Gen Z: Reaching and engaging the next generation of luxury customers

When asked, 47% agreed, and 19% strongly agreed that they prefer brands that take a stand on social issues like the environment, feminism, LGBTQ rights, and racial discrimination (Source: Creatopy).

A new ethos is emerging, with Gen Z using their spending power as a conduit for their social beliefs. To engage with the next generation of luxury consumers, premium brands must first identify their social responsibilities and what they believe in and stand for and rework pre-existing traditions to connect with Gen Z’s social conscience with authenticity and integrity. 

The internet and social media mean access to information is greater than ever. Hence, a brand’s commitment to fulfilling its promised policies will build lasting trust and engagement with Gen Z consumers. Virtue signalling will not suffice. It must transcend this because Gen Z has the impetus and resources to discern if your actions align with your proposed brand strategy.

Patagonia is a high-end outdoor clothing brand operating successfully in the socially aware and eco-friendly realm. Last year its founder, Yvon Chouinard, announced that the company had been given to a charitable trust, with any profit not reinvested back into the business to be put towards fighting climate change. It is no surprise that in 2022 Patagonia was featured in the top 15 fashion brands that Gen Z consider trustworthy and brands they would want to work for (Source: YPulse).

Another distinctive characteristic of Gen Z’s consumer behaviour is their susceptibility to digital marketing strategies. As well as using social media to research, they also use it to buy. When asked what would influence a product purchase, TikTok videos were the third highest response, with Instagram ads and Instagram influencer posts at sixth and seventh (Source: Marketing Charts).

Since the launch of TikTok in 2016, the societal shift from sharing images to sharing videos has been monumental. Brands need to decipher how different generations digest information, and the prevalence of short-form videos has led Gen Z to gravitate towards compact marketing solutions. Compact marketing solutions also reinforce the speed and convenience the Gen Z luxury consumer has come to expect. As digital natives growing up in a world with Amazon Prime and Uber, straightforward and prompt consumer experience is familiar to them.

The internet and social media have been formative in how Gen Z interact with brands. Therefore, brands that continue to push boundaries in the digital sphere will captivate the younger generation of luxury consumers. Gucci continues to advance its presence in the metaverse, featuring “Gucci Vault Land”, amongst other facets, which fully immerses and engages consumers in its brand identity. And while Meta may not be the answer for every premium brand, it’s an excellent example of the fashion house’s commitment to innovation and its long-term vision to attract and retain younger customers.