Luxury brands face a generational test with consumers of generation Z

Fleur Arbel and Christophe Kairouz, both from France, were attracted to the new york flagship of Louis Vuitton recently by a colorful sculpture of a monogrammed giraffe and ostrich about the entrance of the store.

But it is more likely that the two 24 -year -old girls will spend their dollars of shopping elsewhere, since the heavy logos and styles of Louis Vuitton consider them past.

“I think they could not keep the image of luxury in some way,” Kairouz said. “I think they need to create something new, original.”

Arbel and Kairouz are a small fraction of the Gen Z cohort, born between 1998 and 2012, the new border of the luxury industry. The group represented 4% of the worldwide luxury expenditure before the pandemic; By 2030, it is expected to represent 25%, according to Boston Consulting Group.

Executives, consultants and analysts say that this generation is more difficult to specify than their predecessors. Influenced by a global panorama of social networks, tend to mix and combine goods of established names with more modern labels, buying everywhere, from Tiktok to second -hand stores. Inherited brands that try to attract consumers in generation Z have used influential people, emerging stores and affordable items, such as bags of bags, to attract this population group.

“There is a lot of similarity between generation Z in Shanghai and Los Angeles and London,” said Scott Roe, financial director and operations director of Tapestry Coach-Parent.

The most affordable luxury companies, such as coach and Ralph Lauren, whose income increased 6.8% in the 12 months that ended in March, are capitalizing the generational change. The coach has won the cache between generation Z using influencers, offering personalized services and prioritizing sustainability, according to experts.

The total revenues of the coach increased 9.9% to approximately $ 5.6 billion for the 12 months that ended in June. Roe de Tapestry said that generation Z is no less loyal to the brand than other generations, but it is more difficult for brands to reach these consumers because buyers have more options. “To make your way, you need to have a large part of the voice.”

That voice is expensive: the tapestry increased its marketing expense of 3% of 10% pre-pandemics sales this year, according to its May earnings call, although it did not reveal how much it was specifically addressed to generation Z.

The brands face the upstarts and the smallest established labels, such as Collina Strada and Mary-Kate and The Row of Ashley Olsen, which uploaded two places to the sixth place in the most recent Lyst index of the best luxury brands. Lyst, a global fashion purchasing platform, tracks the behavior and commitment of social networks of more than 160 million users in its place and is considered the “largest fashion data set”, according to the company.

Hillary Taymour, creative director of Collina Strada, said they began to go to generation Z in 2020 with digital ads. Now, generation Z and millennials represent 58% of their business.

“Mix sustainability with a playful aesthetic and driven by memes,” he said, citing the “inclusive casting and various catwalk shows” of the brand that make the youngest public feel as part of a community.

Affordable items are based on younger buyers

Not all fashion powers remain on the shelf. Bottega Veneta luxury labels, owned by Kering, the Miu Miu de Prada Group and Loewe owned by LVMH continue to work well with the Z Gen. MIU MIU MIU currently occupies the first place in the LYST index, followed by Loewe.

Miu Miu's sales increased 49% in the first half of 2025 compared to the same period in 2024, capturing luxury buyers for the first time with charms of leather bags, which are sold in the range of $ 240 to $ 1,250.

“Marks like Miu Miu were successful because individual pieces reflect the identity of the brand, allowing consumers of the Z generation to buy in the brand without having to buy a complete appearance,” said Achim Berg, founder of Fashionsights, a group of industry experts.

Less expensive items attract younger luxury buyers, who are even more aware of the budget than their older counterparts. In August, the expense between generation Z and millennials, those born after 1978, increased only 0.5% compared to the previous year, according to Bank of America, compared to a 2.4% increase for Baby Boomers.

“When I buy luxury, I think of 'What will last a long time?' I am spending a lot of money in an article: I want something that I am not going to get tired in five or ten years, “said Kendall Still, a 26 -year -old Los Angeles native.

Some brands have fought. Gucci sales, owned by Kering, fell 25% in the second quarter. The company overthrew the Stefano Cantino CEO after only nine months at work on September 17. The data of the Z DCDX generation researcher, which tracks the mentions and interactions with the user -generated brand content, showed that Gucci suffered the most acute decrease in social networks among the best luxury labels during the past year.

In the last two years, Kering's actions have lost 43% of their value, while the tapestry has more than tripled. Gucci did not respond to a request for comments.

“The inherited brands are dividing into clear winners and losers,” said Frederica Levato, main partner of Bain & Company.

The next players in emergen worldwide could be Chinese brands such as Uma Wang and Shushu/Tong. In Asia, the newest Chinese companies are winning traction with younger buyers due to their digital fluidity and ability to capture China's national identity, according to the CEO of Chanel, Leena Nair, who spoke at the New York economic club on September 16.

“The longevity of a brand cannot be taken for granted. You stay in public consciousness and you have the iconicity because you are relevant and timely, and constantly modern,” he said.