Given that the majority of Gen Z’ers have not yet formed homes, we expect them to save money on nondiscretionary things. Because of inflation, 22% of them choose to buy used goods rather than new goods, compared to 19% of Millennials. In addition, 18% of Gen Z use buy-now-pay-later to pay for their purchases, but just 15% of Millennials use this payment option more frequently. Appealing to Gen Z The luxury industry has been adapting its strategies to appeal to Gen Z shoppers, recognizing their growing economic influence and unique preferences. To begin, luxury brands across the board have significantly increased presence on digital platforms and social media channels to reach Gen Z shoppers. Brands have leveraged Instagram, TikTok, YouTube, and other platforms to showcase their products in visually appealing ways and engage with Gen Z audiences authentically. Influencer marketing has become a vital part of luxury brands’ strategies to reach Gen Z shoppers. Brands collaborate with popular social media influencers who resonate with Gen Z’s interests and values, creating a more relatable and authentic connection with potential customers. Gen Z is known for its strong focus on sustainability and social responsibility. Luxury brands are incorporating more sustainable and ethical practices into their production processes, sourcing materials responsibly, and communicating their commitment to environmental and social causes. Gen Z appreciates uniqueness and exclusivity. Luxury brands are tapping into this desire by offering limitededition products or exclusive collections, creating a sense of urgency and desirability. GenZvalues individualityand personalization.Luxury brands are providing more options for customizing products, allowing shoppers to create unique pieces that align with their preferences and style. To cater to their tech-savvy nature, brands are exploring augmented reality (AR) and virtual reality (VR) experiences. These technologies allow shoppers to virtually try on products, explore virtual showrooms, and engage with brands in immersive ways. Gen Z seeks authenticity and meaningful connections with brands. Luxury companies are sharing their brand stories and missions to align with Gen Z’s values and showcase their purpose beyond just selling products. Gen Z shoppers are mobile-first consumers. Luxury brands are optimizing their websites and online shopping experiences to be mobile-friendly, making it easier and more convenient for Gen Z to browse and purchase products on their smartphones. Luxury brands are partnering with Gen Z artists, designers, and creatives to co-create products or collections. Collaborations with popular Gen Z figures or emerging talent add an element of cultural relevance and appeal to younger audiences. Luxury brands are investing in experiential retail spaces that offer unique and immersive in-store experiences. These spaces may include interactive displays, art installations, workshops, and events, providing Gen Z shoppers with more reasons to visit physical stores. By embracing strategies and adapting to Gen Z’s preferences, the luxury industry aims to establish longterm connections with this generation of shoppers and secure their loyalty as they become increasingly important consumers in the luxury market. Social Media and Influencer Marketing Using social media to attract young shoppers, including Gen Z and millennials, requires a well-thought-out strategy that aligns with their preferences and behavior on these platforms. Understanding which social media platforms are most popular among the target audience is crucial. Gen Z tends to favor platforms like Instagram, TikTok, and Snapchat, while millennials may also be active on Facebook 24|LUXEBOOK|AUGUST 2023 AUGUST 2023 |LUXEBOOK|25
RkJQdWJsaXNoZXIy NTcxNzM1