The Gen Z Fashion Trend That’s Baffling Apparel Retailers
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It’s time to stop talking about Gen Zers as lazy, spoiled, screen-obsessed snowflakes.
First, they aren’t kids anymore. Second, there are a lot of them—estimated to be about 25% of the global population. And third, they have become discerning consumers who now have money to spend and will have a lot more when the Great Inheritance begins to trickle down through the generations.
Their global spending power is forecast by NielsenIQ to reach $12 trillion by 2030.
The day that Gen Z became a consumer force to be reckoned with is here and, according to a recent report by PricewaterhouseCoopers (PwC), Z’ers are “a riddle that many retailers can’t quite crack.”
That’s especially true in fashion.
Gen Z’ers are 13 to 28 years old this year and there are now about 60 million out of the total U.S. population of 343 million. That’s 60 million young people who are right now forming long-term emotional bonds with brands and developing lifelong biases and preferences.
This wave of consumers is a new challenge for the fashion industry. Labels are discovering that the aspirational look that Millennials favored—fitted silhouettes, minimalistic styling, athleisure, tailored jackets—has no appeal for Gen Z. Where Millennials wanted to belong or blend in, Gen Zers want to stand out.
It’s all about self-branding and personalization.
That means micro-trends, like vintage looks that come and go on social media before the fast-fashion machine can catch up. Gender expression is fluid. Boys are dyeing their hair. Girls are wearing oversized blazers and baggy jeans. Bold colors, chunky jewelry, and big, bold eyewear are in.
Gen Z’ers are also quite frugal. This holiday season they plan to spend about 25% less than last year, according to a PwC survey, and they expect deals. Gen Z’ers shop often in thrift stores, which have proliferated into a new, potent channel of direct competition. When Z’ers do spend, they want to feel they have gotten MORE THAN their money’s worth.
As if all this wasn’t enough pressure on the industry, there is the lurking threat of any sort of ethical or sustainability drama. Many retail brands are caught flat-footed when young consumers, who are paying close attention, hear that they have have factories that exploit indentured laborers, for example.
Gen Z’ers won’t just ghost a tarnished brand, they will make sure—thanks to social media—that the entire world knows about it.
For fashion retailers, it isn’t enough anymore to have the right merchandise at the right price. For most Gen Z’ers, customer loyalty has to be earned, and even then it is fragile. According to a report by the Dynamic Sustainability Lab at Syracuse University, 81% of Gen Z consumers “have changed their decision to buy a product based on brand actions or overall reputation.”
One thing is for certain, Gen Z’ers are a challenge to figure out, but they are authentic and will engage if you give them the chance. It is clear that this will not be a generation who the industry will be able to dictate fashion to and more one to be engaged, understood and served.