How Gen Z Is Redefining Luxury

For older generations, seeing Gen Z’s understanding of luxury can be quite surprising. They have a different mindset and terms for luxury, and they differ from the traditional luxury concept that older generations know. 

Traditional luxury used to be status symbols and flashy logos. However, Gen Z interprets luxury as more than expensive stuff. It can be about authentic experiences that leave a lasting impression or a certain movement that respects the planet. It’s no longer fancy cars and designer bags; luxury for Gen Z is unique adventures that can help them define their true self. 

This shift in mindset drives a lot of businesses and brands to change their focus. So, let’s take a look at how Gen Z redefines luxury. 

Digitalisation as the Mould

Most Gen Zs have known the internet since the day of their birth. They’re used to smartphones and all the content on them that subconsciously changes their mindset. Some of them don’t have any experience of the world without social media and the internet. 

For Gen Zs, the internet isn’t just a place where they can find entertainment. Instead, it’s a significant thing that shapes their values and influences how they purchase things. For example, e-wallets and digital banking are big among Gen Z. One of the reasons why Neosurf casinos in Australia have become a trend is because of this shift in mindset. Gen Z values accessibility and convenience, something that they’ve gotten to enjoy from the beginning of their lives. 

Compared to trusting traditional advertising, Gen Z trusts influencers' opinions more, especially when it comes to luxury brands. Because this younger generation is always connected, they’re often highly aware of social issues like economic inequality and climate change. This is the main reason why luxury for them isn’t just about the price of things. 

The understanding of luxury has become authenticity, ethical sourcing, and sustainable practices. Economic realities also have a big impact on changing this mindset. Most Gen Zs are witnesses to events like the 2008 crash, which fosters pragmatism. Fleeting trends don’t have a significant hold over them. Instead, they seek value for money, durable items, quality, and experiences that can create lasting memories. 

This shift in mindset drives companies to adjust to the trend. Even for things as little as colour now have different meanings. The colour green used to stand for nature, but now it’s more about sustainability and eco-friendliness. Technological advancements also influence how luxury items market their branding. Some also started using sleek metallics and soft pastels for a more innovative and elegant look. 

Luxury as an Availability

When someone has the traditional luxury mindset, they might think it’s about owning luxurious physical goods. This can be expensive cars, branded handbags, watches, etc. However, Gen Z doesn’t see luxury as something they need to possess or own. For them, it’s mostly about memberships, rentals, subscriptions, or collaborative experiences. 

This is why platforms offering rentals on luxurious experiences or items are on the rise among Gen Z. Rent the Runway is one of the best examples, where people can rent designer clothing. This allows them to experience luxury without having to commit long-term. 

Individual Identity

Logos and brands are crucial in a traditional luxury ecosystem. People love to be seen wearing or bringing items with a renowned logo they can show off to their peers. Gen Z sees logos and brands less because they prioritise authenticity. 

For older generations, luxurious items are big-name designer brands with flashy logos. The more recognisable the emblem is, the more prestige they’ll get. On the other hand, Gen Z prioritises the brand’s value over its looks or name. They’re more likely to buy from a minimalist, eco-friendly brand if the brand actively supports the causes they believe in. 

If brands want to appeal to Gen Z, they need to build an emotional and personal bond with them. This is why Gen Z tends to choose brands that are more active on social media, because it’s easier to engage with the brand. In addition, these younger generations prefer to make their purchases online. 

Some renowned luxury labels like Balenciaga and Gucci had started adjusting to this shift. They expand digitally and try to show up on markets that the younger generations are more active in, like gaming. They also use augmented reality (AR) filters with Gen Z in mind. 

Sustainability

Sustainability is a big thing among Gen Z. Most of them are more inclined to brands that actively support ethical sourcing and can show their environmental awareness. Some high-end labels that know about this have managed to grab Gen Z’s attention, such as Chloe and Stella McCartney. They came up with eco-friendly collections and campaigned for inclusivity and diversity, which attracted more Gen Z customers. 

Inclusivity is almost as big as sustainability among Gen Z. Some luxury brands who had decided to stick with their traditional luxury branding find it hard to bring in Gen Z customers. Instead, brands like Fenty Beauty, which had expanded their foundation shades to fit all types of skin colour, are more praised and accepted by the younger generations.