May 20, 2025
Gen Z, also known as Centennials or iGen, is the first generation born between 1997 and 2012. It was raised in a world of constant digital connectivity, shaped largely by screens, smartphones, and other digital media. This generation values inclusion and acceptance and is more politically aware.
Gen Z is a generation that has grown up in the shadows of climate catastrophe, pandemic lockdowns and economic collapse fears. Gen Z will represent 40% of global consumers in 2020 and a quarter of Asia-Pacific’s population. This generation, which makes up a large portion of the world’s population, also has a lot of purchasing power. Gen Z is expected to have a global purchasing power of $360 billion by 2030. This will force fashion brands and retailers alike to rethink and adapt their strategies to the rapidly changing landscape. Finding the right approach to win their favour in the retail sector is crucial today.
Fashion Outlook Generation Z has been credited with revolutionizing the fashion industry. Its fashion choices reflect its desire to push boundaries and usher in a new age. Although its values are based on the traditional focus on community and handicrafts, it also demands innovation and modernity.
This generation is very interested in personalized clothing and custom-made clothes, as they value individuality and uniqueness. They are, therefore, willing to spend money on clothing that reflects both their style and their values. Brands that offer customization options such as monogramming and unique design features are at the top of their lists. They have aspirational value that goes beyond the current fashion trend. The love of vintage and thrifting has led to a revival of 90s-style clothing and Y2K clothes. These clothes have been rescued from closets and thrift shops. Gen Z influencers and resellers are also responsible for the massive growth of fashion resale. Gen Z’s wardrobe is a mixture of fast fashion pieces and vintage treasures.
Streetwear, gender-fluid clothing and athleisure are their go-to styles. The 90s and 2000s hip-hop culture, sports, and rave-influenced streetwear. It’s characterized by oversized clothing and bold graphics. Gen Z is also characterized by a strong nostalgia, as many young people embrace retro styles and revive trends from previous decades.
Gen Z is a generation that rejects gender norms, embraces a more inclusive style, and champions gender-fluid clothing. Fashion choices are not confined to conventional categories. Gen Z values individuality and expression. Gender-fluid clothing is more than just mixing traditional male and female clothes. It’s about creating an authentic space for self-expression. Gen Z is the torchbearer for this movement.
Athleisure clothing is a must-have in Gen Z’s wardrobe. By combining it with casual clothing, they can wear their clothes both inside and outside the gym. Athleisure reflects Gen Z’s desire for functionality and practicality in their clothing.
Vulnerable Loyalty
Gen Z is a generation that knows what they want and makes more informed choices. They are loyal to brands when they live up to their expectations. A study found that 57% of Gen Z shoppers are willing to switch to a different retailer after a bad shopping experience. They are also very particular about first impressions, and they stand by their expectations. They may be less loyal but more value-conscious. Gen-Z is more concerned with first impressions, and shopping for them is an experience. They also have unique fashion expectations.
Shopping Behavior
Its digital nativity and social consciousness characterize Gen Z. It also has a desire for authenticity. According to the 2023 Cotton Council International’s (CCI) Global Lifestyle Monitor Survey and Cotton Incorporated, 73 per cent of Gen Z prefer to browse online. For repeat purchases, Gen Z uses e-commerce more than ever (67%) and in-store shopping (28%) for repeat purchases. Gen Z consumers aged 14-28 years old prefer to buy clothing in physical stores because they want to see it in person. More than three-quarters (77%) of Gen Z shoppers like to do so. 78% of Gen Z consumers make sure that the clothing fits, and 70% try it on. However, they are more likely to shop online, and 54 per cent still like to go to the store to touch and feel fabrics. In-store shopping is preferred by 47% of shoppers because it eliminates shipping costs, 36% because they enjoy the experience and 34% because it provides instant gratification.
Internet & Technology
Internet and technology have revolutionized retail, changing it forever. They also influence the tastes of Gen Z, who are digital natives, in many different ways. Gen Z can rent luxury clothing through services like rental platforms, just as they can subscribe to streaming platforms rather than purchase films. This trend reflects the fact that access is more important than ownership when it comes to consumption. This generation is concerned with the ease of using mobile payments, app-based services and simple online transactions. Brands have been forced to adapt to this new taste. Gen Z has influenced some brands to launch online first. Advertising is everywhere, thanks to the widespread use of digital and electronic media. Gen Z can experience brands throughout their entire buying journey, both in digital and physical environments.
The technology is influencing Gen Z’s fashion choices. Social media platforms such as Instagram and TikTok are not just for sharing outfits. They are now trendsetting hubs where brands and styles gain visibility. Gen Z is embracing augmented reality and virtual reality, which allows them to not only try on clothes virtually but also engage in interactive and engaging shopping. Gen Z has met their expectations to a certain extent with the integration of technology into shopping experiences. Gen Z is reshaping the future of online retail to match their preferences, and they are making full use of technological advancements.
