Gen Z and Gen Alpha to Drive 40% of Fashion Spending by 2035
Younger generations, Gen Z and Gen Alpha, are projected to account for 40% of fashion spending within a decade, reshaping industry dynamics.
Gen Z and Gen Alpha consumers are expected to drive 40% of global fashion spending by 2035, according to a new report from Boston Consulting Group (BCG) and Women's Wear Daily (WWD). These younger demographics spend 7% more of their disposable income on clothing and shoes compared to previous generations.
The report, which surveyed over 9,000 US consumers and analyzed more than 50,000 social media posts, highlights the evolving shopping habits of these cohorts. They are more likely to discover brands through social media and view digital creators and influencers on par with celebrities. Micro-influencers, in particular, are significant drivers of brand discovery.
Artificial intelligence (AI) also plays a crucial role, with 41% of Gen Z and Gen Alpha consumers using AI weekly for fashion shopping, a higher rate than older generations. AI is utilized for discovering trends, seeking style advice, and comparing prices, establishing it as a trusted co-shopper for younger consumers.
The research also identifies a shift in brand loyalty, with Gen Z and Gen Alpha demonstrating product loyalty rather than brand loyalty. They seek distinctive and emotionally resonant products over consistently purchasing from the same brands. Approximately half of young consumers expect personalized attention and tailored product recommendations.