Born between 1997 and 2012, Gen Z—also known as Centennials or iGen—is the first generation to grow up in a world of constant connectivity, shaped by smartphones, screens, and digital media. This generation is highly environmentally conscious, values inclusivity and acceptance, and is significantly more politically aware than previous generations.

The Gen Z has come of age in the shadow of climate doom, pandemic lockdowns, and fears of economic collapse. In 2020, Gen Z represented 40 per cent of global customers and currently makes up a quarter of the population of the Asia–Pacific region alone. Accounting for a significant portion of the global population, this generation also exercises considerable purchasing power. With its purchasing power projected to reach $360 billion globally by 2030, Gen Z’s preferences and values are driving fashion brands and retailers to rethink their strategies and adapt to a rapidly changing market landscape. So, finding the best approach to engage their favour in the retail space is essential today.

Fashion Outlook
Generation Z is seen as driving a revolution in the way they buy clothes. Its fashion choices reflect its commitment to change, pushing the boundaries and paving way for a new era. Its values align closely with the traditional emphasis on community and craftsmanship, yet it demands modernity and innovation.

The personalised and customised clothing appeals the consumers of this generation a lot, since they value uniqueness and individuality. For this, they are willing to invest in clothing that reflects their personal style and values. This puts brands that offer customisation options, such as monogramming or some unique design features, on top of their list. Their aspirational values extend even beyond and aligns perfectly with trending call for circular fashion. Their love for thrifting and vintage styles has contributed to a major comeback of both 90s and Y2K-style clothes, reviving clothes dug out of closets and thrift stores. The massive growth in fashion resale is also accredited to Gen Z resellers and influencers. As a result, it has become typical of a Gen Z wardrobe to be a mix of cheap fast fashion and treasured vintage pieces.

Their go-to fashion needs include streetwear, gender-fluid fashion and athleisure wear. Their idea of streetwear draws inspiration from the 1990s and early 2000s hip-hop, sports and rave culture, characterised by oversized clothing, bold graphics, and a casual, relaxed aesthetic. Additionally, there is a strong sense of nostalgia in Gen Z fashion, with many young people embracing retro styles and reviving trends from past decades.

Rejecting gender norms and embracing a more inclusive approach to style, Gen Z champions gender-fluid fashion. As a generation that values individuality and self-expression, its fashion choices break away from conventional categories. Gender-fluid fashion is not just about mixing traditionally male and female clothing but also about creating a space for authentic self-expression. Gen Z has become the torchbearer of this movement.

Equally important for them is the comforts of athleisure wear – a staple in their wardrobe. They combine it with casual fashion that transforms their attire into versatile, comfortable clothing which can be worn both in and out of the gym. The popularity of athleisure reflects Gen Z’s preference for practicality and functionality in their clothing choices.

Vulnerable Loyalty
Gen Z consumers represent a conscious generation which knows what it wants, hence makes much more conscious choices and nurture loyalty to brands only if they meet their expectations. According to a study, 57 per cent of Gen Z consumers are willing to move to another retailer after just one poor shopping experience. In other words, they attach great importance to first impressions and stand firm behind their expectations. They may be less loyal but a more value-conscious audience. Since they care more about first impressions and see shopping as an experience rather than a transaction, the Gen-Z emphasises interaction and exhibits unique fashion expectations too.

Shopping Behaviour
Gen Z is characterised by its digital nativity, social consciousness, and desire for authenticity. According to the 2023 Cotton Council International (CCI) and Cotton Incorporated’s Global Lifestyle Monitor Survey, 73 per cent of Gen Z prefers to browse online and, for repeat purchases, they use e-commerce (67 per cent) far more often than going in-store (28 per cent). More than three-fourth (77 per cent) of Gen Z consumers, aged 14 to 28 years, like to purchase clothing in a physical store because they like to see the item in person. While 78 per cent make sure the item fits them, 70 per cent try them on. Although more inclined to shopping online, there are still 54 per cent of them who also like to shop in-store to feel the fabric. Among the reasons for shopping in-store, 47 per cent buy because there is no shipping costs involved, 36 per cent buy because they like the shopping experience, and 34 per cent satisfy their need of instant gratification by shopping in-store.

Internet & Technology
The advent of the internet and technology has revolutionised the retail space, reshaping it forever and influencing the tastes of digital-native Gen Z in many ways. Just as the internet enables subscribing to streaming platforms instead of purchasing films, it also provides Gen Z with options such as luxury clothing rental services. This reflects a trend where consumption is about access rather than ownership. This generation cares about ease of use of mobile pay, app-based services and simple online transactions, and has compelled brands to restructure to their tastes. This explains why some brands, thanks to Gen Z consumers, have found success through online-first launches. The widespread penetration of electronic and digital media enables advertisements to appear everywhere, allowing Gen Z consumers to experience brands at every stage of their buying journey as they navigate both digital and physical worlds.