Digital Fashion for Gen Z
Morgan Stanley predicts that by 2030, the digital fashion industry, which showcases digital clothing and accessories using virtual characters and avatars, will reach $50 billion. Digital fashion offers exciting possibilities. For example, a garment that can adapt to any colour or a dress that changes its material constantly. Gen Z can easily express themselves online. This gives a new perspective to fashion in the digital age. They are not only wearing digital clothes when they interact with fashion on the internet, but they are also curating their own identity. These consumers see their virtual avatars as extensions of their style, values, and identities.
In Web2, customers buy fashion online. In Web3, consumers are now purchasing fashion for their avatars that exist in non-physical worlds. Digital fashion is now a major component of the Metaverse, and ownership is represented through NFTs. Gen Z is increasingly purchasing physical fashion alongside its digital counterpart. When a Gen Z customer buys sneakers, the brand might also offer them in NFT form so that their avatar can wear them. These features show why Gen Z is so drawn to digital fashion, a universe of limitless designs that transcend physical limitations.
Roblox is an online gaming platform and game-creation system that regularly conducts trend surveys. The fastest-growing demographic is people aged 17 to 24. In 2023, the platform will have seen 165 billion avatar updates (up by 38%), and its users will purchase 1.65 billion digital clothing items (up by 15%). In a Roblox survey, which surveyed active users in the US and UK (aged 14-26 years), it was found that over half of Gen Z users were willing to pay up to $10 per month to style their avatar. 19% of respondents said they would spend up to $20, and 18% up to $50 to $100. A Roblox study revealed that 70% of Gen Z users were interested in customizing their looks and styles. They also expected options to be varied in terms of skin tones and body sizes as well as hair colour, textures, and styles. Forty-eight per cent of Gen Z users are open to exploring unusual virtual clothing styles, even if they are not something they would wear in real life. Other key insights include: 56% prioritize styling their avatars before their real selves, 84% value digital fashion, 85% think it’s important, 84 % reported that their avatars inspired their real-world style, 47 % feel wearing virtual clothing from recognized brands are vital, and 84 % try a brand out in the physical world after doing a virtual trial run.
What Brands need to do
Fashion brands and retailers must understand that Gen Z values sustainability, inclusivity and technology. Brands will be able to meet the demands of this influential consumer group while also enhancing their market appeal and competitive edge by aligning themselves with these values. Brands need to adopt strategies that are relevant to Gen Z as they drive social and economic change. To thrive in a changing industry, they need to foster brand loyalty, build stronger relationships with them and grow their business. Fashion brands need to adopt intelligent strategies in order to achieve this.
Use social media
Gen Z engages through digital platforms such as YouTube, TikTok and Instagram, which influence everything from their hobbies to shopping habits. Fashion brands that want to have an impact must tap into these channels. To engage Gen Z, they need to create more user-generated material, like photo contests and style challenges. They can build a loyal customer base by offering exclusive offers, early access and special events to loyal customers. Social outreach has been proven to be the best way to earn the loyalty of Gen Z customers. Fashion players have a virtually endless list of options to reach Gen Z on the digital platform. They must identify their target audience and community. Fashion brands and retailers who are able to reflect the values and wants of Gen Z can expect their support and loyalty.
Fashion brands can also create authentic and engaging content by creating short videos, behind-the-scenes glimpses, and stories to foster a personal relationship with Gen Z. They can also partner with Gen Z-friendly influencers to generate relatable content and boost product promotion.
Influencers make a difference.
According to research, 98 per cent of Gen Z have at least one smartphone. This makes it the preferred device for engaging in social media. Fashion retailers and brands need to harness the power and influence of social media and embrace influencer culture to stay ahead. This has been proven to be the most effective method to reach Gen Z and influence their decisions. Gen Z is sceptical about mainstream advertising and seeks genuine, relatable content. Here, authentic influencers and micro-influencers can engage a highly focused audience by leveraging their loyal fanbase.
Influencers are a great way to promote products. Gen Z is more likely to trust the opinions and recommendations of influencers with whom they identify. Gen Z’s online shopping and interactions are reshaping fashion in this digital age. As evidenced by the hashtag # TikTokMadeMeBuyIt’s 6.7 billion views, research shows that almost three-quarters of Gen Z have been influenced into making purchases. Influencer culture has made social media platforms the most popular shopping destinations. Fashion retailers and brands can’t afford to miss this opportunity.
