PEOPLE
Generation Z was born in an era of material prosperity, and most of them do not need to worry. However, they are the descendants of the first batch of only children, and they are also the only children themselves, and are likely to be the last batch of only children. This innate sense of loneliness is becoming increasingly strong with the support of the internet.
Generation Z, born between 1996 and 2010, represents the youngest cohort of consumers within the fashion industry. They are considered true digital natives, due to being exposed to online platforms from an early age. (Francis and Hoefel, 2018)
When we started producing Drapers’ annual Gen Z and Millennials report in 2019, it was clear that these were two fascinating and influential groups of consumers – widely seen as technologically savvy, aware of climate change and fashion’s environmental impact, and yet, at the same time, engaged in a unique form of social media-driven consumption of fashion trends.
After living through several tumultuous years, from the Covid-19 pandemic to the cost of living crisis, this year’s full report reveals that these shoppers are more interesting and complex than ever. These two generations, which for the purposes of the report comprise 18-to-43-year-olds, (Gen Z, aged 18-27 and millennials aged 28-43, officially Generation Y, but so called because they became adults at the start of the new millennium in 2000), are still a mix of contradictions. Perhaps understandably, given the complexity of the world they live in.
This year’s data, from our survey of 2,000 consumers, contains mixed messages on sustainability: different questions elicit different responses, but also that they are buying more sustainably than ever: 68% purchase pre-loved or second-hand fashion items. Both groups say they are planning to spend less on fashion in response to the cost of living crisis (41% plan to reduce fashion spend, up from 24% in 2022), but seemingly paradoxically, they continue to contribute to retailers’ soaring sales. In June 2023, for instance, Inditex Group, owner of high street giant Zara, reported a 13% rise in sales to £6.5bn in the three months to 30 April 2023.
Second, there are multiple sources of change for Gen Z and millennials that brands and retailers are – and will need to – keep track of and respond to. As already mentioned, the growth of recommerce via resale and rental continues, which we explore in depth in the full report. Customers now see buying pre-loved fashion and reselling their own items as normal, and, as we discuss, there are a variety of ways brands and retailers can access this opportunity without having to build an entire second-hand or rental logistics operation.
The customer experience on mobile phones is, as our data suggests, a channel ripe for continued improvement. Customers are particularly keen to see more sizing and fit-related technology and other services to help them envisage what fashion items will look like, and better images, video and virtual avatars would also be well received to help bring products to life across all digital channels.Moran, G. (2022) Drapers, Gen Z and Millennials 2022.
Gen Z also faces an unprecedented behavioral health crisis: US Gen Zers surveyed by McKinsey report the least positive outlook and the highest prevalence of mental illness of any generation, and European respondents report struggling with self-stigma. This pessimism is fueled by growing global unrest, wars and disruptions, financial crises, and educational interruptions due to the COVID-19 pandemic. Feelings of “climate anxiety” are also widely reported: many Gen Zers report that they think about the fate of the planet on a daily basis.
They are already seeing decreased economic opportunity and don’t assume a social safety net will be there to catch them as pensions shrink, saving for retirement gets more difficult, and the older population grows. Already, 58 percent of Gen Zers in a recent McKinsey survey reported not having a basic social need met—the largest percentage by far of any generation.What is Gen Z? (2023) McKinsey & Company.