Does Generation Z drive luxury sales and shopping? That is true (perhaps) in China, but not in the United States, where they (nearly) spend no more money. So much so that, according to a biannual survey, Taking Stock with Teens, carried out and drafted by Piper Sandler for 20 years, their shopping purchases have now reached the lowest level ever. In fact, in 2020 they have allocated just 87 dollars to buy bags and 275 dollars for shoes.
In the USA they (nearly) spend no more money
According to Bain & Company estimates, shopping by GenZ might possibly account for 40% of personal luxury goods global market by the end of 2035. On the one hand, in China these young buyers are considerably contributing to sale recovery; yet, on the other hand, in the United States they have spent (much) less compared to the last 20 years. According to Retail Dive, GenZ shopping decreased by 9% compared to 2019 and dropped by 5% since last spring, therefore reaching 2,150 dollars. As regards leather goods accessories, they have just spent 87 dollars for them, which is the historical lowest record ever. Talking about brands most loved by US GenZ, Louis Vuitton is now placing in first position after outdoing Michael Kors, which is also tailgated by one more competitor, Coach.
Spending for shoes
As emphasized by Footwear News, money they have been spending for shoes has decreased by 6%: it amounts to 275 dollars. Nike is the leading brand in the sector as 52% of young buyers opt for its shoes, while Vans is placing second (16%). The survey also highlighted that second-hand apparel shopping has now reached 8%.
Are GenZ representatives the future?
Is Generation Z the future of fashion shopping and sales? According to Business of Fashion, such buyers obsessively follow fashion brands online, and they also stick to influencers’ behaviour as they aim “to act the way they do”. Despite that, pointed out Business of Fashion, GenZ also proves to be a misunderstood generation, underappreciated and overestimated to the same extent: brands race and compete to get them.