Technology is aiding Gen Z’s fashion choices. Social media platforms like TikTok and Instagram are no more just places for sharing outfits. They have evolved into trendsetting hubs where new styles and brands gain visibility. Gen Z has embraced augmented reality (AR) and virtual reality (VR) wholeheartedly, which not only let them try clothes virtually but also enjoy tech-enabled interactive and engaging shopping experiences. With the integration of technology into shopping experiences, Gen Z’s expectations have been met to some extent. They are shaping the future of online shopping to align with their preferences and making full use of technological advancements.

Gen Z & Digital Fashion
Morgan Stanley estimates that the digital fashion market, which uses virtual characters and avatars to showcase digital clothing and accessories, will be worth $50 billion by 2030. The world of digital fashion presents exciting possibilities, such as a single garment adapting to all colours, or a dress constantly changing its material. Through this, Gen Z consumers can effortlessly express their personalities and identities online, offering a broader perspective on fashion in the digital age. When they interact with fashion online, they are not just wearing digital clothes—they are curating their identity. For these consumers, their virtual avatars are extensions of themselves, and their style, values and identities.

In Web2, consumers bought fashion online for themselves. Now, in Web3, they are purchasing it for their avatars, which exist in a non-physical realm. This positions digital fashion as a key component of the metaverse, where ownership is represented by NFTs. Gen Z consumers are increasingly buying physical fashion along with its digital twin. For instance, when a Gen Z consumer purchases sneakers, the brand may also offer them as an NFT, allowing their avatar to wear them too. Such features highlight why digital fashion—a limitless universe where designs transcend physical constraints—appeals so strongly to Gen Z.

People aged between 17 and 24 are the fastest-growing demographic on Roblox, an online game platform and game creation system, which regularly keeps undertaking various trend surveys. The platform saw 165 billion total avatar updates (up 38 per cent in 2023), and its users purchasing 1.65 billion digital fashion items (up 15 per cent). One Roblox survey of active users (aged 14 to 26 years) in virtual world, living in the US and UK, found that more than half of Gen Z users are willing to spend up to $10 each month styling their avatar, 19 per cent willing to spend up to $20 and 18 per cent willing to spend up to $50 – $100. Another Roblox study found that 70 per cent of Gen Z users are invested in customisation of looks and styles while expecting options to be diverse in skin tones, body sizes, hair colour, textures and styles. Forty-eight per cent are interested in exploring unconventional virtual clothing styles even if they would not wear them in real life. Some other key insights include: 56 per cent prioritise styling their avatars over their physical selves; 84 per cent value digital fashion and 85 per cent think it is important; 84 per cent reported their real world style was somewhat inspired by their avatars; 47 per cent feel wearing virtual garments from recognised brands is vital; and, 84 per cent try a brand in physical world after a virtual test run, among others.

What Brands Need to Do
Fashion brands and retailers need to understand that Gen Z emphasises on values of sustainability, inclusivity, and technology. By aligning with these values, brands will not only meet the expectations of this highly influential consumer group but also enhance their market relevance and competitive edge. With Gen Z driving social and economic changes, brands need to incorporate strategies that resonate with them. They need to build stronger connections with them, foster brand loyalty and thrive in an evolving industry. To do so, fashion brands must adopt some intelligent strategies.

Leverage social media
Gen Z consumers engage through social media and digital platforms like YouTube, TikTok, Instagram and Snapchat, which influence every part of their life from their hobbies to their shopping habits. Tapping into these avenues is essential for fashion brands trying to make an impact. They need to come up with more user-generated content, such as photo contests or style challenges, to engage with Gen Z audience. By providing exclusive offers, early access to new collections, and special events for loyal customers, they can build a loyal consumer base. For earning the loyalty of Gen Z consumers, social outreach is the tried and tested way. With a nearly endless list of possibilities to reach Gen Z in the digital space, fashion players must find their community and target audience they want to engage. The brands and retailers in fashion space who reflect the values and desires of Gen Z will find relentless support and loyalty from this group.

It is also a known fact that Gen Z is engrossed in social media most of the time, so fashion brands should create engaging and authentic content through short videos, stories and behind-the-scenes glimpses to nurture a personal connection with them. Additionally, they can partner with influencers, who resonate with Gen Z, to boost product promotion and generate relatable content.

Influencers can make a difference
Research shows that 98 per cent of Gen Z owns at least one smartphone, making it the go-to device for social media engagement. To stay ahead, fashion retailers and brands must harness the power of social media influence and embrace the growing influencer culture, which has proven to be the most effective way to reach the Gen Z community and influence their choices. Gen Z is highly sceptical of mainstream advertising, as they seek genuine and relatable content. This is where authentic influencers, including micro-influencers, can effectively engage a highly targeted audience through their loyal fan base.

