Fashion Backward: Gen Z Shows How

The future? Yesterday's news. The Gen Z prefers to look in the other direction - and is turning entire sectors of the economy upside down. Not only does the Generation Z have high purchasing power, but they are also willing to spend their money. With their wide reach on social media, they also have the potential to shape trends as well as the image of entire brands. Thus, many companies are trying to win over the young clientele. Easier said than done.

What Sets the Generation Z Apart?

The Generation Z comprises all people born between 1997 and 2012. Unlike their predecessors, many Gen Z already had their first contact with digital media in their childhood. Because of their distinctive intuition for the digital, these young adults are also known as "digital natives".

It is clear the Generation Z feels very much at home on the Internet. Although they use digital media to maintain friendships and relationships online, young adults say they don't want to give up face-to-face interactions despite the omnipresence of the internet. This was particularly evident during the Covid 19 pandemic. During this time, many people's lives shifted almost completely to the online world. At that time, a large part of the Generation Z was in the middle of their youth or at the beginning of adulthood - a social stage of life which was marked by isolation and social distancing.

The lack of personal interaction has affected Gen Z not only on a social level, but also in terms of knowledge transfer at school or during training. Many young adults had to continue or complete their education from home. Furthermore, the weakened economy caused by the pandemic made it more difficult for them to enter the workforce. It remains unclear how this will affect the professional careers of Gen Z in the longer term.

Sustainable, Unique, Diverse

The digital natives may be the youngest in the labor market, but they already have a great purchasing power. According to an estimate by the Bank of America, the income of the 2.5 billion Gen Z is likely to be 33 trillion US dollars by 2030. By then, they would have a quarter of the world's income at their disposal. On the one hand, this phenomenon can be explained by the wealth of the previous generations, which will be accessible to the young adults over the years. On the other hand, increasing digitization is leading to new professions and work models that are particularly popular with Gen Z. As a result, Gen Z have even more opportunities to work and earn money than 20 years ago.

While they are considered as high spenders, these young adults are making conscious choices about where and how they spend their money. For brands, this in turn means that they have to make an effort to secure their spot among the Gen Z. The effort pays off - if companies manage to win them over. After all, many social media users of this generation have a wide reach, which not only allows them to influence trends, but also to boost the popularity - and thus also the sales figures - of brands.

The Generation Z is active and committed, they strive for transparency, authenticity and honesty. This is reflected in a study by the US agency "Adolescent Content," in which 400 Gen Z were asked about the most important characteristics of their generation. 75 percent of the respondents want to change the world for the better. They not only want to create a better future for themselves, but also for their successors. Accordingly, young adults are happy to support companies with similar values that are socially committed.

The Darlings of the Generation Z

Patagonia, for example, is one of the brands that have won the approval of the Generation Z. Patagonia is recognized as a pioneer among young adults in terms of sustainability and environmental protection - and has thus made itself popular with the Gen Z. Ben & Jerry's is also one of the favorites of the young adults. The ice cream maker's popularity is not only due to its product, but also to its commitment to issues such as social inclusion, marriage for all and climate change.

But there are also exceptions, such as Nike. In the past, the sportswear manufacturer was repeatedly criticized for outsourcing its production to sweatshops and the working conditions there. Nevertheless, Nike is one of the favorite brands of Gen Z, who attach great importance to sustainability and ethics. After all, young adults reward Nike's progress in this area. The company's progress is also reflected in the Fashion Transparency Index, which rates fashion companies based on their transparency about social and environmental practices throughout their business operations: In 2017, Nike met only 36 percent of the criteria, while in 2022 it was already 53 percent. However, that's an exception to the rule. Brands that do not live up to their promises can quickly fall out of favor with young adults.

Every year, the market researchers from Morning Consult evaluate the favorites of the Generation Z in the US. Names such as YouTube, Netflix, Amazon and Oreo are at the top of the list. But brands such as Ralph Lauren, Abercrombie & Fitch and Crocs, which were long considered "out", also seem to be popular with Gen Z.

Crocs was able not only to reposition itself through collaborations, but also to tap into additional target groups: Crocs inspired by cornflakes? Released together with General Mills Cereal. Crocs with heels? Designed in collaboration with Balenciaga. Crocs that express your love for fast food? Available through a collaboration with KFC. The colorful rubber sandals stand for individuality, lightness and free spirit - three features with which young adults can identify. But what exactly is behind the sudden revival of brands that were popular in the 1990s and 2000s? The keyword is nostalgia.

Gen Z and the Nostalgia Trend: Who Has Turned the Clock?

Y2K, Polaroids and flip phones: The Generation Z seems to bring the past back into the present. The nostalgia trend is not only reflected in fashion and lifestyle, but also in the media that young adults consume. The Netflix hits "Stranger Things" and "Wednesday" are prime examples of series that play with nostalgic elements. But what makes the past so fascinating for young adults?

There is a simple explanation behind the phenomenon: The Gen Z has grown up in a digitalized world. In the online sphere, trends and memories from the past are accessible at all times and can be shared with people from all over the world. Thus, the popularization of content from the past meets the need to leave the seemingly more complex here and now behind for a while.

Back to the Future

Gone are the days of flawlessness and the unrealistic expectations of oneself brought about by "Millennial Perfectionism". The Generation Z is aware that perfection does not exist this way. Instead, young adults place authenticity, individuality and self-realization in the spotlight. They are concerned about their future and strive for security and stability. Generation Z finds this, among other things, in the past. It is impossible to say how long the "nostalgia" trend will continue. Nevertheless, the purchasing power of Gen Z is likely to increase significantly over the next few years. This makes it all the more important for companies not only to market retro chic, but also to understand the values, needs and characteristics of this generation at its core.

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