A Bain & Co. report found that luxury goods spending grew "19-21%" last year. Gen Zers are beginning to buy luxury items as early as 15, which is three to five years earlier than the millennial generation prior. They are expected to grow three times faster in spending than other generations by 2030.
The CEO of retail consulting firm J Rogers Kniffen says Gen Z is spending more because of social media. 88% of Gen Zers use one social media platform multiple times per day, and 43% are willing to buy a product based on a recommendation from an influencer. Young spenders are also capitalizing on living at home and saving money on housing.
Most of this spending comes during an uncertain economic future, but that hasn't deterred them from splashing the cash. Resale markets are growing four times faster than traditional markets, making it easier to sell items later in the year.
Gen Z understands the concerns of the future but isn't letting that affect them right now. As more Gen Zers become financially independent, luxury brands will continue to realize new growth from young shoppers. "Gen Z are the most optimistic of all generations with only 20% expecting to do less shopping over the next year".
So what are your thoughts? GEN Z is a whole other beast of a generation, perhaps the ones who will be leading the world of luxury with their loud styles, and voices. The turn of the Gen Z could pose the bending of rules and creating the terms which could leave a few royal consumers a bit 'frazzled' for a lack of a better word.
Where do you stand?