The key to a custom experience
Fashion retailers can improve the shopping experience for Gen Z by implementing interactive and integrating technologies into their stores. Since Gen Z shops primarily on their smartphones, fashion retailers should make sure that their online stores and websites are mobile-friendly. Gen Z shoppers also want unique, personalized clothes. Fashion brands need to meet this demand using AI and data analytics in order to offer customized products and suggestions. Brands should provide tailored product recommendations based on individual preferences. Brands must take into account that Gen Z prefers timeless pieces to enhance their identity over fashion trends and mass-produced clothing. The shopping experience must be personalized, as this generation is more accustomed to customization.
Fashion brands must also develop a compelling brand story, as Gen Z is a fan of authenticity and storytelling. The brand story should reflect the values, mission and journey of the product. By sharing real customer stories and testimonials, brands can gain trust and credibility from Gen Z consumers.
The digital shopping space is a treasure trove.
Social media has become a part of Gen Z’s daily life, and this has led to a boom in digital sales. Fashion stakeholders need to explore this digital culture at all stages of the value chain as it contains a wealth of insights into Gen Z’s buying behaviour. Social networks are the preferred shopping platform for this tech-savvy group when it comes to fashion. They plan and execute their shopping decisions based on recommendations from trusted influencers. Fashion brands and sellers can use this information to their advantage. They should focus on offering convenient and efficient digital options for their platforms. To do this, they must create easy-to-navigate, secure and safe online shops that are also linked and accessible directly from social media platforms. Gen Z is a key factor in fashion, being one of the most popular categories on the internet. Digital shopping is a great convenience for them. Gen Z uses online stores to compare prices and grab the best deals. Fashion brands should use techniques such as influencer codes, sales and online discounts in order to attract Gen Z customers. Gen Z is not in a hurry to buy because there are so many online shops that compete for their attention. Gen Z is more than willing to wait for exclusive or best deals if brands effectively promote them. Fashion players can take advantage of Gen Z’s preference for online shopping to create a lasting impression.
Gen Z’s online purchases generate a lot of data, which is a valuable source of information for fashion brands and retailers. Data from sales and shopping is crucial to understanding and predicting Gen Z preferences. This allows brands to track trends and customer behaviours, as well as market shifts. Brands can remain relevant and connected with Gen Z by continuously refining marketing strategies using data-driven insights. Gen Z’s digital life is powered by highly sophisticated algorithms that ensure maximum engagement and success.
Adopt sustainability and adapt to social change.
Gen Z is a generation that emphasizes social justice, sustainability and inclusivity. This generation of consumers often supports brands that share their values. According to a McKinsey survey, three-quarters of Gen Z consumers said they tried to buy from companies that they considered ethical. Nine out of 10 Gen Z respondents also believed companies had a responsibility to deal with environmental and social concerns. Gen Z is committed to sustainability and expects the same commitment from brands. Fashion companies will have to adopt eco-friendly practices, such as using sustainable materials, like organic cotton and recycled fabrics and cutting back on water consumption in production. They must also ensure ethical labour practices throughout their supply chain and showcase them more frequently. To build trust and loyalty among Gen Z consumers, fashion companies must also communicate transparently about their supply chains, environmental impact and ongoing efforts to improve sustainable practices.
Deloitte’s Global Millennials & Gen Z Survey of 2022 found that Gen Z was the most eco-conscious generation to date. Sixty-four per cent of Gen Z buyers were willing to pay a higher price – up to 10 per cent more – to support sustainable fashion over harmful fast fashion. Even big brands that don’t align themselves with sustainability or societal responsibility are willing to be boycotted. Gen Z shoppers now base their fashion decisions on sustainability and social responsibility rather than brand reputation.
Gen Z is also drawn to clothing that makes them stand out rather than blend in. This keeps their style evolving. Even a trend that has been around for a few months can feel outdated to Gen Z. Fast fashion retailers, like Shein, who add 6,000 new items to their website every day, are well-suited to this rapid cycle of trends. Paradoxically, a generation so concerned with the environment would consume fashion at such a large scale. In order to maintain its values, Gen Z can sometimes display contradictory behaviour.
Social justice is also important to this generation. Brands are right to support and actively participate in social justice movements that are aligned with Gen Z values. To promote diversity and inclusion in their campaigns, brands feature models with different ethnicities, body types, and gender identities.
Conclusion
Gen Z, like previous generations, is not only reshaping the fashion perspective but also paving a path for the future of global fashion. Gen Z’s behaviour and mindset can be used to help fashion brands and retailers win their loyalty. It is the best way to build a loyal consumer base. Fashion players can have a major impact on the industry by integrating influencer cultures, digital strategies and ethical practices. Fashion retail is evolving rapidly, and Gen Z is at the forefront of this modern transformation. This proves that catering to Gen Z’s needs will lead to success.
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