Influencers have a significant advantage in promoting products, as Gen Z places greater trust in the reviews and recommendations of influencers they identify with. In this era of digital engagement, Gen Z is reshaping the fashion industry through their online interactions and shopping habits. Research shows that nearly three-quarters of them have been influenced to make purchases, as evidenced by the 6.7 billion views of the hashtag #TikTokMadeMeBuyIt. The rise of influencer culture has transformed social media platforms into the hottest shopping destinations—an opportunity that fashion retailers and brands cannot afford to miss.

Customised experience is the key
By deploying integrating and interactive technologies in their stores, fashion retailers can enhance shopping experience of Gen Z. They should ensure that their websites and online stores remain mobile-friendly since Gen Z primarily shops through their smartphones. Gen Z consumers also seek unique and personalised clothing. Fashion brands must address this demand by leveraging AI and data analytics to provide personalised products and recommendations. They should offer tailored product suggestions based on individual preferences. Given that Gen Z values timeless pieces that enhance personal identity over mass-produced fashion and fleeting trends, brands must factor this into their offerings. Personalisation in the shopping experience should become a top priority, especially since this generation expects higher levels of customisation than any before it.

Fashion brands additionally need to develop compelling brand story as they know Gen Z values authenticity and storytelling. The brand story must reflect their values, mission, and the journey of their products. Furthermore, by sharing authentic customer testimonials and stories, brands can build trust and credibility with Gen Z consumers.

Digital shopping space is a goldmine
Social media is an integral part of Gen Z’s everyday life and has driven a digital sales boom. Fashion stakeholders must explore this digital culture more deeply at all stages of the value chain, as it is rich with insights into Gen Z consumers’ buying behaviour. When it comes to fashion shopping, social networks have already surpassed search engines among this tech-savvy generation. Their shopping decisions are planned and executed based on word-of-mouth recommendations from trusted influencers. This serves as a valuable clue for fashion brands and sellers. They must focus on providing convenient and efficient digital shopping options on their platforms. For this, they need to create secure, safe and easy-to-navigate online shops, also linked to and directly accessible from social media platforms. One must realise the fact that Gen Z customers play a decisive role in keeping fashion among the top selling categories online. They see digital shopping as a huge convenience. They use online stores for price comparison and eventually grab the best deal which serves as a major motivator for Gen Z. This should pave way for fashion brands to adopt techniques like sales and influencer codes and exclusive online discounts to lure the interest of Gen Z customers. With numerous online shops competing for their attention, Gen Z customers are never in a rush to make a purchase. They are more than happy to wait for the best or most exclusive deals, provided brands promote them effectively. Gen Z’s strong inclination towards online shopping presents a valuable opportunity for fashion players to make a lasting and impactful impression.

Another key aspect of Gen Z’s online shopping is the data it generates, providing valuable insights for fashion brands and retailers. Sales and shopping data play a crucial role in understanding and predicting Gen Z’s preferences, allowing brands to track trends, customer behaviour, and market shifts. By continuously refining their marketing strategies based on data-driven insights, brands can stay relevant and connected to Gen Z. The algorithms powering Gen Z’s digital lifestyle are highly advanced, ensuring maximum engagement and success.

Embrace sustainability, adapt to social shift
Gen Z places a strong emphasis on sustainability, inclusivity, and social justice. Consumers from this generation often support the brands that align with these values. In one McKinsey study, around three-fourth of Gen Z reported trying to purchase from companies they consider ethical, while nine out of ten believe that companies have a responsibility to address environmental and social issues. For Gen Z, sustainability is an essential part of their identity hence it demands the same dedication from the brands they choose. To oblige, fashion companies must embrace eco-friendly practices that would include utilising sustainable materials like organic cotton and recycled fabrics, cutting down on water usage in production, and ensuring ethical labour practices at every level of their supply chain, and continue showcasing them more often. Furthermore, these efforts must be complemented by transparent communication about their supply chain, environmental impact, and ongoing efforts to improve sustainability, to build trust and loyalty with Gen Z consumers.

The Deloitte Global Millennials & Gen Z survey of 2022 also determined that Gen Z is the most eco-conscious consumer generation so far, with 64 per cent of Gen Z buyers willing to pay a premium price, as much as 10 per cent more, to support sustainable fashion as opposed to harmful fast fashion. They are not afraid to boycott even big names that do not align with sustainability and societal responsibility. A large portion of Gen Z consumers now evaluates their fashion choices based on these concerns rather than brand reputation.

At the same time, Gen Z loves expressive clothing that helps them stand out rather than simply fit in, making their fashion style ever evolving. Sometimes, even a month-old trend feels outdated to them. This rapid trend cycle is well catered to by fast fashion retailers like Shein, which adds 6,000 new products to its website daily. Such large-scale fashion consumption by an eco-conscious generation appears paradoxical. As a result, Gen Z sometimes exhibits contradictory behaviour concerning the values it upholds.

This generation stands for social justice too. Rightly so, brands are actively participating in and supporting social justice movements and causes that align with Gen Z’s values. To value diversity and inclusion, they feature models of various ethnicities, body types, and gender identities in their marketing campaigns, aspiring to have a connect with this generation on a deeper level.