The survey shows that Gen Z luxury spending is growing 3x faster than other generations. Around 60 per cent of Gen Z respondents have made luxury purchases in the last 12 months, compared with 18 per cent of baby boomers, says Kristen Gall, president of Rakuten Rewards.
Gen Z consumers are starting to buy luxury goods — everything from designer handbags and shoes, to watches, jewelry, apparel and beauty products — at age 15, three to five years earlier than millennials did, the report said.
Younger generations (Y, Z, and Alpha) will become the biggest luxury buyers by far, representing 80 percent of global purchases by 2030. Bain estimates that the market for personal luxury goods surged 22 percent in 2022 to roughly $381 billion.
Gen Z are starting to splurge on luxury shopping as young as 15 — up to 5 years earlier than their millennial counterparts did. 'Precocious' teens are set to become the biggest buyers of luxury goods by 2030 as the demographic of shoppers in the sector get younger and wealthier.
But Gucci, too, has found favour among Gen-Z, despite its pricey products being out of reach for most young consumers.
Baby boomers have the highest household net worth of any US generation. Defined by the Federal Reserve as being born between 1946 and 1964 (currently in the ages between 59 and 77), baby boomers are in often in the sunset of their career or early into retirement.
Boujee.
This term can be used if you're describing something or someone that is extravagant or fancy.
The majority of Gen Z and Millennials define “expensive” as anything that costs more than $40. Any brand with a recognizable name can be considered luxury to these gens. Quality is the major defining characteristic of what they consider to be a luxury item.
Gen Z's makeup favorites extend beyond drugstore brands when it comes to products they've found on TikTok: Dior Beauty jumped into third place this year after seeing several products spark a frenzy on the app, including its Rosy Glow blush in 2021 and Addict Lip Oil that went viral this year.
According to Morning Consult's survey, YouTube is the most-used platform for Gen Z — with 88% spending their time on the app: Coming in at the number two spot is Instagram at 76% — hinting that the platform isn't “over.” And TikTok (68%) and Snapchat (67%) aren't too far behind either.
Gen Z online shopping habits
Merchandise relating to leisure, sport, and hobby, as well as beauty products, are also popular items Gen Z consumers buy online. 39% of those surveyed say they purchase products in these two categories on the internet.
Thirty percent of Gen Zers surveyed in the US and UK said they would “revert to their 'go to' brand for a new product or service” when making purchases, according to a recent survey. More than double that portion, 62 percent, said they would check out other options, even if they have a favorite brand.
The Most Popular Brands With Gen Z
The full methodology is available below. An overwhelming majority (86.23%) of Gen Z adults have a favorable impression of YouTube, making it the most popular brand with the cohort. YouTube's parent brand, Google, comes in at No. 2, followed by Netflix and Amazon.
As Gen Z slang, it is a simple replacement for “cool” or “good.” When written, “gucci” can be capitalized or all lowercase. EXAMPLE: Person 1: “I got a new car.” Person 2: “Oh, that's gucci.”
About three-fourths of Gen Z say that they are to be loyal to a company that speaks to social issues, posts information, or has advertisements about social change1. This generation cares about a lot of issues.
Gen Z is a lot more conscious of where their clothes are coming from. When they're choosing between brands, they want to know not only if the clothes are in style, but also if the brand stands for something bigger than itself. Clothing brands that offer unisex or gender-fluid clothing are all the rage.
Hickly: Gen Z is obsessed with aesthetic culture because we are a generation that struggles a lot with identity and belonging to certain “aesthetics” gives a sense of belonging.
Cheugy (/ˈtʃuːɡi/ CHOOG-ee) is an American neologism coined in 2013 (allegedly by Generation Z) as a pejorative description of lifestyle trends associated with the early 2010s and millennials. This aesthetic has been described as "the opposite of trendy" or "trying too hard".
Gen Z would say they're being salty. Salty can be used to describe jealous, irritated, or resentful behavior.
Gen Z is the most materialistic generation today, according to a report by Bank of America. Gen Z, ages 10 to 25 per Beresford Research, are much more driven by financial success than millennials and Gen X.
The average net worth by age for Americans is $76,300 for those under age 35, $436,200 for those ages 35 to 44, $833,200 for those ages 45 to 54, $1,175,900 for those ages 55 to 64, $1,133,700 for those ages 65 to 74 and $977,600 for those age 75 and above.
Forbes just released its 2023 ranking of the world's richest people, and the list includes a whopping 15 billionaires who are under 30 or younger. These Gen Z and millennial billionaires have amassed fortunes that most people can only dream of, and some of them haven't even hit legal drinking age in the United States.
The 18-34 age bracket is Gucci's biggest audience on the site. Meanwhile, Gucci has also collaborated with brands that popular with young people, like the North Face.