxury fashion brands are hosting VIP events and exclusive fashion shows, while luxury hotels are offering special packages with unique experiences such as private tours and access to exclusive clubs.
Gen Z is also known for their desire for authenticity and transparency, and they are more likely to buy from companies that align with their values. As such, many luxury brands are now highlighting their sustainability efforts and ethical production methods in order to appeal to Gen Z consumers.
Gen Z is becoming an increasingly important market for luxury goods. Gen Z is expected to account for 40% of all luxury sales by 2025. As their purchasing power increases, luxury brands and retailers are targeting Gen Z as a key demographic for sales.
Generation Z is a unique and important demographic for the luxury market. With their digital savvy, desire for experiences, and focus on authenticity and transparency, luxury brands and retailers must adapt to connect with Gen Z consumers and stay relevant in the market.